Market Profile
A Market Profile is an intra-day charting technique (price vertical, time/activity horizontal) devised by J. Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT), ca 1959-1985. Steidlmayer was seeking to evaluate market value as it developed in the day time frame. Steidlmayer’s charts displayed a bell shape, fatter at the middle prices, with activity trailing off at the higher and lower prices. In this structure he recognized the ‘Normal’, gaussian distribution he had met with in college statistics, (3).
The Market Profile graphic was introduced to the public in 1985 as a part of a CBOT product, the CBOT Market Profile (CBOTMP1) (2). CBOTMP1 included the new Liquidity Data Bank (LDB) data; end-of-day clearings, identified by the class of trader in the pits ( (1) local, (2) commercial, (3) members filling for other members and (4) members filling orders for the public). The Profile was proposed as a trading methodology for using these new data. CBOTMP1 advertised the Profile/LDB as the way to ‘Improve Performance’. It is described as “the only variable-cost ticker service in the commodities industry.”
The promotional material says the Profile is to be the link between the CBOT data and the market. A Profile graphic is to be used to tell “what the market is doing”; the LDB data is for finding the market’s ‘condition’. As a part of the data-display connection in CBOTMP1, the price of the peak cleared volume is identified as the Point of Control (POC). Following the normal distribution analogy, the central seventy percent of trading activity about POC (+/- one standard deviation) is termed the ‘Value Area’.
Source : wikipedia.org
Nifty – Bank Nifty Futures Market Profile Charts – 11-08-2015 Please find the Nifty Future & Bank Nifty Future Market Profile TPO Charts market with important reference levels for learning purpose. You can find the Weekly review of Nifty Spot & Bank Nifty Spot based on Market Profile here. Terms used in…
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Nifty & Bank Nifty Spot Week Composite Market Profile for the week ended 24-07-2015 Nifty Spot opened at 8623 on 20-07-2015, above the Week Composite value area of the previous week & as per our review of the previous week’s Nifty & Bank Nifty Week Composite Profile it tries to find buying interest in the 8610-8640 range, but failed…
Nifty – Bank Nifty Futures Market Profile Charts – 24-07-2015 Please find the Nifty Future & Bank Nifty Future Market Profile TPO Charts market with important reference levels for learning purpose. Terms used in the Info Box of the chart : TPO – Time Price Opportunity TFF – Trade Facilitation Factor Q% –…
Nifty – Bank Nifty Futures Market Profile Charts – 17-07-2015 Please find the Nifty Future & Bank Nifty Future Market Profile TPO Charts market with important reference levels for learning purpose. Terms used in the Info Box of the chart : TPO – Time Price Opportunity TFF – Trade Facilitation Factor Q% –…
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Nifty & Bank Nifty Spot Week Composite Market Profile for the week ended 10-07-2015 Nifty Spot opened at 8386.15 on 06-07-2015, withing the Week Composite value area of the previous week & the buyers pushed it towards multi week highs of 8533. On Tuesday it made another fresh multi week high of 8561 & managed…
Nifty – Bank Nifty Futures Market Profile Charts – 10-07-2015 Please find the Nifty Future & Bank Nifty Future Market Profile TPO Charts market with important reference levels for learning purpose. Terms used in the Info Box of the chart : TPO – Time Price Opportunity TFF – Trade Facilitation Factor Q% –…
Nifty Future – ProAMT Analysis – Technical Levels – 26-06-2015 Nifty Future opened just above the Spike low of the late afternoon selloff of 24-06 with a OAOR open type. Being the expiry day of June 2015 Derivative contract, we had expected two way moves but we had a swift up move towards the end of…