MariusStanescu

Market Profile and Volume Profile

教学
MariusStanescu 已更新   
TVC:USOIL   WTI 原油差价合约
There is a major difference between Volume Profile and Market Profile indicators, and so many beginner traders are confused with it, so i have decided to create this educational post, with the purpose of clarifying this.


Similarities between Market Profile and Volume Profile
- Both indicators will have their calculation based on the time axis and price axis, or between session open and close, and, session high and session low.
- Both indicators will divide the session high/low distance into certain price segments
- Both indicators are calculating the activity inside a certain price segment, at a certain time



Differences
- The activity that Market Profile is calculating in the price segments, is the counting of candle sticks that have passed thru that certain segment. Every time a candle stick is going thru a price segment, it will be recorded with a letter. Starting in alphabet order at the beginning of the session. Like A for the first candle from the session, B for the second, etc. Letters are called TPO, time price opportunity.

- The activity that Volume Profile is calculating is the counting of candle sticks that have passed thru that certain price segment, AND, will sum the buy and sell volume in a centralized exchange, or the up and down tick in a decentralized exchange. In the end, showing only the summed volumes at each price segment from the session.




In conclusion, the Market Profile is counting the number of candlesticks thru a price segment and Volume Profile is counting the volume inside a price segment.
I consider the Market profile limited in comparison with Volume Profile, but that is just personal opinion.

Don't Stumble Trading. Trade Safe!
评论:
I recommend using Market Profile on decentralized markets ( Forex, and CFD in general ) and Volume Profile in centralized markets ( Futures for example ).
That is because on centralized markets there is access to buy and sell orders, so it makes sense to Volume Profile indicator.

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