The Market Profile trading tool offers a unique charting approach that is different from bar or candlestick charts, which were used previously to graph activity. The unique structure of the Profile charting tool displays the character of the market, like, for example, where and at what price level and for how long did the majority of the business took place. All these provide significantly more information to a trader about the ongoing activities taking place in a forex market at a given point of time.

The Profile represents the actual buy and sells orders transacted in the forex market, which allows one to interpret inventory conditions, emotional trading, and other vital cues that are otherwise not visible in any other conventional charting tool. Browse more such tools that the best US forex brokers platforms support. The Profile charting technique provides a unique visual representation of the forex market that can help one to identify trading opportunities that are not otherwise apparent on any other charting tool.

For example, as one learns to study this Profile chart, he can easily spot a buying or a selling tail with the use of this technique, profitable auction points, fair price, or even the actual points of control. Moreover, traders will also be in a position to gauge the perfect time when prices rise above a certain value area high or drop below a certain value area. These developments have the potential to create rewarding market opportunities that are not otherwise evident in any other chart types.

Hence, one can use one of the powerful analytical tools called Profile technical charts for any market, whether they are manually traded or electronically traded. A Profile Concept can, therefore, also be applied to Forex, Futures, Stocks, Commodities, or Bonds. Even the Profile concepts can also be applied for position trading, day trading, or swing trading procedures.

The Profile is thus much more than a mere collection of individual data points. It is a graphical representation of important market information that conveys the complex and composite side of the forex market as a whole.

If a trader can precisely observe the forex market flow and the auctions using this innovative charting tool, they can easily decrease the market risk.

Despite these immense benefits, the Market Profile chart is also not free from criticism. Some Volume Profile trade experts believe that as the Forex market is not traded on a central exchange, the Market Profile techniques cannot be applied to the Forex market. However, this is partially true; though the forex market has no central exchange, the Market Profile provides invaluable insight to gauge the trends in the Forex market.

As such, the Market Profile structure can be used to analyze any currency pair. Now, the market goes down way beyond that, but, of course, the reason is that this valley area low is measuring from this day, the previous day. And if you notice too, this is very significant. Pay attention to this one, this retrace here. I want to be as clear as possible. Now, as we go down, we make an impulse move down and we barely retrace.

Now, this strong impulse moved down and now we just go straight across again. Now, we get a different type of retrace. This one is not as favorable. But it also goes up to the value of your high.

So you might be wondering, does this thing have to stay below the valley area low during the entire trend? Preferably, yes, that makes trading so much easier. It would have to get above the area high. So this retreat, this is still acceptable. Just makes it a little tougher if you want to keep tight stops. But from a technical point of view, it is still a bearish trend.

And the best thing you can do is do it literally by clicking on the share button and sharing it with other people. I love to get your comments.

They really encourage me to continue to create more free lessons for you and I got something very special. While it is true that there is no central exchange for the Forex Market and the required precise volume data is not available to provide us with accurate footprint charts or volume profiles, nevertheless, there are many other valuable profile principles and insights that can be a tremendous asset to a Forex trader.

To accommodate the nature of Forex Market data Dr. Keppler uses time based profiles to analyze market activity for different currency pairs. The market activity generated over time provides important reference levels in the market. It also helps to identify whether value is trending higher or lower in the market.

By blending technical analysis methods and profile trading strategies, Dr. Keppler has developed a unique, innovative and integrated approach for trading the Forex markets. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment.

by theforexscalper Feb 15, Forex Education , Forex trading , Geen categorie 0 comments. I myself always use the market profile a lot in my trading. In this blog I will briefly explain to you what the Market profile is exactly and how we use it.

The market profile is created to determine the significant levels that prominent market players take into account in their trading. It is also known as horizontal volume. The great thing about this tool is that it can actually be combined with almost any trading strategy.

Of course I use it in combination with Supply and Demand , which works very well for me. Thanks to the Market profile, I can decide whether my Supply and Demand Zones are well drawn. And also If a Supply or Demand Zone matches the POC Point Of Control market profile, the Supply or Demand Zone is often many times stronger.

Above we see a good example of the market profile and we also see how well this matches the Supply Zone. Often these are also the areas where we have to pay attention to a good opportunity for a good trade. We can also use Market profile very well to determine a possible Stop loss. Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels.

Essentially, Volume Profile takes the total volume traded at a specific price level during the specified time period and divides the total volume into either buy volume or sell volume and then makes that information easily visible to the trader.

My opinion about the use of market profile is therefore only positive. And I also use it very often to almost always in my trading. From experience I can say that it only improves my chances with the use of market profile.

In my new Order Flow course I explain all this even better and of course much more. Please note that at least 6 months of experience is required with trading Supply and Demand. So if you are a beginner trader and to become a good professional forex trader. Want to know more about how to use market profile in forex? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.

Which are already traded and tested by thousands of TFS members and performs daily trades. To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand. Which boosts your trading skills make you Professional Forex Market Trader. TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Your email address will not be published. How to use market profile in forex? Please follow and like us:. Submit a Comment Cancel reply Your email address will not be published. Search for: Search Button. Categories Forex Education 64 Forex general 53 Forex strategy 44 Forex trading Geen categorie Risk Management 8 Technical Analysis.

Arabic Chinese Simplified Dutch English French German Italian Portuguese Russian Spanish. error: Content is protected!! We use cookies to ensure that our website runs as smoothly as possible. If you continue to use the website, we assume that you agree. Ok Privacy policy.

If you haven't got access to a Market Profile software, do check out the one on our research portal. This allows scrolling back in time indefinitely to view past sessions. cTrader Market Profile indicator is also available as a free cTrader indicator. The structure of the Profile trading tool helps in unveiling the existence of a directional market trend or a sideways market. The ability to identify when prices rise above a value area high or drop below a value area low can provide significant trading opportunities in the Forex market. Pay attention to this one, this retrace here.

Categories:

• Binary Options
• Forex Brokers
• Binary Options online
• Forex Bitcoin
• Forex