The key to knowing more about Market Profile trading setups is to understand the various terms of the market first.
Please go to – https://vtrender.com/market-profile-terminology/
for a quick primer on how to use the Market Profile
Listed below are a few strategies based on one of the concepts of Market Profile which is value.
In Market Profile we recognize value migration as the basis to knowing a trend in the market. If value areas are moving downwards the market is in a downtrend, upwards then in an uptrend and if horizontal and overlapping then the market is sideways.

Listed below are a few popular market profile trading setups.

The way to understand them is to know where the market is creating value- or distributing 68.3% of the traded volume of the session. Accordingly, we get Value area High (VAH) and value area Low (VAL) and the point of control (POC) .

Across Multiple Profiles, if value area High and Value area Low of One profile is lower than the preceding Profile then the Market is trending down and vice versa.  However, if POC’s are moving sideways then the Market has stopped trending and is known to be balancing.

In a trending Market we get the following setups :

1a) In a down trending market, when the current session opens below the previous day’s Value Area/VA enter a short trade at the previous day’s VAL and again at the previous day’s POC  placing a protective stop for both trades above the previous day’s upper VA (VAH)

1b)In an up trending market, when the current session opens above the previous day’s VA enter a long trade at the previous day’s VAH and again at the previous day’s POC placing a protective stop for both trades  below the previous day’s VAL

2a)In the above setup of 1 a (down trending market) if the Market Opens within the value area then short at VAH with SL above day before POC and target the return at VAL.

2b)In the above setup of 1 b (up trending market) if the Market Opens within the value area then long at VAL with SL below day before POC and target the return at VAH.

3 a)In setup 1a (down trending market ) now if the Market Opens above the VAH,  then enter a short below VAH and add at POC to target VAL. Sl for this would be the POC of the day before yesterday session. This is also called the 80% rule

3 a)In setup 1a (down trending market ) now if the Market Opens above the VAH,  then enter a short below VAH and add at POC to target VAL. Sl for this would be the POC of the day before yesterday session. This is also called the 80% rule

A non-trending market is recognized by a POC going sideways over Multiple sessions

In a Non- trending Market we get the following setups :

1a)If the Market Opens below the VAL then long at entry above VAL and add at POC to target VAH. Sl for this would be the POC of the day before yesterday session. This is also the 80% rule

1b)If the Market Opens above the VAH then short on an entry below at VAH and add at POC to target VAL. Sl for this would be the POC of the day before yesterday session. This is also  the 80% rule

2a)If the Market Opens within the value area then short at VAH with SL above day before POC and target the return at VAL.

2b)If the Market Opens within the value area then long  at VAL with SL below day before POC and target the return at VAH

These are only some basic concepts and quite elementary. If you want to expand your understanding of the Market Profile then we have a place where we not just look at the various concepts of the Market Profile but also put them to practice in a Live moving market.

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