The Market Profile is a graphical representation of the prices beaten during the day, where however time is not expressed linearly on the horizontal axis of the abscissa, but with the letters of the alphabet.
Let’s see an example of how traders behave in the market:
In this example we have seen an example of a Day Trader with mean reversion logic, in this case traders who go short expect the price to return to the area of greatest trading (POC), vice versa for long day traders.
Of course, you can make opposite or alternative arguments such as a price rebound on the POC! These are just arguments that need to be tested and verified!
Increase in Futures contracts remained in the market, or open interest futures on the rise
Increase of put contracts below the price confirming the supports and protecting futures
Closing of the call or at least lack of interest on the part of the operators to move the call side
The price areas that give input to the market are always those where there is open interest, that is the money and the contracts of the operators.
The other areas, those that are in no man’s land, despite not being voluminous, for those who trade professionally and want to work with probabilities and objective data in favor of them are useless and should be left only to those who operate intraday.