Rules-based Market Analysis and Trading Using Simplified Market Profile®

A very important part of trading is about developing confidence in the methods and technology you deploy. It’s equally important that you have confidence in the company supplying your add-on trading tools and training to you and your staff. Get to know what separates TAS Professional from other trading technology and educational companies.
Before undertaking any new training, it’s important that you mentally compartmentalize what you know—then begin fresh with a clean slate, knowing that the new trading tools, tactics, strategies, and methods you are about to learn are additive to what you already know—and not meant to be a replacement -- which can be an option to you but only if and when you choose it to be so. You are always in control of what you learn and deploy and, more importantly, when you choose to deploy the new information and tools.
Everyone has their own version of a "job description," whether it is trader, investor, analyst, portfolio manager or any other title within the realm of market professionalism. However, being a rules-based approach to understanding, analyzing, and/or trading the markets, TAS Approach to Trading™ is very specific because at its core is a foundational discipline that underlies how we approach our jobs in the markets. This short but important chapter helps orient you to our disciplined, rules-based approach.
We recognize and acknowledge that everyone trades for his/her own unique set of reasons. However, having trained traders for the last 15 years from all walks of life, levels of experience, and disciplines, we have discovered some common denominators or "ingredients for success" that we feel are important to recognize and use as a basis for setting our initial goals for this course.
Ten years ago, there were very few traders and companies talking about Market Profile®—especially when compared to today where "everyone" is all of a sudden a Market Profile® educator. From our surveys and analysis of this space we find that most are teaching and advocating a common, outdated method that goes back to the 1980s and has little relevance to today’s fragmented and volatile markets. Notwithstanding, what combined attributes are there that makes Market Profile® such a critical not-to-be-missed component for every market professional?
Markets have an underlying structure that is bound in their purpose and main function that is often too easy to ignore. No market analysis and trading course would be complete without delving into this critical component of Auction Market Theory. To wit, how and why do trades occur? What is the market’s purpose and how does a market facilitate trade? What are the effects of the breakdown of the traditional exchange mechanism towards evermore fragmented markets? How can traders get an edge under such worldwide rapidly changing market structural changes?
This very short chapter reminds students of the significance of what we are looking for in the markets—a "picture" of reality in what the markets are trying to do versus what they are actually succeeding at doing. It introduces the problem of common market data visualization methods and why they tend to be inadequate when compared to profiling concepts that are slowly being introduced.
Everyone would like a crystal ball into the market but this course, being an expert-level trading curriculum, doesn’t even pretend such a method exists. However, when it comes to trading and investing, there is a human tendency to believe or act as if we can predict outcomes. In this chapter you will learn how avoid predictive thinking and move towards rationally assessing probabilities for far more advantageous outcomes.
This chapter pulls together and concisely resolves some of the challenges and dilemmas introduced in chapters 3, 5, and 6 by showing how the proper aggregation of market-generated data into profiles reveals statistically based, high probability market opportunities by showing us how the market establishes a value or fair price for securities. With that in hand, we can then determine which prices are statistically advantageous to become buyers or sellers.
All pre-trade analysis and post-trade management has an inherent set of questions market professionals are seeking answers to. Questions such as, Where should we be buying—or, more importantly, where should we not be buying? At which prices are the odds neutral? Where is the crowd favoring the market? Any many more… Learn how to answer these important questions before and during a trade by understanding how to "read" the dual-sided auction.
All markets have only two phases of activity: horizontal movement through time—and vertical movement through price. These two phases highlight the "background" structure of the market and shed light on how effectively a market is facilitating—or not facilitating—trade. This chapter will teach you how to accurately differentiate these two phases in any time frame, a critical success factor for all market professionals.
Classic Market Profile® introduced terminology describing events that occur within the profiles themselves. In this chapter we review the set of terms and moreover, delve into the significance of these market events and learn how to use them as a basis for our market analysis and trading plans.
The Two Phases of Market Activity are a simplified technical model from which all other aggregate market activity is composed. Learning how these two phases "fit together" forms the basis for the high probability, measured reward-to-risk opportunities in all time frames that market professional seek.
The Four Steps of Market Activity is an "idealized" model for how all markets move through time and price. Being an idealized model, however, means that sometimes a market follows these four steps—and other times, it does not. Our research shows us that it’s typically when a market does not follow these steps in sequence that we have the best opportunities at hand. In this chapter you will learn how to read and interpret this simple model and use it to your advantage.
In this chapter we delve deeper into the concept of horizontal price movement through time and examine the market participants and their roles and actions in the formation of this phase of market activity. Understanding how the players stack up in this phase gives us a read of how they are likely to respond when a market moves out of horizontal development over time and into vertical movement through price levels.
Rapid, vertical, trending movement through price levels occurs with high probability in areas of the chart where there’s an absence of prior horizontal development. Conventional bar charts and volume analysis methods do not reveal these areas with accuracy and most often without actionable points of interest. Learn how to accurately identify these areas and be ready in advance for the next vertical price move.
The two phases of market activity, balance and imbalance, are mutually exclusive. Moreover, one phase leads to the other—and vice versa. This very important chapter models this ebb and flow of markets and introduces the concept of slow versus fast market movement and teaches you how to accurately identify these phases in real time.
Classic Market Profile® was a breakthrough method for analysis and trading but has had inherent challenges in its interpretation. Besides having a very steep and long learning curve, many of its challenges have to do with subjectivity in interpreting when a market is moving out one phase and into the next phase. Learning about these limitations and more importantly, how to overcome them is the focus of this chapter.
A key skill for all market professionals is learning how to accurately detect market transitions between phases. It’s a critical skill because the trading tactics and methods we use in one phase are not suitable for another. This chapter sheds light on how to recognize these subtle shifts in market activity and builds a simple model for how to recognize and trade them as they are occurring.
Markets have two basic outputs: price and volume. Reading and interpreting price movement without simultaneously interpreting volume is often a recipe for trouble. In this chapter we review the most common ways of displaying and reading volume and then discuss some of the limitations of these common volume analysis methods.
Market Profile® aggregates the market’s two outputs of price and volume into a two-dimensional map that illuminates what a market is trying to do—and whether or not it is succeeding at doing so. Volume-at-price analysis is our roadmap for interpreting how well a market is accommodating trade for both buyers and sellers—or not accommodating trade for both sides of the market and thereby making one side of the trade more advantageous than the other. Learn how to use this key concept in this comprehensive chapter.
In this short chapter, we discuss the basis of how and why we formed TAS Professional. Our goal was to bring together our trading ideas and tools to overcome the inherent limitations we saw in classic Market Profile® and, moreover, to harness the power of profiling concepts into a suite of tools and trading methods that simplified this powerful analysis and trading method.
This chapter is an overview of our trading technology suite, the TAS PRO Indicator Suite™, which is available free to Bloomberg Professional subscribers. This set of coveted trading tools is used by market professionals worldwide and is very comprehensive in scope—yet has been designed with simplicity in terms of application. We will show you what the tools are, how they are categorized for easy implementation, and how to add these studies to your Bloomberg charts.
We've reached the halfway point in the course. Up to this point, we have comprehensively discussed the power of classic Market Profile® and have introduced its inherent limitations. This chapter introduces TAS PRO Market Maps™ and will teach you how we have extracted the best attributes of profiling and simplified them into a more user-friendly type of color code map that establishes the basis for our rules-based analysis and trading approach to the markets.
Markets move either slowly through time in a relatively narrow price range—or they move rapidly through price levels where "holes" are present in the chart. We could also say that markets move rapidly through price between areas of support and resistance. This chapter will teach you the essence of support and resistance and how to determine the "potency" of one or the other. More importantly, you will learn how we use this information to pre-determine our entries and targets for our trades.
This chapter will teach you how TAS PRO Dynamic Profiles™ further simplify our Market Maps™ by precisely extracting key elements from our Market Maps™ into a simplified add-on study that highlights when and where a market is in balance and where it has a high probability to move into imbalance, resulting in a rapid directional move through price levels.
We created our TAS PRO Dynamic Profiles™ add-on study to remove the subjectivity inherent in classic Market Profile® which allowed us to develop our rules-based, high-probability approach to market analysis and trading. Learn how to use this free Bloomberg add-on study to enhance your workflow with our rules-based approach—without having to give up your current methods of market analysis and trading.
No market analysis or trading method is complete without examining the technical risk factors that are part and parcel of any trading plan. This chapter will teach you how to set up a proper and objective risk management plan for all of your trades using Dynamic Profiles™ and give you flexibility in selecting your risk tolerance.
All market professionals know that there are a lot of things to watch during the market day. Yet, too many add-on studies on one chart can often confuse and obfuscate rather than help. TAS PRO Navigator is a add-on study available free to Bloomberg Professional subscribers that combines multiple indicators into a single add-on study that enhances our rules-based approach to trading. In this chapter, we will show you how to use this powerful tool to get a quick read on directional bias, timing, momentum, and divergence—all supplementing our rules-based approach to market analysis and trading.
The TAS PRO Approach to Trading™ that we have been teaching up to this point is a rules-based method for market analysis and trading. In this section of the course, we delve into actual trading applications that highlight our approach. This chapter contains an exhaustive analysis of a bi-directional trade that combines confirmations from three of our free add-on studies for Bloomberg Professional: VAP Map™, Dynamic VAP™, and Volume Delta™.
This chapter contains an exhaustive, multiple time frame trade analysis of a large selloff in the S&P index. This bar-by-bar analysis shows how we identified in advance where the market had high potential for rapid price movement down—then dissects key areas of interest that not only followed our rules-based approach to market analysis and trading but highlights how combining add-on studies in multiple time frames enhances our analysis.
A key skill in trading and market analysis is developing confidence—not only in your abilities but also in the toolset you deploy in your workflow. A simple yet effective method for building this confidence is by observing how multiple tools and add-on studies confirm each other in a market environment. In this chapter teach a model for building this type of multiple-tool analysis into your trading method and tactics that you can use in pre-trade, during-trade, and post-trade analysis.
TAS Professional has its roots in proprietary, rules-based trading and development / deployment of automated trading strategies. At the heart of our method is adopting a strict discipline of knowing what not to do first by eliminating one side of the market from consideration. By doing so in a “conclusive” manner allows market professionals to focus on what’s important with high probability odds on their side. In that regard, we developed a simple yet powerful trading add-on study that we call TAS PRO Line-in-the-Sand™ and introduce it in this chapter.
Markets spend the majority of their time trading in a horizontal range. However, most traders we work with prefer to trade directional moves, breakouts and breakdowns, over their more common horizontal counterparts. But not all breakouts and breakdowns are created equally. In fact, some are leagues better than others. But how do you determine which are the high-probability setups versus the ones that have less potential? This chapter introduces TAS PRO Dynamic Breakout™ add-on strategy, explains the basis of its effectiveness, and shows you numerous examples in multiple markets and time frames of how this powerful tool can give you the edge you’ve been looking for in your market analysis and trading.
Our background in automated trading strategies has allowed TAS Professional to develop key software applications that not only generate actionable trading signals directly on the chart but also delivers these signals in a user-friendly application that allows you to specify your own portfolio of securities to monitor. This chapter overviews TAS PRO Dynamic Breakout Signal Box™, a new application for Bloomberg Professional that has received very favorable reviews worldwide.
In our many years working with profiling concepts, we have made many practical and useful observations about the underlying structure of markets and how price acts, responds, or reacts at various price levels. One of our discoveries resulted in developing an add-on study that we call TAS PRO Wall™. In this chapter we overview Wall™ formations as an area of the chart where a confluence of profile events take place, resulting in a high probability, key supply/demand areas in the chart.
We conclude this course by overviewing our TAS PRO Market Intelligence™ division which is responsible for generating actionable market research in both print and video-based formats for a variety of markets. We highlight that our research is proprietary and the perfect companion piece for graduates of this course because it is not only exclusively based on the trading tools and methods that are taught herein but also serves as an ongoing, continuing educational method.

Course Overview

Learn incisive, high-probability rules-based trading tactics, strategies, and setups that are backed by solid trading and auction market theory fundamentals in this expert-trader level course.
Brought to you by TAS Professional, the leaders in Market Profile® education and Market Profile-based trading technology (and third-party indicator and strategy provider to Bloomberg), our trading and trading methods are sought after and used by institutional traders worldwide. In the last year alone, we have presented this course in full and excerpt form to thousands of institutional traders in 15 countries and 27 cities.

Don’t miss out on what others have learned and are using in their own trading. Get the edge today by subscribing now to immediately view this recorded and fully indexed, all-new, expert-level trading course.

Format: Professionally recorded in Articulate training platform
Duration: ~8 hours consisting of 826 fully indexed slides
Pace: Auto-play or self-paced which allows for easy navigation and review

Includes:

  • Comprehensive four-color workbook
  • Trading assessment evaluation
  • Two 30-minute post-training phone sessions with training staff
  • One-month free subscription to our daily live training room to further enhance your knowledge and skill-building of the following concepts (see Contents)

Contents:

Chapter Title Info Preview
1. Overview of TAS Professional
2. Starting with a Blank Slate
3. The Basic Job of Market Professionals
4. Ingredients of Success
5. The Significance of Market Profile®
6. Markets and the Bid/Offer Structure
7. Extracting Meaningful Information from Market-generated Trading Data
8. Probability vs. Prediction
9. “Profiling” Trading Data to Extract Meaningful and Actionable Information
10. How Classic TPO-based Market Profile® Reveals the Dual-sided Auction
11. Market Formation Characteristics
12. Market Profile® Terminology
13. The Two Phases of Market Activity
14. The Four Steps of Market Activity
15. Horizontal Development: Price Over Time
16. Vertical Non-development (“Minus Development”): The “Hole” in the Chart
17. Balance Leads to Imbalance = Slow Leads to Fast—and Vice-versa
18. Challenges with Classic Market Profile®: Where Do Fast-to-slow and Slow-to-fast Market Transitions Occur?
19. Precisely Detecting Market Transitions: Know What’s Next™
20. Volume and Volume Measurement Methods
Chapter Title Info Preview
21. Improving Volume Analysis with Volume-at-Price
22. Simplifying Classic TPO-based Market Profile® with TAS PRO Technology
23. Introduction to the TAS PRO Indicator Suite™
24. Simplifying Classic TPO-based Market Profile® with TAS PRO Market Maps™
25. Using Profiling Maps to Accurately Locate Key Areas of Support, Resistance, Entries, and Targets
26. Further Simplifying Market Profile with TAS PRO Dynamic Profile™
27. Rules-based Directional Trading with TAS PRO Dynamic Profile™
28. Rules-based Trading and Risk Management with TAS PRO Dynamic Profile™
29. Simplifying Directional Bias, Timing, Momentum, and Divergence with TAS PRO Navigator™
30. Combining TAS PRO Indicators for Superior Confirmations: A Trade Up—Then Back Down
31. Combining TAS PRO Indicators for Superior Confirmations: ”Meltdown” in the S&P
32. Combining TAS PRO Indicators for Superior Confirmations: Adding Navigator™ for Directional & Timing Confirmation
33. TAS PRO Line-in-the-Sand Strategy
34. TAS PRO Dynamic Breakout Strategy
35. Signal Generation Strategies: TAS PRO Dynamic Breakout™
36. Signal Generation Strategies: TAS PRO Wall™
37. TAS PRO Market Intelligence™

DISCLAIMER/RISK FACTORS
The effectiveness of trading strategies in the past does not guarantee the trading strategies will be equally effective in the future. There are various reasons why your trade figures are unlikely to be the same as trading performance results presented by a TAS Professional, LLC, and they are (but are not limited to) the following: different levels of market liquidity, different sizes of market spreads, the suspension of credit and trade lines, taxation by regulatory or governmental authorities that are imposed on market participants, both sellers and buyers, including your counterparty, subjective errors, dealing errors, different levels of connection speed, the delay in the formation, transmitting, routing, and accepting orders; lack of tracking of every single trading signal since the moment of its creation; the effects of other positions that you maintain which were not placed in accordance with signals or strategies of TAS Professional, LLC indicators; changes in margin requirements; changes in (varying) stop-loss, acceptance of limit, and margining-out provisions; public or market holidays; one-time or infrequent exogenous market events; temporary inability of the trading signal provider to generate or transmit trading signals or strategies; lack of trading experience, etc. Additional details – CLICK HERE