Auction theory: the origin of the Market Profile

The Market Profile is not an indicator that orders you to buy or sell; it is a way of organising market activity as it unfolds moment by moment. Before we study its structure, it is worth knowing the idea it was born from.

Where did the idea come from?

This method was developed by the trader J. Peter Steidlmayer at the Chicago Board of Trade CBOT, and was published and deepened by James Dalton in his book Mind Over Markets. Its essence is simple yet profound: the market is a continuous two-way auction whose sole purpose is to facilitate trade between two sides.