Market Profile

The Market Logic technique is a method developed by Peter Steidlmayer for looking at the market in a unique price and time basis. The trader must be cognizant of where buyers and sellers agree or disagree on price. This is determined by how often a price will occur during a time period. The time periods are usually half-hour bracket periods, signified by a letter. The A bracket period might refer to the 8:00 AM to 8:30 AM time period. The B period would then refer to the 8:30 AM to 9:00 AM time interval. A bracket period is a distinct time period, often designated by the exchange, but the user may employ any period.

A market frequently trading in a time period would imply a level where buyers and sellers agree on price. Price levels in which the market does not trade are often not areas where buyers and sellers agree on price. A profile of the September 91 S&P500  shows how the market finds congestion areas, or places where buyers and sellers agree on price, and other areas where prices readily trend. The bibliography contains more references on market profile techniques.

Swing Charts

Swing charts are constructed in a similar fashion to point and figure charts, in that the price movement, as opposed to time, is the x axis. Any movement greater than a certain amount is plotted on the chart. Trading patterns are similar to point and figure charts.