A
Market Profile
is an intra-day charting technique (price vertical, time/activity horizontal) devised by J. Peter Steidlmayer, a trader at the
Chicago Board of Trade
(CBOT), ca 1959-1985. Steidlmayer was seeking a way to determine and to evaluate
market value
as it developed in the day time frame. The concept was to display price on a vertical axis against time on the horizontal, and the ensuing graphic generally is a bell shape--fatter at the middle prices, with activity trailing off and volume diminished at the extreme higher and lower prices. In this structure he recognized the 'normal',
Gaussian distribution
he had been introduced to in college statistics (3).
