Market Profile

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Market Profile[1] is a graphical organization of price and time information. Market Profile displays price on the vertical axis and time on the horizontal axis. Letters are used to symbolize time brackets. Market Profile is an analytical decision support tool for traders, not a trading system.

Market Profile reveals pricing patterns from any market as they develop. By organizing price and time information, traders can see which price areas the market is accepting or rejecting. This information can allow them to adjust their trading styles accordingly. A price level that has been confirmed over time takes on added meaning. A price that is touched only briefly is just a price and little more. Confirmed by time, however, a price can reveal market value.

Vendors Who Provide Market Profile

References

  1. Market Profile Overview. Chicago Board of Trade.
  2. Examples of Market Profile. Chicago Board of Trade.