The Market Profile Indicator is a trade volume analysis tool for MT4 platforms. It identifies positive/negative volumes and highlights potential buy-sell zones.
The indicator can determine bullish and bearish market momentums. Also, it outlines the possible supply and demand areas on live price charts.
Market Profile Indicator Overview
The Market Profile Indicator is a simple volume indicator. It is beginner-friendly and can be added to any forex/stock trading strategy.
Technically, it is a scalping indicator that works best in between 5-minute to 30-minute charts.
Market Profile Indicator Explanation
The Market Profile Indicator applies a simple chart demonstration. The green zone at the bottom of the chart shows positive volumes or a rise in demand. On the other hand, the red bars at the top outline negative volumes, indicating an increase in supplies.
When the price enters the green zone, we’ll consider the asset is in high demand and look for buy opportunities. Contrarily, once the price rises but the volume bar turns red, we assume the market is on bearish momentum. It means the supply exceeds the demand, and a good time to go short.
The Market Profile Indicator is not a direct buy-sell signal indicator. It only helps you understand the market sentiments and compare the level of supply and demand. In short, it outlines your daily buy-sell zones.
According to our review, this indicator is best for newbies traders who prefer market volume analysis data to decide their trading directions.
Market Profile Indicator: Buy Conditions
- The price enters the green zone.
- The price denies breaking below the recent market low
- Enter long on bullish price reversals
- Exit long once the price rebounds from the red zone.
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Market Profile Indicator: Sell Conditions
- The price joins the red zone.
- The price rejects to exceed the recent market high
- Enter short on bearish price reversals
- Exit short once the price returns above the green volume area
