Market Profile Research
Overview
Market Profile is a technique developed by J. Peter Steidlmayer that organizes price and time data into a bell-curve distribution, helping traders identify value areas and auction extremes.
Key Concepts
| Concept | Description |
|---|---|
| TPO | Time-Price Opportunity — a letter printed each period a price was traded |
| POC | Point of Control — price level with highest TPO count |
| VAH | Value Area High — upper boundary of 70% TPO volume area |
| VAL | Value Area Low — lower boundary of 70% TPO volume area |
| IB | Initial Balance — range of the first hour of trading |
Application to NSE
Instruments Analyzed
- NIFTY 50 (spot and futures)
- BANK NIFTY (spot and futures)
- Nifty Midcap 50
Timeframes
- 30-minute TPO for daily profiles
- Weekly profiles for positional bias
Research Findings
Placeholder: Document your Market Profile findings here.
Observed Tendencies
- Days opening above VAH tend to be bullish range extension days.
- Days opening inside value area have higher rotation probability.
- POC migration direction correlates with 3-day trend direction.
Tools Used
- TradeEntry
scr_nseeq_eodtable for OHLCV data - Python pandas for TPO calculation
- Matplotlib for profile visualization
Add your research findings, backtests, and charts here.