Market Profile

Market profile is a charting technique that displays the distribution of trading activity over time at various price levels. It was developed by J. Peter Steidlmayer and is used to analyze market behavior by showing how frequently assets are traded at certain prices. Market profile charts provide a visual representation of price acceptance or rejection levels and are often used by traders to identify key support and resistance levels.

Example

A trader uses market profile to analyze the price levels where a stock has seen the most trading activity, helping them identify potential support and resistance levels.