Volume Profile vs Market Profile Explained!

[@korbstrading]

Are you trading with Market or Volume Profile?

[@churchilotieno20]

Market Profile

[@JR_WY]

Using Volume Profile everyday :)

[@hlorisomashilo7938]

Kind of stuck in between. I have recently discovered both. 😅

[@totorina4353]

the both

[@Sharingan6138]

I absolutely disagree as I feel Market Profile is superior and here is why. The amount of volume transacted at a certain level does not always mean that level will hold because when price reaches this level again there may not be much volume at that level anymore and there may not be interest in that level anymore. Also even if there was to be volumes of pending trades at that level, when price revsits the level there can be a surge of volume that is greater than the volume at the level and the level will break because volume can appear from anywhere at anytime. Market profile takes into consideration time and time is critical as it pertains to gauging the importance of the level. Many people think volume is a better indicator of level significance because there are more contracts/shares at the level etc. Obviously volume is a measure of supply and demand however when it comes to significance of a level what matters more than the amount of volume at an area is the time traders spent making trade decisions on an area and just because these traders are transacting less volume at that level does not mean that level is insignificant. A good analogy would be 2 inspection teams inspecting a site. Team Time(8 person team less resources) and Team Volume(30 person team more resources). Team Volume goes in and spends 2 minutes at the an area of the site and and moves on. That would indicate to me that that area is not significant regardless of the amount of people(resoures/volume they have). Team Time goes to another area of the site and spends 5 days inspecting the area. This indicates to me that this area is one of great significance because of the amount of time spent at the area since they must have been researching and deliberating. Just because Team Time is comprised of 8 people with less resources does not mean that the area is not significant or is less significant than the area Team Volume inspected because even though Team Time has less people/resources, they are still of the same expertise as Team Volume because they are insepctors so the fact that they spent TIME looking at an area is noteworthy. Same with trading. A smaller group of traders in say Asian session that spent a considrable amount of time at a level transacting 10,000,000 shares makes the level very significant. If a big massive volumonous candle with billions worth of shares shot down 600 points, hit a price level spending only 2 seconds at the level and in those 2 seconds a group of traders in london session transacted 90,000,000 shares before price continued to drop another 600 points, that level would not be a significant level at all. Please thnk critically. To sum up. Volume is just a measure of supply and demand. Time dictates more accurately the importance of a level. Market Profile is the superior profile.

[@jordan5531]

Thank you so much for your analogy ! I’ve been trying to wrap my head around MP for awhile .

[@ethnicechoes]

I Really like the power of Market Profile on Sierra Charts to create Market Profile Composites to mark powerful Value Areas💪🏾 Sierra is the best

[@korbstrading]

I’m right there with you, brotha 🍻

[@TraderMatt89]

Hey Korbs.... great video, thank you for the explanation. Admittedly, I don't have too much exposure to market profile. However, given that it's time based, it doesn't make sense to use it during the overnight session. Additionally, it doesn't make any sense to add the overnight to the RTH histogram. In other words, the charts you displayed are not a valid comparison. You should should only have RTH graphs, not a full day and see how they compare.

[@korbstrading]

🙂

[@krahsloop]

Agreed!

[@anisagheorghiu848]

Insightful video, Korbs!

[@korbstrading]

🍻🍻

[@Saltvik0]

I use Market Profile & VP. Market Profile benefits in my opinion shows excess , low volume & single prints, and structure better

[@korbstrading]

Hey Pyrotechnician, thanks for the comment. Are you saying that low volume can be seen better on a market profile? :)

[@adwarrior]

@@korbstrading I don't want to answer for Pyrotechnichian, but my feeling is that market profile does convey more about structure, as you can clearly see single prints, tails, poor lows, poor highs etc. Also, adjacent to each price you have a cumulative of contracts traded at that price. So, although it's not a graphical interperatation, you do get a comparative sense of how much business is being done at price points.

[@_Iamdmoney]

@@adwarrior Agreed tbh Market and VP are Brother and Sisters they work well in tandem when you use both.

[@samuelokafor3985]

thanks for clarifying these two profiles

[@korbstrading]

🍻🍻

[@Danny-gg9gs]

Are there any alternatives to sierra if you're looking for a volume profiler?

[@korbstrading]

Hey Danny, yes there are some other good options. Maybe look into Investor RT 🍻🍻

[@tepsv8050]

It works on forex market aswell ?

[@korbstrading]

It can 🍻

[@afjalmansoori9399]

Are you using at forex?

[@andrenicholas2748]

Great video Aaron!!! Thanks

[@korbstrading]

You’re welcome, Andre 🍻🍻

[@5amwong]

Great video

[@korbstrading]

🍻🍻

[@LestatDK]

I use Market profile for my levels

[@korbstrading]

Nice 🍻🍻

[@fifielcoolio]

That was exactly the explanation i was looking for, fair fuckin play to you man! My broker only shows the vol profile up to 2 weeks back. I use it in my pre mkt prep to find levels on the 30min chart. Do you also monitor vol profile on a smaller time frame throughout the day? 5min or 1 min etc. Thanks again for the great vid man!

[@korbstrading]

Hey Fifielcoolio, I use intraday profiles mostly during the day, but in certain areas of balance I will draw an profile inside of that profile. 🍻