Futures Market Profile

Most quality charting platforms offer Market Profile: Sierra Chart (best for customisation), TradingView (accessible), NinjaTrader (popular), ATAS, Bookmap. Some require additional fees for TPO charts. Ensure platform allows TPO/letter-based profiles, not just volume profiles.

Market Profile uses Time Price Opportunities (TPOs) - counting 30-minute periods at each price. Volume Profile uses actual traded volume at each price. Both show value but from different perspectives. Many traders use both: Volume for precise levels, TPO for context.

Each letter represents a 30-minute period (A, B, C, etc.). Where letters stack horizontally = time spent at that price. Fat areas = high time = value. Thin areas = quick move = rejection. Find VAH (top of 70%), VAL (bottom of 70%), POC (most letters).

Standard is 30-minute TPO periods (each letter = 30 mins). Daily profiles for day trading context. Weekly/monthly composites for swing trading context. The 30-minute period is traditional because it balances detail with meaningful time aggregation.

The 80% Value Area Rule: If price opens within prior value and touches one boundary (VAH or VAL), there's ~80% probability it rotates to touch the opposite boundary. This creates rotation trade setups within value.

Trend day (~15%): Open Drive, IB extended >200% one side, trade with trend. Normal (~35%): Some extension, value in middle, fade extremes. Neutral (~20%): Little extension, rotation day, fade extremes. Double Distribution (~10%): Two values formed, trade between. Normal Variation (~20%): Extended one side, trade that direction.

Single prints (one TPO at a price) show where market moved quickly without accepting value. They create 'unfinished business' that typically gets filled within 1-2 sessions. Trade toward single prints as targets, or use them as support/resistance levels.

Normal/bell = balance, equilibrium. P-shape = buying strength, bullish bias. b-shape = selling pressure, bearish bias. Double distribution = two value areas, watch for acceptance in one. Elongated = trend day, don't fade. Shape informs next session bias.

Composite profiles combine multiple sessions to show longer-term value. Use weekly composite for swing trading context, monthly for position trading. Daily profile for timing, composite for direction. When daily and composite align, highest probability setups.

Profile provides value context. Combine with: Price action for entry patterns, Order flow for real-time confirmation, Technical analysis for additional levels. Use profile levels as framework, other tools for timing precision.

AMT views markets as continuous auctions seeking value. Balance = equilibrium, fade extremes. Imbalance = directional, trade with move. Initiative activity (extending beyond value) = conviction. Responsive (returning to value) = mean reversion. Classify activity type to determine strategy.

Failed auction: Initiative activity attempts range extension but fails. Market rejects that direction. Trade opposite to failed auction. Example: Price breaks above VAH (initiative), fails to hold, reverses - failed auction high. Short with target back into value.

Define rules: Opening type classification criteria, day type determination rules, entry/exit rules at profile levels. Backtest these rules on historical profile data. Challenge: Some context is discretionary. Solution: Systematic rules with discretionary filter for market conditions.

ES has most reliable profiles (highest liquidity). FTSE has moderate reliability, use RTH for cleanest profiles. DAX has wider ranges, more volatile. Commodities (CL, GC) have event-driven profile disruptions. Adapt IB expectations and level precision per market.

Use both: TPO POC and Volume POC often align (strongest levels). When divergent, Volume POC usually more precise. Use TPO for day type, opening type, auction development. Use Volume Profile for precise entry/target levels. Overlapping levels = highest confidence.