Yet another entry on my Trader’s Wish list.
I did a review of Markets in Profile when that book came out. That’s a book any trader should read. That’s the most recent text on the Market Profile concept written by James Dalton, et al. It does a great job of explaining the a general philosophy and what’s really going on in the market, but for more specifics about the methodology, one must go back to his original book.
The title of this book – Mind Over Markets – can be a bit misleading. The subject matter has little to do with the mental side of trading. Rather, it’s a quite thorough discussion of the Market Profile technique for market analysis and trading. Market Profile is essentially an alternative charting method which has been used by professionals in the futures market for years, but has yet to gain wider acclaim in the broader arena because it is not a feature readily available on retail charting packages. For those who take the time to learn it, however, Market Profile can be a very valuable resource.
Mind Over Markets takes the reader through the full topic of Market Profile, from basic to advanced. It discusses the underlying logic behind the methodology and how to apply it. The authors use numerous examples to discuss the various patterns and set-ups which occur, and how one can trade them for maximum benefit.
That said, one seeking a fully developed trading system will not find it here. The authors encourage the reader to spend time working with the Market Profile to get a feel for it for application in their own trading. They do not give many hard and fast rules. This can be annoying for one seeking a straight-forward system, but the fact of the matter is the market is variable. What works one time may not work other times, at least not in the same way.
The bottom line is that Market Profile is a tool. It is a way to look at the markets differently than one normally does, which can be a good thing, and Mind Over Markets is an excellent resource along those lines. Is it for everyone? Probably not, but even if you don’t end up using Market Profile, there is still some value to be had in reading Mind Over Markets and understanding the overall message of market action and movement.
Another great book on Market Profile, and that whole approach to looking at the markets is Steidlmayer on Markets. It was written by the man who is primarily responsible for the development of the Market Profile method.