Value Area (VA): Price range in which a user specified percentage volume was traded for a session. But these two days pretty much were the same their price range was essentially very close to the same. Showing no tails and conviction of traders stepping in. Thanks for the comment and kind words Paul! Another word for excess is buying/selling tail. When we look at Market Profile, we want to compare the developing profile (todays price action) to that of the prior days profile. There is no way to have it in MT4, you need to use a platform such as Sierra Chart. Picture number one shows what most of us are familiar with the candlestick chart. And, of course, the benefit of that from a practical point of view is that high volatility markets have the potential to make us big money, fast. Hi Andrew, cheers for the comment! As traders, we define our profits in Multiples of R. For example, if your initial risk on a trade $100 and you profit $300 your R Multiple would be $300 (Profit) $100 (Initial Risk) = 3R. Once again, adding the candlestick chart to the mix, we can clearly see that market was not only filling the single prints but also testing prior support as resistance. Save my name, email, and website in this browser for the next time I comment. The profile follows a normal distribution curve. But if you look at the value area high, it comes in much lower and you could potentially get in earlier into a trade than if you break out or if you trade the breakout of the previous days high. Its much smarter from my experience to wait for the level to probe first and when I see good excess and maybe some absorption on footprint, I am happy to enter. As you get comfortable with volume profiles heres a list of more order flow indicators to expand your knowledge. Compared to a normal day, the neutral day has a smaller IB. Market and Volume profiles are only tools that present us with value areas made in a nonsubjective way. Notice how price reacted when it intersected some of the stacked POCs on the the daily chart above. The only knock I could give Sierra is their Graphical User Interface is dated. I want to be as clear as possible. In the example below you can see our initial R Calculation is much lower. Lets take a look at an example. On the Low Volume Node highlighted in orange that was already intersected by price, you can see how price moved through the LVN with very little effort. While the Market Profile is not an entry and exit method in itself, we can use it as a gauge of market sentiment to determine what levels are likely to see lots of action, and to identify early on what type of day is forming. Me and every I know are using MP but the calculations of value area and poc are based on volume, so It is pretty much a volume profile with graphical representation of market profile so you can still look at anomalies like poor highs/lows, singles etc. For legacy futures trading, I recommend using the Sierra Chart. Even if you are a successful trader. I personally use their Pro package primarily because I use multiple desktops. Whether its my long term charts used to determine opportunity zones or my short term scalping charts, they are made up of candlestick with volume profiles. Strong volume indicates prices being accepted, light volume is a sign that we wont be spending much time at that level.

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