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Mind Over Markets: Power Trading with Market Generated Information, Updated Edition

Book Description

A timely update to the book on using the Market Profile method to trade

Emerging over twenty years ago, Market Profile analysis continues to realize a strong following among active traders. The approach explains the underlying dynamics and structure of markets, identifies value areas, price rejection points, and measures the strength of buyers and sellers. Unlike more conventional forms of technical analysis, Market Profile is an all-encompassing approach, and Mind Over Markets, Updated Edition provides traders with a solid understanding of it.

Since the first edition of Mind Over Markets—considered the best book on applying Market Profile analysis to trading—was published over a decade ago, much has changed in the worlds of finance and investing. That's why James Dalton, a pioneer in the popularization of Market Profile, has returned with a new edition of this essential guide. Written to reflect today's dynamic market conditions, Mind Over Markets, Updated Edition clearly puts this unique method of interpreting market behavior and identifying trading/investment opportunities in perspective.

  • Includes new chapters on Market Profile-based trading strategies, using Market Profile in connection with other market indicators, and much more

  • Explains how the Market Profile approach has evolved over the past twenty-five years and how it is used by contemporary traders

  • Written by a leading educator and authority on the Market Profile

One of the key elements that has long separated successful traders from the rest is their intuitive understanding that time regulates all financial opportunities. The ability to record price information according to time has unleashed huge amounts of useful market information. Mind Over Markets, Updated Edition will show you how to profitably put this information to work for you.

Table of Contents

  1. Cover
  2. Series Page
  3. Title Page
  4. Copyright
  5. Preface
    1. Does the Profile Still Work, after All These Years?
    2. On the Long Road to Expert
  6. Acknowledgments
  7. Chapter 1: Introduction
  8. Chapter 2: Novice
    1. Laying the Foundation
    2. Introduction to Day Timeframe Structure
    3. Normal Day
    4. Normal Variation of a Normal Day
    5. Trend Day
    6. Double-Distribution Trend Day
    7. Nontrend Day
    8. Neutral Day
    9. Day Type Summary
  9. Chapter 3: Advanced Beginner
    1. Building the Framework
    2. The Big Picture: Market Structure, Trading Logic, and Time
    3. Evaluating Other Timeframe Control
    4. Other Timeframe Control on the Extremes
    5. Other Timeframe Control in the Body of the Profile
    6. Initiative versus Responsive Activity
    7. Trending versus Bracketed Markets
    8. The Two Big Questions
  10. Chapter 4: Competent
    1. Doing the Trade
    2. Section I
    3. Day Timeframe Trading
    4. Day Timeframe Directional Conviction
    5. Opening's Relationship to Previous Day—Estimating Daily Range Potential
    6. Open within Value—Acceptance
    7. Open outside of Value but within Range—Acceptance
    8. Open outside of Range—Acceptance
    9. April 13,1989
    10. Day Timeframe Auction Rotations
    11. Using Auction Rotations to Evaluate Other Timeframe Control
    12. December Swiss Franc, October 12, 1987
    13. Auction Failures
    14. Monitoring the POC or Fairest Price
    15. Day Timeframe Visualization and Pattern Recognition
    16. Ledges
    17. High- and Low-Volume Areas
    18. Section II
    19. Long-Term Trading
    20. Attempted Direction: Which Way Is the Market Trying to Go?
    21. Buying/Selling Composite Days
    22. Directional Performance: Is the Market Doing a Good Job in Its Attempts to Get There?
    23. Long-Term Auction Rotations
    24. Transition: Bracket to Trend
    25. Transition: Trend to Bracket
    26. Detailed Analysis of a Developing Market
    27. Long-Term Short Covering and Long Liquidation
    28. Corrective Action
    29. Long-Term Profiles
    30. Special Situations
    31. Spikes
    32. Balance-Area Breakouts
    33. Gaps
    34. Markets to Stay Out Of
    35. News
    36. Beyond the Competent Trader
  11. Chapter 5: Proficient
    1. Self-Understanding: Becoming a Successful Trader
    2. Self-Observation
    3. The Whole-Brained Trader
    4. Strategy
    5. Summary
  12. Chapter 6: The Expert Trader
  13. Chapter 7: Experience
    1. Set Aside Your Expectations
    2. Mind Over Markets in Profile
    3. Market-Understanding and Self-Understanding
    4. The Trader's Dilemma
    5. The Most Important Omission from the First Printing in 1990
    6. Hierarchy of Information
    7. Timeframe Control—Who Is Dominating the Current Session?
    8. Markets Are Visual
    9. We Are All Day Traders
  14. Appendix 1: Value-Area Calculation
    1. Volume Value-Area Calculation
    2. TPO Value-Area Calculation
  15. Appendix II: TPO versus Volume Profiles
    1. Single Price Level Distortions
    2. End of Day Total Volume versus Ongoing Volume throughout the Day
    3. Anomalies
    4. Too Focused on Volume
    5. Conclusion
  16. Suggested Readings
  17. About the Authors
  18. Index