Key Differences between Market and Volume Profiles
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While market and volume profiles might look very similar, there are some key differences that it's worth noting for their use case. Market profile focuses on market generated information and ways to read market structure while Volume profile focuses on areas where the market traded high volumes on each price level, making them significant or not.
The most obvious difference between the to is that market profile showcases time spend in the market at each price level while Volume profile, the amount of volume traded on each price level.
A similarity both share is the understanding of Value areas. We always use 70% for the value area on market profiles but many traders like using 68% on the volume profiles. Another difference is the point of controls not always in need to align with eachother.
Market profiles can give you a deeper, more nuanced behaviour of market activity. For example you cant see or distinguish a poor high or low using volume profile by itself.
Some similarities regarding volume and TPOs is that on excess highs and lows as well as single prints, most of the time are followed by low volume nodes on the market profile.
