Steidlmayer on Markets: Trading with Market Profile, 2nd Edition

by J. Peter Steidlmayer

Proven techniques for market profile users at any level
A "market profile" presents a number of basic elements from the market in an easily understood graphic format that, when analyzed properly, can yield profitable intraday and swing trades that traditional indicators do not reveal. Steidlmayer on Markets shows readers how to find these opportunities using the innovative techniques developed by the author during his many years of trading the market. This fully updated Second Edition covers innovations in both technology and technique-and broadens the scope of "market profile" to include stocks.
J. Peter Steidlmayer (Chicago, IL) joined the Chicago Board of Trade in 1963 and has been an independent trader ever since. Steidlmayer served on the Board of Directors of the Board of Trade in 1981-1983. While a director, he was responsible for initiating Market Profile and the Liquidity Data Bank. Steve Hawkins (Chicago, IL) has experience in trading in both stocks and commodities. Over the past seven years, Hawkins has educated traders across the globe. He has also collaborated on the writing of books on trading and written articles for industry trade publications. He is a graduate of the University of Illinois with a degree in economics.
New technology and the advent of around the clock trading have opened the floodgates to both foreign and domestic markets. Traders need the wisdom of industry veterans and the vision of innovators in today's volatile financial marketplace. The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prospered-some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.

Genres: Finance, Nonfiction

240 pages, Hardcover

First published November 22, 2002

Reviews

[Thomson Kneeland · Rating 2 out of 5]

Having now read the Dalton books on Market Profile, I wasn't particularly thrilled with this Steidlmayer read. Every little bit of information and angle helps, but I think a reader would be better off focusing on Dalton's books. Plus the last quarter of this book deals with outdated software and techniques that are pretty irrelevant to trading today. Steidlmayer's work in market profile and auction theory is a must know, but there are better and easier ways to get this information.

[Gary Morga · Rating 5 out of 5]

Steidlmayer is the origin of Market Profile.

[Enrique Arroyave · Rating 3 out of 5]

Much easier to read than "Mind over Markets"

[Jairo Fraga · Rating 3 out of 5]

The book "Steidlmayer on Markets: Trading with Market Profile" details the evolution of trading strategies, emphasizing the Market Profile, a tool that describes real-time market activity, and the Steidlmayer Market Profile, an enhanced version offering deeper insights. Shows techniques like the 3-2-1 Strategy and focuses on the first hour of trading.

The book also introduces the concept of the Market's Internal Clock, a tool that measures price recurrences over time. It highlights the importance of understanding whether the market is in a continuation or change condition through the analysis of timeslots. Along with this, the "Beyond-the-Day Activity" is discussed, emphasizing the behavior of long-term traders and their interactions with daily traders, and how their motivations can influence price movements.

Stressing market profile analysis and the identification of key events, the book suggests integrating tools like the Liquidity Data Bank (LDB), Volume @ Time, and On Floor Information. Especially the LDB, which assists in identifying where the major players are placing their orders, becoming essential for trades based on big player movements.

A somewhat bad written and confusing book, with not much real insights and probably not so good strategies, which shouldn't work so good nowadays.

Estimated reading time: 10h30m

[Josiah R · Rating 4 out of 5]

I found the beginning of this book to the best part ... a more autobiographical section telling the author's background, family values, etc., and how that fed into his approach to the markets. Definitely worth reading.

[Michael · Rating 4 out of 5]

From the person who developed market profiles and gives a narrative of his early life. Discusses the sources/foundations for a lot of his trading ideas. The book later talks about different tools that are only available through his company besides the market profile.

[Sandro Trosso · Rating 4 out of 5]

Very interesting probabilistic and behavioral approach to market dynamics

[Moisés Toro · Rating 4 out of 5]

Many ideas and fundaments to improve my strategy. It's in my opinion a rational method to analyze markets.

[Alexander · Rating 4 out of 5]

A very useful framework for organising one's thinking about markets from a veteran commodity trader.

[Pablo Torre · Rating 4 out of 5]

Great insight into market micro structures, a must read for anyone who wants to us market profile chats.
But, the middle of the book has way too much publicity for his software package...

[John · Rating 3 out of 5]

obviously no book is going to give away a foolproof trading system. there are no holy grails in trading. however this is as solid a technical trading book as you will find. presents some technical tools that could add value to the process of most short-term traders.