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What is Market Tempo – Market Profile Tutorial

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Market tempo, a nuanced yet pivotal concept in trading, is the rhythm at which market prices fluctuate over a given timeframe, influenced significantly by trading volume and frequency. It's akin to the pace at which a narrative unfolds, where rapid movements suggest volatility and slower tempos hint at steadiness. This tempo offers insights into the market's momentum and sentiment, guiding traders in aligning their strategies with prevailing conditions. A high tempo signals eager buying or selling, pointing to strong sentiment, whereas a low tempo may indicate caution or indecision among participants.

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