Market Profile
Volume Profile Analysis glossary · Auction Theory & Market Profile (TPO)
Definition
The original volume/TPO analysis framework developed by J. Peter Steidlmayer at the Chicago Board of Trade in the 1980s. Precursor to modern Volume Profile tools.
Market Profile in plain English
Market Profile is the original method — invented by trader J. Peter Steidlmayer at the Chicago exchange in the 1980s — for drawing a picture of WHERE a market spent most of its time during the day, instead of just how prices moved. It stacks letters (each letter = a slice of time) at every price level, so busy prices grow into a fat bulge and quick prices stay thin, revealing where buyers and sellers agreed on "fair." Think of it like a heat map of a swimming pool: the crowded shallow end fills in dark, the empty deep end stays light. Today's Volume Profile tools are the modern grandchildren of this idea, using actual traded volume instead of time-letters.
Learn these first
Related Volume Profile Analysis terms
Volume Profile Analysis practice questions · Volume Profile Analysis flashcards · Volume Profile Analysis study guide