Why trade with Market Profile Indicators?
Market Profile indicators provide you information that is normally hidden when you trade. Market Profile indicators give you the actual price points where trades are being made. This direct level of buying consent therefore shows you where traders are willing to make trades. This works in a two fold way. You can see where big money traders are able to trade, and where there is likely support/resistance in the market.
Why does Volume at Price matter for Market Profile Indicators?
Volume at price is the exact price point at which trades are made. This indication is regardless of the time the trades were made as long as they are within the look back period.
So instead of seeing a standard volume bar where it is only accounting for the volume within a single candlestick, you see the volume for multiple candlesticks at the different prices the market reached. This information about market profile is key because these areas have congestion and big money traders in them. These areas have large amounts of volume, and can provide both resistance and support in the market.
What Market Profile Indicators are being used in this video?
In this video we are using a modified version of Market Profile therefore we will not use the standard alphabetical version. Market Profile can be presented with an alphabetical system or color coded. We find this hard to read. Instead this Market Profile indicator uses a clear color scheme to identify the different areas of the Market Profile. This version of Market Profile is called “TAS Market Map”.
You can find out more about TAS Market Map here:
More Videos about using Market Map or Market Profile Indicators
We cover multiple strategies on this site with Market Profile Indicators. They can be used in multiple ways, and on any chart that has volume. Due to this, they have been a popular choice among traders since their discovery in the 1980’s.
Watch the video here about TAS Market Map Alligator Jaws Formation where we use Market Profile to identify a “dead” zone in the market. Using the Point of Control areas, we can identify a range where the market is likely to run.
TAS Market Profile can be used to identify areas of resistance and support in the market. You can find out more about this here.