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Steidlmayer on Markets: Trading with Market Profile, 2nd Edition Hardcover – November 22, 2002


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Proven techniques for market profile users at any level
A "market profile" presents a number of basic elements from the market in an easily understood graphic format that, when analyzed properly, can yield profitable intraday and swing trades that traditional indicators do not reveal. 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.
J. Peter Steidlmayer (Chicago, IL) joined the Chicago Board of Trade in 1963 and has been an independent trader ever since. Steidlmayer served on the Board of Directors of the Board of Trade in 1981-1983. While a director, he was responsible for initiating Market Profile and the Liquidity Data Bank. Steve Hawkins (Chicago, IL) has experience in trading in both stocks and commodities. Over the past seven years, Hawkins has educated traders across the globe. He has also collaborated on the writing of books on trading and written articles for industry trade publications. He is a graduate of the University of Illinois with a degree in economics.
New technology and the advent of around the clock trading have opened the floodgates to both foreign and domestic markets. Traders need the wisdom of industry veterans and the vision of innovators in today's volatile financial marketplace. The Wiley Trading series features books by traders who have survived the market's ever changing temperament and have prospered-some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future.

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Editorial Reviews

From the Inside Flap

Market Profile is a form of technical analysis that was jointly developed by renowned trader and author J. Peter Steidlmayer and the Chicago Board of Trade. Over the years, this unique tool has helped traders gain an unparalleled understanding of the markets, as well as find profitable trading opportunities within them. Simple in concept, yet complex in detail, Market Profile organizes a number of market elements into a rapidly understood graphic form revealing trading opportunities other methodologies miss.

In the first edition of this classic guide to Market Profile, Steidlmayer introduced traders to this revolutionary new way of reading and trading the markets. Now Steven Hawkins returns to update and revise Steidlmayer's concept of Market Profile within the context of today's fast-paced markets.

Steidlmayer on Markets: Trading with Market Profile, Second Edition lays the foundation for understanding and implementing the Market Profile methodology by providing background information based on Steidlmayer's experiences as a commodities trader, and showing how he developed his ideas and learned to apply them successfully within the markets.

Hawkins moves on to fully discuss this groundbreaking approach to trading the stock, options, and futures markets.

In-depth insights and expert advice will teach you:

  • How to make sound trading decisions using the Market Profile and Liquidity Data Bank approach
  • The newest methods in volume analysis, including On Floor Information (OFI) and Volume @ Time
  • How to recognize the "Steidlmayer distribution" a trading concept that serves as the basic building block from which all market activity develops
  • How to formulate a game plan and fine-tune your strategy
  • And much more

Fully updated and completely revised to reflect today's ever-changing economic environment, the new edition of Steidlmayer on Markets combines practical guidelines for learning how to read and use the markets with the underlying principles of how markets work. Filled with helpful tables and charts, and timely new chapters, this book is the most comprehensive guide to trading with Market Profile.

From the Back Cover

STEIDLMAYER on MARKETS

Trading with Market Profile

second edition

"Anyone serious about market profile should read Steidlmayer on Markets, Second Edition. Pete and Steve have done their most advanced work yet to create an objective perspective from which to manage risk."
John Helmers Senior Portfolio Manager, Tudor Investment Corp.

"I recall Pete Steidlmayer's pioneering work with the futures markets in the 1980s, in particular his discovery of 'the natural organization of the market' in accordance with the price/time relationship: Price + Time = Value. In this important new work, Pete takes us on a journey from his childhood discovery of the key concepts of order and personal control, to his early days developing Market Profile at the CBOT, to his up-to-the-minute ideas on trading, technology, and the future. And as a stock trader I found the concrete examples of Market Profile applications to individual stocks to be particularly gratifying."
Bernie Schaeffer Chairman and Chief Executive Officer, Schaeffer's Investment Research, Inc.

"Steidlmayer and Hawkins capitalize on past successes while taking a useful tool one step further, and have filled a tall order. In the crowded arena of books on trading, they offer insight and unique trading tools the professional trader can incorporate into their trading program. This book offers insightful technical tools that add real value."
Matthew Chamberlin Senior Trader, SAC Capital Management, LLC

"I have been using Market Profile extensively for fifteen years. Pete and Steve are visionaries in their field. Timeless organization of market data allows Market Profile to be applicable to all markets in any type of trading environment. With this blueprint, trading becomes more objective and consistently successful results can be obtained. Steidlmayer on Markets is a must-read for any trader looking to achieve long-term success."
William Griffo Director, UBS Warburg

Product details

  • Publisher ‏ : ‎ Wiley; 2nd edition (November 22, 2002)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 239 pages
  • ISBN-10 ‏ : ‎ 0471215562
  • ISBN-13 ‏ : ‎ 978-0471215561
  • Item Weight ‏ : ‎ 1.01 pounds
  • Dimensions ‏ : ‎ 6 x 0.73 x 9 inches
  • Customer Reviews:

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Customer reviews

4.2 out of 5 stars
4.2 out of 5
64 global ratings

Top reviews from the United States

Reviewed in the United States on December 6, 2018
Detail and up to the point illustration on Price Action. The explanation on how does price work is valuable for new traders.
One person found this helpful
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Reviewed in the United States on March 20, 2012
Bill reviews his tools for looking at volume over time. Truly mind expanding for futures trading, allows one to view and trade against the other "time frame participants". If you saw the movie the matrix, you will see a metophor for this approach.
One person found this helpful
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Reviewed in the United States on June 9, 2008
The book is in two parts. In the first part, Steidlmayer gives some personal background and tells about how he developed the Market Profile(TM) method as well as gives some insights into why it works based on his experience. He describes points about using his methods before we really know much about what they even are. The concepts are not the usual technical analysis kinds of things. These are new (since about 1981) ways of looking at markets that are based the underlying process viewed with the help of some elementary statistical ideas. The primary concepts involve looking at the time the market spends at a price to determine value. Value is different from price. (Time seems to be a surrogate for volume but volume information was not available generally back when the methods were developed.)

In the second part of the book, Steve Hawkins attempts to explain more systematically the concepts of market profile. Some of the terminology is reasonably well explained, but the synthesis of the concepts seems to be lacking. I was not satisfied with the explanations. I felt I had to take his clues and figure out the ideas myself. I frequently found myself rereading passages two or three times to make sure I caught the ideas which were opaquely explained. I hope this is not the best explanation of Market Profile (it is the first book I have read on the topic, but I like it very well). Finally, the last chapter is pure unadulterated and unapologetic promotion of their products. I do not know anything about these, but I think I prefer CQG's graphics to their CapFlow graphics.

I would give this book five stars for originality, but only three, or maybe four stars, for clarity of explanation.
27 people found this helpful
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Reviewed in the United States on January 12, 2018
great book, much recommended to those who want to apply MP and the auction process principles to trading.
One person found this helpful
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Reviewed in the United States on December 24, 2019
Great book.....different concepts....loved it
Reviewed in the United States on March 18, 2011
Steidlmayer is a genius.
And apparently quite a nice gentleman to boot.
He respects the markets enough to add to the sum knowledge of the trading community by sharing his brilliant insights into trading.
But this book is a bust.
Part I is great. It's Steidlmayer telling anecdotes about growing up and getting hooked on the business. Stuff that anybody who has ever traded a one lot, will find fascinating, familiar, and encouraging.
Part II is Hawkins doing a darn poor job of explaining concepts that Dalton does far better. But then, when he has completely mystified you with poor logic or bad editing, I know not which, Hawkins makes a great observation and you almost want to forgive him for the confusing style.
J. Peter Steilmayer is a genius.
Market Profile is brilliant.
I read this book.
I suppose I am glad I did.
But it did not contribute much to my knowledge of MP.
It barely covered segmented data.
Did a poor job of explaining "market time".
ANd it skimmed over Capflow, which is what I really wanted to learn about.
You should borrow it from a friend, get it from the library, or look for my edition for sale on Craigslist.
23 people found this helpful
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Reviewed in the United States on September 28, 2023
1. The book promotes Capflow
32 which is paid. Hard to follow exams. Half of the book is just fluff. Just don’t waste your money
Reviewed in the United States on August 25, 2014
This is the first book I read after I commenced, or attempted to trade, naturally with loss and no success. It has given me a great insight to the market. I build my own Market Profile on a spread sheet and continue to do so. The market shows no sympathy to any trader. I am on a big learning curve that will probably last for years.
2 people found this helpful
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Top reviews from other countries

Alexander
5.0 out of 5 stars The story of Volume Profile
Reviewed in Germany on July 29, 2022
Get up close with the story of Steidlmayer, and integrate the importance of volume profile in your understanding of the financial markets. Can be a bit dogmatic, remember to shape your own trading style :) Great book!
Amazon Customer
2.0 out of 5 stars The book is 223 pages but less than 50 pages are dedicated to Market Profile
Reviewed in Canada on March 21, 2018
The book is 223 pages but less than 50 pages are dedicated to Market Profile. The first 50 pages are an autobiography of Steidlmayer and how he came up with Market Profile during his trading career. Later, there is a section on psychology, a section on market technology and order routing, there are many pages and passages dedicated to the Cap Flow software which was built by Steidlmayer and also many passages talking about other indicators included in his software. If I want to read about these other topics, I will read a book about these other topics. I bought this to learn about Market Profile and the majority of the book was discussing something else
4 people found this helpful
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Amazon Customer
2.0 out of 5 stars Not Value for Money
Reviewed in India on June 9, 2019
High price but low value in terms of practical application.
One person found this helpful
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Iria
5.0 out of 5 stars It is worth owning
Reviewed in the United Kingdom on August 8, 2010
Sometimes you just need to know what others are thinking upon and acting upon, this book explains market profiling in a very thorough and comprehensive way. I don't think you need to read is more than once, which is either a comment on the authors skill or the simplicity of the subject matter. I shall not comment on the more art and less science of how the analysis is conducted as its quite subjective. The actual profile data production is simple, how you might act upon the patterns discussed is not as scientific as I imagined. It is an area you should at least understand as it appears to be in widespread use.
One person found this helpful
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sreedhar
1.0 out of 5 stars Not cost effective
Reviewed in India on November 19, 2019
Not worth of money,content is less cost is more