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Market Profile

Source: https://fxcodebase.com/code/viewtopic.php?f=17&t=2640
Forum: 17 · Topic 2640 · 99 post(s)

Market Profile

Apprentice · Tue Nov 09, 2010 5:52 pm

Market Profile.png

Note If you use the instruments with a value from several hundred to several thousand. Use larger Box Size. Otherwise the calculation may take some time

To quote Warren Buffett and a “Price is what you pay. Value is what you get.” Market Profile can be helpful in determining fair value for each trading period.

Market Profile provides a completely different view on the market. In following days I’ll add a few more useful features and offer a detailed explanation.

To have learned this concept we need at least a week.

Every day the market again, establishes a value area, the fair value of securities. It represents a balance (equilibrium) point where an equal number of buyers and sellers. Prices never remain within this region, constantly is in motion. Market Profile records this activity for traders to interpret.

Market Profile is based on the normal distribution curve, 70% of the value is within one standard deviation.

Time Price Opportunities (TPOs), are represented by letters and numbers. Each letter represents one trading period. upper case letters from A to Z, then lower case from a to z and and numbers from 1to 9, A represents the first trading period.

POC = Point of Control Price at which most TPO segments appear on the Market Profile char. Price with the highest activity.

VA = Value Area (I must add this functionality) The price range that contains 70% of the TPO profile. Value Area is the price that was accepted by most market participants.

TPO = Time Price Opportunity Letters (TPO) represents the price at the time at which it traded. A, B, C, D, E, F, G, H, I, J, K, L, M, N - each letter represents one trading period.

Selling Tail - Minimum of 2 TPO’s at the top of the profile. Buying Tail - Minimum of 2 TPO’s at the bottom of the profile

Every time when the price falls below fair market value for the considered period, occurs opportunity to open the Long position and vice versa.

The decision on entry into the position should not be made solely based on observation of market profile.

Market Profile.lua

Market Profile New.lua

VPOC.lua

MTF MCP POC VIEW(UNK) (07-06-2021 1040).png

Make sure to re-install VPOC for use with MTF MCP POC View.

MTF MCP POC View.lua

MT4/MQ4 version of VPOC.lua viewtopic.php?f=38&t=66947

Re: Market Profile

patick · Wed Nov 10, 2010 1:49 am

Beautiful work, Apprentice!

Re: Market Profile

coldrecs · Wed Nov 10, 2010 10:40 am

Excelent! I was long waiting for this indicator. Thank you! Also waiting for eventual developments on this.

I know this indicator from MT4 and NinjaTrader. I hoped someone would bring it here also

Re: Market Profile

patick · Thu Nov 11, 2010 2:00 am

I know this is a work in process, but when you transition from a previous day to a new one, the formatting and histogram are off. Looks like it might be taking into account the previous day’s data when doing its calculations?

Re: Market Profile

Apprentice · Thu Nov 11, 2010 1:11 pm

Minor Update, And, thanks to everyone.

Re: Market Profile

alpha_bravo · Fri Mar 18, 2011 3:55 pm

Man this great, very nice, something i did not think possible on marketscope. Does anyone here actually use it to trade with…anyone get any results with FX?

Re: Market Profile

Jaywalker · Fri Apr 08, 2011 5:03 am

Hi

Great indicator

Any idea when indicator will be updated to show value area levels ( VAH and VAL) ?

Regards

Re: Market Profile

wilson2 · Mon May 30, 2011 7:38 am

hello Apprentice and thank you for your great job!

i tried this indicator on SP500 and it works fine.

But it doesn’t work with FRA40 and GER30.

Do you know why?

Re: Market Profile

Apprentice · Mon May 30, 2011 11:47 am

Strange. To be honest I do not know why.

I’ll ask someone with more experience.

Re: Market Profile

Apprentice · Mon May 30, 2011 12:23 pm

This is a temporary fix While I do not offer anything better.

Re: Market Profile

wilson2 · Mon May 30, 2011 2:17 pm

OK! now it can work with FRA40.

Thanks a lot.

Best regards

Re: Market Profile

dlouisbriggs · Mon May 30, 2011 3:15 pm

The current market profile histogram only utilizes the current price data that appears on the screen. One has the choice to zoom out (and lose graphic detail) or limit the histogram to a smaller sampling. Would it be possible to create an option that would allow the user to designate the period of time for the histogram, independent of the zoom level of the currently displayed data? Thank you for a great indicator.

Re: Market Profile

emjay-short · Fri Jul 08, 2011 9:31 pm

dlouisbriggs wrote: The current market profile histogram only utilizes the current price data that appears on the screen. One has the choice to zoom out (and lose graphic detail) or limit the histogram to a smaller sampling. Would it be possible to create an option that would allow the user to designate the period of time for the histogram, independent of the zoom level of the currently displayed data? Thank you for a great indicator.

Indeed. This indicator does use a lot of CPU and I can only use it for one chart at a time. I did read about it in two books briefly, but not in detail how it is used specifically. Well Google did help me to make more sense and get a glimpse how to read it (Volume @Price Level).

MARKET PROFILE QUICKLY GIVES THE TRADER A VIEW OF HOW THE MARKET IS DEVELOPING, WHAT PRICES ARE BEING ACCEPTED BY THE MARKET AND WHAT PRICES ARE BEING REJECTED.

Market Profile is a tool for organizing time and price data, graphically representing how volume builds at various prices over time. When we see most trades occurring within a relatively narrow range of prices, we know that the market is in balance. Price will probe the edges of this balance area–called the value area–as markets constantly update their estimates of value. If prices higher or lower than value cannot facilitate trade (i.e., if higher prices don’t attract buyers or lower prices don’t attract sellers), we will tend to trade back into the value area. If these probes to the edges of the value region do facilitate expanded trade, we will break free of the value area in a trending move. That trend will continue until sufficient sellers or buyers perceive value in the new prices and take the other side of the trade, beginning the process of forming a new region of balance.

My specific best practice is to be aware of value areas at one level larger than the timeframe you are trading. Very often, a breakout at a shorter time frame occurs within the context of a longer-term market bracket. Knowing where value is located on the longer timeframe helps you identify price targets for the shorter-term move. (via http://traderfeed.blogspot.com/2007/02/market-profile-best-practice-in-trading.html)

Things I found via Google (one short evening).

Suggested Options to Optimize MP for Usability:

Thanks in advance @Apprentice for putting this on the development cue. And I hope my contributions were useful enough for all the other readers.

Re: Market Profile

Apprentice · Sat Jul 09, 2011 3:45 am

Show Only Last Period Option Added. This is only a quick fix. Until I will have time to do a major update.

Re: Market Profile

FHusseini · Thu Jul 21, 2011 7:49 pm

Apprentice, you are doing a great job on this.

We need to see a major update on this indicator which I hope will be soon and in-line with the suggested options from emjay-short.

Good luck!!!

Indicator Update - Market Profile

dspurr624 · Sun Aug 07, 2011 7:06 am

Apprentice,

Kudos to you for your work on this indicator ; Ideally it would be nice to see:

  1. VAL / VAH for each of the profiles.

  2. It would be nice to have an option to turn on or turn off the text at the top of the profiles. For me, personally - that information in not as important in my decision making process. I’m more interested in the VAL/VAH for each of the profiles. these are the levels that other traders watch.

  3. It would also be great if we could show a daily profile or a weekly profile and a monthly profile. In other words, the ability to show each day by themselves on intraday charts - The ability to show 10 days, 30 days, 100 days….. (combined in one large profile) on the daily or weekly or monthly charts. This is important as it allows us to see longer term price development.

I appreciate all you work on this and know that it’s probably a ton of work. I do some programming in Thinkscript and know that when you make a small change it’s hours of work. Thanks again

DS

Re: Market Profile

bomberone3 · Fri Oct 28, 2011 6:46 am

Dear Apprentice, could you explain how to use the indicator for real trading? Have you got any ideas to built trading strategy?

Also i write before, could you code any indicator of market delta software for trading station? See fulcrum trader video that explains how to use them. My best

Re: Market Profile

Apprentice · Fri Oct 28, 2011 8:30 am

Although this is not the main purpose of this forum. I’ll try to answer you.

First, in my trading I do not use indicators.

Market profile tells you where the POC is. Point of Control is the price for which participants agree that it is appropriate. Basic idea of any trade is Buy Low, Sell High.

Buy below the POC, Sell above the POC. Close at POC,or , Lower for Short Trade, Higher for Long Trade. This is a simplified strategy.

Be sure to read this article.

Market_Profile_Basics.pdf

Or post on my blog, where I outlined some basic patterns. http://themarketcycle.blogspot.com/2010 … zorci.html Here can you find other resources on this topic.

Re: Market Profile

bomberone3 · Fri Oct 28, 2011 2:44 pm

Thanks Apprentice. You are great !

Just a thing I am confusing market profile and Volume profile, what are the difference and what is the more profitable the trading technique of the two? My best.

Re: Market Profile

Apprentice · Fri Oct 28, 2011 3:34 pm

I’ve never heard of Volume profile. As far as I see it from the web reference they are synonymous.

Re: Market Profile

bomberone3 · Fri Oct 28, 2011 4:23 pm

I just read this reply about Volume Profile viewtopic.php?f=17&t=2349&p=17046#p16980

Re: Market Profile

Apprentice · Fri Oct 28, 2011 5:55 pm

Trey are one and the same as it is noted there!

Re: Market Profile

bomberone3 · Mon Oct 31, 2011 4:48 pm

OK. What will you add in the next version of market profile indicator? I ask if is it possible add a market profile pattern recognition. I read the link that you suggest and I understand any basic patterns. I think that a eye beginner like me find difficult to understand what kind of pattern is. Good trading. Bomberone

Re: Market Profile

pipstrader · Mon Dec 19, 2011 6:50 am

Great job, Thanks for the same. Is it possible to plot composite market profile say 3 days, weekly, monthly to detect the breakout from balace area? It will be great for me. Thanks

Re: Market Profile

mastersly · Fri Jul 13, 2012 6:32 am

hi mario,

I had a question as to the market profile.

nor do you work out?

in your setting on the chart it looks like after a long time. I can adjust my settings to only 30 min or 1 h. I’m wrong because what?

lg lars

Re: Market Profile

Roberto · Fri Jul 20, 2012 9:43 am

Hi Apprentice. Im having a problem with this indicator, as soon as i put it onto a chart it makes trade station run very slow, but only on the charts that have the market profile indicator on them. The other problem is as soon as i put it onto a gold chart the whole platform freezes and crashes, but its fine with other pairs, just very slow like i said. It is definitely not my hardware because i have a pretty good hardware. Any suggestions or solution for me?? Thank you, Roberto.

Re: Market Profile

lbikhope · Mon Aug 06, 2012 11:58 am

Hi it is possible MARKET PROFILE ON WEEKLY CHARTS?? Please Thhx

Re: Market Profile

Roberto · Tue Aug 14, 2012 4:36 pm

Market Profile on DAILY CHARTS will be really appreciated as well. Thank you

Re: Market Profile

alpha_bravo · Mon Nov 05, 2012 7:02 pm

Maybe a bell curve would be good?

Re: Market Profile

Apprentice · Tue Nov 06, 2012 7:24 am

This would be interesting Addon.

Re: Market Profile

MrDavide79 · Fri Nov 16, 2012 11:33 am

hello, what about new MarketProfile.lua ?

thanks

Re: Market Profile

MrDavide79 · Sat Nov 17, 2012 7:54 am

Hello, i think that Label on Top create problem to visualize good i think will be better have possibility to change period more then H1

thanks Davide

Re: Market Profile

VergaraD · Sun Nov 18, 2012 10:16 pm

Hello!!

What mean the gray points?

Thank you

Regards!!!

Re: Market Profile

Apprentice · Mon Nov 19, 2012 3:42 am

Big Gray Dots? POC = Point of Control Price at which most TPO segments appear on the Market Profile char. Also to be considered adequate price for the instruments as at that moment. Go long if price is below POC. Go short if price is above POC.

Re: Market Profile

MrDavide79 · Fri Nov 23, 2012 10:34 am

MrDavide79 wrote: Hello, i think that Label on Top create problem to visualize good i think will be better have possibility to change period more then H1

thanks Davide

Hello, can you add the possibility to change period more than H1 ?

thanks

Re: Market Profile

Apprentice · Sun Nov 25, 2012 5:48 am

I’ll think, if and how i can implement this.

Re: Market Profile

ddrrbb · Fri Dec 07, 2012 10:20 am

Is there a some code I can add to the existing indicator to get the last 5 (or more or less) days in 1 profile? Each day, it could show the “consolidated” profile for the last N days (instead of just the previous day).

Re: Market Profile

Apprentice · Sat Dec 08, 2012 4:18 am

Unfortunately it is not so easy. Someone must write a new indicator.

Re: Market Profile

gabrielvelezr · Tue May 07, 2013 8:18 am

Hi Apprentice…Can you change this market profile indicator to show, for example the last 50 H4 bars or last 50 weekly bars?

thanks,

Re: Market Profile

Apprentice · Wed May 08, 2013 5:45 am

Your request is added to the development list.

Re: Market Profile

TopTradr · Thu May 16, 2013 5:06 pm

Can you please add the VAH & VAL to this indicator? They are built around the POC.

The Point of Control (POC) is the price where the most trading activity occurred during the day, as represented by the longest line of TPOs nearest to the center of the entire structure. This price is significant because it represents the fairest price to both buyers and sellers. The Value Area is important because it illustrates where 70% of the trading activity occurred during the day. The Value Area High (VAH) and Value Area Low (VAL) tell you where buyers and sellers perceive price to be away from fair value.

Taken From Frank Ochoa, Pivot Boss.

Re: Market Profile

Apprentice · Fri May 17, 2013 5:02 am

Your request is added to the development list.

Re: Market Profile

kevinleijh · Thu Nov 14, 2013 12:01 am

what does value area mean (eg 120.4) how to pin point the area thanks

Re: Market Profile

Apprentice · Thu Nov 14, 2013 4:14 am

If u set Value to 50 And total number of elements is 100 50 value Will give you 50 % of total number of elements. U will have TSO Count (100 / 50)

Re: Market Profile

kevinleijh · Thu Nov 14, 2013 4:49 am

Thank you. Can you please update the indi to label or shade the area where 70% of the trade happens so that we can define clearly the location of value if you have time.

Thank you very much

Re: Market Profile

Apprentice · Wed Mar 25, 2015 6:05 am

Bump Up.

Re: Market Profile

ivanutesil · Wed Jun 17, 2015 2:07 pm

Hi,

could you please update market profile with some colores and make a possibility to change letters to lines. Also a setup where you can define exactly the number of bars to go back, because if you choose one then thats not enough and if you choose all my comp won´t ever run it. And some better visualisation of VPOC and the value area? It would be really great to do some upgrade. Thank you very much

Re: Market Profile

Apprentice · Fri Jun 19, 2015 4:50 am

Will try to find time for this next week. Note, you can use Dots instead of letters.

Re: Market Profile

gezisLV · Wed Oct 19, 2016 4:11 pm

Why it’’s not creating profile starting from midnight when US closes and Sydney opens and new daily candle starts?

Re: Market Profile

Apprentice · Thu Oct 20, 2016 3:54 am

Your request is added to the development list, Under Id Number 3657 If someone is interested to do this task, please contact me.

Re: Market Profile

Apprentice · Mon Feb 05, 2018 9:16 am

The Indicator was revised and updated.

Re: Market Profile

papynou34 · Thu Jan 31, 2019 8:52 am

Hello Is it possible to add a line VAL and VAH and to be able to fill between them? Like on the pictures coming from an other market profile.

Re: Market Profile

Apprentice · Fri Feb 01, 2019 7:13 am

Your request is added to the development list under Id Number 4451

Re: Market Profile

Apprentice · Mon Feb 04, 2019 9:03 am

Added.

Re: Market Profile

papynou34 · Thu Feb 07, 2019 9:47 pm

Thanks for the great job you did. Would it be possible to add a multiplier to the TPO in order to increase the lenght on the diagram? Thanks in advance.

Re: Market Profile

mastersly · Fri Feb 08, 2019 8:30 am

Apprentice wrote: The Indicator was revised and updated.

ich finde leider nicht den anhang des neuen indicators zum downloaden

Re: Market Profile

Apprentice · Mon Feb 11, 2019 4:45 am

You can find it here. viewtopic.php?f=17&t=2640 Market Profile New.lua

Re: Market Profile

Apprentice · Mon Feb 11, 2019 4:56 am

papynou34 try this version.

Market Profile New.lua

Note, the original version is intended for, will give the best results on the H1 time frame

Re: Market Profile

papynou34 · Thu Feb 14, 2019 5:54 am

Hello, Thanks Apprentice, Is it possible to have a customizable Coeff?

As update, is it possible to have market profile based upom Wekk and Month?

Thanks a lot in advance

Re: Market Profile

Apprentice · Thu Feb 14, 2019 9:14 am

Your request is added to the development list under Id Number 4474

Re: Market Profile

Apprentice · Sat Feb 16, 2019 4:05 am

Try this version.

Market Profile New.lua

Re: Market Profile

papynou34 · Fri Feb 22, 2019 9:17 am

Hello Apprentice,

I did some modifications to have Daily, Weekly, monthly and yearly profile. I also tried to set a better color for profile. Now i need to be able tu put a start time and end time for trading hour. For example, for Europe starts at 8h and ends at 22h.

Re: Market Profile

papynou34 · Mon Mar 11, 2019 7:38 am

Hello all, Is it possible to have a started time and ended time for the profile? Thanks in advance.

Re: Market Profile

Apprentice · Tue Mar 12, 2019 11:42 am

Your request is added to the development list under Id Number 4533

Re: Market Profile

papynou34 · Tue Apr 02, 2019 1:31 pm

Hello, Do you have some news about the item 4533? Thanks a lot.

Re: Market Profile

Apprentice · Fri Apr 05, 2019 3:10 pm

Try this version.

marketP4.lua

Re: Market Profile

papynou34 · Fri Apr 12, 2019 3:47 am

marketp4.PNG

marketP4 setting.PNG

Hello, I tried the version you proposed. There is a gap of 6H betwwen the time precised un the setting and the time shown on chart.

Re: Market Profile

Apprentice · Fri Apr 12, 2019 4:36 am

Your request is added to the development list under Id Number 4588

Re: Market Profile

Apprentice · Sat Apr 13, 2019 7:25 am

Try this version.

marketP4.lua

Re: Market Profile

papynou34 · Sat Apr 13, 2019 12:21 pm

Hello Apprentice, Thanks a lot for the new profile. Now, the starting time is ok but we don’t have the profile for the last day. For example, on the attached picture, we have profile for 04/11 but not for 04/12. The ending time is also missing. Have a nice week-end.

Re: Market Profile

papynou34 · Sun Apr 14, 2019 5:58 am

Hello, I don’t know if it is the right way to do it, but I have fixed the bug by adding : ts_date = ts_date +1 ; in the fonction FixStartTime.

Re: Market Profile

Apprentice · Sun Apr 14, 2019 6:04 am

Your request is added to the development list under Id Number 4592

Re: Market Profile

Apprentice · Mon Apr 15, 2019 5:28 am

marketP4.lua

Try this version.

Re: Market Profile

papynou34 · Fri May 17, 2019 8:04 am

Thanks a lot. It works well. Is it possible to add and ending time?

Re: Market Profile

Apprentice · Sun May 19, 2019 4:16 am

Your request is added to the development list under Id Number 4665

Re: Market Profile

Apprentice · Tue May 21, 2019 9:13 am

marketP4.lua

Try this version.

Re: Market Profile

fekasng · Fri May 24, 2019 12:21 am

please I need help to compile this in mt4.this is the process i went but it not showing to insert from custom. …..{ file ..==data folder==mql4===indicator then paste or in Template..or do i need to change the extension from .lua …to ex4 ..please could you guide me please .do i need to both market profile new.lua and vpoa.lua in the same chart…thanks for your kindness

Re: Market Profile

Apprentice · Sat May 25, 2019 3:01 am

Your request is added to the development list under Id Number 4675

Re: Market Profile

Apprentice · Thu Jun 06, 2019 5:41 am

Try this version. viewtopic.php?f=38&t=68541

Re: Market Profile

Tecet79 · Fri Jan 31, 2020 6:26 am

Hi,

Thank you for your work.

Could you please add to MP option to select period from when profile is calculated for example last 5 days?

Thank you

Re: Market Profile

Apprentice · Sun Feb 02, 2020 6:54 am

Your request is added to the development list. Development reference 616.

Re: Market Profile

Apprentice · Mon Feb 03, 2020 6:52 am

Try this version.

Market Profile.lua

Re: Market Profile

SANTOSH · Tue Apr 07, 2020 1:02 am

Dear Apprentice , Can you avail in this the following -

  1. Highlight initial balance .
  2. Highlight initial balance high.
  3. Highlight initial balance low.

The IB is the Range established from the first two TPOs of a Market Profile. These two TPOs are usually the first hour of trading and as such the IB is usually the area from the Low to the High from the first hour.

Re: Market Profile

Apprentice · Tue Apr 07, 2020 4:38 am

Make Market Profile or balance? How should we code this information?

Re: Market Profile

SANTOSH · Tue Apr 07, 2020 8:48 am

Hope this figure makes it clear .

Re: Market Profile

SANTOSH · Wed Apr 08, 2020 7:09 am

Initial balance is a term in market profile which is the distance between high and lows of two first TPOs,

As the present code only highlight value area , my concern is to highlight the initial balance too.

Hope we are clear !

Re: Market Profile

Apprentice · Thu Apr 09, 2020 5:04 am

Your request is added to the development list. Development reference 1031.

Re: Market Profile

Apprentice · Fri May 08, 2020 6:06 am

Market Profile.lua

Try this version.

Re: Market Profile

SANTOSH · Fri May 08, 2020 10:41 am

Apprentice wrote:

Market Profile.lua

Try this version.

Working as requested. Nice work Mario.

Re: Market Profile

SANTOSH · Tue Jun 22, 2021 9:58 pm

Dear Apprentice, Market profile tells you where the POC is. So, can u make it MTF MCP for POC ?

Regards, Santosh.

Re: Market Profile

Apprentice · Fri Jun 25, 2021 4:56 am

Your request is added to the development list. Development reference 594.

Re: Market Profile

Apprentice · Tue Jul 06, 2021 3:42 am

MTF MCP POC View.lua added to the first post of this topic.

Re: Market Profile

AnCapFX · Sat Sep 11, 2021 2:37 am

SANTOSH wrote:

Apprentice wrote:

Market Profile.lua

Try this version.

Working as requested. Nice work Mario.

Hi, I noticed your .MQ4 version of this does not include this new update with IB (Initial Balance) added. Can you please update the .MQ4 version to add this? Thank you for all your hard work!

Re: Market Profile

Apprentice · Mon Sep 13, 2021 11:53 am

Your request is added to the development list. Development reference 824.

Re: Market Profile

Apprentice · Tue Sep 14, 2021 10:32 am

I don’t understand what MQ4 indicator you are talking about.

Re: Market Profile

Tomaszo · Mon Nov 28, 2022 3:29 pm

You did realy good job with this one. Could you add 2 more function? First one to choose how many days it should look back and show MP and the second add function that box size is based not on pips but on % of the day. For example if high-low of the day is 100 pips and if we choose 10% then each box size is 10 pip.

Re: Market Profile

Apprentice · Thu Dec 01, 2022 6:23 am

We have added your request to the development list. Development reference 791.

Re: Market Profile

Tomaszo · Thu Apr 13, 2023 12:20 am

Any update?

Re: Market Profile

Apprentice · Tue Oct 24, 2023 3:28 am

Try this version. https://fxcodebase.com/code/viewtopic.php?f=17&t=74278

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