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<p>Preface xi</p> <p>Acknowledgments xix</p> <p><b>Chapter 1 The Only Constant 1</b></p> <p>The Creation of ERISA 4</p> <p>The Rise and Fall of Relative Performance 4</p> <p>The Fall of the Great Bull 6</p> <p>The Rise of Absolute Return 7</p> <p>Succeeding in an Absolute Return Market Environment 8</p> <p>Pure, Unbaised Information 10</p> <p>People Change Markets, Markets Change People 13</p> <p><b>Chapter 2 Information 15</b></p> <p>Fundamental Information 16</p> <p>Rational or Irrational? 18</p> <p>Market-Generated Information 19</p> <p>The Auctions 20</p> <p>Fair Value 21</p> <p>Market Profile Fundamentals 22</p> <p>Authors’ Note 22</p> <p>Demystifying Market Behavior 27</p> <p><b>Chapter 3 Timeframes 29</b></p> <p>Breaking Down Market Timeframes 31</p> <p>Scalper 32</p> <p>Day Trader 32</p> <p>Short-Term Traders 32</p> <p>Intermediate Traders/Investors 33</p> <p>Long-Term Investors 35</p> <p>Your Timeframe Is your Strategy Cornerstone 39</p> <p><b>Chapter 4 Auctions and Indicators 41</b></p> <p>The Search for Value 42</p> <p>Concept Review 45</p> <p>Key Market-Generated Indicators 48</p> <p>Perfecting the Art of Visualization 56</p> <p><b>Chapter 5 Long-Term Auctions 59</b></p> <p>Auctions in Action 60</p> <p>The Compound-Auction Process 61</p> <p>The EBB and Flow of Balance 62</p> <p>Where Do Trends End and Brackets Begin? 64</p> <p>Clarity in the Maelstrom 66</p> <p>The Big Picture 68</p> <p>Asymmetric Opportunities and Risk 72</p> <p>Long-Term Strategy Development 74</p> <p>Assembling the Big Picture: Context within Context 75</p> <p><b>Chapter 6 Intermediate-Term Auctions 77</b></p> <p>Convergence and the Bracketing Process 77</p> <p>Defining the Intermediate Term 79</p> <p>The Transition from Bracket to Trends 80</p> <p>The Transition from Trend to Bracket 82</p> <p>The Convergence of Intellect and Emotion 85</p> <p>Accelerate the Learning Process 86</p> <p>Prelude to a Sea Change 87</p> <p>Hear the Bells A-Ringing 94</p> <p>Countertrend Auctions 94</p> <p>The Quest to Do Better than ‘‘Normal’’ 96</p> <p>Oh, the Difference a Few Points Makes 97</p> <p><b>Chapter 7 Short-Term Trading 99</b></p> <p>Analyzing Short-Term Markets 101</p> <p>Common Mind Traps 104</p> <p>When and Where to Look for Short-Term Trades 105</p> <p>Opportunities Around Intermediate-Term Brackets 106</p> <p>Technical Indicators 106</p> <p>Your Own Worst Enemy: Your Brain 110</p> <p>Seeking the ‘‘Exceptionally Tasty Patterns’’ 112</p> <p>All Prices and Opportunities Are Not Equal 116</p> <p>Ongoing Forensic Investigation 121</p> <p>Looking for the All-Important Reference Points 124</p> <p>Never Be a Laggard 129</p> <p>A Golden Opportunity 130</p> <p>Fade the Extremes, Go with Breakouts 132</p> <p>‘‘The Expert Reasons Contextually’’ 137</p> <p><b>Chapter 8 Day Trading Is for Everyone 141</b></p> <p>What’s a Day Trader to Do? 142</p> <p>What You Don’t Do May Be More Important than What You Do 145</p> <p>The Real World in Action 146</p> <p>Top Down 152</p> <p>Lack of Conviction 152</p> <p>Flight to Safety 153</p> <p>Inventory Imbalances 154</p> <p>Correction of Inventory Imbalances 155</p> <p>Trend Traders’ Trap 157</p> <p>Market Condition 158</p> <p>Yesterday’s Trade 162</p> <p>Example 1 162</p> <p>Example 2 165</p> <p>Example 3 167</p> <p>Trader Checklist 170</p> <p>The Market Is Open 171</p> <p>Open-Drive 171</p> <p>Open-Test-Drive 175</p> <p>Open-Rejection-Reverse 178</p> <p>Open-Auction 181</p> <p>Day Trader’s Checklist 181</p> <p>Example 1 183</p> <p>Example 2 185</p> <p>Example 3 188</p> <p>Practice, Practice, Practice 190</p> <p><b>Chapter 9 Profiting from Market-Generated Information 193</b></p> <p>Timeframe Diversification 194</p> <p>The New Paradigm 196</p> <p>Appendix A: Market Update 199</p> <p>About the Authors 201</p> <p>Index 203</p>

<b>JAMES F. DALTON</b> has been a pioneer in the popularization of the Market Profile, a unique method of identifying trading/investment opportunities. Most recently, Mr. Dalton was director of research for managed accounts at UBS Financial Services. He began his career in the investment industry as a broker with Merrill Lynch and Shearson Lehman. <p><b>ROBERT BEVAN DALTON</b> is a freelance writer and creative director for a variety of agencies, organizations, and nonprofits in the great northwest.</p> <p><b>ERIC T. JONES</b> has observed markets and investors throughout his twenty-three years of developing investment products and leading investment manager research teams.</p>

<b>Praise for MARKETS in PROFILE</b> <p>"Good books teach, but the best books enlighten. <i>Markets in Profile</i> is much more than a lucid explanation of the Market Profile and its application; it is an enlightening perspective on auction markets and the principles underlying all trading, regardless of time frame. Clearly written with many practical examples, <i>Markets in Profile</i> moves seamlessly from trading how-to's to trading psychology and back again, emphasizing the trader's dual challenge of understanding markets and understanding self. In so doing, authors Dalton, Dalton, and Jones have produced a worthy successor to their classic Mind over Markets."<br /> —Brett N. Steenbarger, PhD, author of <i>The Psychology of Trading</i> and <i>Enhancing Trader Performance</i></p> <p>"<i>Markets in Profile</i> is a brilliant, insightful work that should be required reading for any trader. Dalton, Dalton, and Jones will transform your trading technique through their unique knowledge of the markets and understanding of trading psychology."<br /> —Martin Sheridan, commodities trader, NYMEX member</p> <p>"This book provides a fresh approach to behavioral finance—ideas that I have used to great benefit."<br /> —Gregory A. Ehret, Senior Managing Director, State Street Global Advisors</p> <p>"Few people understand the dynamics of the auction process as well as Jim Dalton. <i>Market Profile</i> offers a graphic representation of this process and Markets in Profile illustrates Jim's mastery of it."<br /> —Steve Dickey, Vice President of Market Data Products, Chicago Board of Trade</p> <p>"Market data speak volumes and Jim Dalton has deciphered the code. In Markets in Profile, Jim shares his techniques of profitable trading in a most readable and entertaining format. Serious traders, both professional and amateur, should benefit from the application of Jim's volumetric approach to reading what investors are telling us through their collective buy-sell transactions."<br /> —Walter Sall, professional investor</p>

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