Transcript for:
Understanding Market Profile Patterns

this builds conviction folks this is what gets you to scale your performance up because you're building that systemic recall and cognition to go I recognize this pattern and I am willing to commit to it hey fellow Trader it's good to have you back Mike here reporting again from Axia London HQ here to bring you part two of the market profile for beginners series now if you haven't taken the time to watch part one I highly recommend that you click that link above to ensure that you're on the right track to follow along with today's video all right let's get into it today I've got three objectives for you first we're going to talk about what exactly it means to recall a pattern within the context of Market profile then we're going to talk about what it means to engineer patterns that are not just from the classical view that the likes of Jim Dalton bring us with the Market auction Theory but patterns that you actually engineer from your own holistic creative mind we'll touch on some of the patterns that I've created that other Axia members have created and I'll show you also an efficient way to log those patterns in something like notion in something like Evernote for your future self now what do I mean by that I just want to remind you all most of you you are probably not only in this business for the short term but you're looking to create a career long term so it is critical that you log these patterns that you witness on the day-to-day trading sessions for your future self because who knows that special pattern that life-changing pattern might appear in a year's time or maybe even 10 years time lastly I'm going to show you how to unlock the power of P pattern bridging not just using the market profile but using the market profile alongside the footprint and then even alongside the price ladder this is a critical skill to have and develop to be one of the top traders in this business now what I've got for you here is some recall of some classic Jim Dalton style Market auction Theory patterns now I want to just cover these patterns in case you didn't catch that first video and in case you've never looked at a market profile before to give you context of what these patterns tell you and what they help you ascertain about the Market's communication into those following sessions so I've got three main patterns for you that I want to highlight number one is this yellow box here that you can see says balanced short-term trading now when you have a market that is creating an even distribution ution of value with a relatively weak tail to the downside and a relatively absent tail to the upside this defines short-term Traders keeping a range because clearly nobody wants to shift value lower or higher the following day we have what we would call a b-shape short side liquidation meaning that the structure itself is showing a large node right and when I say b-shape I'm talking about the letter B in low case right lowercase so you can see as I trace it out it starts to look like the letter B in a lower case now why do we call it the b shape well the short side liquidation means that a lot of Traders here are trying to sell the market lower particularly because of this failed attempt um through a new low and keep in mind the market did manage to break a new low from that previous day where we had balance so there's a lot of accumulated selling here right and we'll just clean it up again so as you can see at some point within this day there is a double distribution excuse me a double single print that develops where a liquidation of all of this liquidity leads to prices appreciating thus showing us the short side has liquidated right and that right there is your short side liquidation B now we can get even more information from this b shape by looking at the fact that the volume level compared to the first value distribution is much lower now that's actually why we don't call this a double distribution because if the value that developed up here was nearly as great as what you see down at the bottom here then you would have a double distrib tion but in fact this is just a B-side liquidation with still no real conviction to put in a tail on the upside or the downside now the following pattern coming out of those two days starts to get interesting we do start to see some double distribution of value keep in mind that the higher value node was actually greater in volume than the lower value node but shorter in range right so sometimes these double distribution patterns can look a bit different but judging on what you see the days prior here and here you get an idea as to why you might be seeing that shape so consider the fact that the low value here didn't really get anything for its Buck right at its second attempt the following day it's pretty clear that whatever value is here is trying to get business done within that area and swiftly the market moves lower and what I mean is you can see it's not quite a double or a single print but it's about a triple or quadruple print here it's not like what you saw those two days prior where any move down is that constant you know distribution with no real conviction to appreciate or depreciate the price or the value once you start to see the market come back into that value where originally a lot of short side was developing there's not a lot of conviction to stay here as long as you did the previous day you end up seeing a swift move lower which breaks the previous day low and the previous previous day low thus implying that short-term cell side is in control giving you that double distribution to what you could call a marginal Trend day the last pattern is important because this is NFP day again this was literally just the other week March 7th Friday coming into the the February report of 2025 so this trend continuation is a little bit more important to consider in your logging because it's driven by a data point right it's driven by an expected scheduled Market volatility trigger the big notice I have when I explained the previous patterns is again that that value at the 2180 2170 level although it managed to print a decent amount of distribution and put in a decent tail that move down that you see was quite Swift through the value that we see here and through the value that we see here where the market essentially liquidated giving you a single print continuation and then a low value distribution in a new multi-week low that essentially you could call a trend continuation that breaks a multi-day positioning right now we have a lot of information on how the market is behaving and how it is trying to price the development of value and that's the key bit from that classical auction Theory folks now I want to cover a more holistic approach that you can take using those classical patterns but then getting more refined in how you log them so what you're going to notice here is I've got these little white circles and what these are identifying is a onetime framing right so we have one 2 3 four days as you can see here of one time framing for those that don't know in Market auction Theory one time framing is when the previous day low is not tested so you've got four days of that low not being tested with the fifth day giving the first break and the first clue that we might see a liquidation of this upside positioning soon this also applies if you have the high not being tested and the market is trending lower now when you see value starting to develop especially with a lack of a tail you can then start to engineer a name for that a brand for that right so just to be specific I'm going to bring over and we're going to get rid of this for a moment I'm going to bring over my notion template so that you can see how you can track this efficiently like I said for your future self so for example this is the market we're look or excuse me we're currently looking at the Es as you can see specifically the age contract for March of 25 the role is soon and we're looking at the orange print now if you want to know more about why we color our tpos and our market profiles that's something that you can learn in our career programs and our um available courses on our web page if you are curious but in short it's to be able to identify a time period of the day visually coloring your ladders as you've seen I've done on the TT tutorial coloring your tpos is just as important because when I see for example the orange print I know that means it's 6 p.m UK or lunchtime us about 12 or 1 us so when I go and I log a pattern I can see okay it's the purple print which means postop Drive cache right it brings greater context and greater cognition uh and response time to your craft the market vicinity well think back to those classical auction patterns right you can see I've marked buy inbalance high right we talked about imbalances in video one well it's pretty fair to say that after this trend-like profile develops a low value buy inbalance right because buyers inbalance what was once a balanced market right 1 two 3 four days of balance that imbalance leads to 1 2 3 4 5 days of continuous buying inbalance which is then found to be broken on this low value distribution to the the downside where we did get that first break on the days prior so again just to be clear we are ensuring that when the fut whoops we are ensuring that when future self reviews these patterns you are able to quickly and efficiently recall what you're looking at and what it means to you so we have a buy and balance high as you can see there's that buy and balance we have a single print which develops on the actual Trend continuation break here and we also have what I would deem as the potential pattern defined so the vicinity I've named it the market vicinity and not a market pattern because it's giving me a understanding of the imbalances and nothing more the potential pattern is the holistic part that I've come up with myself so the one time frame we understand from the classical auction Theory but now I have a pattern where I look for a onetime frame break right does that occur it does indeed the one time frame breaks here and it gives me even more it gives me the fat bottom lack of tail so often when a market develops value it doesn't always develop a tail now the value that's developed here it did not manage to put in any kind of buying tail any kind of extreme to the upside it didn't either actually but because we've broken that one time Framing and given a clue that the market might want to head back to previous week's value you can start to consider that a one time frame break might be validated in the session especially if there's data around the corner or lingering unscheduled news like perhaps a trump comment or a trump post you can see here I've got multi-day positioning attack meaning the break of trend here is attacking this multi- chunk value right showing an invalidation of that value as you can see here multi-day positioning attack and lastly we have the well actually that that's all the patterns here on this one to give you kind of the next step of pattern layering and pattern recalling so as you can see here deep immersion with intentional pattern logging builds new patterns that will reemerge again so I really want to emphasize this that deep immersion requires you to do this on the weekend there is it's going to be very difficult to be able to catch and and merge these patterns into something um that you can actually use for your future self and your future execution if you don't do it when the market is closed and you can really immerse yourself in that process now I just want to move on to the next slide to show you another set of classical patterns that are mixed with some patterns that I've layered for my own logs so let me just pull up that notion again so in this case we've got CL April 25 so the current contract the print in focus is the blueprint which is the post EU open drive cache and we have a market vicinity of a sell and balance low so let's just take a minute and cover what we're looking at there so again I said we have a blueprint which is the postop drive cache of the EU session so as you can see when you look at all of these prints anytime you see blue there that is defining the European session right so it's very helpful because I can say aha there was some buying that established in the European session that the purple right the post us cach tried to attack but failed thus the following day those European buyers got what they were looking for with more buying from Europe and then incidentally us cas cash ended up buying at much higher highs than when where they were selling on the previous day right so it's important to Mark where and who is participating sorry who is participating and where so branding is the next part here branding is critical here so yes you've got the the classical Brands like the one time framing from the market auction theory that Jim Dalton gave us but what about things like weak top machine gun slicer what does that mean well anybody who's taken the axi price ladder course knows about the machine gun slicer orderflow pattern that we use on our price ladn so what I did was is I bridged right pattern bridging I bridged what that auction pattern usually looks like right when I say go to my loom and I pull up some of these um videos that I have of my execution within the market session and I bridge that with where we were in the vicinity of the market and how the market ended up getting through that weak top right so we talked about LAX a lack of tail on a profile this here is a lack of a tail right this is a completely balanced profile so I need to look for a machine gun slicing orderflow pattern to actually take this tail out and when you open up the footprint within this pattern here the following day you can Bridge the footprint design with the price ladder machine gun slicer and the fact that there's a weak top on the market profile right so this is this is really the meat and potatoes of pattern bridging folks again we've got the oil we've got the vicinity we've got the cell and balance low from that classical Theory again meaning we've got you know 4 days of downside time framing lower low lower low lower low then we get a balanced day with no real tail to the upside or the downside and then boom you get a two-day firm and Stern which again is another pattern meaning that there's firm buying Stern meaning refusal of the new low and then a multi-day position break and machine gun slice through the weak top seeing this two times three times six times 10 times this builds conviction folks this is what gets you to scale your performance up because you're building that systemic recall and cognition to go I recognize this pattern and I am willing to commit to it right this builds the elasticity by recalling patterns you you engineer it's much easier to recall patterns that you engineer versus the ones that you find in the textbooks and that's the key bit here folks great now I've showed you a little bit of the footprint in terms of well I actually haven't showed you the footprint so I've showed you a little bit of my template here so before I go into the final pattern I just want to show you some of those footprint designs here within my notion that Cor relate to the oil that I just showed you so this is kind of a a quick lesson on how to be efficient with your logging so I've got a table or a row sorry a column for the contract a column for the print a column for the vicinity relative to what Jim Dalton's Theory says and then we've just covered some of those defined potential patterns obviously you're going to have a place to put the screenshot so you're seeing them in my slides but for example if I go ahead and click that you're going to see the same exact pattern I just showed you but just neatly logged for quick retrieval later and then lastly you can see I do the same for the footprint right so you can see I've got a nice footprint design that correlates to what I'm seeing on the market profile so again folks if you want to learn to log these patterns efficiently you want to learn how to understand and identify a footprint design that correlates to your Market profile sign up for those courses go and learn and see an accumulative years of experience from Traders here at Axia on how you can create conviction using this pattern bridging tactic folks so with that said I'm going to close with one more pattern for you that I particularly found interesting from this week's NFP with the footprint included so you've got the Russell here which if you're watching the market lately was definitely the outlier in Friday's session given the range now there's a lot of Market profile patterns that I've learned here at Axia one of my favorites being the Bikini Bottom profile now this is always a fun name because you can recognize it quickly right so if you look at this pattern here that right there indeed looks like a bikini bottom right so more importantly when I go to that log and I look at the Russell right and I look at the specific print that we're looking at and I understand where we are relative to the vicinity I can then go and click and say aha we've identified a bikini bottom right these are already logged and ready for me and all also I include a reminder that just says that this is driven by a rapid data and balance right a NFP Market liquidation so to close this video folks I'm going to show you a quick pattern bridging between this Bikini Bottom profile and some Clues on the footprint design that are not even on the Russell but are actually on the es because remember our Matrix correlation is also a key driver here in that conviction so buyers respond with little conviction pre NFP uncertainty I.E fat bottom lack of tail right it's not a great fat bottom but there's definitely a lack of a tail and there's definitely orderflow Pace that is reminiscent of fat bottom type trading the following day you get the pink print whip now for those that have been watching my streams for a while you might have heard of the white print whip but we've changed the color of that data print to Pink So as you can see here I have this available as well pink print whip so just from a holistic standpoint what does that mean well it means that when data hits every day usually at 8:30 us Eastern or 1:30 UK p.m. usually you get a liquidation move move and sometimes more often than not it's a single print so why is that important well when I look at this structure it's not just a a a monocolor profile it literally tells me aha there was a data set here that caused this imbalance extreme right we're building cognition we're building recall we're building that elasticity to be able to be convicted in your structures right so that Bikini Bottom starts to develop once the range gets extreme and we get the break of an inside week plus a multi-week even multi-month and you get that Bikini Bottom validation which you know the characteristics that you can then apply to your orderflow review of high volatility data driven a multi-week level break and then that leads you into some footprint patterns that give you even more to add on so if you guys look closely here I've put these circles here to identify the lack of selling that is sorry the lack of buying that is occurring at the bottom of these Tails now these three circles here I know it's hard to see but if you look at the offers lifted on the right and the bids hit on the left essentially there was no no offers left to lift on the right side of the profile of the footprint meaning that there was literally zero buyers willing to lift at the price that the sellers were selling the market at and that is reflected within the bottom of those 30 minute bars on the es not the Russell but the es amazing stuff folks I hope this video was helpful for you and I look forward to the next one