The Market Profile Trendlines indicator shows how price is distributed over time, helping traders identify key levels such as the value area, the point of control, and other significant price zones within a trading session.
It is built by combining information from volume, time, and tick activity at different price levels during a specific period.
This guide takes a closer look at what the MP Trendlines indicator is and how it can be applied in a trading strategy.
What is the Market Profile Trendlines indicator?
The Market Profile indicator was originally created by a trader at the Chicago Board of Trade (CBOT) to present price and time data from a trading session in a clear and structured way.
The MP Trendlines version goes a step further by adding trendlines. It also helps traders identify where the highest concentration of price activity is happening in a currency pair or any other market at a given time.
It performs its calculations using highly precise tick data, capturing every single market movement or price change. The histogram is then generated by the Market Profile Trendlines indicator based on this data.
The histogram highlights areas with significant trading activity and price movement at specific price levels and zones. Instead of the usual left-to-right format, the Market Profile Trendlines indicator plots the histogram from right to left. This approach helps keep the focus on the current trading session without cluttering the chart.
This indicator keeps you consistently informed about the most important price levels and zones that could influence future market movements.
The Market Profile Trendlines indicator works across timeframes from M1 to D1 and visualizes trading session profiles. It relies entirely on price action, without using any standard MetaTrader indicators.
How to Use the Market Profile Trendlines Indicator
The main function of the Market Profile Trendlines indicator is to identify the value area.
As the market moves throughout a trading session, prices naturally rise and fall due to ongoing buying and selling activity. This indicator analyzes a combination of time, volume, and tick data to determine the value area.
The value area reflects a price range where supply and demand are relatively balanced. Alongside this zone, the indicator also highlights two “tails” — one at the top and one at the bottom — representing the extremes of market activity.
Market Profile Trendlines Trading Strategy
The extended tails above and below the value area indicate price levels that the market has rejected. A lower tail suggests that buyers are stronger than sellers at those levels, while an upper tail shows that sellers are dominating buyers.
Buy Setup
- Identify the lower tail on the chart
- Wait for bullish price confirmation
- Set a stop-loss just below the recent low
Sell strategy
- Identify the upper wick (top tail) on the chart
- Wait for price to shift into a bearish move
- Set your stop-loss just above the latest high
-
Close the trade when the trend starts to reverse
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LastDayStart (if enabled) starts profiling from the current trading day.
Count Profile sets how many profiles are displayed on the chart.
AsiaColor lets you customize the color of the Asian session profile.
EuropaColor allows you to change the color of the European session profile.
AmericaColor controls the color for the American session profile.
MedianaColor adjusts the color of the median line within the profile
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