Market Profile Trading: Value Area, POC & TPO Analysis
Market Profile shows where traders agreed on value. Learn to identify Value Areas, trade POC levels, and understand profile shapes for high-probability setups.
- Value Area (VA) = 70% of activity. POC = most activity level. Trade mean reversion in VA, breakouts outside.
- Balanced profile = range day. Imbalanced = trend day. Profile shape dictates strategy.
- Thrive displays Market Profile with VA, POC, and single print identification.
Explore Market Profile Concepts
Click through Market Profile concepts:
The value area shows where 70% of trading occurred. Represents fair value for that session. VAH = value area high. VAL = value area low. Inside VA = balance.
Definition
Price range containing 70% of volume
Trade mean reversion within VA—buy VAL, sell VAH. Trade breakouts outside VA for trend moves. VA acts as magnet—price tends to return.
What Is Market Profile?
Market Profile organizes price by time spent at each level. Instead of just seeing price bars, you see a histogram showing how long price traded at each level. This reveals where market participants found value.
The key insight: price will spend most time at fair value and quickly reject unfair prices. Market Profile makes this visible.
Key Concepts
Value Area (VA)
The range containing 70% of trading activity. VAH = high. VAL = low. This is "fair value" for the session. Price tends to return here.
Point of Control (POC)
The single price with most activity—the fairest price. Strong support/resistance. Previous session POCs create key levels going forward.
Single Prints
Levels with minimal activity—price moved through fast. Often revisited. Act as targets and potential S/R.
| Concept | Definition | Trading Use |
|---|---|---|
| Value Area | 70% of activity | Mean reversion zone |
| POC | Most activity level | Key S/R, magnet |
| Single Prints | Low activity | Targets, imbalance |
| Profile Shape | Distribution type | Strategy selection |
Trading with Market Profile
Balanced Days
Bell-curve profile = market finding value. Trade mean reversion: buy VAL, sell VAH, target POC. Inside VA = balance.
Trend Days
Skewed profile = directional day. Trade with direction. Don't fade. Breakout of VA = continuation likely.
Previous Levels
Yesterday's POC, VAH, VAL become today's levels. Watch reactions at these levels. Acceptance or rejection?
Common Mistakes
- Ignoring profile shape: Strategy depends on whether day is balanced or trending.
- POC obsession: POC is important but not magical. Combine with context.
- Wrong timeframe: Session profiles vs weekly profiles show different things.
- Overcomplicating: Start with VA and POC. Add complexity gradually.
Frequently Asked Questions
What is Market Profile?
A way of viewing price action by time spent at each price level (TPOs). Creates a histogram showing where market found value. Developed by Peter Steidlmayer.
What is the Value Area (VA)?
Price range containing 70% of trading activity. VAH = value area high. VAL = value area low. Represents where most participants agreed on value.
What is Point of Control (POC)?
Price level with the most trading activity—the "fair price" for that session. Acts as strong support/resistance. Previous session POCs create key levels.
What are single prints?
Price levels with minimal time spent (thin profile). Price moved through quickly. Often revisited—act as targets or support/resistance.
How do I trade with Value Area?
In balance: buy VAL, sell VAH, target POC. On breakout: trade with direction when price leaves VA with conviction. VA acts as magnet.
What is a balanced vs trending profile?
Balanced = bell curve, market finding fair value—use range strategies. Trending/imbalanced = skewed profile—use trend strategies.
Does Market Profile work for crypto?
Yes. 24/7 trading creates continuous profiles. Session-based or rolling profiles work. POC and VA levels are respected in crypto.
Market Profile vs Volume Profile?
Market Profile uses time at price (TPO). Volume Profile uses volume at price. Related concepts. Volume Profile often considered more relevant today.