Market Profile: A SMB Trader Reveals How to Use This Tool to Make Effective Trades in $SPY

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Learn the basics of market profile so you can use it as a tool to make effective trades in SPY. In this video, a SMB Trader teaches you how to use market profile and volume profile to identify key technical areas from which to make winning trades.
#marketprofile #volumeprofile #daytrading
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[@Debjit625]

15:35 Volume Profile and Market Profile are two different things ,In Market Profile we plot Price vs Time and in Volume Profile we plot Price vs Volume.

[@Dillegallyblind]

This video has sent me down a path I will never be able to thank you all enough for.

[@ashleydruce9777]

This guy talks beautifully.He s a great help.

[@mike-ki9kb]

I use Market profile with the TPO charts and multiple volume profiles to find stronger areas of confluence with my support and resistance. Everyday I am trying to learn more about the MP as it can be such a strong set of data points to use in confluence with any system. Thank you guys for the videos, along with the Bella's books they are some of the best information out there.

[@Mechaneer]

Volume profile is really interesting. He's totally right how often futures can just slide through lower volume ranges until they approach a level, tend line or a higher or lower point of control. I'd like to try out more apps that use market profile, and also test using it for stocks instead of just futures in conjunction with my other trading techniques.

[@benpyeatt9986]

There's not a bad teacher at SMB, but Ryan may be my favorite. I still have so much to learn to be a CPT, but Ryan does a great job explaining things in a way that my brain can easily understand it. Thanks so much for the video guys. Much appreciated

[@johnwisdom9208]

Great information! Very young to grasp such complex strategies.

[@jasong4879]

Love This! I would ALSO love a Volume Profile video that shows all the input settings that Ryan uses on TOS with POC Plot values, Globals and other Inputs.

[@anigreen6939]

Can you pls link this video that u are talking about, I can't find it. Thank you

[@brcleaningcompany2566]

@buyn dips you leave deafault setting on volume pro have never heard of anyone ever changing settings on it

[@morgansikafunda5455]

Share it bro

[@edsbloggingcom]

Good explanation of something more important many daytraders not aware of.

[@JohnnyMatrix]

Boom! Talk about timing! I was watching the old library and I found Merritt Black from SMB making an intro to Volume profile dated back to Sept 6 2017. That got me intrigued and now you come out with gold like this! Omg I'm so grateful I discovered SMB and thank you so much for this video!

[@smbcapital]

Thanks Johnny! I guess that KZbin algo is pretty good! Merritt is great to follow if you want to learn more about market profiles.

[@JohnnyMatrix]

@@smbcapital trust me, it wasn't KZbin Algo. I was digging and have been digging for a few days. Out of the 577 vids in that playlist, I'm about 3/4 done.

[@rocar38]

I started using tool this on e-signal. Im not sure if any brokerage platforms offer it. And I cannot code yet. 😂

[@brcleaningcompany2566]

Is Merritt the guys speaking? Love this guy a lot, is he Merritt and has his own channel? I really enjoy watching this guy from sMB,

[@bigoptions]

I'm thinking about using the high volume areas as good counter trend entry areas for trades that are with their larger time frame trend. I can use a move through the areas that doesn't reverse as a signal that the trade failed. Because if you move through one into lower volume, the probability of this lower time frame trend continuing greatly increases. I like this idea because I wouldn't feel so in the dark about whether or not price is going to continue moving against me. When I use market profile in TOS it only shows the present day so it wasn't easily back tested, and I stopped using it. I like your idea or the idea of using a higher time frame to get, in your example, a 3 day consolidated poc with low volume areas also. I took the time to write this because you helped me. Thanks guys!

[@dgee1625]

Great video! As a new trader I discovered what volume profile was and it was a game changer for me. I like the way you’ve explained how you use it in such a short period here. I now am incorporating market profile using TPO to get a good grasp of the overall structure. I didn’t know SMB also trades futures and been following Merritt ever since. Thanks for putting up such great content.

[@smbcapital]

Thanks trader_gee! Yeah Merritt on the futures side almost exclusively uses this stuff for his trading. Good to follow him if you are into this kind of trading.

[@rombusworkmoney22]

D Gee, have you become consistently profitable due to the use of market profile and volume profile?

[@rodj9902]

A great explanation using Volume profile ! Thanks

[@zber9043]

Some info answering the question in the video of whether you can build a VP based on order size. Discotrading has a VP tool that can filter for order size.

[@joannahuc1318]

Great intro on volume profile. Thanks.

[@sundaarSOA]

Great video as usual.. I think one trader asked good question ,how does vwap match with volume profile point of control , adding to that should anchored vwap be much precise? And if it’s yes, then anchored vwap should be better choice for intraday trading.

[@xabiluciano2525]

really helping me a lot, thanks SMB U...hopefully one day i will meet u guys in real place

[@red_day6097]

This is the way. I know a guy who makes over a million a year day trading only using volume profile and imbalances. If you think like a market maker and follow liquidity you will be successful. I've met day traders with over 95% accuracy using a similar setup. The tools in this video plus your own little edge that you use personally with these tools and your good to go. nothing else matters. no ema crossovers no bull flag breakouts none of that matters its all about liquidity. I need to join SMB one day so we can make some real money. This stuff is simple once you have the eye of a Market maker.

[@alexandermoise6985]

Great Job Mike and Team. Did a change in fundamentals play today on Ticker AAPL and MKC. If your a novice trader and struggling to be profitable please understand this training is A1 and appreciate the history being made by SMB. Cant wait to get some SMB courses. Keep up the good work SMB everytime I watch I get Wall street vibes and Im not talking about the Wolf lol...

[@mbellafiore19]

Look forward to working with you on your training Alexander.

[@alexandermoise6985]

Mike Bellafiore likewise Bella

[@trickdaddyaz03]

Well done. I'm becoming a fan of the market profile.

[@cottondai]

Wow! Thank you for sharing this lesson. Is it in TOS? How do u create these. Do u have a video on creating it ?

[@satoshigerbil8789]

And can you make a video about using TPO? I can't find any good videos online about it. Thanks.

[@johnmoney7626]

Zack Morris you’re my hero!

[@edriley3240]

Thanks Mike great video get well

[@weebgrinder]

Ive heard market makers talk about market profile being something they use a lot. Thanks.

[@elon7385]

Blessings 💥💥💥 for traders 👌👌

[@gennytrickett1580]

First I will look to see where the vix is and then look at market profile. Also there is a trick to see where settlement price from prior day landed and see if the market opens above or below to see what direction the market (may go) in regards to that area being respected.

[@milagrosroman9978]

Loved this interview..

[@smbcapital]

thank you!

[@e.sanoop110]

For Daytrading, can we look at the market profile 15-20 minutes after the market opens. If so, what is the ideal timeframe we should be looking at.

[@satoshigerbil8789]

I think Volume Profile in 30 min candles along with POC,VAH and VAL are my best friend along with just scalping.

[@smbcapital]

Is that working well for you Satoshi?

[@satoshigerbil8789]

@@smbcapital it definitely helps put things in perspective. Instead of seeing the market as a crazy place it makes a bit more sense as when things are considered"cheap" and when they are"expensive." The scalping has been a good strategy to pick off reversals from a consolidating market, especially since TD just announced no more commissions on trades, my scalping will go on overdrive. Also for position trading it helps put things in perspective. I've been holding DWT since it was 3.80 and riding it because fundamentally it didn't make sense for oil to be that high plus the the value keeps decreasing.

[@satoshigerbil8789]

@@smbcapital also since youI always give us strategies, I might run one by you. Let me know what you think please. It requires only a heikenashi chart and patience. If you zoom out on the one year, one day you will see the candles. Just follow the pattern. When one candle turns green, you long the next day until the candle goes red. Once it turns red you short the following day. Keep flip flopping and you'll have a 70 success rate. Works great with the ETFs following the SPY. Don't even need a stop loss. I hope you understood that.

[@wilsonpe]

I have been watching a lot of the SMB market videos lately. Best content on the subject I have seen anywhere. I have learned a ton in a short time. Question: It sounds like you avoid the SPY when the VIX is below 15, do you consider the same for leveraged ETF's like the TQQQ?

[@smbcapital]

we usually only trade market etfs when the VIX is high bc most stocks will move in the same direction as SPY on high vol days. If not high vol we stick to stocks in play

[@bevanclark3828]

Great video Ryan. I would like to see a sequel as to how you use M/V Profile more specifically. I am mindful of V Profile when choosing ETO strikes when trading 0DTE on $SPY.

[@smbcapital]

Should be more coming, this was just an intro on it

[@ashleydruce9777]

Can anyone suggest out of the tonne of books he said are out there,which one he recommends as best related to this brilliant video.Also is there a short course online that teaches this specifically??. thankyou in advance.Ash

[@TheWinghochui]

Thanks for your sharing!

[@smbcapital]

Sure thing!

[@jeffhorton259]

Would you please share the study for that TOS workspace?

[@shawns735]

Very informative and gave me a lot to think about and back test to implement.. Great job as usual SMB... Your advice/information is as always, greatly appreciated...

[@mbellafiore19]

gr8 to hear Shawn.

[@j.d.4697]

I want to use it to add information to the breakout patterns I like to trade.

[@bankscapital]

what trading platforms do you use?

[@graybull8146]

Can you suggest an exit strategy using $TICK and $ADD?

[@mrmo4059]

I trade an exotic market with lots of volatility which has left me expecting everyday to be the same. Just watching the video once i would like to think i will be able to detect the inside days where i lose the profits ive made on previous ranging days, so hopefully i can identify inside days and sit on my hands for the day.

[@smbcapital]

Good luck on identifying that!

[@Roman-uc3bs]

The difference between VP and VWAP is VWAP is a price oscillator and VP is not. Although VP is related to price in that each bar represents the total volume traded at a specific price range, the price itself is not used in its calculation. VWAP is average price paid, whereas VP shows points of interest. What this means (to answer the question posed at the end of the video) is that they are not redundant indicators and their confluence can be very valuable.

[@EK-hu3hm]

nailed it!

[@ryancoffey9910]

Vwaps an oscillator? I thought rsi, macd and indicators like that were oscillators, not vwap

[@julioc4978]

Great detailed explanation, the best explanation I have come across in a long time on how to use the volume profile. In regard to equities or ETF, Would would be predetermined and marked those areas before the market opens for that day? or does he wait until the volume profile closes for that time frame/day to take a trade based on volume profile? I know he build composite volume profile by adding the value area to create a bigger bar, Isn't that the same thing as having a single chart for the previous 3 days to only have 1 volume profile? Does he use it intra day for day trading? I know it looks that the POC is like a magnet and prices tend to move towards that area. Cheers & thank you

[@strat_us]

Very dense for a introduction! Make you to go for further analysis

[@manzourhassan]

I just subscribed to your channel just having my interest in Market Profiles and its 9 days types and strategy to trade each day type so I need to know sir is this not possible that you can provide a detailed video like in 15-20 mints explaining each day type how to recognize that type in Market profile and then its trading strategy for day type for all these day types in MP: Non-Trend Day Neutral Day Normal Day Normal Variation Day Trend Day Day Profile Double Distribution Day P Shape B Shape

[@donalmadden7019]

Great vid.

[@cristianho777]

Where can i find market profile free download?

[@juanbasto9289]

How do you match volumen (normal indicator) with the market profile?

[@mbellafiore19]

we are suggesting that you incorporate both Juan.

[@thaprofessor33]

Absolutely do not assume low volume nodes (single prints) will just break through quickly. I find they actually offer support or resistance for price to return to a different high volume area

[@alexcluet6707]

market profile is a cheat code.

[@ikjon23]

Big time!

[@digitalfuture7941]

If Long: high volume node printed, next day on retest of high volume node,When Market pull down on a high volume node; wait for buying imbalance with buyers defending confluence area major support below that level is better 😉🧐

[@mbellafiore19]

thxs for sharing!

[@mikezaborsky4528]

My question would be, How about if institutions put their trades in "dark pool" without exposure until after the trade has been executed? So its mean the correct value you can see on next day after closing day. So mp/vp can be used not in real time but only in pass? Thx

[@mbellafiore19]

for $SPY we would see the volume done on dark pools and that would come across our time and sales Mike

[@trevorborgschatz2679]

You would be using volume profiles prior to current trading session to map key price levels already for your edge. Live volume profile changes are hard to follow when the market is this volatile to news. Best to understand key price areas and react to the trend on the tape

[@thelexion]

I think u are exactly right. Note the number of large (500K plus) $SPY trades that print during the day at prior days closing price. I use VWAP from /ES to get a better read on actual VWAP of $SPY and would do the same with MP/VP.

[@edwinbab3205]

Where can I acees chart with this info

[@Luis-zh9eb]

The gentleman giving the class mentioned a ton of books available to read. What books would he or SMB recommend in regards to volume profile? Have read a few books on it but I never get tired of reading books on the subject matter.

[@Koosy77]

James Dalton

[@EK-hu3hm]

@@Koosy77 dalton does NOT teach Volume profile, he only used Time profile. and his online basic course is simply horrible. You learned more watching this SMB video than you will learn from the Dalton basic course that lasts 5 days and around 7-10 hours for hundreds of dollars

[@lorensaunders5772]

Would love to see volume profile by week so I can decide where to place my trades for the next week... i.e. looking at overall market sentiment, individual security sentiment, my thesis, vwap and market profile several weeks back to understand macro view. Haven't found a good volume/market profile indicator for tradingview yet that gives me that indicator by week.

[@JAMAL12382]

Why is it that the volume profile is not suited to intraday trading on individual stocks? Thanks Kindly

[@smbcapital]

it could work on stocks but seems to fit indexes better, stocks have more factors moving them.

[@JAMAL12382]

@@smbcapital Awesome, thanks for the reply, keep up the great content love from Manchester U.K.!

[@red_day6097]

Helps you find imbalances and key areas and where institutions are buying and selling at. Helps you identify how serious stop runs can be. There is 2 million buyers buying the breakout with stops set on the previous support you can short into that stop zone cause the market makers are going to push price down there once they run out of liquidity up top. MM move price wherever there is the most orders, they don't care about nothing else. I know a guy who makes over a million a year day trading small caps only using order flow/ imbalances/ volume profile. Imbalances always get filled. Good luck.

[@foxtrader9300]

Can Volume Profile be used for SPX? Noticed there was no reference to it

[@CSaenz44]

yes

[@foxtrader9300]

@@CSaenz44 no it can’t SPX has no Volume 🙂

[@tastingtrader7289]

Can you make video on money flow index(MFI)

[@smbcapital]

We can add to list, thanks!

[@mbellafiore19]

@@smbcapital good topic for @MerrittBlack perhaps?

[@futurestrader8798]

So smart 🤓

[@roykid239]

Bella it'd be nice if you could fix the mic in those videos whenever they ask the questions cause you can't barely make out what they are asking. Thank you

[@smbcapital]

Robert we are working on setting up a mic system in our conference room.

[@t3chnica11y5]

Do you guys use monkey bars in ToS? Is it worth using?

[@EK-hu3hm]

my experience is it is too blocky with the aggregation of volume as it compares to time. I just use the stock TOS VPO chart. But the monkey bars setting does have a way of also showing TPO on the mirror image of the monkey bars so you can immediately compare TPO to VPO and sometimes it really shows the difference

[@brucevaughn3429]

So where are you entering and exiting the market?

[@red_day6097]

You find supply and demand zones and imbalances. When there is a recent hard sell off and price moves 10% in a course of 5 minutes there are a lot of orders that are left unfilled. Those are called imbalances. I buy the dips on reversals when I have over head imbalances. The reason I'm so successful with this setup is because I'm playing off the low of the dip and 90% of the time the imbalances are filled once the liquidity on the bottom has dried up. Market Makers move the price back up to those imbalance zones. I risk a point to make 5. It either goes or it doesn't and if it doesn't I sell. But imbalances always get filled.

[@absoluttchamp]

This is volume profiling, not market profiling. Nice video. It is a context tool, not a setup tool in my opinion. Volume and price is a timeless edge if you know how to interpret it.

[@saltbones4141]

I think he got his horizontal and vertical mixed up on the introduction

[@barrard]

Market profile, and volume profile or two different things

[@rlanning83]

Can someone help me setup market profile and volume profile on TOS

[@mbellafiore19]

be right over Richard

[@rlanning83]

Mike Bellafiore thanks

[@777dpartin]

market profile with letters or numbers compares time and price...ie tpo...whereas volume/price compares..well, time and price. since volume above price AFTER going up tells you nothing about direction it is worthless as compared to tpo!...smb does continue to provide best in industry videos...place mean above slope with 34 Parrallel at 1std and 6-12 steps out to fly and be well...its not 50\50... be well and realize that the covered call is power because options dont exist wthout the underlying...be well!

[@EK-hu3hm]

wrong, so wrong....volume is volume, time is time. price is price. time and price is TPO. volume and price is VPO. A ticker can stay at one price all day and have very little volume at that price and vice versa for the volume

[@777dpartin]

@@EK-hu3hm hey hewey, Dewey, and Lewey… please explain what is wrong when you say wrong so wrong…

[@Nature-bt5ip]

Every failed trader starts webinar service or writes book .HAHA

[@troutfly7201]

Good vid by the presenter; what's your Twitter handle? Thx