Market Profile Indicator


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Key Features :

  • Plots TPO for Current Day.
  • Option to choose color of TPO’s.
  • Indicates IB (Initial Balance) Range.
  • Options to extend Untested Lines (POC,VAH,VAL)
  • Option to Change TPO Text.
  • Option to Split or Unsplit the profile.

What is Market profile ?

  • Market profile is a style of plotting “Price” on the Y-axis and “Time” on the X-axis, which most of the time form a bell-shaped image as the body of the profile.
  • It helps day traders identify Other Timeframe Participants (Big players) who have money and information power. short-term traders have to follow these big sharks which give direction to markets.
  • It provides an X-ray vision about the market as Value Area represents 70% of the day’s activity and this will give a clear picture of the current state of the market as it unfolds.
  • It works in all market conditions. Usually, a trading system or indicator works in certain market conditions like a trending or sideways market. There is no such restriction to Market Profile as it clearly shows the balanced and imbalanced market conditions in both directions all the time.

How Market Profile Works ?

  • Each half an hour(30min) of the trading day is designated by a letter, which is also called Time Price Opportunity (TPO).
  • First 30 min range denoted with the letter ‘A,’ next 30 min range with the letter ‘B,’ and continue this  until the last range of the market, hence the last range is denoted with ‘M’ as the Indian markets currently trade from 9.15 am to 3.30 pm with the last session ‘M” is for only 15 minutes from 3.15 pm to 3.30 pm.
  • LetterO  indicates the open price level, and Letter#  indicates the closing price level.
  • Two Methods of Market Profile one is ‘Split’ profile, and another is ‘Un-Split’ profile.
  • The Price level in which maximum time was spent or maximum trading activity happened is called as Point of Control (POC).
  • Value Area (VA) is the 70% price range around POC. It is the fair price of the Instrument on the particular day.
  • IB Range is the first one-hour range in the market created by retail traders (most of the time).
  • Retail traders can only provide market depth and liquidity, but they fail to give magnitude and direction to the price.
  • By the end of every trading day, the market profile chart shows not only what happened on that day, but also who is responsible and when it happened.
  • Based on IB range and price variation around IB range, Market Profile identifies 6 important day structures:
  1. Normal Day
  2. Normal Variation Day
  3. Trend Day
  4. Double Distribution Day
  5. Non-Trend Day
  6. Neutral Day

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