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Read "Mind Over Markets: Power Trading with Market Generated Information" by James Dalton. Then read "Markets in Profile: Profiting from the Auction Process" also by James Dalton. The first book lays the groundwork and gives you a good foundation. The second goes more in-depth on what you learn in the first book. Both helped me immensely, but you will need a decent level of knowledge about the market before you read them. So, if you are a beginner I recommend you really take your time and read it slowly and carefully. Hope it helps you!
A good series of free videos on order flow (with some basic auction theory thrown in) can be found at Free [AUTOLINK]Tape Reading[/AUTOLINK] and [AUTOLINK]Order Flow[/AUTOLINK] Training Materials - also you can search the https://www.jigsawtrading.com/ site and blog for other useful tidbits. They also post their daily prep info ( S&P Daily Pre-Market Prep 4/19/16 - today's info) on the https://www.topstep.com/ website. Topstep is also a good resource to comb through (Squawk radio, blog and daily livefeeds on various topics). Another useful site as is Home - FuturesTrader71 they offer a low cost 6 hour webinar/video course on auction theory. Also they offer a daily "traderbite" that can be livestreamed free everyday at 8:00AM Central Standard Time - the traderbites offer their glimpse of the market using auction theory before the open. All three groups have presented webinars on Futures.io and all groups have most all their videos on youtube. Futures.io also has many presentations that touch on the topic in their webinar/video section of this website.
you want to trade in the direction of developing value for the most part. you have to learn the difference between a open action. opening drive, and opening test drive. you need to know about gaps and gap fills..what are areas of minus development and how to trade them...what is balance an unbalance and what that means on multi time frames..and how to read the order book like a bald eagle...peace of cake
Okay, my view may be contrary but my personal experience in market analysis was that I found almost every technical analysis method to click very easily for me. But, I had a long time and a lot of difficulty with market profile. It was only when I recognized that market profile is not a trading method that it also clicked for me. You can't really learn market profile so to speak because it's not a trading strategy/method. It is merely a way of visualizing market data.
I am going to explain why (I believe/conjecture) it clicked for floor traders and why the magic isn't in the visualization. The floor traders already had to keep track of the price in their mind. How do you do that? You look at the price of the last market and you repeat it. So floor traders had a very good sense of how time and volume correlated. The market profile was just a visual representation of what they were already doing in their head!
That's why it presumably came so easily to them and made so much sense. But now, it is taught as a visual method. I imagine a lot of things are like that. It might become difficult to learn because it is formalized, abstracted, and taken out of the original context. In summary, the easiest way to learn market profile might to learn to trade without charts and then go back and look at the market profile.
Get the Thinkorswim platform and watch Ben L. in the FuturesCast Chat room. He is is using live AMT on many different futures markets during RTH. He has a 1 hour class every Wednesday after RTH explaining AMT on many timeframes.
Dalton and even Steidlmeyer have their own jargon and vernacular they use.
The CME Group put out a book in 1997, free online called Six Part Study Guide. Just Google it and get the PDF.
It is second to none in explaining everything concisely with no funny or confusing terms and without using vague comparisons like "the overnight inventory looks too long".
IMO FT71 is an excellent teacher as well. But he uses a number of advanced techniques and loads of tools and software that are a hurdle for anyone to get over.
