Market Profile Trading A to Z | Order Flow | Auction Market Theory | Value Trading | iTradePod

Market Profile Trading A to Z

Market Profile Trading Glossary

Glossary assembled by Andrew Hall, iTradePod. If you have any feedback or would like to see a term added or amended please leave a comment below or contact us.

iTradePod in association with

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


Pioneers - trader slang for uninformed retail traders who enter Short position near to retracement Swing Lows in upward trend (also referred to as a short-in-the hole trade) or enter Long positions near to retracement Swing High; this usually occurs when emotion takes over and the herd instinct is in full effect. Understanding market structure and Order Flow is, very often, a defense against being “scalped”.

The term is derived from the way many buccaneering early American pioneers would venture out on perilous expeditions, full of hope, only to have their heads scalped by the native Indians.

Poor Extremes - an auction whose order flow lost momentum rather than due to being overwhelmed by opposing market orders; after a pause, the original auction is likely to make another attempt at the price extreme. The more attempts that are made, the more likely the auction will finally succeed. Poor extremes are often the result of excessively long inventory (poor highs) or excessively short inventory (poor lows).

PMA - Pre-Market Analysis. A top-down, multi-timeframe approach to examine price action history in order to identify KRAs. Once identified and journaled, KRAs are used to assist visualisation of various scenarios that may unfold in prearation for the session ahead.

POC - Point Of control. This can either be the longest line of TPOs or the price level of most volume closest to the center of the daily range. This is the price where the most activity occurred during the day (based upon time); it is therefore considered to be the fairest price during the day timeframe and should approximately coincide with VWAP.

POC migration is of major significance in understanding the broader market context in an attempt to avoid becoming compartmentalised within the intra-day mêlée.

P Shape Profile - a profile that often occurs during bearish downward moves and develops into a shape similar to the letter P. The bottom half of the profile is long and thin, typically single prints representing low volume rejection. The upper half of the profile has a more wider distribution. This formation is typical of short liquidations signalling a pause as opposed to bullish sentiments caused by the entrance of Initiative Buyers reversing the market direction.

A P Shape Profile typically occurs as a result of a Short Covering Rally where as a b Shape Profile usually occurs as a consequence of Long Liquidation.

Price Thrusts - in any market, there will be stop-loss orders beyond the recent price action. As traders collectively think the same way, these stops will be within a close price range above or below the market. This is a little like putting the Fox in charge of the chickens – if professional traders have an opportunity to trigger your stop loss orders, by auctioning prices towards them with little cost to themselves, they will most definitely do it! Our clients also profit from these moves in the Trading Room using Order Flow divergences.

blog comments powered by Disqus

Client Benefits

FREE Resources

All our registered clients are given exclusive access to download the powerful Market Matrix software that we talk about in our Hedge Fund Mindset Workshop. Clients can also download our Pro Trading Journal that our own traders use for detailed logging of trades.

Massive Discounts

We have partnered with some of the major players in the trading industry and so we are delighted to offer our registered clients significant discounts on trading related products and services.

Daily Analysis

Our clients have access to Market Data containing Market Profile® Trading KRAs for low risk and high probability trade location entries.

Registration is quick and FREE.

Market Profile Trading A to Z | FAQs | Testimonials | Articles | Contact Us | Careers | Affiliates | Recommended Resources | Advertise | Disclaimer | Terms