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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.
Figure A1.1 illustrates how to calculate the volume value area. First, identify the price at which the greatest volume occurred. Then, sum the volumes occurring at the two prices directly above the high-volume price and compare it to the total volume of the two prices below the high-volume price. The dual price total with the highest volume ...
Nov 20, 2021 · Market profile charts display price, volume, and time frame on a single chart, indicating the value area and points of control for a stock. The price is on the vertical scale (y-axis), and the volume appears on the horizontal scale (x-axis). Market profile charts can be used as a complete trading system or as part of a larger trading system.
Market Profile is a professional instrument for analysis of trading volumes on the exchange. If you are new to this subject, we recommend you to read the article on basics of the Market Profile. More advanced information goes below. We assume that you know already what Value Area (VA), Point Of Control (POC) and Initial Balance (IB) are.
Apr 11, 2023 · The value area on a market profile chart represents the range where approximately 70% of trading has taken place during a specific timeframe. It signifies price levels considered fair by most participants in the market – often denoted as high-volume nodes within profiles.
Jan 27, 2024 · A stock with a high volume and trades within or above the value area could indicate a strong bullish sentiment. Conversely, low volume within or below the value area may suggest a bearish sentiment. 4. Market Profile Chart. The market profile chart combines all of this information into one easy-to-read chart.
Nov 21, 2021 · Market Profile Indicator Sell Setup. Find the value area’s top on the chart. Wait for the price to continue its course. Enter the trade at the value area’s top. Put a stop-loss near the high of a selling point. Exit the trade when the value area’s bottom emerges or where the market profile block ends. Summary of Market Profile Indicator
