Combining the Market Profile with the volume profile

We close with a complementary tool often paired with the Market Profile: the volume profile. Understanding the difference between them, and combining them, raises the precision of your reading.

What is the difference?

The Market Profile builds its distribution from time (TPO letters), so it estimates volume by the number of letters. The volume profile, by contrast, displays the actual number of contracts at each price. One measures “how much time”, the other “how many contracts”.