Market Profile FAQ

Find answers to some of our most commonly asked questions about the Market Profile.

The Market Profile:

  • Helps you identify and prioritize the relative importance of key support and resistance, supply and demand, and key decisions zones. These are areas used by many traders for risk management levels and potential profit targets.
  • Gives you an in-depth view of the market’s developing auction process that is essential to identifying directional bias, trend conviction, and trading-range sessions.
  • Displays time-based and contract fairest-price levels, plus value areas derived from market-generated information based on time, price, and value.

Yes. The Market Profile helps you identify value in the day-term, intermediate-term, and long-term.

No. The Market Profile is not a trading system nor does it provide buy or sell signals. The Market Profile is a decision-support tool that helps you identify potential trading opportunities.

While there are a number of them, here are the five we believe are the most important:

  1. The interpretation and understanding of the market’s ever-evolving auction process
  2. The identification and interpretation of the key levels of acceptance and rejection
  3. The understanding of the time, price, and value relationships
  4. An understanding of the different timeframe and time interval relationships
  5. The behavior of various market events represented by patterns, such as short-covering and long-liquidation

No. The Market Profile is an interpretation, clarification, and understanding support tool. The concepts of the Market Profile are embraced by trading educators, professional traders, institutional traders, and independent traders at all levels.

Yes. Books by Jim Dalton and Peter Steidlmayer. For example, the first 58 pages of Jim Dalton’s book, Mind over Markets provides a great overview of the Market Profile.

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