Market Profile
Overview
In 1986 Peter Steidlmayer published Markets and Market Logic. In this book, he outlined a revolutionary way to represent price data. His method eliminated “time” from the graphical representation of price. He instigated the “Vertical Arrangement of Data” or VAD as a method of graphing price action.
Steidlmayer’s methodology was then adjusted and made available as a dynamic intraday trading tool. Until now, traders wishing to use the real power of this tool on daily or weekly price data were forced to hand-chart their VAD’s and make alternative arrangements for the basic statistics that are applied to the Market Profile. Needless to report, not many traders took up this challenge.
A computerised Market Profile removes this obstacle.
To add the tool to your chart, select the tool from the Statistical tool group, and left-click on the first bar you want to calculate the tool from. Next, left-click on the bar where you want to calculate the tool to. Optuma will then draw the tool using the default settings.
Actions & Properties
Actions
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Market Profile tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Market Profile tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Market Profile to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structures Panel.
Use Volume: Allows you to calculate the tool using Volume.
Price Unit:** Enter a new value to manually determine what one unit of price is equal to in the tool’s calculation (eg 0.1).
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**First Deviation:** Allows you to adjust the colour of the First Deviation.
Second Deviation: Allows you to adjust the colour of the Second Deviation.
Third Deviation: Allows you to adjust the colour of the Third Deviation.
Double Size: This will double the range of the Market Profile tool.
Show Point of Control: The Point of Control displays as a red line (by default) and highlights the Zone Centre.
Point of Control Line Style: This option expands to show the following:
- Line Style - The Line Style property allows you to adjust the type of the Control Line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the Control Line. Moving the slider bar to the right increases the thickness of the line.
- Line Colour - Allows you to select the colour of the Control Line. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
- Transparency - Use this slider bar to adjust the transparency of the Control Line. Moving the slider to the left will increase the transparency of the tool.
Display Zone Lines: Activates horizontal lines to separate each zone in the Market Profile. These lines are coloured according to the zone they represent.
Zone Line Style: This option expands to show the following:
- Line Style - The Line Style property allows you to adjust the type of the zone lines displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the zone lines. Moving the slider bar to the right increases the thickness of the line.
- Line Colour - Allows you to select the colour of the zone lines. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
- Transparency - Use this slider bar to adjust the transparency of the zone lines. Moving the slider to the left will increase the transparency of the tool.
Show Hint: When selected placing your mouse over the Market Profile will display the current zone values.
Display Statistics: Activates the Labels for each zone (High, Low and Centre), and the range that each zone covers.
Draw Box: Select this box if you want the box draw around the select range.
Font Size: Allows you to adjust the size of the text displayed for each label used for the Statistics. Moving the slider bar to the right increases the font size.
Line Style: The Line Style property allows you to adjust the type of Band lines displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
Line Width: Allows you to adjust the width of the Box lines. Moving the slider bar to the right increases the thickness of the line.
Line Colour: Allows you to adjust the colour of the Box lines.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.