Investor/RT Professional

[MC]

Ok, this is where MARKET PROFILE comes in and where Investor/RT shines.

Market profile is a way to look at the market from an accepted value perspective. Remember a BALANCED market shows accepted value. Price is agreed upon for a period of time, until balance gives way to a trending phase.

A typical profile segments 30 minute periods which then come together and combine to form a daily profile. So for example: period 1 would document 9:30-10:00's price action, period 2 would show 10:00-10:30 and so on. This forms a profile to watch for bellcurve formations, which show balance. What a bellcurve or balance area shows is that price rotated in that range of pricing while the market decided if the participation was more bullish or bearish.

The important part to understand is these areas demonstrate ACCEPTED VALUE. The more time spent in a price range the higher the acceptance level. The wider the balance area, the greater it will act as support or resistance once a side is chosen as well. A short fat profile shows contraction (little price movement) and large indecision. It's these inflection points where supply or demand is built up. Why is simple...because these are the areas where people transacted and will defend or flee from when revisited.

So keep in mind as the market balances there are bulls and bears both jocking for position. From a trend trading perspective one side will win, and one side will lose at these balance levels.

What you see in the above chart is a merge of the 20th and 21st profiles. This highlights where the majority of price action rotated in and came back to. This is our accepted value. Should the market auction cut off at highs...this is a range that is VERY high probability to do 2 things. First its pretty likely this gets hit/tested. Second, once hit there is VERY likely to be a reaction and often further rotation...more balancing. If short, a great place to take some off the table and secure profit. If long, a place to maybe add and average down or depending on your plan maybe exit.

Some highlight features of Investor/RT: It's late so more to come soon!

I can control+click a profile to merge it with the profile to the right.

I can shift+click a profile to split the periods out, almost like a bar chart. Can you split merges as well? Of course...this is Investor/RT we're talking about here.

Tomorrow I'll show a shot of the current profile split. Investor/RT lets you take tick data and color the profile periods to show if the delta is positive or negative. And differing degrees of delta will be shaded different darkness. So you can spot tick divergence at new highs or lows for example (and most importantly, divergence into balance areas).