Free Forex Indicators (MT4), Trend Following Indicators
The Market Profile Indicator
By Arun Lama
Updated On
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.
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.
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
