Key

Glossary
 
Anomaly
An anomaly is a
single price or
price levels that
lack symmetry, an
unusual structural
arrangement in the
Market Profile;
they represent
structural
weakness.
Learning to spot
anomalies is the
first step toward
understanding the
information that
anomalies provide.
Auction
process (two-
way)
The purpose of an
auction is to
facilitate trade.
Prices constantly
auction from low
to high and from
high to low to
fairly distribute the
bids and offers
presented by the
market participants
of all timeframes.
This is the fairest
way to allocate
prices and
contracts among
competing bids and
offers; the by-
product of the two-
way auction
process is market-
generated
information.
Balance
This refers to
trading ranges,
brackets, balance
areas, congestion
areas, and
consolidation
ranges
—
all synonymous
terms. They define
price ranges in the
market that are
containing trade.
Within these
containment ranges
reversion to the
mean trades are the
favourite of short-
term traders. We
often refer to these
containment ranges
as “paradise” for
short
-term traders.
Bigger
opportunities occur
as price auctions
outside of these
containment
ranges. Balance
occurs in all
timeframes. For
shorter term or day
traders balance
may be an inside
bar or multiple
periods of price
containment.
Balance and excess
are the two most
important concepts
you will be
introduced to
because they signify
change or the
potential for change
to take place.
 
Buying tail
This is formed by
single prints (single
TPOs) on the
bottom of a profile;
a gauge of buyers’
reactions to a lower
advertised price
opportunity. The
greater number of
single TPOs that
form the buying
tail the m
ore aggressive the
buyers’ reaction.