TPO - Time Price Opportunity Thread What is TPO? Time-Based tool...
Magus@TraderMagus
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Feb 06, 2025
~3 min read
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TPO - Time Price Opportunity Thread
What is TPO?
Time-Based tool displaying a distribution of where price spent the most time at
What is TPO?
Time-Based tool displaying a distribution of where price spent the most time at
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Where to get access?
TPO is becoming a common tool so you can get access to it just about anywhere these days
I'd reccomend:
Tradingview @tradingview
Sierra @SierraChart
Exo @ExochartsC
Atas @AtasTrading
I mostly use Tradingview these days
TPO is becoming a common tool so you can get access to it just about anywhere these days
I'd reccomend:
Tradingview @tradingview
Sierra @SierraChart
Exo @ExochartsC
Atas @AtasTrading
I mostly use Tradingview these days
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AMT -Auction Market Theory
AMT is a core principle behind TPO. AMT explains how markets function like an auction, oscillating around & seeking fair value of an asset. Fair value is the agreed upon price between buyers & sellers where price becomes balanced(ranging)
AMT is a core principle behind TPO. AMT explains how markets function like an auction, oscillating around & seeking fair value of an asset. Fair value is the agreed upon price between buyers & sellers where price becomes balanced(ranging)
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AMT views price in a bell curve distribution
When price drifts towards the tails of the distribution an imbalance in supply & demand is likely to occur bringing price back to value(the middle)
The market seeks balance & spends the significant majority it's time there
When price drifts towards the tails of the distribution an imbalance in supply & demand is likely to occur bringing price back to value(the middle)
The market seeks balance & spends the significant majority it's time there
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AMT Example:
Price drifts towards expensive
Demand is likely to tapper off as buyers exhaust & supply will increase as sellers have an opportunity to sell at higher prices
Thus price reverts to fair value
Price drifts towards expensive
Demand is likely to tapper off as buyers exhaust & supply will increase as sellers have an opportunity to sell at higher prices
Thus price reverts to fair value
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Balance & Imbalance
Balance - Fail value in agreed upon between buyers & sellers creating lower volatility ranging environment
Imbalance - Fair value is not agreed upon between buyers & sellers creating a higher volatility trending environment
Balance - Fail value in agreed upon between buyers & sellers creating lower volatility ranging environment
Imbalance - Fair value is not agreed upon between buyers & sellers creating a higher volatility trending environment
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Anatomy
1. Point of Control(POC) - Where price spent the most time
2. Value Area(VA) - Where price spent 70% of it's time; marked by
VAH - Value Area High
VAL - Value Area Low
3. Single Print - Area where price only printed one 30min block in the middle of the distribution
1. Point of Control(POC) - Where price spent the most time
2. Value Area(VA) - Where price spent 70% of it's time; marked by
VAH - Value Area High
VAL - Value Area Low
3. Single Print - Area where price only printed one 30min block in the middle of the distribution
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Anatomy Cont.
1. Poor Structuring - Two or more blocks at extremities of distribution displaying incomplete/inefficient auction
2. Excess - Chain of single blocks at extremities displaying completed/efficient auction
3. Initial Balance(IB) - First hour of trading after daily open
1. Poor Structuring - Two or more blocks at extremities of distribution displaying incomplete/inefficient auction
2. Excess - Chain of single blocks at extremities displaying completed/efficient auction
3. Initial Balance(IB) - First hour of trading after daily open
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How to use TPO?
TPO is effective at anything from bias formation to how/where to execute
Bias formation, TPO gives a strong sense what direction price is likely to head
TPO also gives you levels to trade & tells you if you should be running reversion/momentum strat
TPO is effective at anything from bias formation to how/where to execute
Bias formation, TPO gives a strong sense what direction price is likely to head
TPO also gives you levels to trade & tells you if you should be running reversion/momentum strat
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Bias Formation
Once you understand value & value shift, TPO gives a strong sense of direction. Inefficiencies can be added to this for confluence
TPO helps to visualize the current environment which helps to select the proper strategy to deploy
Once you understand value & value shift, TPO gives a strong sense of direction. Inefficiencies can be added to this for confluence
TPO helps to visualize the current environment which helps to select the proper strategy to deploy
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Levels
TPO gives incredibly strong levels to trade from
Value Area - The VA acts as simple auto drawn range w/ support/resistance
Singles - Displaying initiation so they serve as strong support/Resistance
Poor Structuring - Inefficient extremities, likely to be cleaned up
TPO gives incredibly strong levels to trade from
Value Area - The VA acts as simple auto drawn range w/ support/resistance
Singles - Displaying initiation so they serve as strong support/Resistance
Poor Structuring - Inefficient extremities, likely to be cleaned up
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Overlapping value - Overlapping distributions form mechanical/auto drawn ranges to trade from
Excess - Efficient extremities, you want to enter here when formed
Initial Balance - Simple range to trade from & gauge direction for rest of the distribution once range is broken
Excess - Efficient extremities, you want to enter here when formed
Initial Balance - Simple range to trade from & gauge direction for rest of the distribution once range is broken
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Reversion
Trade Logic: Enter into low volume and exit into higher volume area
1. Requires balanced day
2. Fade outside of value, exit into mean(POC)
3. Looser manual stops
Trade Logic: Enter into low volume and exit into higher volume area
1. Requires balanced day
2. Fade outside of value, exit into mean(POC)
3. Looser manual stops
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Momentum
Trade Logic: Enter into higher volume region with momentum and next distribution
1. Requires imbalanced trend day
2. Enter POC or range extreme and exit next value area
3. Tighter hard stops
Trade Logic: Enter into higher volume region with momentum and next distribution
1. Requires imbalanced trend day
2. Enter POC or range extreme and exit next value area
3. Tighter hard stops
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AMT Intro Video
youtu.be/nDU84yrwiYw?si…
youtu.be/nDU84yrwiYw?si…
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How to setup TPO on Sierra
youtu.be/wsuwnEfIiuE?si…
youtu.be/wsuwnEfIiuE?si…
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Closing Thoughts
The introduction of TPO to my trading was a game changer, suddenly the randomness of the market seemed to make sense. Most every tool I use exists for the purpose of making things easier/more efficient
TPO certainly does that
The introduction of TPO to my trading was a game changer, suddenly the randomness of the market seemed to make sense. Most every tool I use exists for the purpose of making things easier/more efficient
TPO certainly does that
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Feedback is appreciated as always + standard like/rt request
Going to write about Volume Profile next
Thank you all for reading
TLDR: TPO good
Going to write about Volume Profile next
Thank you all for reading
TLDR: TPO good