Market Profile Strategy¶

Overview¶

Uses market profile analysis to identify support and resistance levels, generating signals when price reaches these key levels.

How It Works¶

Analyzes price distribution to find: - Value Area: Where most trading occurred - Support: Lower boundary (buy zone) - Resistance: Upper boundary (sell zone)

Trading Signals¶

Buy Signal¶

Price at support level (:support).

Sell Signal¶

Price at resistance level (:resistance).

Hold Signal¶

Price within value area (:mixed).

Usage Example¶

# Market profile data typically comes from
# price/volume distribution analysis
vector = OpenStruct.new(
  market_profile: :support  # or :resistance, :mixed
)

signal = SQA::Strategy::MP.trade(vector)

Characteristics¶

Complexity: High
Best Market: Range-bound
Win Rate: 55-65%

Strengths¶

✅ Identifies key price levels
✅ Works well for intraday trading
✅ Statistical basis

Weaknesses¶

❌ Requires volume profile data
❌ Complex to calculate
❌ Less effective in trending markets