Enhancing Your Information Processing

Yesterday afternoon I had the pleasure of speaking with Terry Liberman and Eric Cassidy from WindoTrader, a software platform that offers unique chart displays grounded in the Market Profile framework.

Notice the unique chart display above.  The entire period is captured at left in a profile view, displaying the prices with the greatest volume (far left) and the prices arrayed by time period (traditional profile).  The chart then segments the session into 14 large bars, with traditional bars inside the larger bars to show how price moved within the large bar period.  The large bars are color coded to show whether we are building value higher (green) or lower (red).  Notice the large rectangular bar that is arrayed horizontally across the center of the screen.  That is the session's value area.

The chart nicely shows how the market tried to establish value lower early in the session only to probe the opposite extreme of the value area. 

Notice how much information can be conveyed in a single display.  To be sure, any novel display takes time to learn and feel comfortable with.  With practice, however, traders can pick up on patterns that otherwise would go undetected with a traditional chart--particularly if they are guided by tested relationships derived from sound theory.

While on the topic of WindoTrader, check out their video series and especially the video detailing the concept of developing your "anchor trade".  That video nicely illustrates the value of looking at markets uniquely and developing bread-and-butter trades from your distinctive way of making sense of markets.  It's difficult to imagine you could achieve consistently better results than others by looking at the same information they do and processing it in similar ways.

Further Reading:  Countering Information Processing Biases in Markets