MARKET PROFILES

MARKET PROFILES

1. Consolidation Range Profile
  • Consolidation Range Profile - Understand where you are in the move that may already exist.  If in bearish market environment, during a consolidation range you can identify false breakouts to trade against or opportunities to enter short with an OTE.
  • Establish Position During Consolidation - Periods of consolidation are typically the opportunity to establish your position in anticipation of where the trend will go. Look for times candles/bars are small to enter trades.


  • Trade Entry on Opposing Candle - You want to enter trades when the bar/candle goes against the market profile direction. If profile is long, enter trades on a down candle.
  • ICT Preference - ICT prefers not to follow trades into new territory as it usually tries to come back down to the range.  Base trading on known levels.
2. Breakout - Valid & False Profile
3. Trending Profile
4. Reversal Profile - The profile will form a sell day during a bullish Asian, London and possibly NY session but fail to hold its rally and reverse lower. It will form a buy day during a bearish Asian, London and possibly NY session but will fail to hold its lower price slide and reverse higher. Typically NYO, LC and late NY session will post the reversal.
Swing Down

  • Swing down to a key weekly and/or daily support and breakthrough before turning up and reversing.
  • Reversal may break into new session highs before it settles into a trading range for a new trading day.
Swing Up
Swing up to a key weekly and/or daily resistance and breakthrough before retracing down.
Reversal may break into new session lows before it settles into a trading range for a new trading day.
Search & Destroy – Trending Sideways Market: Banks will look to clear out stops to gain additional liquidity.
  • A range forms after swing low and swing high. Support and Resistance areas are formed in the range. Market will look to take out the longs by dipping below the established support level of the range.


  • Next the market will look to take out the shorts by shooting back up above the resistance levels.

  • Dealers will then target the stops around the swing points and shoot above previous highs to trigger the stops of the shorts.
  • Traders thinking that the previous move finally signals a buy breakout will then be fooled as the dealers will look to take out the stops around the previous swing low point.