TPO [Market Profile] Discrepancies: Price, time & volume most...
Luckshury@Luckshuryy
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Apr 24, 2025
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TPO [Market Profile] Discrepancies:
Price, time & volume most commonly should always align in some sense.
Wherever price spends the most time you would expect the most volume to have occurred and vice versa.
When POC discrepancies arise is when the time POC & volume POC do not match up or are a significant distance from one another.
The best places to identify these discrepancies are upon potential range breaks or impulses (direction does not matter):
If price breaks up from an ongoing range and the volume POC shifts up while leaving the time POC below, that is an indication that the move that broke the range has some significant volume behind it.
When these discrepancies occur, it aids me in trade management. If I have already taken a trade in the direction the volume POC occurs, then I'm likely to hold the trade longer due to the volume clearly behind it.
Time and volume often have this connotation that you can only follow one and not the other. If I did have a gun to my head, I would prefer to follow the volume point of control (POC) over time POC as that is what moves price - volume.
In essence, you want to be following volume upon breaks of key ranges/levels.
If price does break out from a range creating a discrepancy, that does not just mean "buy/sell the breakout." Price can easily lose/reclaim the newly shifted POC, creating either weakness or strength resulting in a swift move back towards the time POC. A discrepancy does not mean that price will not return to the POC (even though more likely). It is still key to be able to identify if price will return to the time POC.
Price, time & volume most commonly should always align in some sense.
Wherever price spends the most time you would expect the most volume to have occurred and vice versa.
When POC discrepancies arise is when the time POC & volume POC do not match up or are a significant distance from one another.
The best places to identify these discrepancies are upon potential range breaks or impulses (direction does not matter):
If price breaks up from an ongoing range and the volume POC shifts up while leaving the time POC below, that is an indication that the move that broke the range has some significant volume behind it.
When these discrepancies occur, it aids me in trade management. If I have already taken a trade in the direction the volume POC occurs, then I'm likely to hold the trade longer due to the volume clearly behind it.
Time and volume often have this connotation that you can only follow one and not the other. If I did have a gun to my head, I would prefer to follow the volume point of control (POC) over time POC as that is what moves price - volume.
In essence, you want to be following volume upon breaks of key ranges/levels.
If price does break out from a range creating a discrepancy, that does not just mean "buy/sell the breakout." Price can easily lose/reclaim the newly shifted POC, creating either weakness or strength resulting in a swift move back towards the time POC. A discrepancy does not mean that price will not return to the POC (even though more likely). It is still key to be able to identify if price will return to the time POC.