What is Market Profile?

Market Profile is a unique charting tool that gives traders a fresh perspective of the two-way auction process driving all market movement. It can help individual traders identify patterns in herd behavior, leading to a better understanding of overall market sentiment.

What is market profile trading?

Introduced by J. Peter Steidlmayer, market profile trading combines price and time information in a statistical distribution, often resembling a bell curve, offering a unique visual representation of market dynamics.. Market profiles are essential for traders as they merge time, price, and volume data to provide a detailed view of market activity.

Why is a market profile important?

It can help individual traders identify patterns in herd behavior, leading to a better understanding of overall market sentiment. It is useful in both short-term and long-term analysis. The profile is built by plotting the volume of transactions at each price level.