For anyone actually using one of these market profile charts in their trading - I've seen this kind of chart in various forms, but don't see what significant value they add. In the example GIF that was posted earlier, what is the volume histogram showing that's not already visible from a quick inspection of the price bars?
I don't think the 'volume at price' study adds much. Market profile on the other hand is a valuable tool. For one thing, 90% of the time the price will touch yesterday's POC, a very useful fact on its own. Also, the UVA and LVA for the past couple of days are key support/resistance areas. --opm8
Even with the classic market profile chart, I'm probably missing some key aspect of it, but it doesn't seem to be adding anything that I can't get on a normal price chart using a support and resistance study and without having to look at yet another chart.
I think the market profile people have an automated system based on their methods called cap flow 32 it seems you need to subscribe to ensign or maybe another service to get the data ...
You're right. Market profile charts are just another way of looking at the same thing. If you look at a standard 30-min bar chart you can mentally compress the bars together vertically to get roughly the same thing. Personally I do get a little benefit out of the Point of Control, Upper and Lower Value Areas as s/r. As usual YMMV. --opm8
I began with 4 definitions Dv : The total volume per price step for a trading period Dvc : The total Volume*Close per price step for a trading period Dva : the total Volume*Average per price step for a trading period Dt : the total time the market stays at each price step for a trading period at http://groups.yahoo.com/group/amibroker/message/31947 Detailed codes, gifs are at http://groups.yahoo.com/group/amibroker/message/31980 http://groups.yahoo.com/group/amibroker/message/32025 http://groups.yahoo.com/group/amibroker/message/32103 http://groups.yahoo.com/group/amibroker/message/32107 http://groups.yahoo.com/group/amibroker/message/32118 http://groups.yahoo.com/group/amibroker/message/32147 http://groups.yahoo.com/group/amibroker/message/32195 and some first applications at http://groups.yahoo.com/group/amibroker/message/32271 http://groups.yahoo.com/group/amibroker/message/32374 http://groups.yahoo.com/group/amibroker/message/32425 http://groups.yahoo.com/group/amibroker/message/32546 http://groups.yahoo.com/group/amibroker/message/32623 Any comments appreciated. Dimitris Tsokakis
Two more ref at http://groups.yahoo.com/group/amibroker/message/32689 http://groups.yahoo.com/group/amibroker/message/32729 try a Market profile application, combined with optimization results. Enjoy !! Dimitris Tsokakis