Market Profile
A technical analysis method that organizes price and time data to show trading activity distribution across price levels
What is Market Profile?
Market Profile is an advanced charting study that organizes price and time data into a distribution curve, showing where and when prices are accepted or rejected. It helps traders understand market value areas and identify potential trading opportunities.
Key Components
Structure Elements
- Time-Price Opportunity (TPO)
- Point of Control (POC)
- Value Area
- Profile shape
- Initial balance
Market Analysis
- Value area analysis
- Balance areas
- Price acceptance
- Price rejection
- Time distribution
Trading Applications
Market Understanding
- Fair value identification
- Trading range analysis
- Market phase recognition
- Price discovery process
- Volume concentration
Strategy Development
- Entry point selection
- Stop placement
- Target identification
- Risk management
- Time-based analysis
Related Terms
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