Market Profile Question

[Stockaddict]

One area I find interesting on this forum is market profile. I had never heard of this method until I found this forum. It seems that market profile has been heavily discussed here among futures traders.

My question is: Can market profile be applied to markets other than the futures markets? Is this methodology designed only for commodities? I have never heard stock traders mentioning this.

[TinGull]

I think it's more in tuned with futures trading as it's not as news dependent as equities are. The auction theory lends itself more so the futures market where many companies are intertwined into one commodity rather than a single company where it's earnings and it's news really are what drives the price of the stock.

Just my 2 cents

[Soultrader]

I had thought market profile was used by traders mostly for the futures market. HOWEVER, I just recently saw a stock trader plotting market profile charts for IBM and others. I was quite surpised to see this.

I am not sure how effective MP is with equities but I finally met one trader who uses it on stocks.

[MrPaul]

	Quote:	Soultrader
	I had thought market profile was used by traders mostly for the futures market. HOWEVER, I just recently saw a stock trader plotting market profile charts for IBM and others. I was quite surpised to see this. I am not sure how effective MP is with equities but I finally met one trader who uses it on stocks.

Here's an excerpt review based on the book "Steidlmayer on Markets: Trading with Market Profile, 2nd Edition"

...Steidlmayer on Markets shows readers how to find these opportunities using the innovative techniques developed by the author during his many years of trading the market. This fully updated Second Edition covers innovations in both technology and technique-and broadens the scope of "market profile" to include stocks.