Markets in Profile: Profiting from the Auction Process

James F. Dalton · Robert B. Dalton · Eric T. Jones

Jan 2011 · Sold by John Wiley & Sons

About this ebook

Markets in Profile explores the confluence of three disparate philosophical frameworks: 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.

Ratings and reviews

This book is excellent for both new/inexperienced traders as well as honed professionals. I highly recommend it for a number of reasons, but first let me say to all those people that prescribe to conspiracy theories regarding markets, please read this book and learn how and why markets really move: human emotion. Unlike other trading books this is not a roadmap for ‘how to get rich in a year’ type of book. This is not a tutorial on technical and/or fundamental analysis. It will give you unique insights into interpreting price action by attempting to understand who the players are in the market (short term players: locals/day traders vs. longer term money manager activity) and some tools are presented (ie the market profile) on how to identify and profit from this information. Good luck and happy trading Maluhia

This is simply the best paradigm changing trading book available. You need to read Mind over Markets first, and if you understand the principles in that book, the information in this book will truly enlighten and change your trading.

About the author

JAMES F. DALTON 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.

ROBERT BEVAN DALTON is a freelance writer and creative director for a variety of agencies, organizations, and nonprofits in the great northwest.

ERIC T. JONES has observed markets and investors throughout his twenty-three years of developing investment products and leading investment manager research teams.