One of the best things about Market Profile is its versatility, it's not price-bound. For example, the price increase, the volume of the MP also supports the increasing force of the price. And vice versa, when the price falls, but the liquidity is concentrated in the higher area. That is the market profile trader opportunity. To successfully trade in this school, you do not need to learn too many moves, just understand the nature of the problem that you can change all kinds of things, in any case, you can trade.

FIND ORDER FOR ORDER ON EURUSD COUPLE

Analysis on MN bracket (1 candle = 1 month). The graph below shows a 14 year period.


Now do a simple analysis. We have to think that MP is just one of the support tools, so we also need some other tools: Fibonacci, price action, resistance/support, ...

In the current rising wave, we can draw the MP in the form of a b - profile pattern that signals that this rising wave may end soon, it no longer has the force of increase. So we will go looking for a SELL command for this surging wave.

The question that now arises is where is the most reasonable SELL?

Step 1: Find a rational level with Fibo, pull Fibo Projection at the previous decreasing wave, to see the current rising wave force. How to draw: drag from the top of the wave to the bottom of the wave, the top will be 100%, the bottom will be 0%. So the next target of Fibo is 161.8%. We have a suggestion that the price will stop rising at 161.8%.

Step 2: Analyze Market Profile in the past to see which area is the most traded area, that area will be the trading equilibrium area, the price will stop rising there. The reason the stop price rises there is that there are so many sellers there, enough to absorb all the buying force that has pushed prices up. That area in the previous articles is called the POC. We have another suggestion that the price will stop at the POC.

Step 3: Identify past strong resistance. Back in the past, we identified very strong support that was tested up to 3 times at 3 different bottoms. This support now becomes resistance.

Step 4: Place an order: after 3 steps, we see the Fibonacci 161.8%, POC and strong resistance are almost identical. This is the confluence area. There is nothing more ideal for placing a SELL order.

Step 5: Search for taking profit and stop loss. Take profit target will be at the current POC. The stop loss will be the 200% level of Fibonacci.


SECOND SCENE WHEN SETUP IS Failed


Of course, a good trader never thinks of just one setup, we must have a backup setup to remove the gauze.

In case the price does not turn around but increases and touches the stop loss, we have been confirmed, the price is still very strong, and we will look for a BUY order to get back.

The confluence between the POC, Fibonacci 161.8, and the Strong Resistance is still important. We will wait for the price to rise and pull back to that zone, then place a BUY order. The profit-taking target will be the next sub-area of POC (temporarily called), the stop loss is placed below 100% Fibonacci level.