Sunday, March 04, 2007

Recommended Reading

The book I'm recommending here is called the Market Profile Handbook. The CBOT, which is devoting a section of their homepage to Market Profile lists it as one of the resources to understand Market Profile.

Market Profile are these cryptical ABCDF charts you always asked yourself, what is that all about, if you ever had a look at them. As you might have noticed a few months ago I started using Price Histograms, which is Ensigns way of implementing Market Profile, on my charts as well. Take a look at Enthios, if you are interested in other ways of using Market Profile or in templates for your favorite chart program.

You'r not interested in Market Profile, because you don't understand these charts and you don't want to confuse yourself. If you consider yourself no novice in trading, take a look at the Market Profile Handbook nonetheless. You will find a lot of information in it about the reasons behind price movements and how prices usually moves, which makes the read worthwhile. And this will help you read your favorite charts and indicators with better understanding.

I forgot to mention, the book is free of charge, so do yourself a favor and get yourself your copy and read it.