As traders, we must condense an entire chart down into actionable information. This information can be interpreted in many different ways, and this results in 1000’s of different trade strategies. From the simple, to the complicated. TAS Tools uses Market Profile information, outlining where trades are executed.
Market Profile takes the Volume at Price (VAP) or Volume at Time (VAT) to give you a graphic representation of buyers in the market.
Why does this matter?
Market Profile provides you with the key information on where traders are making trades, and not just where the price reached in a certain period of time.
If there is a high volume of trades at a certain price, you can gather that price is considered a fair price for that particular Stock, Future, Forex pair, or CFD at that particular time.
You now have an edge when deciding when/if we want to place a trade. This is simple technical analysis using Market Profile.
Why TAS Tools for analyzing Market Profile?
TAS Tools takes Market Profile information, and displays this on your chart in clear support, resistance, and point of control levels. You then can see exactly what levels buyers/sellers are likely to come into the market. This is all based off of previous real transactions in the market, and that is why Market Profile has been popular the 80’s when it was discovered.
There are two key ways TAS Tools displays the Market Profile Information on your chart, and multiple additional tools provided to analyze the market depending if you are trading high time frames, or quick intra day trading.
Method 1: TAS Tools Boxes
Boxes break down the value area. This value area created by the accumulation of trades at specific price levels, displays support and resistance areas where buyers/sellers are likely to come into the market. You can use this to enter in on trades when the market is breaking out of a value area, or when the market is coming up to an area where it will likely meet resistance breaking through high volume areas.
Method 2: TAS Tools clear view of Market Profile
Market profile normally uses a condensed alphabet format. TAS Tools uses a clear system to display where traders actually make trades in the market. They do this by replacing the standard alphabet with horizontal lines. In addition, the bars are color coded to tell you where the most trades were made (value area). The price level traders are at is clear, and you can then trade with this information.
On top of that, each TAS Tools Market Map features a customizable length and position.
You can use this depending on your market, and on the time frame that you choose to trade with.