We've got 2 shorthands for market profile »
Acronyms that contain the term market profile
What does market profile mean? This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: market profile.
Filter by:
Sort by:PopularityAlphabeticallyCategory
What does market profile mean?
- Market profile
- A Market Profile is an intra-day charting technique (price vertical, time/activity horizontal) devised by J. Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT), ca 1959-1985. Steidlmayer was seeking a way to determine and to evaluate market value as it developed in the day time frame. The concept was to display price on a vertical axis against time on the horizontal, and the ensuing graphic generally is a bell shape--fatter at the middle prices, with activity trailing off and volume diminished at the extreme higher and lower prices. In this structure he recognized the 'normal', Gaussian distribution he had been introduced to in college statistics (3). The Market Profile graphic was introduced to the public in 1985 as a part of a CBOT product, the CBOT Market Profile (CBOTMP1) (2). CBOTMP1 included the new Liquidity Data Bank (LDB) data; end-of-day clearings, all trade was categorized and identified by the class of trader in the pits ( (1) local, (2) commercial, (3) members filling for other members and (4) members filling orders for the public). The Profile was proposed as a visual organizing methodology in addition to these new data. CBOTMP1 advertised the Profile/LDB as the way to 'Improve Performance'. It is described as "the only variable-cost ticker service in the commodities industry." The promotional material says the Profile is to be the link between the CBOT data and the market. A Profile graphic is to be used to tell "what the market is doing"; the LDB data is for finding the market's 'condition'. As a part of the data-display connection in CBOTMP1, the price of the peak cleared volume is identified as the Point of Control (POC). Following the normal distribution analogy, the central seventy percent of trading activity about POC (+/- one standard deviation) is termed the 'Value Area'.
Know what is market profile? Got another good explanation for market profile? Don't keep it to yourself!
Still can't find the acronym definition you were looking for? Use our Power Search technology to look for more unique definitions from across the web!
Citation
Use the citation options below to add these abbreviations to your bibliography.
Style:MLAChicagoAPA
"market profile." Abbreviations.com. STANDS4 LLC, 2024. Web. 25 Sep. 2024. <https://www.abbreviations.com/market%20profile>.
Discuss these market profile abbreviations with the community:
Report Comment
We're doing our best to make sure our content is useful, accurate and safe.
If by any chance you spot an inappropriate comment while navigating through our website please use this form to let us know, and we'll take care of it shortly.
Attachment
You need to be logged in to favorite.
Log In