Market Profile™ is a form of technical analysis that was jointly developed by J. Peter Steidlmayer and the Chicago Board of Trade. Market Profile uses a statistical approach to the analysis of price data. The market profile graph is simply a frequency distribution of prices histogram.
Oscillators are group of countertrend, momentum based indicators that move above and below a horizontal axis that represents neutral market momentum. These indicators offer an alternative to trend following strategies and work well in non-trending, sideways markets where a clear trend is not evident. Interpretation of Oscillators They can be used as an indicator of
Bearish reversal pattern. The formation occurs during an uptrend, beginning with a long bodied white candlestick. The second candle gaps higher and is black. The final candle of the pattern is black, opening inside the body of the second candle and closing inside the body of the first.
Tweezer Top is a two candlestick bearish reversal pattern. The formation occurs in an uptrend beginning with a long bodied white candlestick. The second candlestick has a short body and a high equal to that of the first candle.
Dr. Van K. Tharp is a specialist in the area of trading psychology. He is the author of Trade Your Way to Financial Freedom, Safe Strategies for Financial Freedom, Financial Freedom Through Electronic Day Trading. He is featured in Jack Schwager’s classic Market Wizard’s: Interviews with Great Traders.