Confirmation
Confirmation
Lesson 4 : Daily Profile
Lesson 4 : Daily Profile
Lesson 4 : Daily Profile
Beginner
Beginner
Beginner
8 min
8 min
8 min
Daily Profiling Purpose
Daily Profiling Purpose
Daily Profiling Purpose
Daily profiles act as confirmation to the higher timeframe framework. This is one of the most crucial aspects of the model because it is the barrier between vague predictions and confirmed setups. The purpose of daily profiling is to use the development of the daily candle to determine how it should form in order to execute alongside it.
Daily profiles act as confirmation to the higher timeframe framework. This is one of the most crucial aspects of the model because it is the barrier between vague predictions and confirmed setups. The purpose of daily profiling is to use the development of the daily candle to determine how it should form in order to execute alongside it.
Daily profiles act as confirmation to the higher timeframe framework. This is one of the most crucial aspects of the model because it is the barrier between vague predictions and confirmed setups. The purpose of daily profiling is to use the development of the daily candle to determine how it should form in order to execute alongside it.
A daily candle is shaped by three main market sessions, each with distinct tendencies that can be exploited.
A daily candle is shaped by three main market sessions, each with distinct tendencies that can be exploited.
A daily candle is shaped by three main market sessions, each with distinct tendencies that can be exploited.
Asia session: The lowest volatility session on average, often producing small ranges or isolated price runs. Because of this, no trades are taken during Asia. The lack of direction and context within the daily candle makes it a low-probability environment for execution.
Asia session: The lowest volatility session on average, often producing small ranges or isolated price runs. Because of this, no trades are taken during Asia. The lack of direction and context within the daily candle makes it a low-probability environment for execution.
Asia session: The lowest volatility session on average, often producing small ranges or isolated price runs. Because of this, no trades are taken during Asia. The lack of direction and context within the daily candle makes it a low-probability environment for execution.
London session: The session where the daily candle begins to develop. Volatility increases compared to Asia, but remains lower than New York. This is where the development begins to provide sufficient context in the daily profile.
London session: The session where the daily candle begins to develop. Volatility increases compared to Asia, but remains lower than New York. This is where the development begins to provide sufficient context in the daily profile.
London session: The session where the daily candle begins to develop. Volatility increases compared to Asia, but remains lower than New York. This is where the development begins to provide sufficient context in the daily profile.
New York session: The most important session, responsible for the majority of the daily range. This is when most major news events are released and when the 9:30 equity market open drives volatility. Focus remains here for positioning into the market.
New York session: The most important session, responsible for the majority of the daily range. This is when most major news events are released and when the 9:30 equity market open drives volatility. Focus remains here for positioning into the market.
New York session: The most important session, responsible for the majority of the daily range. This is when most major news events are released and when the 9:30 equity market open drives volatility. Focus remains here for positioning into the market.
7-Hour Chart
7-Hour Chart
7-Hour Chart
Each market session can be displayed directly on the charts by using the 7-hour timeframe. This creates an independent higher timeframe candle for Asia, London, and New York.
Each market session can be displayed directly on the charts by using the 7-hour timeframe. This creates an independent higher timeframe candle for Asia, London, and New York.
Each market session can be displayed directly on the charts by using the 7-hour timeframe. This creates an independent higher timeframe candle for Asia, London, and New York.
18:00 candle: Asia session (18:00-01:00)
18:00 candle: Asia session (18:00-01:00)
18:00 candle: Asia session (18:00-01:00)
01:00 candle: London session (10:00-08:00)
01:00 candle: London session (10:00-08:00)
01:00 candle: London session (10:00-08:00)
08:00 candle: New York session (08:00-15:00)
08:00 candle: New York session (08:00-15:00)
08:00 candle: New York session (08:00-15:00)
Daily Profile Process
Daily Profile Process
Daily Profile Process
The data shows that the New York session makes up the majority of the daily range and is most likely to trade in the direction of the daily candle close. What does this mean? This is the session where positioning in the market should take place.
The data shows that the New York session makes up the majority of the daily range and is most likely to trade in the direction of the daily candle close. What does this mean? This is the session where positioning in the market should take place.
The data shows that the New York session makes up the majority of the daily range and is most likely to trade in the direction of the daily candle close. What does this mean? This is the session where positioning in the market should take place.
With this in mind, the protocol of daily profiling is to allow both the 18:00 and 01:00 candles to print without participation. The development of these two sessions provides context for what the New York session should do. There are only three valid profiles that can form, and each has specific characteristics that define it.
With this in mind, the protocol of daily profiling is to allow both the 18:00 and 01:00 candles to print without participation. The development of these two sessions provides context for what the New York session should do. There are only three valid profiles that can form, and each has specific characteristics that define it.
With this in mind, the protocol of daily profiling is to allow both the 18:00 and 01:00 candles to print without participation. The development of these two sessions provides context for what the New York session should do. There are only three valid profiles that can form, and each has specific characteristics that define it.
The goal is simple. Find which one of the three ways the market is going to set an intraday reversal to trade away from during the New York session. That is profiling in the daily candle at its core.
The goal is simple. Find which one of the three ways the market is going to set an intraday reversal to trade away from during the New York session. That is profiling in the daily candle at its core.
The goal is simple. Find which one of the three ways the market is going to set an intraday reversal to trade away from during the New York session. That is profiling in the daily candle at its core.
These profiles must always be considered in respect to the previous day invalidation point and in the direction of the higher timeframe bias defined by relevant swings.
18:00 Reversal Profile
18:00 Reversal Profile
18:00 Reversal Profile
Bullish: The 18:00 candle establishes the low of day and begins to trade higher. This low becomes valid when the 01:00 candle holds away from it and continues the move upward. At the open of the 8:00 candle, there must be an objective remaining above in the market to trade into. The idea is that the daily candle is already in continuation, so the 08:00 candle does not need to form a new low of day before expanding higher.
Bullish: The 18:00 candle establishes the low of day and begins to trade higher. This low becomes valid when the 01:00 candle holds away from it and continues the move upward. At the open of the 8:00 candle, there must be an objective remaining above in the market to trade into. The idea is that the daily candle is already in continuation, so the 08:00 candle does not need to form a new low of day before expanding higher.
Bullish: The 18:00 candle establishes the low of day and begins to trade higher. This low becomes valid when the 01:00 candle holds away from it and continues the move upward. At the open of the 8:00 candle, there must be an objective remaining above in the market to trade into. The idea is that the daily candle is already in continuation, so the 08:00 candle does not need to form a new low of day before expanding higher.
Bearish: The 18:00 candle establishes the high of day and begins to trade lower. This high becomes valid when the 01:00 candle holds away from it and continues the move downward. At the open of the 8:00 candle, there must be an objective remaining below in the market to trade into. The idea is that the daily candle is already in continuation, so the 08:00 candle does not need to form a new high of day before expanding lower.
Bearish: The 18:00 candle establishes the high of day and begins to trade lower. This high becomes valid when the 01:00 candle holds away from it and continues the move downward. At the open of the 8:00 candle, there must be an objective remaining below in the market to trade into. The idea is that the daily candle is already in continuation, so the 08:00 candle does not need to form a new high of day before expanding lower.
Bearish: The 18:00 candle establishes the high of day and begins to trade lower. This high becomes valid when the 01:00 candle holds away from it and continues the move downward. At the open of the 8:00 candle, there must be an objective remaining below in the market to trade into. The idea is that the daily candle is already in continuation, so the 08:00 candle does not need to form a new high of day before expanding lower.
01:00 Reversal Profile
01:00 Reversal Profile
01:00 Reversal Profile
Bullish: The 18:00 candle either makes a shallow opposing run lower or trades within a small range. The 01:00 candle then establishes an intraday low by running out the 18:00 low and closing back to the upside. A clear point of reversal is confirmed with a bullish change in state of delivery within the 01:00 candle.
Bullish: The 18:00 candle either makes a shallow opposing run lower or trades within a small range. The 01:00 candle then establishes an intraday low by running out the 18:00 low and closing back to the upside. A clear point of reversal is confirmed with a bullish change in state of delivery within the 01:00 candle.
Bullish: The 18:00 candle either makes a shallow opposing run lower or trades within a small range. The 01:00 candle then establishes an intraday low by running out the 18:00 low and closing back to the upside. A clear point of reversal is confirmed with a bullish change in state of delivery within the 01:00 candle.
Bearish: The 18:00 candle either makes a shallow opposing run higher or trades within a small range. The 01:00 candle then establishes an intraday high by running out the 18:00 high and closing back to the downside. A clear point of reversal is confirmed with a bearish change in state of delivery within the 01:00 candle.
Bearish: The 18:00 candle either makes a shallow opposing run higher or trades within a small range. The 01:00 candle then establishes an intraday high by running out the 18:00 high and closing back to the downside. A clear point of reversal is confirmed with a bearish change in state of delivery within the 01:00 candle.
Bearish: The 18:00 candle either makes a shallow opposing run higher or trades within a small range. The 01:00 candle then establishes an intraday high by running out the 18:00 high and closing back to the downside. A clear point of reversal is confirmed with a bearish change in state of delivery within the 01:00 candle.
08:00 Reversal Profile
08:00 Reversal Profile
08:00 Reversal Profile
Bullish: An intraday reversal can occur during the 08:00 candle when both the 18:00 and 01:00 candles fail to form a reversal and instead become part of a consolidation or an opposing run lower in the daily candle. At the open of the 08:00 candle, identify the current intraday low and wait for that low to be run out. If this occurs, confirm the initial reversal and then look for a bullish continuation signature to enter to the upside.
Bullish: An intraday reversal can occur during the 08:00 candle when both the 18:00 and 01:00 candles fail to form a reversal and instead become part of a consolidation or an opposing run lower in the daily candle. At the open of the 08:00 candle, identify the current intraday low and wait for that low to be run out. If this occurs, confirm the initial reversal and then look for a bullish continuation signature to enter to the upside.
Bullish: An intraday reversal can occur during the 08:00 candle when both the 18:00 and 01:00 candles fail to form a reversal and instead become part of a consolidation or an opposing run lower in the daily candle. At the open of the 08:00 candle, identify the current intraday low and wait for that low to be run out. If this occurs, confirm the initial reversal and then look for a bullish continuation signature to enter to the upside.
Bearish: An intraday reversal can occur during the 08:00 candle when both the 18:00 and 01:00 candles fail to form a reversal and instead become part of a consolidation or an opposing run higher in the daily candle. At the open of the 08:00 candle, identify the current intraday high and wait for that high to be run out. If this occurs, confirm the initial reversal and then look for a bearish continuation signature to enter to the downside.
Bearish: An intraday reversal can occur during the 08:00 candle when both the 18:00 and 01:00 candles fail to form a reversal and instead become part of a consolidation or an opposing run higher in the daily candle. At the open of the 08:00 candle, identify the current intraday high and wait for that high to be run out. If this occurs, confirm the initial reversal and then look for a bearish continuation signature to enter to the downside.
Bearish: An intraday reversal can occur during the 08:00 candle when both the 18:00 and 01:00 candles fail to form a reversal and instead become part of a consolidation or an opposing run higher in the daily candle. At the open of the 08:00 candle, identify the current intraday high and wait for that high to be run out. If this occurs, confirm the initial reversal and then look for a bearish continuation signature to enter to the downside.
Invalidation Profile
Invalidation Profile
Invalidation Profile
If both the 18:00 and 01:00 candles expand significantly, the day is invalidated in both directions. One side will have a target that has been already achieved, while the other side will show a large opposing run that does not support expansion.
If both the 18:00 and 01:00 candles expand significantly, the day is invalidated in both directions. One side will have a target that has been already achieved, while the other side will show a large opposing run that does not support expansion.
If both the 18:00 and 01:00 candles expand significantly, the day is invalidated in both directions. One side will have a target that has been already achieved, while the other side will show a large opposing run that does not support expansion.
The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance