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Thanks, nice explanation. I believe the original poster meant "stock price movements are random." which is how the statement was interpreted. MP=Market Profile. Googling will bring you up to speed.

People who're struggling with "understand" markets could do a lot worse than simply reading -- and absorbing -- whitster's posts. (And, no, I'm NOT a friend or relative.)

whitster, agreed, I've used MP myself successfully. There are moments when price forms a normal distribution with a value area, as you say, that's tradeable. There are also moments when broken clocks are correct, too -- twice a day. You're obviously an "old hand" who knows when an MP...

Given that the CNBC clowns are dressed up or down shills for the Street, you can probably do pretty well by doing the opposite of what they recommend.

Even if/when it happens, I imagine the Specialists will retain a way of hosing the retail investor. Remember Richard Ney's anecdote about Lucky Luciano: "The story is told that after he had been deported to Italy, Lucky Luciano granted an interview in which he described a visit to the floor...

I'm reminded of Richard Ney's anecdote : "The story is told that after he had been deported to Italy, Lucky Luciano granted an interview in which he described a visit to the floor of the New York Stock Exchange. When the operations of floor specialists had been explained to him, he said, 'A...

I think we're making the same point. Price movement can't be modelled with stochastic linear distributions. That's the inherent and fatal flaw of price-based "indicators" and supposedly objective models like Market Profile. And, with due respect, there're more idiots than morons out there.

Agree with whitster in every particular.

Provocative posts like this make us all reexamine our basic, unconscious assumptions about how markets work, and that's valuable. "You can't predict the future with patterns on a chart." How could it be otherwise? Charts are crude, linear attempts to model nonlinear phenomena. But...

Based on my own bitter experience (not to mention tons of money paid in "tuition"): - Develop a comprehensive trading plan that specifies setup criteria, entry, stop, and profit targets. Parameters should ensure that you take (many) small losses and (lots of) large gains. Be sure the plan...