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Markets in Profile: Profiting from the Auction Process
Markets in Profile explores the confluence of three disparate philosophical the Market Profile, behavioral finance, and neuroeconomics in order to present a unified theory of how markets work. The Market Profile is an ever-evolving, multidimensional graphic that gives visual form to the market's continuing auction process, revealing the myriad underlying dynamics that influence market activity. Behavioral finance posits that investors are driven more by emotional factors and the subjective interpretation of minutia than by "rationality" when making investment decisions. And neuroeconomics is the study of how investor psychology permeates and affects the financial markets. Mr. Dalton explicates the ways in which irrational human behavior influences the market's natural auction process, creating frequently predictable market structure, which results in opportunities for investors to ameliorate risk. The book will improve investors ability to interpret change in markets, enabling better, more confident investment decisions.
224 pages, Hardcover
First published February 1, 2007
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370 people want to read
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Displaying 1 - 13 of 13 reviews
February 22, 2020
The author gave a lot of analogies about how the market works in this book. Such as referencing the financial markets as an art auction process, and the time and effort takes to become a market technician is the same as the time required to learn to read an X-ray graph for a surgeon or mastering chess.
The author also reinforced some key concepts such as market is not efficient, instead it is effective. Meaning the price approaches higher highs and it HAS to do its thing before the market realises that it is too high. Market EMH (efficient-market hypothesis) theorist will think that "no way this thing is going any higher! it is totally not rational thinking!" Well, the truth is, market is often times irrational at large. Successful market participants are reactive in nature, not predictive like what those "professionals" says. A.k.a. someone who is trying to tell you the opposite things or someone who is simply don't know what he is talking about and still stuck in the twentieth century theoretical literatures.
The author used the term a “bracketed market” a lot in this book, it is basically a consolidated zone or "box". A catalyst is needed to initiate the next major directional trend. On the other hand, if a major news announcement has rendered little to no significant impact, from my understanding, market makers at large have simply anticipated the good/bad news and the price have already been factored in. Thus resulted in a motionless response or an opposite direction than was expected.
In summary, the book is basically trying to convey some very fundamental ideas about the psychology of technical analysis. The need to understand the various distinct phases of market movements and how prices, time and volume plays the interrelated role in the creation of all the patterns and structures.
Market participants, both investors and traders should not forecast and predict like economists or those so called “analysts and experts”. Instead we should focus on assessing risks and react to price and market movements.
Pattern recognition is exceptionally important in a world of unlimited market variables and complex data sources. This is also the exact reason why this game is so difficult to master and thus the survival rate in this business is so low.
I think the book is slightly outdated. It was first published a few months before the released of the first generation iPhone back in 2007. Also, the world has changed drastically ever since the Great Recession especially the financial sector. It would be best if the author revise and update this book for this highly digitalised age of high frequency trading. Furthermore, I am not a big fan of the lettering profile (similar to the bar chart) as depicted in the book. But the underlying principles can be used for all kinds of price action analysis i.e. on a candlestick chart.
This book could have easily be a high 4/5 on any given day for its technical concepts and psychological aspects alone. Still a highly recommended read for all market participants.
The author also reinforced some key concepts such as market is not efficient, instead it is effective. Meaning the price approaches higher highs and it HAS to do its thing before the market realises that it is too high. Market EMH (efficient-market hypothesis) theorist will think that "no way this thing is going any higher! it is totally not rational thinking!" Well, the truth is, market is often times irrational at large. Successful market participants are reactive in nature, not predictive like what those "professionals" says. A.k.a. someone who is trying to tell you the opposite things or someone who is simply don't know what he is talking about and still stuck in the twentieth century theoretical literatures.
The author used the term a “bracketed market” a lot in this book, it is basically a consolidated zone or "box". A catalyst is needed to initiate the next major directional trend. On the other hand, if a major news announcement has rendered little to no significant impact, from my understanding, market makers at large have simply anticipated the good/bad news and the price have already been factored in. Thus resulted in a motionless response or an opposite direction than was expected.
In summary, the book is basically trying to convey some very fundamental ideas about the psychology of technical analysis. The need to understand the various distinct phases of market movements and how prices, time and volume plays the interrelated role in the creation of all the patterns and structures.
Market participants, both investors and traders should not forecast and predict like economists or those so called “analysts and experts”. Instead we should focus on assessing risks and react to price and market movements.
Pattern recognition is exceptionally important in a world of unlimited market variables and complex data sources. This is also the exact reason why this game is so difficult to master and thus the survival rate in this business is so low.
I think the book is slightly outdated. It was first published a few months before the released of the first generation iPhone back in 2007. Also, the world has changed drastically ever since the Great Recession especially the financial sector. It would be best if the author revise and update this book for this highly digitalised age of high frequency trading. Furthermore, I am not a big fan of the lettering profile (similar to the bar chart) as depicted in the book. But the underlying principles can be used for all kinds of price action analysis i.e. on a candlestick chart.
This book could have easily be a high 4/5 on any given day for its technical concepts and psychological aspects alone. Still a highly recommended read for all market participants.
December 27, 2018
Hands down the best technical approach book I’ve read. It helps to have about 2 years of market experience to then come to this book but I should have read it sooner. I am transitioning to a value trader recently and this is a great way to form strategic setups that allow for larger trades. Moving to market profile is not simple especially if you are a pure scalper. Would recommend for momentum and swing traders looking to enhance their game.
April 17, 2022
I adore the volume profile and any indicated that uses volume, delta, bid and ask etc to predict price. But this book won't give you any new insight than what you can get on Youtube.
On top of that, this book is about market profiles and how to read it. Volume profile is a much better indicator. So I wouldn't recommend this.
On top of that, this book is about market profiles and how to read it. Volume profile is a much better indicator. So I wouldn't recommend this.
January 13, 2023
Jim Dalton really is the Godfather of Market Profile. Mind over Markets was great, but this book really got my market understanding to the next level. It is filled with timeless knowledge and, in my opinion, obligatory reading for any serious trader or investor.
February 18, 2023
Dnf. Tries to sound sophisticated but it doesn’t hide thefact that the book has very little to say. Unfortunately, my unsophisticated mind took 7 chapters to accept this. tldr: volume is important to determine whether to confirm/ fade breakouts. Market profile rocks.
January 29, 2017
I wish I read this before Mind Over Markets.
This is a much broader, though not as deep, overview of Dalton's theory. Must read if you're interested in how markets move in relation to previous days.
This is a much broader, though not as deep, overview of Dalton's theory. Must read if you're interested in how markets move in relation to previous days.
August 20, 2020
The market profile shows volume at each price during the day. It's a simple concept and the guidelines (all with exceptions) to trade the shape of a profile (in itself and in relation to previous days' profiles) can be summarized on one page.
About 1/4th of the book explains the market profile and the guidelines on how to trade based on it. The rest of the book is more broad, recounting wisdom and advice about the markets and trading. If you're a trader, you will never be able to read too much of this trader lore. Dalton talks about the markets in a fun and intelligent way, drawing knowledge an quotes from psychology, literature, and philosophy (as well as, of course, from economics, finance, etc.).
About 1/4th of the book explains the market profile and the guidelines on how to trade based on it. The rest of the book is more broad, recounting wisdom and advice about the markets and trading. If you're a trader, you will never be able to read too much of this trader lore. Dalton talks about the markets in a fun and intelligent way, drawing knowledge an quotes from psychology, literature, and philosophy (as well as, of course, from economics, finance, etc.).
August 23, 2019
Great book to understand the developments of a market. A little useful insight to psychology of the markets as well. Very Useful!! Must Read.
December 26, 2021
Interesting insight and view of the market in a different dimension. The auction process.
February 22, 2022
It is an amazing book, psychology of the market 100%
April 1, 2023
Profitable book
March 7, 2024
Builds off of previous book and interpretation of market profiles for trading decisions. Discusses strategies and offers examples.
June 10, 2024
Solid fundamental information
Displaying 1 - 13 of 13 reviews