Market Profile Guide

MORE WELL MEANING ADVICE
===========================
FIND A TRDADING SYSTEM

FIRST PROTECT WHAT YOU HAVE THEN THINK ABOUT MONEY MAKING
TIMING IS IMPORTENT
YOU CAN'T USE INDICATORS
NEVER WATCH IN NEWS AND EVENTS
NEVER LISTEN TO YOUR BROKERS
YOU SHOULD NOT USE ANY ADVICE
WHAT IS MARKET PROFILE?
MARKET PROFILE IS A VISUAL APPROACH TO UNDERSTAND THE
MARKET STRUCTURE PRICE ACTION AND MORE THEN THAT ONE CAN
LEARN BETTER ABOUT BOATH TRADERS AND INVESTERS BEHAVIOUR
MARKET PROFILE IS A MORE OF A GRAPHICAL TOOLS ITS BRINGS
PRICE,TIME,VOLUME RELATIONSHIP AND PROVIDE 360 DEGREE
OVERVIEW ABOUT THE MARKETS
HOW MARKET PROFILE HELPS TRADER?
================================
TRADING THE BIG AND SMALL GAP UP/DOWN DAYS

TRADING THE HIGH VOLATILE/LOW VOLATILE MARKETS
UNDERSTANDING WEAKERHAND TRADERS
UNDERSTANDING EMOTIONAL TRADERS
UNDERSTANDING DOMINANT TRADERS
UNDERSTANDING INTRADAY AND SHORT-TERM TRADING INVENTORY
ANTICIPATING TOP AND BOTTOM FORMATION
ANTICIPATING BREAKOUT FAILURES
ANTICIPATING STOPHUNTING
ANTICIPATING EMOTINAL PRICE BASED TRAPES
ANTICIPATING SHORTCOVERING/LONG LIQUIDATION ODDS
BUILDING BLOCKS OF MARKET PROFILE
==================================
TPO
POINT OF CONTROL
VALUE AREA
EARLY MORNING H/L
INITIAL AUCTION
INITIAL BALANCE
DAY RANGE
ACCEPTANCEvsREJECTION
BUYING TAIL
SELLING TAIL
DAY TYPES
OPEN TYPES
OPENING TYPES
POOR HIGHS AND LOWS
SINGLE PRINT
ANOMALIES
WEEK HIGHS AND LOWS
FAILD ACTION
PROFILE SHAPE
INVENTRY ADJUSTMENT
RALLY HIGH
PULLBACK LOW
ONE TIME FRAMING
VALUE AREA MIGRIATION
VALUE AREA PLACEMENT
DEEP DRIVE INTO POINT OF CONTROL

================================
PROMINANT POINT OF CONTROL (PPOC)

STRONG SUPPORT BASED PPOC
WEAKER TEMPORARY SUPPORT/RESISTANCE USING TARGETS
TEMPORARY RESISTANCE BUT DELAYED TARGETS
WEAKER POC (WPOC) USING TARGETS BUT NOT RECOMEND
REVERSEL PPOC (RPPOC) USING TARGETS
POC NON MIGRIATION
POC MIGRIATION
POC REJECTION BASED TRADING STRATAGY
EARLY MORNING POC REJECTION
MID DAY POC REJECTION
GOOD PPOC REJECTION
NOT SO GOOD PPOC REJECTION
BACK TO BACK PPOC SETUP
SLINGSHOT PPOC REVERSEL
EXPONANTIAL PPOC
INTRADAY PPOC AS TARGETS
DEEP DRIVE INTO SHORT-TERM REFFRENCE
===================================
POOR HIGH/POOR LOW

====================
LACK OF EXCESS(NO TAIL AT HIGH/LOW,1TPO ONLY)

AUCTION INCOMPLETION
POOR LOW/POOR HIGH ARE NOT A TARGET IN EVERY CASE
NEAR TO THE END OF THE SESSION (AVOID SPECULATING INTRADAY)
MORE WEAKER AND MORE VISUAL POOR HIGH/POOR LOW
COMPLEATED AUCTION VS INCOMPLEATED AUCTION IN A STRONG UP
TREND
AB -POOR LOW/POOR HIGH
=======================
IT IS A SPECIAL SITUATION DIFFRENCE BETWEEN A AND B IS ONLY
2 TPO OR LESS THEN 2 TPO SUCH REFFRENCE ARE CALLED AB
POOR HIGH/POOR LOW
FROM A INTRADAY PERSPECTIVE USUALLY SUCH AB REFFRENCE
ARE LIKELY TO CLEAR WITH VERY HIGH PROPABILITY
AB POOR HIGH/POOR LOW HAS TO BE WATCHED FROM A NEAR
EOD PERSPECTIVE TO CONSIDERS AS A SHORT-TERM REFFRENCE
AB POOR HIGH/POOR LOW ARE POTANTIAL TARGETS WHEN
COMES TO SHORT-TERM TRADING
AB POOR HIGH/POOR LOW HAS TO BE TAKEN AS TARGET ONLY IF
THE CONTEXT SUPPORT, TRADING SENTIMENT,HOURLY SIGNALS ARE
SUPPORT
AB POOR LOW AFTER A SUSTAINED UP TREND INDICATION OF
SWING TOP IS NEARING, TIME TO PREPARE FOR LONG
LIQUIDATION
45 DEGREE LINE
=============
EMOTINAL PRICE BASED TRAP

POC CONTROL FOR THE DAY WILL NOT MIGRATION
STRUCTURE - BALANCED AND BULGED
45 DEGREE LINE ON BOTH THE SIDE IGNORE THE 45 DEGREE LINE
FAILED AUCTION (T+5) DAYS
=======================
FAILED AUCTION IS ONE FORM INCOMPLETED AUCTION/INITIAL

BREAKOUT FAILURE
TERMINALEGY IS INTRUDUCED BY RAY BARROS FROM
TRADINGSUCCES.COM
THIS CONSUPT ONE CAN USE WIDELY TO TRADE IN INDEX AND AVOID
TRADING IN STOCKS
HOW TO MONITOR FAILED AUCTION AND BREAKOUT FAILURES?
BREAKOUT FAILURE CAN BE DETERMINED DURING THE INTRADAY
IT SELF HOWEVER ONE HAVE TO DETERMINE WHETHER THE
PATTERN IS FAILED OR NOT ONLY BY EOD

IGNORE FAILED AUCTION IT IS HAPPENING NEAR TO THE EXPIRY (LAST
WEEK OF EXPIRY)
IGNORE TRADING TOWARDS BACK TO BACK FAILED AUCTION
G2-G3 PATTERNS (GRADE-2,GRADE-3 PATTERNS) (T+2) DAYS
==================================================
IT IS SPECIFIC PATTERN WICH EXPLINES IN THE SHORT-TERM
INVENTORY CONDITION GETTING LONG TO TOOLONG OR
GETTING SHORT TO TOOSHORT
USALLY THE END RESULT IS A HIGH PROPABILITY SHORT
COVERING RALLY/LONG LIQUDATION
G-2 TARGET IS GENERALLY 2 DAY HIGH LOW WITH IN (T+2) DAYS

G-3 TRAGET IS GENERALLY 3 DAY HIGH LOW WITH IN (T+2) DAYS
ONE OF THE EXPIRY DAY SETUP
FAILED AUCTION BACK TO BACK + G-2 OR G-3 PATTERN IS
A STRONG SUPPORT/RESISTANCE ZONE DON'T TAKE A
TRADE (T+5) DAYS IN TARGET SIDE
STEALTH AUCTION
================
IT IS A TRADE LOCATION WHERE SHORT-TERM INVENTORY GOES
LONG TO TOO LONG OR SHORT TO TOO SHORT

STEALTH MORE WEAKER INTRADAY PLAYERS WILL BE CLOSING THEIR
POSITIONS
IT IS A LATE FORCING ACTION CHARACTERIZED MY MULTIPLE LOW/HIGH
DURING THE DAY
OFTEN STEALTH ACTION HAS POOR STRUCTURE WITH 3 OR 4
ANOMALIES
IT SHOULD NOT BECOME A DOUBLE/TRIBLE DISTRIBUTION
PRICE BASED TRAP
2 TYPES OF STEALTH ACTION ACCURE
TYPE-1 STEALTH ACTION - 3 ANOMALIES
TYPE-2 STEALTH ACTION - 4 ANOMALIES
SPIKE REFERENCES
===============
SPIKES ARE NOTHING BUT POC NON MIGRATION

MOST OF THE TIMES SPIKES ARE POTENTIAL PRICE BASED
TRAP WHICH TRAPS THE EMOTIONAL TRADERS MOST OF THE

TIME
VERY FEW SPIKES ARE GENUINE SPIKES

L&M PERIOD IF THERE IS A SUDDEN SHOOT THEN L PERIOD
SINGLE PRINT ZONE IS CONSIDERED FOR SPIKE REFFRENCE
KL&M PERIOD WILL INVOLVE SUDDEN SHOT IN THAT CASE K
PERIOD-> SINGLE PRINT THAT BECOMES THE POTENTIAL SPIKE
BASE
TYPES OF SPIKE REFERENCE
======================
POC NON MIGRATION - TRAP

BEAR TRAP SPIKES AT SINGLE PRINT ZONES OR DOUBLE DISTRIBUTION
SIZE
GENUNE SPIKES
BACK TO BACK SPIKES - TREND CONTINUATION ( SPIKE IN SAME
DIREECTION )
BACK TO BACK SPIKES V-SHAPE REVERSAL ( SPIKE ARE IN OPPOSITE
DIRECTIONS )
SPIKE REVERSALS
==============
PRIVIOS DAY SPIKE DOWN TODAY SPIKE UP

PRIVIOS DAY SPIKE UP TODAY SPIKE DOWN ALSO INDICATE THE
REVERSAL
GAP REFFRENCE
==============
GAP IS ONE OF HIGH CONFIDENCE IN THE MARKET.GAP UP IS
INDICATES HIGH CONFIDENCE BUYING AT THE OPEN AND GAP
DOWN INDICATES HIGH CONFIDENCE SELLING AT THE OPEN
GAPS ARE REFFERED WITH RESPECTED TO PROVIOS DAY HIGH AND
PRIVIOS DAY LOW.PRICE OPENING ABOVE PRIVIOS DAY HIGH IS
CONSIDERD AS GAP UP.PRICE OPENING BELLOW THE PREVDAY LOW
IS CONSIDERD IS GAP DOWN
GAP IS A SHORT-TERM REFFRENCE( NOT EVERY GAPS NEEDS TO BE

REVISITED BACK )
WEEKLY GAPS ARE VEARY IMPORTANT
GAP RULES
=========
RULE-1 IF THE GAP IS NOT FAIRLY AND QUICKLY FILLED GO IN THE

DIRECTION
RULE-2 IF THERE IS A GAP REJECTION GO IN THE DIRECTION OF GAP
RULE-3 IF THERE IS BIG GAP UP LETTER "A" PERIOD LOW IS A
MONITORING REFFRENCE PRICE BREAKING THE LETTER "A"
PERIOD INCREASES THE ODDS OF GAP FILL

RULE-4 BIGGER THE GAP.HOWEVER BALANCING STRUCTURE WITH
BREAKOUT FAILURE REDUCES THE OODS OF GAP CLOSURE FROM
INTRADAY PERSPECTIVE
RULE-5 EXPONETIAL GAPS
EXPONENTIAL GAPS ARE ONE OF EMOTIONAL TRADING ACTIVITY
AND MORE CONFIDENCE SHORT-TERM TRADERS INVENTORY GOING
LONG TO TOO LONG ( LONG POSITION) INVENTORY GOING SHORT TO
TOO SHORT ( SHORT POSITION )

SINGLE PRINT ( DOUBLE/TRIPLE DISTRIBUTION )
=======================================
BIG THE SINGLE PRINT ZONES HIGHER THE ODDS OF IMMEDIATE
RESISTANCE/IMMEDIATE SUPPORT
ACCEPTANCE AND REJECTION NEEDS TO BE MONITORED AROUND
SINGLE PRINT ZONES
ACCEPTANCE AROUND SINGLE PRINTS INDICATES==>CHANGE IN THE
CONTEXT
REJECTION AROUND SINGLE PRINTS INDICATES THE PREV DAY CONTEXT
CONTINUES
AVOID USING SINGLE PRINTS TO PLACE STOPLOSS
SINGLE PRINTS WITH AN INSIDE DAY INDICATES NO CHANGE IN
CONTEXT.SO AVOID TAKING SHORT-TERM REFFRENCE FROM
INSIDE DAY
SINGLE PRINT ZONE ON ACCEPTANCE THE REFFRENCE NEEDS TO BE
REMOVED
SINGLE PRINT ZONE IN ONE DIRECTION FOLLOWED BY SINGLE
PRINT ZONE IN ANOTHER DIRECTION INDICATES TREND REVERSAL
EXCESS
======
END OF ONE AUCTION AND BEGINNING OF ANOTHER ACTION

EXCESS IS GOOD HIGH IN MARKET PROFILE TERM LONG TAIL
IN MARKET PROFILE DAILY,WEEKLY,MONTHLY TIME FRAME
EXCESS HAPPENS ACROSS ALL THE TIME FRAMES

FAILED AUCTION ONE OF EXCESS
EXCESS WHERE INNOVATOTRS AND LAGARD MEET EACH OTHER
BALANCE
=======
P-SHAPE BALANCE
b-SHAPE BALANCE
P-SHAPE BALANCE
===============
RIGHT FROM THE OPEN FIRST HOUR OF TRADING IS MOST FOCUSED
ON SHORT COVERING AND REST OF THE DAY IS FOCUSED ON

BALANCING AT TOP OF THE DAY PROFILE
MOST OF THE P-SHAPE PROFILE BELONGS TO SHORT COVERING
ODDS AND FEW CASES IT COULD BE THE COMBINATION OF FRESH
MONEY BUYING + SHORT COVERING
b-SHAPE BALANCE
===============
RIGHT FROM THE OPEN FIRST HOUR OF TRADING IS MOST
FOCUSED ON LONG LIQUDITION AND REST OF THE DAY IS
FOCUSED ON BALANCIN AT BOTTOM OF THE DAY PROFILE
MOST OF THE b-SHAPE PROFILE BELONGS TO LONG LIQUDITION
ODDS AND FEW CASES IT COULD BE THE COMBINATION OF FRESH
MONEY SELLING + LONG LIQUDITION
DOUBLE/TRIPLE MECHANICAL REFRENCE LEVEL
=======================================
ONE FORM OF STOP LOSS LEVEL

TWO OR THREE SINGLE PRINT TAILS ZONE OVERLAPING
ONLY IF CONTEXT SUITS DOUBLE/TRIBLE MECH REFFRENCE WILL
BE USED AS POTANTIAL TARGET
AT TIMES IT WILL BE HELPFULL TO IDENTYFY CLUSTRED STOP LOSS
DEEP DRIVE IN TO INTRADAY REFFRENCE

=================================
PRIVIOS DAY HIGH

PRIVIOS DAY LOW
PRIVIOS DAY HALF BACK LINE
RALLY HIGH ( MOST IMPORTANT TO FRIDAY RALLY HIGH )
PULL BACK LOW ( MOST IMPORTANT TO FRIDAY PULL BACK LOW)
DAY TYPE
=======
NON TREND DAY - NARROW RANGE

NORMAL DAY - TRY TO MOVE UP OR DOWN BUT RANGE
NEUTRAL CENTER DAY - MARKET GO BOTH SIDE BUT CLOSE MID
NARMAL VARIATION DAY - MARKET GO TO DIRECTION
NEUTRAL EXTREEM DAY - TEST ONE SIDE END UP MOVE OPP
DOUBLE DISTIBUTION TREND DAY - MARKET HAS DIFINE
DIRECTON BIAS BUT THE OPPOSITE ACTIVITY IS STRONG
TREND DAY - MARKET COMPLETLY CONTROL EAYTHER BUY OR SELL
OPEN TYPE
=========
OPEN OUT SIDE THE == IMBALANCE POSIBLE DIRECTIONAL

RANGE MOVE
OPEN INSIDE THE = MARKET STILL BALANCE DICIDE TO
RANGE = THE FUTURE
ACTION
OPEN INSIDE == THE RANGE IS LIKLY TO BE LIMITED
YESTERDAY VA ON THIS DAY
INSIDE DAY QUIT THE
TRADING
OPENING TYPES
=============
Open-Drive
The open-drive is considered the highest conviction of the open types,
characterized by unidirectional activity, which often results in a trend day. On
an open-drive, the opening print will often be the low or high of the day,
depending on the direction. Market profilers attribute the high level of

aggression to the additional participation of OTF (other timeframe) traders.
Open Test Drive
The open test drive is similar to the open drive in that it generally opens above
the previous day’s range and value area, but it doesn’t immediately have a
directional move. The market will first test an important level, like the previous
day’s high or low, before it makes the directional move.
Open Rejection Reverse

The open rejection reverse is characterized by initial conviction on the open,
often opening above (or below) the previous day’s value area and range, but is
quickly met with resistance or support, resulting in a reversal in the opposite
direction. This open type frequently leads to momentum in the opposite
direction of the initial move at the open.
Open Auction (Outside of Range)
The open auction (outside of range) is characterized by an open outside of the
previous day’s range, with little or no directional conviction. During an OAOR,
the market is considered to be “in balance,” indicating a relative consensus
among market participants. In a lot of literature on the internet, there seems
to be a misconception that OAORs often lead to significant trend days. Still,
the OAOR is considered to be the second weakest open type (in regard to
conviction level), right behind the Open Auction (Inside of Range).
STRONG / WEAKER REFFRENCE ANALYISIS
===================================
STRONG REFFRENCE ( ACT AS SUPPORT AND RESISTANCE )
===============================================
SINGLE PRINT ZONE

EXCESS ( LONG TAIL )
PPOC ( BACK TO BACK,EXPONANTIAL,STRONG SUPPORT BASSED)
SPICK ( BACK TO BACK,GENUNE SPICK)
FAILED AUCTION BACK TO BACK + G-2 OR G-3
PATTERN IS A STRONG SUPPORT/RESISTANCE

WEAKER REFFRENCE ( ACT AS SHORT-TERM TARGET )
===========================================
OPEN DRIVE ( OPEN = HIGH,OPEN = LOW)

AB POOR HIGH / POOR LOW
POOR HIGH / POOR LOW
FAILED ACTION ( ONLY FOR INDEX )
GRADE-2 OR GRADE-3 PATTERNS
DOUBLE MECH TOP / BOTTOMS
TRIBLE MECH TOP / BOTTOMS
INTRADAY NUANCES
BALANCE
STELTH AUCTION
REVERSEL PPOC
WEAKER TEMPORARY SUPPORT/RESISTANCE
INTRADAY HALF BACK LINE AND PRIVIOS DAY HALF BACK LINE
HOW TO MAKE TRADE PLAN FOR NEXT DAY TRADING ( STEP BY STEP)
========================================================
CHECK WEAKLY SENTIMENT AS BELL TREND ANALYZER

CHECK DAILY SENTIMENT AS BELL TREND ANALYZER
CHECK EOD REFFRENCE (WEAKER,STRONGER,REFFRENCE LINEs)
CHECK INTRADAY NUANCES ( INTRADAY REFFRENCE AND WEAKER
POINT)
THANK – YOU HAPPY
TRADING
Pressnted by Mr.Ranjith

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What are some of the building blocks of Market Profile?

What are some of the building blocks of Market Profile?

How can Market Profile help traders?

How can Market Profile help traders?

MORE WELL MEANING ADVICE

FIND A TRDADING SYSTEM

WHAT IS MARKET PROFILE?

MARKET PROFILE IS A VISUAL APPROACH TO UNDERSTAND THE

LEARN BETTER ABOUT BOATH TRADERS AND INVESTERS BEHAVIOUR

MARKET PROFILE IS A MORE OF A GRAPHICAL TOOLS ITS BRINGS

PRICE,TIME,VOLUME RELATIONSHIP AND PROVIDE 360 DEGREE

OVERVIEW ABOUT THE MARKETS

HOW MARKET PROFILE HELPS TRADER?

TRADING THE BIG AND SMALL GAP UP/DOWN DAYS

DEEP DRIVE INTO POINT OF CONTROL

PROMINANT POINT OF CONTROL (PPOC)

DEEP DRIVE INTO SHORT-TERM REFFRENCE

POOR HIGH/POOR LOW

LACK OF EXCESS(NO TAIL AT HIGH/LOW,1TPO ONLY)

IT IS A SPECIAL SITUATION DIFFRENCE BETWEEN A AND B IS ONLY

2 TPO OR LESS THEN 2 TPO SUCH REFFRENCE ARE CALLED AB

POOR HIGH/POOR LOW

FROM A INTRADAY PERSPECTIVE USUALLY SUCH AB REFFRENCE

ARE LIKELY TO CLEAR WITH VERY HIGH PROPABILITY

AB POOR HIGH/POOR LOW HAS TO BE WATCHED FROM A NEAR

EOD PERSPECTIVE TO CONSIDERS AS A SHORT-TERM REFFRENCE

AB POOR HIGH/POOR LOW ARE POTANTIAL TARGETS WHEN

COMES TO SHORT-TERM TRADING

AB POOR HIGH/POOR LOW HAS TO BE TAKEN AS TARGET ONLY IF

THE CONTEXT SUPPORT, TRADING SENTIMENT,HOURLY SIGNALS ARE

AB POOR LOW AFTER A SUSTAINED UP TREND INDICATION OF

SWING TOP IS NEARING, TIME TO PREPARE FOR LONG

EMOTINAL PRICE BASED TRAP

FAILED AUCTION IS ONE FORM INCOMPLETED AUCTION/INITIAL

BREAKOUT FAILURE CAN BE DETERMINED DURING THE INTRADAY

IT SELF HOWEVER ONE HAVE TO DETERMINE WHETHER THE

PATTERN IS FAILED OR NOT ONLY BY EOD

G2-G3 PATTERNS (GRADE-2,GRADE-3 PATTERNS) (T+2) DAYS

IT IS SPECIFIC PATTERN WICH EXPLINES IN THE SHORT-TERM

INVENTORY CONDITION GETTING LONG TO TOOLONG OR

GETTING SHORT TO TOOSHORT

USALLY THE END RESULT IS A HIGH PROPABILITY SHORT

COVERING RALLY/LONG LIQUDATION

G-2 TARGET IS GENERALLY 2 DAY HIGH LOW WITH IN (T+2) DAYS

A STRONG SUPPORT/RESISTANCE ZONE DON'T TAKE A

TRADE (T+5) DAYS IN TARGET SIDE

LONG TO TOO LONG OR SHORT TO TOO SHORT

SPIKES ARE NOTHING BUT POC NON MIGRATION

TRAP WHICH TRAPS THE EMOTIONAL TRADERS MOST OF THE

VERY FEW SPIKES ARE GENUINE SPIKES

SINGLE PRINT ZONE IS CONSIDERED FOR SPIKE REFFRENCE

KL&M PERIOD WILL INVOLVE SUDDEN SHOT IN THAT CASE K

PERIOD-> SINGLE PRINT THAT BECOMES THE POTENTIAL SPIKE

TYPES OF SPIKE REFERENCE

POC NON MIGRATION - TRAP

PRIVIOS DAY SPIKE DOWN TODAY SPIKE UP

GAP IS ONE OF HIGH CONFIDENCE IN THE MARKET.GAP UP IS

INDICATES HIGH CONFIDENCE BUYING AT THE OPEN AND GAP

DOWN INDICATES HIGH CONFIDENCE SELLING AT THE OPEN