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

• Volume Profile
• Price Action
• Market Structure
• Technical Analysis