5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28

Apr 24, 2026 13:56 · 6:21 · English · Whisper Turbo · 3 speakers
આ ટ્રાન્સક્રિપ્ટ ની મર્યાદા નીકળે છે 10 દિવસો. કાયમી સંગ્રહ માટે સુધારો →
Lecture Index
માત્ર બતાવી રહ્યા છે
0:03
S… Speaker 1 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
Beyond the development of the auction market theory, which lays a foundation to understand how and why prices move, Peter Stoudemire also developed a trading method called the market profile, which is a logical consequence of the auction market theory. The market profile provides information that cannot be seen through a price chart. Remember that in a game of incomplete and asymmetrical information like trading the financial markets, being able to see what most traders are not seeing can be a great advantage.
0:33
S… Speaker 1 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
The market profile gives an instant visual representation of how much time price has spent in different price levels during a given period, which is usually a trading session. The longer price spans in a level, the more that level is accepted by the market. The less time price spans in a level, the more that level is rejected by the market. In the market profile, the range of price activity is recorded every 30 minutes as a default.
1:01
S… Speaker 1 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
Each successive half hour is assigned with a letter, so the first half hour is A, the second half hour is B, and so on. Each of these boxes is called TPO, which stands for Time Price Opportunity. In this hypothetical illustration, you can see the range of prices that the market has visited during the first half hour assigned with the letter A. Subsequently, the range of prices in the second half hour with the letter B, and so on.
1:30
S… Speaker 1 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
To form the market profile, all TPOs are collapsed to the left-hand side of the chart in such a way that there are no spaces remaining. That will form a bell-shape-like distribution of how much time price has spent in each price level. It is assumed that this is a Gaussian distribution, meaning a symmetrical bell shape. However, in reality, the market profile is rarely ever perfectly distributed.
1:56
S… Speaker 1 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
Based on that, it is assumed that any skew in the distribution is bound to be corrected eventually. In a normal or Gaussian distribution, the empirical rule states that 68% of the data will fall within one standard deviation from the mean. Since the market profile is built on this Gaussian assumption, 68% of TPOs form what is called the value area, which is a range of prices where the market has found the most value.
2:22
S… Speaker 2 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
Within the value area, the price level with the highest number of TPOs is called POC, or point of control. This is the price level where the market has found the greatest fair value, so to speak. This is the price level where the market has spent the greatest amount of time, recalling that the market profile measures the distribution of time at price. When the value area is established, and consequently the point of control,
2:48
S… Speaker 2 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
Price tends to gravitate around it when no new information changes the perception of market participants. If new information changes the perception of market participants, price will seek a new fair value area, and it tends to react to previous areas of balance or imbalance of the recent past while discovering the new fair value. The knowledge of the market profile goes much deeper than what we are talking about here.
3:14
S… Speaker 2 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
Our interest in this method is related to the intuition about how time is an indication of fair value and how price will react to the value area and point of control. However, we are not going to focus on the market profile. Instead, we're going to use a combination of more flexible tools that are derived from auction market theory and the market profile. To understand why that's the case, we need to go back to the relationship between price, value, time, and volume.
3:43
S… Speaker 2 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
The market functions under three main axes, price, time, and volume. Price is the undeniable objective measurement about the market that nobody disputes. Time serves as an indication of acceptance or rejection, as we saw in the market profile, and volume is a confirmation of acceptance or rejection. In other words, these three axes serve to judge whether price reflects value accurately.
4:09
S… Speaker 2 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
If you put the market profile and the volume profile side by side, you'll see that most of the time there is a high correlation between the two in terms of the shape of their distribution. In this image, you can see the market profile on the left and the volume profile on the right. Notice how their distributions have almost identical shapes. And in this case, the point of control is in the same price level. That doesn't always happen, though. In this other example, the shape of the distribution is similar.
4:37
S… Speaker 2 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
but the points of control are vastly different. Even though the market profile can provide good price levels for future observation, the volume profile seems to have an advantage in the sense that it is more flexible in its grounding mechanics. We can choose specific parts of price action to ground the volume profile, and perhaps even better than that, we can create a counterpoint between volume profiles in different areas of the price chart based on price events rather than trading sessions.
5:06
S… Speaker 2 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
In other words, we can use the self-similarity of the volume profile in a more flexible fashion in comparison to the self-similarity of the market profile. Since time and volume are highly correlated, we can have the greater versatility of the volume profile without losing the essence of the market profile. In summary, the first tool we are going to use in our method is the volume profile.
5:30
S… Speaker 3 (5 - Market Profile _ Fractal Flow Pro - Chrome 2026-04-24 22-49-28)
while keeping in mind the foundational principles of the auction market theory and the important intuitions of the market profile approach.

This transcript was generated by AI (automatic speech recognition). May contain errors — verify against the original audio for critical use. AI policy

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