A A way of reading the market that recognizes either time spent or volume traded at a particular price level. A market profile can be either made up of “TPO’s” (time price opportunities), or volume. TPO’s measure how much time was spent at a particular price, while volume-based market profiles measure how much volume traded at a particular price. Generally, market profile is used in the trading of futures, especially the /ES. ShadowTrader utilizes volume based profiles. term for “fixing” profile distributions that are missing parts that would make them complete or more symmetrical. This concept is most often applied to poor highs and poor lows which are profile distributions that lack excess on their endpoints and have two or more TPO’s across creating Tops refers to the highest or lowest possible price that will be accepted to enter a trade when bidding or offering using limit orders. Therefore if the moderator says “Shorting IBM at 84.60, 84.50 tops”, it means that limit orders between 84.60 and 84.50 are being used to enter the position. or bottoms that look flat.
Once a new session trades through these levels then it is as though the current activity was “pasted onto” the prior activity to complete the picture.
It should be noted that repair can only occur in an Regular Trading Hours. In the /ES this means the price action from 9:30am EST to 4:15pm EST only. session. Overnight activity that trades through areas of poor Regular Trading Hours. In the /ES this means the price action from 9:30am EST to 4:15pm EST only. structure does not repair that structure.