Futures Market Profile

Market Profile shows time at price (TPOs - how long market stayed at each price). Volume Profile shows volume at price (how many contracts traded at each price). Both are valuable and complementary.

30 minutes is the standard established by Steidlmayer. It provides good granularity without being too noisy. Some traders use 60-minute periods for lower volume instruments. The key is consistency.

Many platforms have built-in Market Profile. If not, you can manually track: Note each 30-min period's range with a letter. Over time, the distribution forms. Better to use a platform with native MP support.

Prior session's VA is your reference at day start. As today's VA develops, both matter. Prior VA for context and levels; Developing VA shows where today's value is forming.

MP is designed for session-based analysis. You can create composite profiles for longer periods. For shorter timeframes (scalping), Volume Profile or Order Flow may be more suitable.

Watch opening type (drive vs auction), open location (in/out of VA), IB width (narrow = trend potential, wide = may contain range), and early profile shape. By end of IB, you have good clues.

Large gaps indicate strong overnight sentiment. Monitor if price returns to prior VA (gap fill) or builds new value at gap location. The 80% rule still applies if price enters prior VA.

Composites show bigger picture value. Weekly composite shows week's fair value. When daily profiles are inside composite VA = balanced. Daily profiles outside = exploring new value. Composite POC is very strong level.

Poor highs/lows are profile extremes without excess (no tail/rejection). They indicate weak highs/lows that are likely to be tested again. Good excess (long tail) = strong level unlikely to be revisited.

Wait for clear break of IB high/low. Confirm with follow-through (new TPOs beyond IB). Target 1× IB range extension. Use pullback to IB edge for better entry. Stop inside IB.

MP gives structure (where levels are). Order Flow gives confirmation (if level will hold). At VAL: Positive delta + absorption = Strong long. At VAH: Negative delta + absorption = Strong short. Flow confirms or contradicts MP levels.

Markets move to facilitate trade (find prices where buyers and sellers agree). Too high = Attracts sellers, repels buyers → Price falls. Too low = Attracts buyers, repels sellers → Price rises. Value Area = Balance found.

Keep a list of all unfilled POCs going back several sessions/weeks. Mark them on chart. These are high-probability future targets. When price approaches a naked POC, watch for reaction. Eventually they get filled.

Initiative (aggressive activity outside value) shows conviction for new prices - trade with it. Responsive (defensive at VA edges) shows value defense - fade it. If initiative overcomes responsive, value shifts.

Core calculations (VA, POC, IB) can be automated. Pattern recognition (profile shapes, opening types) can be coded with rules. However, context and judgment elements benefit from discretion. Many use semi-automated approach.