Market Profile terminology and definitions

If you are new to Market Profile, you may see some terms come up often that you are not familiar with. Use this glossary for some of the most used terms and phrases. You are probably aware that the Market Profile is basically a gaussian distibution turned sideways, or as it is more commonly known, a bell curve. The simple idea is that one standard deviation includes roughly 70% of the values, in our case TPOs (letters). Two standard deviations will include 95% of the values and three standard deviations includes 99.7% of all values. Explaining the nuances and characteristics of a Market Profile chart uses a lot of terms. You will get to know them with time but this is a good place to start. The terminology is simple and easy to remember once you are exposed to it. Check out our Market Profile Primer for a background, try out some of the recommended readings and fopllow along with our playbooks and live text alerts. You will be an expert before too long. If you ever see something that doesnt make sense or is missing, feel free to email pct@trenddaytrading.com with any questions or suggestions.