Markets In Profile |LINK|
A new and expanded 335 page CBOT Market Profile manual, CBOTMP2, was released in 1991, (5). In this volume the first five sections are devoted to profile analysis. The last section discusses LDB data. Unlike CBOTMP1, there is no emphasis on a Market Profile ticker product. In the period 1985 - 1991 the profile concept caught on with the public (in one Chicago Tribune article Steidlmayer was identified as "the man who knows where the market is going").
Markets in Profile
In early 1986 Steidlmayer and Kevin Koy started Market Logic School to teach profile trading. Around the same time the CBOT gave up on marketing the Liquidity Data Bank directly to the public (CISCO Futures became their vendor). Public access to tick data increased greatly so that profiles could be constructed real-time intra-day (whereas the LDB data breaking out the category of participant at price was still generated at the end of day). It was becoming increasingly clear that pit trading's days were numbered. By 1991 it was obvious that the focus was on the profile technology and less on the database used to support the calculations. Hence the change in emphasis on the Profile vs the LDB data in CBOTMP2.
Volume is said to identify signs of continuation or change, to infer the directional facilitation of trade, but "volume data, by itself, is meaningless". The reason given is that "it is essential to know what market participants are doing". Many 'profile readings' are shown in both CBOTMP1 and CBOTMP2, inferring who is trading what and what message they are sending. One method, apparently, is to see if volume is increasing to the upside or downside intra-day. The LDB data discussed here is end of day. Some time later the CBOT began releasing clearings during the day on the half hour. These clearings when compared to tick data indicate an approximately half hour delay. It is not explained just how reading trade facilitation with delayed data is effected.
The objective part of a Market Profile is the profile display. This comes directly from the data itself, creating TPO's (either from LDB or tick data (11)). A key element is the Initial Balance, the range and price location of the first hour of trading.
Day types, of course is chart reading and forecasting. The well known problem with interpreting charts is the multitude of potential interpretations for most any chart. Mastery theory offers some hope for traders who are willing to spend the time and effort in understanding the auction market environment. But that path can well take 10,000 hours of training. A large part of CBOTMPG1 and more particularly, CBOTMPG2, is devoted to 'reading' the profile as it develops throughout the day. CBOTMPG1 suggests that it will take six months to a year to learn the Market Profile methodology.
1. The primary condition for a valid profile is a normal, equilibrium distribution. If the market is not in equilibrium there is no valid POC or standard deviation. A simple visual examination will often be enough to certify that the distribution is abnormal: the day may have two distributions (two peaks) or the trading may be directional, etc. Although unfit, non-equilibrium data can still be operated on as usual by a computer program, the results are likely meaningless or misleading. Most traders who use Profiles seem oblivious to the requirement for normality.
2. Even in overall equilibrium markets there can be days in which the market prices jump out of bounds (false breakouts) and then return later in the day or the next day. A single day's Profile does not provide a reliable measure of market condition (3). Research indicates that a three-day measure is the minimum preferred (4).
3. Markets have changed since 1985/1991. Pits are approaching extinction. In 1985 and earlier, trading by members in the pits was by open outcry; commercial traders were in view and the 'trade' dominated the markets. Today (2011) there are few pits and public traders dominate the trading volume. Certainly, an intelligent and alert trader like Steidlmayer in the pit had much more to go on than just the Profile graphic available today.
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The enhancements in version 2 of the FXMP tool includes the addition of FX Link data, 7 additional currency pairs, actual futures volume data (in both contract and notional terms), and the ability to conduct historical liquidity analysis. The core of tool, which offers a comparison of the liquidity in OTC Spot FX (from EBS Markets) and CME FX futures has been extended to show information on the orderbook depth in these markets out to 10 levels.
The FXMP tool enables traders to not only see the TOB depth in both markets, but also to see how the order books develop (in both depth and spread) over multiple levels all the way out to ten levels deep.
The FX Market Profile tool contains insightful data from the EBS and CME FX futures markets that can help inform execution decisions. The tool includes data for 18 currency pairs, 10 levels of market depth, and can be configured to view a wide variety of time frames.
The above analysis provides a snapshot of EUR/USD liquidity and activity during the month of June 2021. The data from the FX Market Profile tool visualises the quality of the markets in both OTC spot FX and FX futures, and helps to illustrate that these two market places offer complementary liquidity that can be accessed and used in different ways depending on the currency pair, size of order and time of day to trade.
Introducing the first generation of our FX Market Profile tool bringing together listed and spot FX in one comprehensive view so that traders around the world can compare and analyze the complementary liquidity available in these markets.
What it calculates: The FX Market Profile provides an hour by hour view of the bid-ask spread of CME listed FX futures, FX Link, and spot FX on EBS markets, whilst also providing order book depth along with market activity and volume data. This data is available for download or online with intuitive charts and statistical plots, all delivered by our industry leading Quant Analytics platform.
TAS Boxes deliver proprietary value area levels in real-time. TAS Vega adds instant clarity with colored price bars bullish (green), bearish (red) and in-balance markets (grey).
The layout of a target market profile varies depending on the business and what factors are included. A target market profile will generally be divided into the demographic factors and the psychographic factors.
In marketing, different strategies are used to reach an audience. When a new product is developed, the main goal focuses on entering into a market. A market refers to the individuals with wants or needs that relate to the product and who are able to purchase the product. Businesses need to conduct research to determine who is identified in these markets. A market profile refers to a set of characteristics or attributes relating to a target population; in business, a market profile refers to a target group of buyers. A market profile typically includes demographic, psychographic, and geographic factors.
A market profile is a set of attributes relating to a target population, and in business, a target group of buyers. These characteristics typically include demographic factors such as income, geographic factors such as region, and psychographic factors such as values.
A target market profile includes basic identifying information about consumers. The data includes demographics, which include factors such as age, income level, education level, region or location, gender, and marital status. It also includes psychographics, which focus on the values, ideas, and interests of the individuals. It is essentially a layout of the factors that group individuals into the target market. For example, an individual within a target market who is identified as a 29-year-old woman in California with a college degree and an interest in sports might be recorded as:
A target market profile offers insight for businesses about their client bases. It can help when promoting a product, creating a product, or working to improve a product. By having an understanding of the target market, the business is more likely to increase sales. Rather than using time to promote a product to the general public, which may or may not be on board with the product, the business can focus on groups that may make the purchase. This can ultimately boost sales throughout the company and provide a better understanding for future products.
A market consists of the individuals with wants or needs that relate to the product being offered. A market profile refers to a set of attributes that relate to a target population. In business, a market profile consists of a target group of buyers. A market profile typically includes demographic, psychographic, and geographic factors. A target market consists of the group of consumers that are believed to have more interest in the product being offered, as it is based on individuals whose needs match the products. A target market profile includes demographic factors such as age, income level, education level, location, gender, and marital status, as well as psychographic factors, such as values, ideas, and interests.
A target market profile can be created by collecting data about consumers. Various methods are used to collect data, such as surveys, product trials, and research conducted from secondary data from other reliable sources. A target market is important for businesses. In general, it provides insight about the customer base, but it can impact the company since understanding the market can help increase sales. 041b061a72