Market Profile is a type of charting tool developed by trader Peter Steidlmayer in the 1980s, used primarily by futures traders but applicable to other markets as well. It provides a visual representation of market activity for a specific time period, offering insights into the price levels at which trading activity is most concentrated.
Unlike traditional candlestick or bar charts that plot price against time, Market Profile charts display price against a vertical axis and time against a horizontal axis. The chart is divided into a series of “time brackets,” usually 30 minutes each, and uses letters or colors to represent trading activity for each time bracket at different price levels.
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