4 – Market Profile Construction

How to understand Market Profile chart construction? #

Market Profile charts construction is very simple to understand. Market Profile charts are constructed by keeping the time constant and letting the price move around freely.

This may not be very easy to understand at the start, but I have covered it in great detail in the course video.

What is a Time Price Opportunity? #

Time price opportunity represents a part of the market which covers one unit of distance in obe unit of time. As we discussed above time is constant that is 30 min. And one unit of price is decided by the TPO size.

The bigger the TPO size lesser the total no of TPOs plotted on the charts and lower the TPO size more the total no of TPOs plotted on a chart.

How “information revealed by the chart” is related to the TPO size of your Market Profile chart? #

The lesser the TPO size, the more the total no of TPOs on the chart and the more the amount of information revealed by the Market Profile chart. Also, lesser the TPO size smaller time frames will be revealed.

Bigger the TPo size, lesser the total no of TPOs on the chart and lesser the amount of information revealed by the Market Profile chart. Also, bigger the TPO size higher time frames will be revealed.

How to set the TPO size for any stock, future or index on the NSE exchange? #

Watch this video from my youtube channel to get complete idea about how to set TPO size for any instrument, whether it is a stock, future or index. Specifically for the National Stock Exchange Equity and FnO segment.

There is much more to this topic of trading and we cover it in great detail in the DTF Membership. So if you are curious and want to bring consistent profitability in your trading consider subscribing to our quarterly membership…

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