The ONLY Market-Profile-Video you will EVER need (Trading World Champion reveals)

Market Profiling. This is a real way to analyze the big players in the markets. On the technical side, if it is interesting for you, choose this systematic. I will explain you today. I think it will be very amazing for you to understand the technical way and explanations of the market profiling. It helps you to think about the big players and the small players and we combinate it together and you will love it and feel it.

It is very it.

I give you a helpful exercise about the market profiling and translated as with AI that is easier for me because my English is not perfect, but you will still love it.

So what is Market Profile actually about? Market Profile is about gaining a different perspective on the market. Peter Stidelmaier already developed Market profile in the 1980s and he was a major soybean trader aiming to gain new perspectives in the market. This means that none of us developed or somehow reinvented this tool. No, we still use the possibilities of Market Profile today to be able to identify where and who is determining the prices. The great thing is, thanks to the speed, the single print areas and the corresponding POCs and value areas from Market Profile, you get a fantastic view of the time association with the respective price levels. And that's exactly what I want to explain to you today so that you not only know the terminology, but can also see where the market, for example, was fast and who dominated it there. And where prices are slow and therefore are very likely to be traded again and even broken at a later time. But before we dive deeper into Market Profile, we first need to understand what it actually shows us. And for that I've brought you this little picture here and want to show you. These are 30 minute candles, so a 30 minute candlestick chart. And each of these candles gives us information about whether it was negative or positive. That's all for now in Market Profile. And here you see the corresponding time frame, we see exactly the same picture, only that we've lined up the 30 minute blocks and placed them on the appropriate axis so that we can see over time how often the market has spent those 30 minutes in a particular price range. You can find information everywhere online about how to read Market Profile. Nevertheless, I'd like to show you a few basics about it. First, the result you get is a different perspective on the market through the corresponding profile shapes. Because in Market Profile, we've simply summed up how much time, for example, the market has spent in the price range of 6714. And if you take a look at this in the corresponding chart, you'll see that 1, 2, 3, 4, 5 times the market touched this price range with 30 minute candles. And then you see in the market profile, 1, 2, 3, 4,. 5, 6 times the market touched this price range there. That's why a kind of mountain forms here across the accumulated time frames that the market profile provides us with. You can also display each of these individual blocks as numbers or letters to see how far the market moved within the corresponding 30 minute period. But let's take a closer look at that. As you can see here, for example, I have simply expanded these candles that have formed there. This means I haven't summed up these 30 minute bars into a single profile, but instead I've expanded them. Now I can simply go ahead and say I want to return them to their original state. And you'll notice everything you see here is nothing other than this 30 minute chart on the left side. And by now going ahead and saying we'll group them all back into profiles, meaning we sum up the corresponding blocks at their respective price levels, we get this profile. So it's really super simple once you've understood the whole thing. Of course, there are now countless ways to tinker with this, but that's not necessary at all. So the bottom line, and this is simply the most important thing, is that we understand the market presents us with a profile where the respective 30 minute candles are listed and summed up at the corresponding price ranges. Here the market has touched 6,758 with 30 minute candles, for example, seven times here. And from that the so called POCs are derived. And the POCs, these are the so called points of control, which are the price ranges where according to the market profile, the market spent the most time. So how does that help us now? First of all, it helps us understand that here supply and demand were time based at a fair price level, probably here as well. And here, for example, at this top, or also in this price range, and in this price range, the market did not stay for very long. And how does that help us? It clearly helps us again from the simplest logic. Quick moves and longer stays immediately tell us that the probability is high that the market feels comfortable here. And where it moves quickly, it does not feel comfortable. Now let's dive deeper into these profiles and see what else we can discover there to gain real advantages in trading. Here you can see a typical chart from what's called market profiling. And each of these blocks represents a day. So each of these profiles is made up of the 30 minute candles lined up over an entire day. And what you can see here, for example, if we use this profile for ourselves, is the following information. This profile looks as follows. It had its trading opening here. In the market profile, we can display what's called the initial balance, showing how large the opening phase of trading was. This tells us whether we should expect a more trending day at first, or rather a balanced day. This means, is it more likely that the market will establish itself steadily in a trend or will it swing back and forth? That's the first piece of information we get from market profiling. The next piece of information we get is where are the value areas? And the value areas from the market profile are sometimes a bit different from those of the volume profile because it can also happen. And you can see this very clearly in this profile here. Since I have included the volume profile in this chart, that the market had the highest trading volume up here, but spent the most time here. This means that in this window I can immediately see, aha. The market did spend the most time here, but the highest trading volumes were traded here. This is what's called an anomaly. If you were to look at all of this using only the market profile, you wouldn't recognize this anomaly. But what other information do we have that is really, really important for us? Here we see what's called a single print area. These are the blue lines here. And single print areas, as the name suggests, are individual letters at a certain price range. That means if you were to carefully look at the corresponding 30 minute chart, you would clearly see that the price never actually stayed at this specific level for more than 30 minutes. This significant observation means there is only a single candle that was truly present at this particular price range. And we call these distinct price ranges single prints. And single prints are always initiated by strong market participants because they have a reason to create a push. What does that mean for us in the future? And you can see that beautifully here. Such price ranges are often revisited to see if that strong market participant still reacts. What else can we observe with the market profile? We can immediately see, for example, when a market shifts into a certain price range relationship, we can determine whether the closing prices were within the balance, the value area, or if the closing price was outside. If it was outside, then the information is clear. For us, something changed at the close of trading. And that's important because if the market opens the next day and moves back there, the probability is high that we will see a rejection at these balance price areas. And there are indeed many different and sophisticated rules that profoundly help us to gain much more valuable and insightful information from this unique time price opportunity analysis than one could ever possibly achieve with a simple standard and often limited chart. We know precisely how significant tops and how crucial lows are ultimately formed. Were they formed with so called buying tails, meaning at least three distinct letters standing completely alone? Or were they formed with so called weak lows, indicating a different market dynamic where the market has established several prices within a single price range? This information in turn gives us insight into whether the market will trade above or below these levels again. And always remember, especially with such weak lows or highs, you can see it very clearly the probability is very high that these will be taken out again, because weak price areas are initiated by weak traders and not like those buying tails or selling tails, by strong traders who have quickly created an initial initiative move which leads the market to simply give us information that this could now be the end. So what is our conclusion when we analyze the market profile? First, we see where the market is in balance or where the market initiates rapid movement. Two, we can determine from the market open whether today is more likely to be a trend day or a balance day. Three, we can identify through the selling and buying tails where strong traders were active at the top or at the low. We can recognize from the weak lows or highs whether these price areas are likely to be revisited, or whether these price areas were rather initiated by strong market participants, giving us the information that these levels will be crossed again. Fifth, and this is the most crucial point, we can use market profiling to create context. We can clearly determine from where to where there is a high probability that the big traders will drive their prices. Because if we know the rules and understand that a market re enters an old value area and finds acceptance there, then we know there are rules that clearly tell us the probability is high that the profile will be fully traversed. And sixth, we will cover this in another important chapter. There are indeed many different types of profiles, specifically what are known as trend profiles, and also what are called normal profiles, which can also be classified into several distinct and important categories, which quite simply and clearly tell us whether the overall market today should be thoroughly assessed as truly having aggressive, strong and significant trends or not. And last but not least, seventh, we can also, and this is another great thing about market profile, we can merge profiles, meaning we can combine them and create one large profile if we see that prices are consistently staying within a fair range. Yes, just to quickly show you what I mean by combining things, let's take this big trend here as an example. And here you can clearly see that a lot of action has taken place. Here I have the value high, and here I have the value low. This means that fair and unfair prices can be found exactly within these price ranges. If I want to use this the next day, I can refer to it first, but now we've completed the next day and it traded exactly within these price ranges. And this price range is also within that price range. So I add that as well. And as you can see now, this changes the fair price range and you get new, very smart information through this merging. And this makes sense as long as a market doesn't generate new shifts for itself. For us to sum up, this means that we've been able to learn here who dominates the lows, who was playing at the highs, weak shallow highs. Onto the second point, where did aggressive traders come into play, which we can see here through the single print areas. These give us great information for the future about where the market likes to test again. Then which balances do we have with the so called POCs, where the market has felt very comfortable with a high probability. And we immediately know for each respective day where to narrow down where 70% of the trades took place in the corresponding market profile. Since we have overlaid the market and volume profiles, this allows us to see, and you can see it beautifully here, the market moved from up here exactly to this price area and then corrected again. And of course, these are not coincidences, but rather truly remarkable patterns. Then we understand, for example, when we have such weak highs and strong lows, that the probability is very high that something like this will be taken out again. And with that you can clearly and effectively construct comprehensive route plans for yourself, explicitly stating that from areas of fair pricing to levels of unfair pricing, the probability is significantly high that the market will indeed move there. Especially if the right and motivated sellers are currently active and engaged in the trading process. And we can predefine all of this for ourselves using the market profile, giving us a predefined chart where we know exactly this is the top, this is the bottom, and the probability is high that the market will move from A to B, because in between there is no information that would currently cause the supply and demand levels of the major market participants to be an obstacle. And that is precisely the big advantage. And if you now go ahead and start combining these levels that you have cleverly constructed, for example, by integrating setups from the footprint chart or the order book, then with market profiling, you have found the perfect tool that gives you clear guidance on where you can trade and with which setups you can establish incredibly high risk reward ratios for yourself. Thank you very much. I hope you enjoyed it and that you can make good use of this structure, gaining an awareness of how you can technically analyze the markets in an excellent way. Thank you very much.