Market Profile

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Market Profile

Postby Apprentice » Tue Nov 09, 2010 5:52 pm

Market Profile.png

Note
If you use the instruments with a value from several hundred to several thousand.
Use larger Box Size.
Otherwise the calculation may take some time


To quote Warren Buffett and a "Price is what you pay. Value is what you get."
Market Profile can be helpful in determining fair value for each trading period.

Market Profile provides a completely different view on the market.
In following days I'll add a few more useful features and offer a detailed explanation.

To have learned this concept we need at least a week.

Every day the market again, establishes a value area, the fair value of securities.
It represents a balance (equilibrium) point where an equal number of buyers and sellers.
Prices never remain within this region, constantly is in motion.
Market Profile records this activity for traders to interpret.

Market Profile is based on the normal distribution curve, 70% of the value is within one standard deviation.

Time Price Opportunities (TPOs), are represented by letters and numbers.
Each letter represents one trading period.
upper case letters from A to Z, then lower case from a to z and and numbers from 1to 9,
A represents the first trading period.

POC = Point of Control
Price at which most TPO segments appear on the Market Profile char.
Price with the highest activity.

VA = Value Area (I must add this functionality)
The price range that contains 70% of the TPO profile.
Value Area is the price that was accepted by most market participants.

TPO = Time Price Opportunity
Letters (TPO) represents the price at the time at which it traded.
A, B, C, D, E, F, G, H, I, J, K, L, M, N - each letter represents one trading period.

Selling Tail - Minimum of 2 TPO's at the top of the profile.
Buying Tail - Minimum of 2 TPO's at the bottom of the profile

Every time when the price falls below fair market value for the considered period,
occurs opportunity to open the Long position and vice versa.

The decision on entry into the position should not be made solely based on observation of market profile.
Market Profile.lua
(5.83 KiB) Downloaded 5265 times

Market Profile New.lua
(8.09 KiB) Downloaded 341 times

VPOC.lua
(4.55 KiB) Downloaded 344 times

MT4/MQ4 version of VPOC.lua
viewtopic.php?f=38&t=66947
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Re: Market Profile

Postby patick » Wed Nov 10, 2010 1:49 am

:) Beautiful work, Apprentice!
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Re: Market Profile

Postby coldrecs » Wed Nov 10, 2010 10:40 am

Excelent! I was long waiting for this indicator. Thank you!
Also waiting for eventual developments on this.

I know this indicator from MT4 and NinjaTrader. I hoped someone would bring it here also :)
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Re: Market Profile

Postby patick » Thu Nov 11, 2010 2:00 am

I know this is a work in process, but when you transition from a previous day to a new one, the formatting and histogram are off. Looks like it might be taking into account the previous day’s data when doing its calculations?
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11-10-2010 10-50-22 PM.jpg
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Re: Market Profile

Postby Nikolay.Gekht » Thu Nov 11, 2010 9:04 am

Great job!
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Re: Market Profile

Postby Apprentice » Thu Nov 11, 2010 1:11 pm

Minor Update,
And, thanks to everyone.
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Re: Market Profile

Postby alpha_bravo » Fri Mar 18, 2011 3:55 pm

Man this great, very nice, something i did not think possible on marketscope. Does anyone here actually use it to trade with...anyone get any results with FX?
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Re: Market Profile

Postby Jaywalker » Fri Apr 08, 2011 5:03 am

Hi

Great indicator

Any idea when indicator will be updated to show value area levels ( VAH and VAL) ?

Regards
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Re: Market Profile

Postby wilson2 » Mon May 30, 2011 7:38 am

hello Apprentice and thank you for your great job!

i tried this indicator on SP500 and it works fine.

But it doesn't work with FRA40 and GER30.

Do you know why? ;)
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Re: Market Profile

Postby Apprentice » Mon May 30, 2011 11:47 am

Strange.
To be honest I do not know why.

I'll ask someone with more experience.
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