What's the best book on market profile? Just looking to recomend one to a friend who wants to learn more about it. CajunSniper / Puretick.com Administrator-Trader
The one authored by Kevin Koy. Jim Dalton has a new book coming out next month------"Markets in Profile". It's a little pricey at ~$65/copy.
http://www.cbot.com/cbot/pub/page/0,3181,1184,00.html You can download a Market Profile handbook from the CBOT site, and it is free. This is a good starting point. I think Jim Dalton;s second book, Markets in Profile, is even better then his first. Market profile is not as much to be a trading tool as it is to be a way of organizing data and putting it in context. Though the concepts may be a bit abstract for a newbie, the importance of uderstanding when and how to detect the higher time frame player stepping in, and its implications, can be huge for an already established trader. Think about it this was: When there are no higher time frame players stepping in, a trader favors countertrend strategies - playing for regression to the mean, (Also called the "value area") after tests of the trading range extremes. When the higher time frame player is active (increase in volume and urgency), breakouts have greater odds of followthruogh and a trader should adopt a momentum type of strategy, then monitoring for continuation patterns. I recommend Jim's second book to everyone, and Amazon sells it for $40, down from the $65 retail.