Markets and Market Logic: Trading and Investing with a Sound Understanding and Approach

Markets and Market Logic by J. Peter Steidlmayer, creator of the Market Profile™, and Kevin Koy is a foundational work that examines the underlying structure of financial markets through the lens of auction theory and logic. Building upon Steidlmayer’s earlier innovations, the book provides traders with a framework to understand how markets function as continuous negotiations between buyers and sellers, governed by the forces of supply, demand, and value discovery.

At its core, the book emphasizes that markets are not random but exhibit logical behavior rooted in human interaction. By applying Market Profile analysis, Steidlmayer and Koy illustrate how traders can identify value areas, time-price opportunities, and the balance or imbalance that drives price movement. This perspective allows traders to anticipate shifts in market direction with greater confidence and to operate within a structured, probabilistic framework.

The authors guide readers through essential concepts such as auction markets, the Initial Balance, and the development of market distributions. They demonstrate how to interpret these structures across multiple timeframes, equipping traders to recognize both short-term opportunities and long-term trends. The text also underscores the importance of discipline and consistency, reminding traders that success lies in adapting to the logic of the market rather than forcing personal biases onto price action.

What makes Markets and Market Logic distinctive is its blend of philosophy and practical guidance. Steidlmayer encourages traders to think differently about markets—moving away from traditional indicators and toward a deeper comprehension of the market’s auction-based nature. The integration of real-world examples and conceptual clarity ensures that the book is not only educational but also applicable in active trading.

For students of Market Profile and auction market theory, this book is an essential resource. It provides a structured roadmap for understanding how markets truly operate and offers traders the tools to align themselves with the natural flow of supply and demand.

Contents:

• The Principles of Market Logic, Operational Procedures and Characteristics
• Some Thoughts on the Random Walk and Efficient Market Theories
• Components of a Marketplace The first two observations
• Components of a Marketplace The third and fourth observations
• Components of a Marketplace Behavioral Observations
• Illustrative Examples of Market Logic
• Some Non -Hypothetical, Very Readable Markets
• The Market’s Most Important Characteristic
• A Glance at the Futures Markets
• How Best to Get Results
• A Market Understanding
• You
• Trading (and Investing) Strategy and Techniques

Markets and Market Logic: Trading and Investing with a Sound Understanding and Approach By J. Peter Steidlmayer and Kevin Koy pdf