Structure: Market-Generated Information (MGI) That Comprises Structure: Accumulating Poor Highs or

Structure
A building has structure; if you know anything about construction you can observe the
structure as it is built and are able to comment on the quality, strength, and what
pressures it can withstand. You arrive at these observations by noticing the
arrangement of the parts along with the interrelationships of the parts in the
construction. If you have observed the entire construction project, layer by layer, the
structure is very visual to you at multiple layers. Some structures are very sturdy
requiring a tremendous force to move them, while others are made of inferior
materials and poorly assembled without interlocking joints or strapping to bind them
together; these will require little force to change them.The Market Profile® captures
the building and development of each auction (structure) within the market’s natural
two-way auction process; learning to understand the quality and strength of each
auction and at each level is one step in creating a trading edge.
Market-generated information (MGI) that comprises structure: accumulating poor highs or

lowsand wide points of control (POCs) that are not revisited; accumulating, anomalous
—non symmetrical—profiles over time; strung out profiles that are asymmetrical in
shape showing no healthy elongation; and, daily (or even longer timeframe) bar charts
that are strung out and show no balancing—no ‘elevator stops’—that reflect healthy
balancing as a market trends up or down. The accumulation of various MGI—its
cumulative effect—increases poor structure exponentially. This is to say, that as more
suspect MGI develops, the structure is worsening at an increasing rateand factors into
our market perspective accordingly.
Suspended Auction
Baseball games can be suspended because of darkness or weather; a suspended game

would be completed at a later date. It is not uncommon to experience suspended
auctions within the market’s two-way auction process. For example, the long-term
auction might take a breather as an intermediate-term counter auction balances or
adjusts the long-term inventory. The long-term auction hasn’t ended; it is simply
suspended until the inventory adjustment has been completed. It is not uncommon to
observe the same process as a day timeframe or daily auction experiences a similar
correction. An uncompleted daily auction would structurally lack a buying or selling tail
and would leave an “unsecured” or “poor” high or low. Suspended auctions occur in all
timeframes.
Symmetry
A helpful way to describe symmetry starts with this definition from dictionary.com:
“The proper or due proportion of the parts of a body or whole to one another with
regard to size and form; excellence of proportion.” For example, the Profile of a solid,
healthy trend day has parts that are relatively proportional to each other and the
Profile as a whole; even though it is an elongated Profile it has symmetry. This is quite
different than a Profile that is too stretched out where the proportion of the parts is
not normal relative to the body as a whole, such as a double distribution or triple
distribution day; these Profiles lack symmetry. Anomalies are another example of
Profiles that lack symmetry. They are by definition not proportional to the Profile shape
and depending on contextual considerations, have higher odds of being revisited
or repaired.
Most important to understand is what symmetry represents in the auction process. It is

not static; there is symmetry in different environments. In a trending market, symmetry
suggests solid trade facilitated by confidence and a certain order, or flow, throughout
the pit session. If it is a trend day up, trade is being facilitated for the buyer; a trend day
down, for the seller. In a rotational environment where balance has formed, symmetry
depicts an agreement of value, at least for the short-term, between buyers and sellers.
Inversely, a lack of symmetry reveals, through Profile structure, emotional trading, low
confidence, and hesitancy in the auction process.
Market Profile shape has traditionally been described as a bell-shaped curve or

‘normal’ distribution turned on its side. However, over the years our use of symmetry
has become more sophisticated and has advanced beyond this foundational principle;
the bell-shaped curve description is somewhat oversimplified.
Tempo
Dictionary.com defines tempo with regard to chess “as the gaining or losing of time
relative to one’s mobility or developing position.” That definition is applicable to
trading; for example, if the market is attempting to auction higher, you can ask, “How
effective is the auction?” Once you begin to think in terms of tempo you will be on your
way to internalizing this important concept. Tempo is a market term rather than a
Market Profile® concept; although it is certainly applicable to the auction process.
Many successful day traders, who consider little else, are successful because they
understand the market’s tempo. Tempo precedes market structure; in this way it is a
leading indicator of what structure will eventually look like.
Timeframe trading behavior
The Field of Vision video covers the behavioral aspects of the various timeframes.
Determining who is in the market on any given day and understanding how their
participation will affect the auction process is crucial in determining one’s trading
strategy and tactical implementation.
Timeframes
Market activity is influenced by a wide variety of participants operating under a wide
variety of timeframes and motivations. The way each of these participants combines
and employs information is different. For learning purposes we have segregated the
markets into 5 timeframes: (Chapter 3 of Markets in Profile expounds on this topic.)
1. Scalpers are very short-term oriented, trades being completed possibly in

seconds; they rely primarily on intuition and order flow. Today most scalping is
done via computer.
2. Day traders come to market each day flat (no position) and leave the day flat.
Their behavior is very short-term and often emotional. They depend almost
exclusively on market-generated information because fundamental information
is too slow and cumbersome; fundamental information can actually be
counterintuitive for the day trading process.
3. Short-term traders ’timeframe is usually 3-5 days or slightly longer under the
right contextual conditions. They supplement market-generated information
with an awareness of recent fundamental information and the effects this can
have on market movement. They love to trade from the top to the bottom (or
bottom to the top) of multiple-day trading ranges—5 to 10 days is ideal.
4. Intermediate-term traders’ timeframe covers weeks or months of market
activity; they rely on a blanched mix of fundamental and market-generated
information. This timeframe prefers to trade from the top to the bottom or vice
versa of large trading ranges or balance. When the intermediate-term traders
begin to dominate a market, their behavior is aggressive. While they tend to
dominate markets far less frequently than the short-term timeframe discussed
above, when they are dominant they are usually very aggressive and move the
market substantially. Shorter-timeframe traders who are unaware of their entry
into the market often suffer substantial losses.
5. Long-term investors/traders may hold positions for months or even years; they
are far more attached to the securities and investments they own. They tend to
follow fundamental information first, followed by market valuation, and finally
market-generated information to supplement their understanding of market
activity. When they become dominant, markets can move out of the more
traditional contained ranges of the other timeframes. They move markets; and
when they do, the other timeframes “pile on”.

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Structure

Market-generated information (MGI) that comprises structure: accumulating poor highs or

Baseball games can be suspended because of darkness or weather; a suspended game

Most important to understand is what symmetry represents in the auction process. It is

Market Profile shape has traditionally been described as a bell-shaped curve or

Timeframe trading behavior

1. Scalpers are very short-term oriented, trades being completed possibly in

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