okay guys good morning Navin Prithyani here from urbanforex.com
can everyone hear me and see my screen yes yes yes
morning morning okay so let's get started here today we are going to
discuss a little bit something on market profile okay this is a quite popular
with a lot of floor traders and comes in all the way from almost three decades
ago okay and it's very popular with futures more hits and stuff like that
but we're going to introduce this into a little bit into Forex and show you guys
how it actually can have some impact in forex as well okay remember one thing
that you need to know with market profile is it bases completely on a
volume and how do you get volume is when you have a central exchange for example
if you have NYSC the New York Stock Exchange you can get volume because
everything is traded over there now in forex there is no central exchange there
is no one area where forex is traded you know and there's no one spot anywhere in
the world that's like okay it's traded in the corner of Sydney no so having
that said there is no real volume that we can measure the only volume that we
have is based on our chart and the price movement and the velocity of the
strength that it moves in and so so it measures that I mean it comes close to
it but it's not 100% accurate that's why MP also comes up as an indicator a thing
that follows price at the end of the day even in forex
okay so that's one thing to understand now okay keV take care now what we're
gonna do today is we're gonna leave all the questions told towards the end
unless you can mention anything that you guys have in terms of audio or video
issue but as far as questions are concerned
we're gonna leave them towards the end I think our last video we had so many
questions towards the middle and people are getting frustrated so by not letting
this I'm not moving on so let's get into some of the basics of MP ok how many you
guys actually know market profile ok and originality
this is how market profile actually looks they're a bunch of these little
letters okay okay a bunch of these little letters now let's go into some
details about this now market profile was obviously it was it was created by
two people mr. Peter and mr. Mike okay Peter was a Chicago Board of Trade
member and Mike was a vice president of technology at the same exchange so now
there there is what we call a POC called the point of control okay the point of
control is where the most traded price of the day happens now that's usually
going to be the longest line okay that's where most of the price has been trading
okay that's called a PLC or it's also referred to as the mode mo de mode okay
now there's also what we call the value area which is in the 70% deviation from
the POC like over here and down here okay these are the value areas and there
is this is the high-value area the low value area okay
they're referred to as v8h or value area high and the VA l4 value area low
now so you're probably wondering what are these little letters or what what do
they mean okay let me explain to you these are called teepee OS okay time
price opportunities okay which means each letter represents 30 minutes of
data okay in a single day there is 48 TP OS okay
30 minutes you multiply that and 248 of them you have 24 hours
okay so there's each of these is a TPM now how it starts is your day starts off
with the letter A okay the letter A and what you can see is in
the first 30 minutes of the day the market have traded in this range this is
the price the markets have been playing with in the first 30 minutes okay and
then when B starts B starts from it goes from all the way up here to down here so
you have an overview of what price is doing just by looking at this you know I
am so on and so forth ABCD it goes all the way down and obviously I told M and
N so and this longest area is the mode or the POC which is the most happening
area okay where a lot of the action is usually taking place okay
now this entire movement is what we call a price distribution you know you have
this like big old curve you know imagine like a fat man is belly you know so when
you have a proper curve like this the price is normally distributed okay
now the area above or below when there is less and less it basically means
these are areas of rejection price rejection okay it means that it's in
overbought or oversold area which means price has gone too far
all right everyone with me so far
okay okay now the same thing applies is I will get to all that stuff now the
same say the same thing applies is once the price goes to this area and you see
that it's being rejected you have less and less time the price is spent there
now for example you see here this price is being it's starting to get rejected
it's getting less and less here which means it's been pretty much an hour and
a half at this price here 30 minutes or less and same thing here 30 minutes or
less that means you know I and these price ranges price is getting rejected
same thing down here and these price range is more or less prices getting
rejected okay so let's take a look at this how this looks in for X now in
forex obviously they didn't give us these letters we have this nice
indicator for those of you who do not have this indicator it's it's here let
me show you you can go on to our urbanforex.com scroll down look for the
group called market profile for those of you who want to practice market profile
join the discussions here and post your daily trades and everything here the
market profile indicator is right there as soon as you log in we can have more
rich in material and presentations available hearing including this video
will be available here as well okay so it's all there now this is how the
market profile looks on our screen you can see here that we have the UM
deviation area here let me change the line color for you so it's okay we have
the deviation areas here and here the area in the middle with the longest line
this is your POC as you can see how price is just hovering around there um
this is where most of the action happens
okay let's remove these now
okay so now how can we use this to our
advantage here's couple things now take a look at
for example today you see how price has been moving there's a lot of action over
here there is quite a bit of action over here but down here you can see price is
getting rejected okay one little bar here price is getting rejected telling
you that this area seems to be an area that price does not that the larger
players are not interested in putting their money okay which means price will
probably bounce away from it okay take a look at yesterday over here on the top
here right here you see how price just reacts from this from these areas again
and again and again right here also this low area okay and then here as well so
this gives you a heads up bet okay this is an area that it's pretty much
oversold overbought you know larger players are not interested in these
areas and they seem to be rejecting the prices they're removing their flow of
money from this areas okay and either they're reversing it or just letting it
go over here they didn't reverse it but they just pretty much let it go that's
why I just started hovering and then the price started building up again and boom
a drop today okay so let's get this all up and let's take a look now price gets
rejected at these hollow spaces you know towards the end of these MPs or in these
hollow spaces now what I personally do is that I usually look at this in terms
of support and resistance from these hollow areas okay let's take a look at
this
okay mmm scroll back a little bit so I can get you guys multiple hollow air
okay so now you see this area here how its hollow here and then it's also
hollow over here okay price is being rejected from this area again and again
now take a look at the candles that just go up and down from this area big
candles really big hello this isn't strong area support resistance not to
mention if you put your line right here you get to see price has held here it's
held here here and even in the past okay things start to stack up okay we have it
hollow here yet yet once again so once you draw these or these hollow areas you
get to know how where the price is actually reacting from okay now let's
see let me see if I can show you one proper example
okay let's see here now take a look at this
mmm yes it's recorded take a look at this
let's say you have this area here that's being a rejected right it's created this
tail and we're going to draw our support resistance zones next day happens also
hollow over here price is trying to get rejected but it didn't get rejected it
actually shot through okay which means strong level of support
resistance here somewhere it shot through right so I'm going to draw my
I'm going to bury my tail in here also I'm going to go back a little bit to see
okay it covers this tail plus we have some hollow area here where the price
comes down from you see how it's very active here and then it starts going
down price so it's going down to the rejection area so rejection area here
rejection area here big candle break here okay we have price rejection area
pretty much building up here and as we go into the following day as you see
when the market moves up here and you see it get rejected you see your zone
that not a single candle has closed outside of this zone giving you a
complete ready for a drop for a South for the rest of the day everyone with me
so far
okay okay and this area once it drops comes back bounces off of it yet once
again and then drops next day still has an area of rejection here but this time
it crosses through it crosses through and now price is going to all new
heights where we don't think it's going to come back down to this level anytime
soon where we look for the next rejection areas okay but this this helps
you understand that where price seems to be having rejections it helps you easily
also spot areas of strong support and resistance that this area must be where
strong levels are are holding okay now rejection uuc rejection when these these
blue lines start going down starts going towards the weaker side that's a
rejection okay so it's pretty much like your MACD or statistics you know but
instead your rejection is when it comes down instead of the top okay now your
your modes or your PLC areas also play a role you know that for example on this
particular day your PLC line was here the most traded area the next day opens
as it does its thing it reacts to this area as well as it has some strengths
because it's a high-volume trading area as per market profile so you do see some
reactions here okay now moving on let's take a look let's see if we can gather
some information here now do we have an area here let's see let's put our lines
here okay lo area okay rejection building up here our or
we have our resistance resistance resistance low area here resistance and
big handle Briggs so let's cover some of
these tails do we have some support yes we do now we have support here support
here big candle brakes so now we have support and resistance covered from this
area not to mention we have covered our rejection
areas in here as well okay market continues and the following day okay we
dress slightly outside actually but you can see once the market gets rejected
over here it comes back down into this zone giving you a heads up that we're
going south and boom market just drops that make is this making sense of how
how we use how we can use market profile to our advantage
it just helps you visually look at what areas must be strong support resistance
now many of you guys might think oh man drawing our strong support resistance
that was really difficult just look for these little dips look for these little
dips you'll have an automatic idea what areas are good so these are rejection
zones okay and then this happens time after time after time you know these
these areas that that seem to hold you know take a look at this zone here if
you draw from here to here okay you see how price gets rejected one two three
times here big candle break also we go on into the future and no touch here I
don't know if it touches later on but and here we go
we have a slight touch here and then boom straight north after the rejection
here
okay so there's there's various ways to trade this information one is you can
wait for rejections which is not advisable okay I've seen many people
just trade these rejection zones and get burned like crazy because the rejection
zone keeps building you never know if it's gonna stop your ha how
would you know if it stops at the end of the day it's an indicator that follows
price on in this particular in this particular case because we have no
volume in forex okay so it's following price it's an a it's an indicator now if
you assume that for today this was your rejection zone over here on this
particular day what if the market continues like it did over here it
rejected but then it went further north how would you know it's a this is the
area where it stops you know so that's the issue that you would have now the
only way to to find out these things is to match them with support room
resistance such as this thing right here to give you a better understanding is
that is the rejection area that you're seeing do you think it's valid okay over
here yes it matches up with our support and resistance also the rejection
matches up same thing on today's market also lines up okay and that's how you
know if things start to make sense or not okay does it does that make sense so
look
okay now the trading that happens around market profiles the trading that happens
around market profiles obviously we're not going to discuss in this webinar
this webinar is for you to get familiar to market profile first what is it
actually telling you what what do these blue things mean understand that concept
first okay now we're like for a moment stop trying to think how can I use this
to trade you know forget that part because if you just think how can I use
this to trade I'm going to tell you a B and C you will follow a B and C and you
will never get to experience what this actually tells you first try to first
try to understand what this particular indicator tries to tell you and then we
can move forward from there because then I trading strategy whatever I tell you
or anyone tells you you can look at it and be like hmm maybe I can do it this
way because you at least understand what is trying to tell you you know so going
back to UM the very basics again okay high trading area this line that you see
here okay which is the very peak okay this is the highest point that this blue
line goes to means that this is the most traded act traded area for today for
this particular day same thing here this line right here represents the most
traded area okay it's the highest blue bar from the bottom to top okay now
these bars when the day starts there's no bars they fluctuate as the price
starts to fluctuate okay and each little little cube that it builds is
represented of 30 minutes of data okay now next thing these are value area
highs and these are value area lows okay these areas are also of importance which
tells you that the markets are these are the areas that the markets like to be
playing in okay and then outside of these areas
we're getting a stronger rejection areas okay
whenever the blue lines are getting lower and lower towards zero which means
price there is not much action there which means most likely price is going
to turn around okay take a look at this we have this little rejection area here
okay you can see how small it is is it the smallest for the day okay pretty
much so smallest area here now do we have anything to confirm that this area
the market might turn around yeah we have a a pattern that we can seem like
okay this looks like a pattern that might turn around the direction of the
market you know you so you need to find additional things like trading this
alone is very dangerous you need to find additional things that that complement
this okay so now let's move forward and let's look at today's today's date
today's date we had one area on top that was quite small which the market reacted
from and then we had one area down here on your USD which the market reacted
from also now you can see down here the market got rejected and lots of action
here it's very strong here it's been building up now what is this line this
is not the highest trading for today this is coming in from yesterday okay so
now you'll see that the for today's strong area is up here and yesterday's
strong area is down here and not only is the price getting rejected we're
creating exhaustion candles what else do we know from this information do we have
a level of support resistance okay yes we do we have support we have resistance
we had big candle break big candle break we have any data in the past from here
big candle break possible resistance and that's it we don't have much much to
work on because for a lot of our pairs that are recently working we're at
all-time highs so we don't have much information that we can work on okay now
pound let's take a look at pound do we have anything today okay we have read
rejection right here you see this now the markets have moved from all the way
from here to here to here what do we know if I ever if I draw a line
horizontally like this this is the lowest it has gone all day until now now
it's got even tighter it's gone till here okay and we had this area here now
since we had this area it's gone tighter and we have price reacting from here
what do we know is this is this area has some significance let's find out you
know I don't know I can't just assume and put all my trust onto this indicator
because it can change any moment so but I'm gonna check does this area have some
significance I'm going to scroll back first thing is we have a pocket of low
zone here another thing was we have an area here let's draw this zone and let's
move further back and let's see okay here we go take a look at this area 28th
January we picked all three of those bottoms plus lo pocket area we were also
considering lopukhin rejection zone on 29 January let's go further back see if
there's any more data and looks like that's it for now
yeah looks like that's it for now we have so we have a little bit of
information here seems feasible that this area is going to drop from here
okay the market has dropped it's come too it's a strong trading point of the
day lots of action happening here again people are starting to put in some money
possible goes short from here let's check out some other pairs now we have
CAD um getting rejected from this line this line comes in from yesterday which
is the most the PLC point of control also the mode okay this is the most
happening area of yesterday price is getting rejected there plus we have only
one bar here okay can it be possibly rejected from here we don't know we'd
have to check support and resistance and low pocket areas to understand okay
lots of tails going up and down here let's take a look another pair to see if
there's something more clear that we can work with
how about does Swiss franc okay how much Swiss franc in this area does this area
seem feasible low pocket area price getting rejected exhaustion candle being
formed does this area seem about right let's can we get any additional
confirmation from the past okay big candle break a price being rejected here
market profile showing rejection let's go further back anything else okay big
candle break resistance big candle break support big candle break there we go
also rejection areas on the if you sit if you take a look at these blue areas
rejection zones also so this seems to be an area that might have some strength
okay rejection zones in the blues blue areas
and big candle breaks so seems like an ideal area for someone to go sure
from okay everyone everyone with me so far
yes yes okay let's take a look set some other pairs that show some signs today
gold is really bright
so you confirm support resistance with MP or MP with support assistance it's I
confirm MP with support resistance because now right now on gold one hour
ago gold came to this area and turn around
um or once it came to this area we saw this one little bar here showing price
rejection now just based on this information alone I cannot place a trade
because it's too risky because what if it goes further down south and then this
area can start building up that more trading activity happens here okay so I
came down till here we had one bar but I want to check is this area useful so I
put my line there and then I checked what do we have from this area well we
have some big candle breaks we have support we have resistance we have a
pocket of low area here okay big candle break support once again okay
rejection area on the market profile big candle break rejection area okay
rejection area and resistance we have both support resistance and rejection
plus we can break everything gives you a heads up that this area is the
moneymaker does that make sense
hello Linda okay so that's okay so so does that does that make sense for this
one
yeah I'll explain one more time let's let's take a look at another pair and
see if there's an example
you guys like Japanese yen pairs let's take a look at the beast but it's also
all-time highs
okay SNR FTW yeah yeah supporter resist I like I said I I personally like I
mentioned to you guys in the previous webinars of support resistance that if
you do not understand support resistance everything is going to be difficult and
if you do understand support resistance everything becomes easy because at the
end of the day it's all about support and resistance because you see that on
your charts
mm-hmm okay take a look at that US dollar Japanese and see if we can get
something from here throwback randomly okay I see some price rejection
zones okay take a look at this the low of this day okay let's get the the areas
here no single body coming out rejection area
plus it's a rejection starts here we're going to take this and put it together
with this we have this error does it go back further back yeah it makes sense
cuz even further back we cover these areas of rejection areas so we're going
to go forward and see can we use this on the following days now 21st January the
market hovers inside breaks through reacts to the zone and goes and then the
following day it rejects the price from here and then drops okay it actually
took this level yeah this area here one two three rejection areas and then the
fourth one here and price drops can we confirm trend and momentum with market
profile no not momentum trend also no it's hard to predict a trend there are
there are many various strategies they talked about that if you have your bell
curve here for two consecutive days then you know we're going short or if you
have a B shape you know where you have a big tail on top and then you have a B or
AP you know there are many different methods they come up with but it's the
same as for example how many of you guys have heard of CCI you know so even the
CCI um they take an average indicator CCI and they put a million patterns
like okay this is the ghost formation this is the cross through formation you
know so you can actually put any formation on anything that you want but
is it simple for you to understand and at the end of the day it all comes down
to you are unable to capture the market completely okay but people always try to
do everything in their possible strength to capture the market you know from
front to end and hey we do it you know we have a forecasting business we do it
so but to be able to capture the market 100% is is impossible okay
all right so let's go through some questions and then we'll go ahead and
close the webinar so okay so one at a time so can we top and bottom up and
peace it's overbought oversold zones as we do with statistics yes that is the
that is the concepts are there but how do you know which is the top and which
is the bottom that's the question to ask yourself
you need a confirmation um with that okay Glenn Navin isn't it true that
these short timeframes are taken out of context isn't there a way to look at
long time frame T POS to see the original point of the benefit
bell curve yes yes that's also actually I it can be quite useful when you look
at the most trading areas from a higher time frame such as the four hours or
something like that or even a daily okay but usually Glenn they're designed to
have 40 periods in a day which means you know it covers like one day's action so
using information from a higher time frame might be a little bit risky I
don't know if it's designed for a higher time frame hey Pete seems to be it seems
to be just an extra confirmation yes that that's pretty much it
fee I use it to actually understand that is this area strong spur resistance yeah
but exactly like Skyy says it makes it makes it easy to visualize support
resistance yes for those of you who are having tough times to draw support and
resistance simply just get these low areas let me move it to
these low areas okay I have this little pocket area and I'm like okay what is
this area do I have support resistance yes I do right here big candle break
support resistance and then all you need to do is just refine it and then the
market then reacts from these areas in the future I'm a better time frame to
trade on this I would I would personally say 1 hour 1 hour would be the ideal
spot okay so then the beam sorry to be a bug with you have you tried to study MP
with footprint charts no now which we're in charge okay I wanted to bring out the
basics of MP what MP basically does okay it just tries to measure um
trading activity that's the very basics of what MP is trying to tell you where
is the trading activity happening and where is less trading activity happening
okay 30 minutes it's the same it's the same piece of information you get the
same piece of information actually now in fact even end it in the indicator you
can actually adjust when it starts the day starting hour in case you want to
start on a specific session you can do that also my profiles time frame is set
to daily if you set it to weekly you can actually use it on a higher time frame
but I've personally set it to daily as I like to see what's going on within my
day okay and you can adjust you know other things such as the value area
high-low areas if you want to turn off develop the strongest areas you can turn
that off as well so there's a lot of options that were nicely nicely built
indicator
I just need to change that yes yes um why not - 30 mins okay you really
emphasize on the valley of the NP but what about the value area high-end value
area low and POC can you give us something to work with those um now the
thing with this is when you have your value area highest in value area lows
they hold they hold significance these are the areas where okay inside your
value area high and low you will have obviously your mode this high and low is
pretty much just your deviation that's your 70% deviation that comes from this
area which tells you that in this area is where the activity has happened okay
everything else if you take a look outside this area the markets have
slowed slow down okay let's take a look at the value areas here it's here and
here okay these are your values for this day and then you have stronger
rejections outside of it so now the rejections you get inside your value
area I wouldn't quite use as they might be temporary but the ones outside of it
seemed to be quite powerful your value areas will change as price moves that's
for sure they don't stay solid as once these are
built these are built but your value has changed as time moves so there are what
about double profile MP I haven't used that having use that which has two
bell-shaped curves within one day up okay are you talking about these
formation let me find you one in fact today today on euro USD we have double
bells right here like a be a capital B sorry we have this here here it's just
telling you that the price is distributed in a higher higher price
over here and it's over here this is where all the distribution is happening
okay when you have one bell curve you have your your normal distribution
you should happening where the price is big spread out properly
yeah in fact like I said I've seen many of you guys trade this for example Donny
and Abhinav on urban Forex I've seen them post some charts of how they're
using S/R with MP and you know results are pretty good quite phenomenal
actually so try them out actually try them out get a get a hang of it get used
to it because next week we're going to discuss strategy and trades using MP as
of right now you guys have the very basics of the understanding of MP so so
do this join the group over here called market profile and get your indicator
and check them out throughout the neck until next Wednesday comes along try
them you know add them onto your screens take screenshots share them with us and
find out you know are you able to capture the right zones or rejection
areas these rejection areas are really good because they can be the tops or
bottoms of the markets okay now if Christ does not get rejected in that
area it goes boom and go straight through
okay um Dennis the indicator is used as market profile it's available in the
market profile group okay here's the link in case you guys don't know where
the group is it's right here and you can simply join the group there's we can
create discussions and everything will be start start being created from
tomorrow okay any final questions before we go any you guys want me to do any
recap or anything yeah next week we have a webinar with Sardar as well on the
14th of February that discusses how we can trade his analysis he posted hidden
posting his analysis for over half a year now and you know they've been very
very good a lot of people have been following him he has a big following
based on urban Forex and all urban forex are a lot of our Facebook
pages on social medias so um it would be good to see of a refined direction that
Sardar himself gives us on how we can trade this so that'll be quite
educational as well um Gartley patterns yeah anything else that you guys want to
learn we actually have a topic in the discussion that says what do you want to
learn you know we can look into it we can study it we can open it up and we
can present it to you guys as that how we look into this and go on move from
there okay yeah you'll you'll have lots of fun you'll have lots of fun now like
I said everyone here most likely is gonna be in your webinar so there so and
we're here to support you and we're actually thankful that you're sharing
with us so it's great money have sent you a message on urban Forex so I hope
you can reply to it yes as I get to it I as you can see I have us some emails
pending here as I get to it i will definitely approach all of you guys
whoever sent me an email but try to ask your questions on the main page as much
as possible um somebody's bound to answer your
question faster than I can but if you do send them to me that's fine I will get
to you but please be patient okay you're welcome you're welcome I said so um try
them out weekly challenge information you're talking about support resistance
weekly challenge yes that has that is going to be beginning on Monday I
believe and it's going to continue for a week and those of you who have joined me
to drop us an email we you guys will be added to it and we haven't got any
responses yet on who wants to join a competition but I will still be here
trading support resistance in the competition myself it's been a while
since I'm actually traded so it'll be good fun for me to get back into the
game as well so
okay all right guys I'm going to go ahead and close the webinar now thank
you all for attending and I will see you all on the next webinar which is next
Wednesday and you guys can join in on the market profile conversation and
we'll take it from there thanks guys have a great night