Market Profile for Beginners Series: Part 2

Introduction

• Building systemic recall and cognition is essential for scaling performance in trading.
• This session is part two of the Market Profile for Beginners series.
• Objectives:
  1. Understanding pattern recall in Market Profile context.
  2. Engineering personal patterns beyond classical Jim Dalton's Market Auction Theory.
  3. Logging patterns effectively using tools like Notion or Evernote.

Importance of Pattern Logging

• Critical for long-term career development in trading.
• Helps recognize potentially significant patterns after years.

Unlocking P Pattern Bridging

• Utilizing Market Profile alongside Footprint and Price Ladder.
• Essential skill for top traders.

Classic Jim Dalton Style Market Auction Theory Patterns

• Balanced Short-Term Trading:
  • Even distribution of value with weak tails.
  • Indicates a range with no desire to shift value.
• B-Shape Short Side Liquidation:
  • Indicates accumulation of selling pressure.
  • Presence of large node and double single print leads to price appreciation.
• Double Distribution of Value:
  • Higher volume in higher value nodes with a swift move lower.
  • Shows control by short-term sell-side.

Important Trading Patterns

• Trend Continuation on NFP Day:
  • Driven by expected market volatility triggered by data points.
  • Single print continuation leading to multi-week low.

Holistic Approach to Pattern Logging

• One-time framing as a classical pattern.
• Integrating classical and engineered patterns for better analysis.
• Using colored TPOs for visual context.

Efficient Logging with Notion

• Track patterns for future reference and understanding.
• Identifying Market Vicinity and Potential Patterns.
• Examples:
  • Buy Imbalance High
  • Multi-Day Positioning Attack

Introduction to Pattern Bridging

• Machine Gun Slicer:
  • Orderflow pattern related to price action.
  • Combines auction patterns with price ladder insights.

Deep Immersion for Pattern Understanding

• Necessity of weekend practice for effective pattern logging.
• Combine classical and self-engineered patterns.

Logging Patterns Effectively

• Use columns for contracts, prints, vicinity, and potential patterns.
• Cross-reference market profile with footprint designs.

Examples of Patterns and Footprint Designs

• Bikini Bottom Profile:
  • Recognizable pattern due to its unique shape.
  • Driven by rapid data imbalance.
• Lack of Buying in Tails:
  • Identified through footprint analysis.

Conclusion

• Building conviction through pattern recognition leads to better performance.
• Importance of bridging patterns for effective trading strategies.

These notes capture the essence of the lecture on market profile patterns, engineering personal patterns, and the importance of efficient logging for future self-reference. The emphasis on classical auction theory integrated with personal insights provides a comprehensive understanding for developing effective trading strategies.