I get asked all the time, “Why Market Profile?”
As a trader, I understand that the market is always changing and evolving. You can have a tool work really well for a while, and then all of a sudden it stops working. Over the years, I’ve had lots of tools in my belt, but I’ve never encountered anything that was as broadly applicable and dependable as the market profile.
>>It’s the tool in my belt I keep coming back to after decades of trading.
It doesn’t matter what the product is. I can employ the Market Profile successfully to trade commodities, forex, stocks, options, futures, etc.
So, why is it so powerful?
The market profile tells me exactly where I am in the market in any given moment.
As traders, we should not be in the business of trying to predict. Attempt that and you will get burned. Instead, we are in the business of learning how to perceive where we are currenlty and what could happen next.
I don’t like playing poker because I can’t see everyone’s cards, but I like Market Profile becasue It shows me everyone’s cards. I get to see where the strong hands are, the weak hands are, and I know how to behave around that.
In trading, it’s all about defining risk (where the opportunity is and how to know I am wrong). The profits will speak for themselves. There is simply not a better tool to help you define risk