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Market Profile Basics
Every off-floor trader would like to get a feel for how things really are on the exchange floor. Mastering Market Profile may help you get it.
The concept of Market Profile stems from the idea that markets have a form of organization determined by time, price, and volume. Each day, the market will develop a range for the day and a value area, which represents an equilibrium point where there are an equal number of buyers and sellers. In this area, prices never stay stagnant. They are constantly diverging, and Market Profile records this activity for traders to interpret.
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