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In this article, we will consider Market Profile indicator. We will find out what lies behind this name, try to understand its operation principles and have a look at its terminal version (MarketProfile).

The Market Profile reflects the organization of trading based on time, price and volume. Each day a range is formed with a price area representing the balance between buyers and sellers. Prices fluctuate in this area, and Market Profile helps traders interpret these changes both during and after trading. It is plotted on a normal distribution curve, where about 70% of the value lies within one standard deviation of the mean. In other words, it is an analysis tool that shows the distribution of volumes or the time spent by the price at certain levels. It helps traders understand where the biggest trades are happening and identify key supply and demand levels.

Using Market Profile requires understanding some concepts that are driven by market behavior and are directly or indirectly displayed on the chart. Recommended timeframe for analysis is M30.

The first trading hour forms the main pattern of the trading day and is the basis for studying the market participants' activity throughout the session. This period is important in determining what traders are doing on the market to find the price at which the buyer and seller will agree to strike a deal.

There are two categories of market participants:

  1. day-timeframe trader — a trader working intraday in large volumes of several ticks;
  2. other-timeframe trader — a trader who trades on other time periods, ensuring the price moves to new levels.

Let's look at some basic concepts that will help you better understand the Market Profile.

  • Initial balance — range of market prices during the first hour of a trading session (two 30-minute bars after the session opening).


Author: Artyom Trishkin

 
It is strange that you did not conclude that it is not an indicator, but worthless bullshit. Just like fractals do not show anything clever.
 
Could you make it so that the tick volume of a level is divided by the number of bars in that level? Price can be flat for a long time and empty ticks accumulate. What is the point of levels with no real volumes? The ratio of tick volume to the number of bars in the level will show the real weight of the level
 

Code Base

Volume Profile + Range v6.0

Olexiy Polyakov, 2016.06.30 12:46

Volume Profile + Range v6.0 (former TPO). Distribution of deals by price levels at a given time interval. Displayed as a histogram.

 

Articles

Market Profile indicator

Artyom Trishkin, 2025.07.14 11:49

In this article, we will consider Market Profile indicator. We will find out what lies behind this name, try to understand its operation principles and have a look at its terminal version (MarketProfile).

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