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What is Composite Profile in Market Profile Trading?

• By MarketProfileHQ Team
What is Composite Profile in Market Profile Trading?

A composite profile combines multiple Market Profile sessions into a single profile, revealing major support and resistance levels that persist across multiple trading sessions. Understanding composite profiles helps you identify significant price levels on Indian exchanges.

What is a Composite Profile?

A composite profile is created by combining Market Profile data from multiple trading sessions (days, weeks, or months) into a single profile. It shows where price has spent the most time and where the most volume has traded across the combined period.

Characteristics of Composite Profiles

Composite Profile Features:

  • Multiple sessions: Combines multiple sessions
  • Major levels: Reveals major support/resistance
  • Longer-term value: Shows longer-term value areas
  • Stronger levels: More significant price levels
  • Institutional reference: Institutional reference levels

How Composite Profiles are Created

Creation Process:

  1. Select period: Choose time period (week, month, etc.)
  2. Combine data: Combine TPO and volume data
  3. Calculate levels: Calculate Value Area and POC
  4. Identify structure: Identify market structure
  5. Analyze: Analyze composite structure

Types of Composite Profiles

Weekly Composite Profile

Weekly Composite:

  • Five sessions: Combines five trading days
  • Weekly structure: Shows weekly market structure
  • Major levels: Major support/resistance levels
  • Weekly Value Area: Weekly Value Area
  • Weekly POC: Weekly Point of Control

Monthly Composite Profile

Monthly Composite:

  • One month: Combines one month of trading
  • Monthly structure: Shows monthly market structure
  • Very major levels: Very significant levels
  • Monthly Value Area: Monthly Value Area
  • Monthly POC: Monthly Point of Control

Custom Composite Profiles

Custom Composites:

  • Custom period: Any time period
  • Specific analysis: For specific analysis needs
  • Flexible: Flexible time periods
  • Tailored: Tailored to your needs

Why Composite Profiles Matter

Major Support and Resistance

Composite Profiles Show:

  • Major levels: More significant than daily levels
  • Stronger support/resistance: Stronger price reactions
  • Institutional levels: Levels institutions use
  • Longer-term value: Longer-term value areas
  • Higher probability: Higher-probability levels

Value Area Significance

Composite Value Areas:

  • Stronger boundaries: More significant boundaries
  • Better support/resistance: Better price reactions
  • Major reference: Major reference levels
  • Longer-term context: Longer-term market context

POC Significance

Composite POC:

  • Very strong level: Very significant level
  • Major reference: Major reference point
  • Institutional target: Institutional target level
  • High probability: High-probability reactions

Using Composite Profiles for Trading

Strategy 1: Composite Value Area Trading

Setup:

  1. Identify composite Value Area
  2. Wait for price to approach boundary
  3. Enter on reaction
  4. Target opposite boundary or POC

Entry:

  • Enter when price reacts at composite Value Area boundary
  • Confirm with structure
  • Use wider stops (major level)
  • Target opposite boundary or POC

Exit:

  • At opposite boundary
  • At composite POC
  • When structure breaks
  • At stop loss

Strategy 2: Composite POC Trading

Setup:

  1. Identify composite POC
  2. Wait for price to approach
  3. Enter on reaction
  4. Target Value Area boundary

Entry:

  • Enter when price reacts at composite POC
  • Confirm with structure
  • Use wider stops
  • Target Value Area boundary

Exit:

  • At Value Area boundary
  • When momentum fades
  • At stop loss
  • On reversal

Strategy 3: Composite Breakout Trading

Setup:

  1. Identify composite Value Area
  2. Wait for price to break
  3. Enter on breakout
  4. Target extension

Entry:

  • Enter when price breaks composite Value Area
  • Confirm with volume
  • Use wider stops
  • Target extension

Exit:

  • At extension target
  • When structure breaks
  • At stop loss
  • On reversal

Composite Profile vs Daily Profile

Daily Profile

Daily Profile:

  • Single session: One trading session
  • Short-term: Short-term levels
  • Less significant: Less significant levels
  • More frequent: More frequent changes
  • Day trading: Best for day trading

Composite Profile

Composite Profile:

  • Multiple sessions: Multiple trading sessions
  • Longer-term: Longer-term levels
  • More significant: More significant levels
  • Less frequent: Less frequent changes
  • Swing/position trading: Best for swing/position trading

Common Patterns

Strong Composite Value Area

Pattern:

  • Well-defined composite Value Area
  • Price respects boundaries
  • Strong support/resistance
  • High probability reactions

Trading:

  • Trade boundaries
  • Use as major reference
  • High probability trades
  • Strong reactions expected

Composite POC Cluster

Pattern:

  • Multiple POCs at similar level
  • Very strong level
  • Major support/resistance
  • Very high probability

Trading:

  • Very strong reference
  • Major trading level
  • Very high probability
  • Strong reactions expected

Common Mistakes

1. Using Only Daily Profiles

Problem:

  • Missing major levels
  • Not seeing bigger picture
  • Lower probability trades
  • Missing opportunities

Solution:

  • Use composite profiles
  • See major levels
  • Higher probability trades
  • Better context

2. Ignoring Composite Levels

Problem:

  • Not using composite levels
  • Missing major references
  • Poor entries/exits
  • Lower probability

Solution:

  • Always check composite levels
  • Use as major reference
  • Better entries/exits
  • Higher probability

3. Not Updating Composites

Problem:

  • Using old composites
  • Outdated levels
  • Missing new structure
  • Poor analysis

Solution:

  • Update composites regularly
  • Use current levels
  • Stay current
  • Better analysis

Real-World Examples

Example 1: Weekly Composite Value Area

Setup:

  • Weekly composite Value Area: 19,000 - 19,200
  • Weekly composite POC: 19,100
  • Current price: 19,050

Analysis:

  • Price in lower part of composite Value Area
  • Weekly POC above
  • Major support at 19,000
  • High probability bounce

Trade:

  • Enter long on bounce from 19,000
  • Stop: Below 19,000
  • Target: Weekly POC (19,100) or upper boundary (19,200)
  • Result: Price bounces, target hit

Example 2: Monthly Composite POC

Setup:

  • Monthly composite POC: 19,500
  • Current price: 19,480
  • Price approaching 19,500

Analysis:

  • Price approaching monthly POC
  • Very strong level
  • Major reference
  • High probability reaction

Trade:

  • Enter short on rejection from 19,500
  • Stop: Above 19,500
  • Target: Composite Value Area boundary
  • Result: Price rejects, target hit

Tools for Composite Profile Analysis

Professional composite profile analysis requires:

  • Multi-session profile combination
  • Composite Value Area calculation
  • Composite POC identification
  • Historical analysis

Vtrender provides professional Market Profile tools with composite profile capabilities for Indian exchanges.

Best Practices

  1. Use composites: Always check composite profiles
  2. Identify major levels: Identify major support/resistance
  3. Use as reference: Use as major reference levels
  4. Update regularly: Update composites regularly
  5. Combine with daily: Use both daily and composite

Conclusion

Composite profiles are powerful tools for identifying major support and resistance levels that persist across multiple trading sessions. By understanding how to create and use composite profiles, you can identify more significant price levels and improve your trading results on Indian exchanges.

Start using composite profiles with Vtrender’s professional Market Profile tools and identify major levels on NSE and BSE.

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