Market Profile Gives You the Message of the Market

Tom Alexander

Tom Alexander

One of the unique features of auction market analysis is that it provides a totally consistent and objective means of valuation in any timeframe. As long as Value as determined by the behavior of market participants is trending in one direction, that is the past of least resistance for a market. The visual artifact of “Value” is reflected on the profile graph as a High Volume Node on the profile chart. Until a market begins forming lower lows of Value the path of least resistance is up and long trades should be favored.

One cannot peruse the blogosphere without encountering countless blogs and articles whining, pouting and figuratively jumping up and down about how stupid, ridiculous, unfair, conspiratorial and just plain wrong it is that the stock market is going higher. I am daily thoroughly entertained by the vast amount of time and effort that is going into the efforts to point out how ridiculous it is that the market keeps going higher.

However, it will not make you, or me, one cent. If it is your job or aspiration to make money in the market, you better pay attention to what the market itself is saying. Right now it is very simple. The initial signal something may be changing is if/when the levels highlighted on the charts below are breached. Until that happens you have to be long, looking for longs, or flat.

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