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What is Poor High/Low in Market Profile?

• By MarketProfileHQ Team
What is Poor High/Low in Market Profile?

Poor high and poor low are important concepts in Market Profile that identify weak price extremes. Understanding these levels helps you identify potential reversals and high-probability trading opportunities on Indian exchanges.

What is Poor High?

A poor high is a price high that was reached with minimal trading activity (low volume and few TPOs). It represents a weak high that price is likely to retest and potentially break.

Characteristics of Poor High

Poor High Features:

  • Low volume: Minimal volume at the high
  • Few TPOs: Only one or two TPOs at the high
  • Single prints: Price didn’t spend much time there
  • Weak rejection: Price rejected quickly
  • Likely to break: High probability of breaking

Identifying Poor High

Look for:

  1. Single print high: Only one TPO at the high
  2. Low volume: Minimal volume at the high
  3. Quick rejection: Price rejected quickly
  4. No consolidation: No time spent at high
  5. Weak structure: Weak market structure

What is Poor Low?

A poor low is a price low that was reached with minimal trading activity (low volume and few TPOs). It represents a weak low that price is likely to retest and potentially break.

Characteristics of Poor Low

Poor Low Features:

  • Low volume: Minimal volume at the low
  • Few TPOs: Only one or two TPOs at the low
  • Single prints: Price didn’t spend much time there
  • Weak bounce: Price bounced quickly
  • Likely to break: High probability of breaking

Identifying Poor Low

Look for:

  1. Single print low: Only one TPO at the low
  2. Low volume: Minimal volume at the low
  3. Quick bounce: Price bounced quickly
  4. No consolidation: No time spent at low
  5. Weak structure: Weak market structure

Why Poor High/Low Matters

Market Psychology

Poor High/Low Indicates:

  • Weak acceptance: Price not accepted at extreme
  • Lack of conviction: No strong buying/selling
  • Likely retest: Price likely to return
  • Breakout potential: High probability of breaking

Trading Implications

Poor High/Low Means:

  • Weak support/resistance: Not strong levels
  • Breakout targets: Likely to break
  • Reversal signals: Potential reversal areas
  • Entry opportunities: Good entry points

Using Poor High/Low for Trading

Poor High Trading

Bearish Signals:

  1. Poor high identified: Weak high found
  2. Price returns: Price returns to poor high
  3. Breakout expected: High probability of breaking
  4. Enter short: Enter short on break

Setup:

  • Poor high at 19,400
  • Price returns to 19,400
  • Low volume, single prints
  • Enter short on break below 19,400

Poor Low Trading

Bullish Signals:

  1. Poor low identified: Weak low found
  2. Price returns: Price returns to poor low
  3. Breakout expected: High probability of breaking
  4. Enter long: Enter long on break

Setup:

  • Poor low at 19,200
  • Price returns to 19,200
  • Low volume, single prints
  • Enter long on break above 19,200

Poor High/Low vs Strong High/Low

Poor High vs Strong High

Poor High:

  • Single prints
  • Low volume
  • Quick rejection
  • Likely to break

Strong High:

  • Multiple TPOs
  • High volume
  • Consolidation
  • Strong resistance

Poor Low vs Strong Low

Poor Low:

  • Single prints
  • Low volume
  • Quick bounce
  • Likely to break

Strong Low:

  • Multiple TPOs
  • High volume
  • Consolidation
  • Strong support

Trading Strategies

Strategy 1: Poor High/Low Breakout

Setup:

  1. Identify poor high/low
  2. Wait for price to return
  3. Enter on break
  4. Target extension

Entry:

  • Enter on break of poor high/low
  • Confirm with volume
  • Use tight stops
  • Target extension

Exit:

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

Strategy 2: Poor High/Low Reversal

Setup:

  1. Identify poor high/low
  2. Wait for price to return
  3. Enter on reversal
  4. Target Value Area

Entry:

  • Enter on reversal from poor high/low
  • Confirm with structure
  • Use tight stops
  • Target Value Area

Exit:

  • At Value Area
  • When momentum fades
  • At stop loss
  • On continuation

Common Mistakes

1. Confusing Poor High/Low with Strong Levels

Problem:

  • Treating poor high/low as strong
  • Wrong expectations
  • Poor entries
  • Missed opportunities

Solution:

  • Learn to identify poor high/low
  • Understand the difference
  • Trade accordingly
  • Use proper strategy

2. Not Waiting for Retest

Problem:

  • Entering too early
  • Not waiting for retest
  • Premature entries
  • Higher risk

Solution:

  • Wait for price to return
  • Confirm the setup
  • Enter on break/reversal
  • Reduce risk

3. Ignoring Volume

Problem:

  • Not checking volume
  • Missing confirmation
  • Weak signals
  • Poor trades

Solution:

  • Always check volume
  • Confirm with volume
  • Use volume for validation
  • Enhance signals

Real-World Examples

Example 1: Poor High Breakout

Setup:

  • Session high: 19,450
  • TPOs at high: Single print (A)
  • Volume at high: Low
  • Price: Returns to 19,450

Analysis:

  • Poor high identified
  • Weak resistance
  • High probability of breaking
  • Bearish signal

Trade:

  • Enter short on break below 19,450
  • Stop: Above 19,450
  • Target: Extension below
  • Result: Price breaks, target hit

Example 2: Poor Low Breakout

Setup:

  • Session low: 19,150
  • TPOs at low: Single print (A)
  • Volume at low: Low
  • Price: Returns to 19,150

Analysis:

  • Poor low identified
  • Weak support
  • High probability of breaking
  • Bullish signal

Trade:

  • Enter long on break above 19,150
  • Stop: Below 19,150
  • Target: Extension above
  • Result: Price breaks, target hit

Tools for Identifying Poor High/Low

Professional poor high/low identification requires:

  • TPO chart analysis
  • Volume profile
  • Market structure visualization
  • Historical analysis

Vtrender provides professional Market Profile tools to help you identify poor high/low levels on Indian exchanges.

Best Practices

  1. Identify correctly: Learn to identify poor high/low
  2. Wait for retest: Wait for price to return
  3. Confirm with volume: Use volume for confirmation
  4. Use proper strategy: Trade with appropriate strategy
  5. Manage risk: Always use stops

Conclusion

Poor high and poor low are important Market Profile concepts that identify weak price extremes. By understanding these levels and how to trade them, you can identify high-probability breakout and reversal opportunities on Indian exchanges.

Start identifying poor high/low levels with Vtrender’s professional Market Profile tools and improve your trading on NSE and BSE.

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