You need to create your own Market Profile.
Updated
Market Profiles allow you to understand the structure of price action, you can alter your profiles to be specific for buying or selling. Having a universal plan shows you where price is going to range, if it sticks to principles of bullish action (Higher Highs, Higher Lows), you can deduce where the next levels of interest are and vice versa.
Interest areas - the orderblock levels - are areas to consolidate at or reject from. They are created during up moves by selling and during down moves by buying. Any time you see price stall and move around, creating anxiety and confusion, that's an orderblock level. The orderblocks appearing on higher timeframes have more strength than lower timeframe ones, this is the same for all aspects of trading.
To explain the last point further:
If price rejects from the top IV Zone, the highest price paid, it goes to test the lowest amount willing to be paid, the bottom IV Zone. This is what gives markets their ranging/sideways action, this is where a lot of money is made by skilled traders and coders, they're providing liquidity and being compensated for playing the range.
I made this for myself, you can study this and try it for yourself to see if it helps you understand price flow better.
Interest areas - the orderblock levels - are areas to consolidate at or reject from. They are created during up moves by selling and during down moves by buying. Any time you see price stall and move around, creating anxiety and confusion, that's an orderblock level. The orderblocks appearing on higher timeframes have more strength than lower timeframe ones, this is the same for all aspects of trading.
- The IV Zone is the last call before price structure breakdown, this area of the structure holds all the weight as this is the only area which can reject or validate price action.
- Breaking out of the IV Zone will always be tested, the time is the variable which decides that.
- Rejecting from within the IV Zone return price to the test the opposing IV Zone.
To explain the last point further:
If price rejects from the top IV Zone, the highest price paid, it goes to test the lowest amount willing to be paid, the bottom IV Zone. This is what gives markets their ranging/sideways action, this is where a lot of money is made by skilled traders and coders, they're providing liquidity and being compensated for playing the range.
I made this for myself, you can study this and try it for yourself to see if it helps you understand price flow better.
Note
Now that almost 4 weeks (26 days) has passed, the proof of the concept can be seen. I hope this helps everyone in researching, understanding and testing market movements to figure out where price is attracted to and where it may go. I hope to see some more movement in another 4 weeks time to test my own hypothesis when markets correct.
Note
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.