 Okay guys, good morning, it's Naveen Prathiyani here from urban4x.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 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 markets 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 NYSE, 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, 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 charts and the price movement and the velocity of the strength that it moves in. And 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 going to do today is we're going to leave all the questions told towards the end, unless you can mention anything that you guys have in terms of audio or video issues. But as far as questions are concerned, we're going to leave them towards the end. I think our last video, we had so many questions towards the middle and people were getting frustrated by not letting us, not moving on. So let's get into some of the basics of MP. Okay, how many of you guys actually know Market Profile? Okay, in originality, this is how Market Profile actually looks. There are a bunch of these little letters. Okay, there are a bunch of these little letters. Now, let's go into some details about this. Now, Market Profile was, obviously, it was created by two people, Mr. Peter and Mr. Mike. Peter was a Chicago board of trade member and Mike was a vice president of technology at the same exchange. So, now, 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 the POC, or it's also referred to as the mode, M-O-D-E 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 V-A-H for value area high and the V-A-L for value area low. Okay, now, so you're probably wondering, what are these little letters, what do they mean? Okay, let me explain to you. These are called TPO's, okay, Time Price Opportunities, which means each letter represents 30 minutes of data. Okay, in a single day, there's 48 TPO's. Okay, 30 minutes, you multiply that into 48 of them, you have 24 hours. Okay, so each of these is a TPO. 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, 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, and so on and so forth. A, B, C, D, it goes all the way down and obviously until 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's less and less, it basically means these are areas of rejection, price rejection. Okay, it means that it's in the overbought or oversold area, which means price has gone too far. All right, everyone with me so far. Okay, okay. So now the same thing applies is, we'll get to all that stuff. Now 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 that price is spent there. Now for example, you see here price is being, it's starting to get rejected, it's getting less and less here, which means it's spent 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 and these price ranges, price is getting rejected. Same thing down here and these price ranges more or less, price is getting rejected. Okay, so let's take a look at this, how this looks in Forex. 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 here, let me show you. You can go onto 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're going to have more written material and presentations available here, 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 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. 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 a 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 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 that, okay, this is an area that it's pretty much oversold, overbought, larger players are not interested in these areas and they seem to be rejecting the price. They're removing their flow of money from these 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 it just started hovering, and then the price started building up again and boom, it dropped today. Okay, so let's get this all out, 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 I usually look at this in terms of supporting resistance from these hollow areas. Okay, let's take a look at this. Let me scroll back a little bit so I can get you guys multiple hollow areas. Okay, so now you see this area here, how it's 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 candles. This is in 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 once again. So once you draw these hollow areas, you get to know where the price is actually reacting from. Okay, now let's see. Let me see if I can show you one proper example. Let's see here. Now, take a look at this. Yes, it's recorded. Now, take a look at this. Let's say you have this area here that's being 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's 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 has gone to all new highs 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 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 holding. Okay. Now rejection, you see rejection when 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 stochastics, you know, but instead your rejection is when it comes down instead of the top. Okay. Now your, your modes or your POC areas also play a role. You know, for example, on this particular day, your POC 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. Low area. Okay. Rejection building up here or we have our resistance, resistance, resistance, low area here, resistance and big candle breaks. 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 breaks. 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 drew it slightly outside actually, but you can see once the market gets rejected over here, it comes back down into the zone giving you a heads up that we're going south and boom, market just drops. Is this making sense of 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 a strong support resistance is really difficult. Just look for these little dips. Look for these little dips. You'll have an automatic idea what areas are good, because these are rejection zones. Okay. And then this happens time after time after time, you know, these areas that seem to hold. 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 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 going to stop here. How would you know if it stops at the end of the day? It's an indicator that follows price in this particular case because we have no volume in forex. Okay. So it's following price. 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, uh, this is the area where it stops, you know? So that's the issue that you would have. Now, the only way 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 that make sense? So look. Okay. Now, the trading that's 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, 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 a 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 it's trying to tell you. You know. So going back to 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 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 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, you'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. It's the smallest area here. Now, do we have anything to confirm that this area of the market might turn around? Yeah. We have a pattern that we can see like, okay, this looks like a pattern that might turn around the direction of the market. You know, 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 have big candle break, big candle break. Do 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 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 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 until here. Okay. And we had this area here. Now since we have this area, it's gone tighter and we have price reacting from here. What do we know? Is this area has some significance? Well, 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 at any moment. So, but I'm going to 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 is 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. 28 January. We picked all three of those bottoms plus low pocket area. We were also considering 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 to its 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 getting rejected from this line. This line comes in from yesterday, which is the most, the POC 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 at another pair to see if there's something more clear that we can work with. How about Swiss franc? Okay. How about 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? Can we get any additional confirmation from the past? Okay. Big candle break. 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. 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 blue areas and big candle breaks. So seems like an ideal area for someone to go short from. Okay. Everyone, everyone with me so far? Yes, yes. Okay. Let's take a look at some other pairs that show some signs today. Gold is really bright. So you confirm support resistance with MP or MP with support resistance? It's, I confirm MP with support resistance because now, right now on gold, one hour ago, gold came to this area and turned around. 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 it came down to here. We had one bar, but I want to check, is this area useful? So I put my line there and then I check, 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 big candle 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 does that make sense for this one? Yeah. I'll explain one more time. 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. SNRFTW. Yeah. Yeah. Support and resistance. I, like I said, 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. Okay. Take a look at US dollar Japanese yen. See if we can get something from here. Scroll back randomly. Okay. Let's see some price rejection zones. Okay. Take a look at this. The low of this day. Okay. Let's get 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. Does it go back, further back? Yeah. It makes sense. Because 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 the trend. There are many various strategies. They talk about that. If you have your bell curve here for two consecutive days, then we're going short. Or if you have a B shape where you have a big tail on top and then you have a B or a P, 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? So even the CCI, they take an average indicator CCI and then they put a million patterns on it. Like, oh, okay. This is the ghost formation. This is the cross-through formation. 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. But people always try. They do everything in their possible strength to capture the market from front to end. Hey, we do it. We have a forecasting business. We do it. But to be able to capture the market 100% 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 NPs that's overbought over sole zones as we do with statistics? Yes, that is the concept. 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 with that. Okay. Glenn and Naveen, isn't it true that these short timeframes are taken out of context? Isn't there a way to look at long time frame TPO's to see the original point of the bell curve? Yes. Yes, that's all. Actually, 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 the daily. Okay. But usually Glenn, they're designed to have 40 periods in a day, which means it covers 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. Pete seems to be just an extra confirmation. Yes, that's pretty much it. Pete, I use it to actually understand that is this area strong support resistant? Yeah. But exactly like Skye says, it makes it easy to visualize support and 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 low 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. A better time frame to trade on this, I would personally say one hour. One hour would be the ideal spot. Okay. So Dan and Evine, sorry to be a bug, but have you tried to study MP with footprint charts? No, not with footprint charts. Okay. I wanted to bring out the basics of MP, what MP basically does. Okay. It just tries to measure 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 piece of information. You get the same piece of information actually. In fact, even 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 profile's timeframe is set to daily. If you set it to weekly, you can actually use it on a higher timeframe. 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 other things such as the value area, high, low areas. If you want to turn off the strongest areas, you can turn that off as well. So there's a lot of options. It's a really nicely built indicator. Just need to change that. Yes. Yes. Why not 30 minutes? Okay. You really emphasize on the value of the MP. But what about the value area, high and value area, low and POC? Can you give us something to work with those? Now, the thing with this is when you have your value area, high and value area, lows, they hold significance. These are the areas where 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, slowed down. Okay. Let's take a look at the value areas here. It's here and here. Okay. These are your value areas 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 seem 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 area has changed as time moves. So now what about double profile MP? I haven't used that. I haven't used that, which has two bell shaped curves within one day. Okay. Are you talking about these formations? Let me find you one. In fact, today, today on Euro USD, we have double bells right here, like a B. Capital B, sorry. We have this here. It's just telling you that the price is distributed in a 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 normal distribution happening, where the price is being spread out properly. Yeah. In fact, like I said, I've seen many of you guys trade this. For example, Donny and Avinov on Urban Forex. I've seen them post some charts of how they're using SNR with MP and results are pretty good. Quite phenomenal actually. So try them out. Actually, try them out. 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 do this. Join the group over here called Market Profile and get your indicator and check them out throughout the next, until next Wednesday comes along. Try them. Add them onto your screens, take screenshots, share them with us and find out, are you able to capture the right zones of rejection areas? These rejection areas are really good because they can be the tops or bottoms of the markets. Okay. Now, if price does not get rejected in that area, it goes boom. It goes straight through. Okay. 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. We can create discussions and everything will start being created from tomorrow. Okay. Any final questions before we go? 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's been posting his analysis for over half a year now. And they've been very, very good. A lot of people have been following him. He has a big following based on Urban Forex and off of Urban Forex through a lot of our Facebook pages and social medias. So it would be good to see a refined direction that Sardar himself gives us on how we can trade this. So that'll be quite educational as well. Currently 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? 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 have lots of fun. You'll have lots of fun. Like I said, everyone here most likely is going to be in your webinar Sardar. So we're here to support you and we're actually thankful that you're sharing with us. So it's great. Money. I've sent you a message on Urban Forex. I hope you can reply to it. Yes. As I get to it, as you can see, I have 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. 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. So try them out. Weekly challenge information. You're talking about support resistance, weekly challenge. Yes. 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 need to drop us an email. You guys will be added to it. And we haven't got any responses yet on who wants to join the competition. But I will still be here trading support resistance in the competition myself. It's been a while since I've 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.