What does James F. Dalton mean by inventory in his book, market in profle?

What exactly does inventory mean? It seems so abstract that I can't figure it out.

 

Short-term trading is all about Inventory getting too long and inventory getting too short.

What he means by that is first we need to identify who we are competing against. If it's short-term participants, they will build positions on one side, and if they cannot push markets on the side they build their positions, they will flush out,( measure also via time ).

To estimate what they were up to and how good a job they were doing is the catch. Hope that helps.

 

A long position?

 

Where the accumulated buys and sells are located. POC, UVA, LVA, single prints.

 

Well, it seems obvious to me that inventory is the positions held by players in the market.

 

The stock float at different price points?

I havent read his book. He wants 1200 bucks.

And I just started learning about TPO charts over on YouTube a few weeks ago, but I really think it could be that simple. No reason to overcomplicate it.

Geez Luiz.

 

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Inventory like books in a private library+ books in a private library;
except looks like, he may move his inventory more like the cash metals dealers, or WMT,DG.
I see one book reviewer noted= helps trading with trend.
[MP]market profile could be useful;
I dont use it because on my charts with MP= so inaccurate so I dont use MP

 

To be a profitable day trader, understand how the market makers manage their positions (inventory) is an important tool in our tool box.