Description
Alex Benjamin – CBOT Seminar on Market Profile (101 & 102)
Market Profile ® is a graphic representation that shows price and time information as a distribution. Key benefits include:
- Determine amount of time, number of ticks and volume traded at specific price levels or price ranges during a period
- Identify prices perceived as fair by the market
- Identify support and resistance levels to anticipate future price movements
In Market Profile ® charts, each group of lettered boxes shows the price or price range where trades occurred in a lower interval of time than the main chart (usually 30 minutes). In ProRealTime, each letter is also associated with a colored box to make reading the chart easier. Key points on the chart include the following:
- The Point of Control or “POC” (red triangle) shows the price or price range that was the most traded during the profile
- The Value Area (red line) shows the price range in which at least 70% of trades took place
- The Initial Range (blue line) shows the price range where trading occurred during the first two periods of the profile (A and B)
- The green triangle shows the opening price
- The blue triangle shows the close price (or last price for the developing profile: this price is also shown in the box on the price axis)
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