45-Degree Line in Market Profile

The 45-degree line is a market profile nuance that occurs when a 45-degree line can be drawn from the lowest point of distribution to its widest point. This is a sign that sellers have painted themselves into a corner near the lows of the session and creates potential for an upward reversal in the next session. 

As less and less time is spent the closer you get to the low of the session, sellers are essentially initiating shorts at less and less value.

45-degree line lows should be assumed to be secure in the short-term. The pattern is generally noted in the RTH sessions but they have shown to be relatively reliable signals in overnight sessions as well.

Experience has shown that a falling 45-degree line from the high of the session it is not nearly as powerful of a signal. This is likely because short- selling is most often a tool of the short-term trader. Longs entering with what seems to be analogous poor location may have a longer timeframe outlook and are less trapped.