Tuesday, 3 February 2015

Splitting Market Profile

This chart of today's ES shows the importance of context and splitting the Profile.

The high and low support and resistance of the tradeable distribution is only visible with the split. All I had to do when price was near those extremes was to look for the reversal of the order flow.


  1. Hey Tom,

    What determines whether you'll use just the day session, or the full ~23hrs?
    And just to clarify, your market profile charts are via ninja trader with this plugin: http://www.fin-alg.com/products/tpochart-2.html ?


    1. Hi Ross, yes it's fin-alg.

      Whether I use the ETH or the RTH depends on when I start trading. I look at both but the Profile that overlaps the RTH is stronger as a lot of the business is done against the underlying market in hedging, basket trading and other operations.

  2. I noticed that the POC is drawn by TPO count, rather than highest volume node. That would lead to different conclusion on S/R.

  3. Leon, I look at both. The Volume Profile is a shadow under the TPO Profile. However, the TPO Profile is the most important as it allows splitting the Profile which reveals the true support and resistance.