Market profiles will show the amount of time the market has spent at a specific price level.
I will do this based off 30min TPO's. One TPO block (or letter) will be places on the profile if a price if traded over during a 30min period of time.
This can help to gauge aggression, or lack of, in the markets as well as price acceptance
The following levels can be taken from the market profile:
- Poor high or low: This will indicate a lack of buying or selling pressure as price has been allowed to trade at this price for 3 or more TPO's
- Excess at low or high: This will indicate aggressive or responsive buyers or sellers as price only traded at that level for 1 TPO period and did not revisit for the rest of the session.
The two above can help to gauge a directional bias for the trading day
- Ledges: This will be a build up of 3+ TPO's (similar to a poor high/low) but within the profile. This will indicate or possible support and resistance levels for breakouts or reversals
- Single prints: This will be 1+ single TPO's within the profile indicate a inefficient move with possible thin volume that price is likely to fill in the coming session(s)
I will do this based off 30min TPO's. One TPO block (or letter) will be places on the profile if a price if traded over during a 30min period of time.
This can help to gauge aggression, or lack of, in the markets as well as price acceptance
The following levels can be taken from the market profile:
- Poor high or low: This will indicate a lack of buying or selling pressure as price has been allowed to trade at this price for 3 or more TPO's
- Excess at low or high: This will indicate aggressive or responsive buyers or sellers as price only traded at that level for 1 TPO period and did not revisit for the rest of the session.
The two above can help to gauge a directional bias for the trading day
- Ledges: This will be a build up of 3+ TPO's (similar to a poor high/low) but within the profile. This will indicate or possible support and resistance levels for breakouts or reversals
- Single prints: This will be 1+ single TPO's within the profile indicate a inefficient move with possible thin volume that price is likely to fill in the coming session(s)