Market Profile Day Trading Strategy that Works | Intraday Trading Strategy

Tue Aug 16, 2022

"I assume you are at the intermediate level in the market profile concepts and you are well aware of the day structures and it’s characteristics. If you aren’t, then you must study the basic concepts of the market profile to get the most advantage of this article. Learn the basics of the Market Profile: Click here"

When I started my journey as a profile trader, I used to have a lot of confusion and conflict with the technical concepts of market profile. Slowly I started gaining the conviction on the trade setups that I was comfortable to trade. However, when I started monitoring my trade results, the reward factor was not that great.

Shockingly I found a pattern in my trade style and around 75% of the time I was opting trades only on neutral days or non-trend days. And when I reviewed the overall market moves in that period, I noticed that I had missed many normal variation days! Where the market extended the range in one side direction ( 80% of the IB Range ).

That’s the huge knock-on to my thought process. As traders, we are always demanded to think in probabilities. Just think about it, if I keep on opting the trades on low probable and low conviction day structures(Neutral or non-trend day), how can I increase my profitability factor? It’s certainly impossible. Profitability can be increased only when I get good rewards on what I am risking. Image 1.1 shows the Probability of occurrence and conviction level of day structures.