Every time price trades it reflects fair value.

Profile theory states that it is long term players who dictate market trends, and they also often dictate the end of trends. This activity is split into two areas:

INITIATIVE ACTIVITY	Long term players dictate directions of trends and decide when price is unfair.
RESPONSIVE ACTIVITY	Long term traders dictate the end of the trend by withdrawing initiative activity or by taking profits.

To understand price behaviour, it is necessary to separate long term players from short term players. Long Term players are often identified by single letter prints that start trends and mark extremes or rejection of value.

MP is It is used primarily as a day trading tool, but has application for the medium term and strategic trader. Often it is possible to eliminate one side of the market and it often provides very precise support and resistance. It also shows correct areas for stop placement.

These are five main pattern points that you need to know:

Where is the most time? (control point)
Where is the least time? (vacuums, rejections, inflections)
Where is the point where one trend ends and another begins? (distribution highs and lows)
Where is there a switch between no time and lots of time? (ledges)
Where are the Single letter prints? (vacuums)

Always remember these basics of day trading methods:

Most analysis of markets especially momentum based reference the relationship from close to close.
Profile also looks at the relationship between the open and the close of the previous day.
Various questions and conclusions can be made.

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