Markets and Momentum

Markets & Momentum: How Profiling Gives Traders an Advantage by James F. Dalton and Robert Bevan Dalton, a book focused on advanced trading techniques and psychology. The material explores fundamental concepts for market mastery, emphasising the integration of market understanding with self-understanding and a balanced strategy. Key topics include "chunking" as a learning mechanism, the continuous nature of the auction process, and the importance of Market Profile as a tool to visualise market-generated information (MGI) using price, time, and volume beyond just focusing on momentum. The book strongly advocates for overcoming deeply ingrained behavioural biases, such as fading trends and the detrimental effects of emotional responses to market events, underscoring that the biggest obstacle to success is the trader themselves.