Market Profile (TPO charts)

What it is

Market Profile was developed by J. Peter Steidlmayer at the CBOT in the 1980s. Instead of counting volume, it counts time. The session is split into brackets, 30 minutes by default, each given a letter. Every price traded during a bracket gets that letter, so the profile shows how long the market spent at each price. Each letter is a TPO (time price opportunity).

It has the same POC and value area as a volume profile, measured in TPOs, plus its own pieces. Single prints are prices with only one TPO, left by a fast move. A tail is a run of single prints at the high or low. Day types (normal, normal variation, trend, double distribution, neutral) classify the session by how far it extended beyond the initial balance. Open types (open drive, open test drive, open rejection reverse, open auction) describe how decisively the session started.

Because it counts time rather than volume, it works the same on any market, including spot forex, where real volume isn't available.

How to spot it

• Each column of letters is the profile; the widest row is the TPO POC.
• Single prints show as a thin column of one letter.
• Tails at the extremes show where the market rejected prices quickly.

How to use it

• Use single prints and tails as levels: price often reacts at the edge of single prints.
• Use the day type to decide whether to fade the edges (normal, neutral days) or go with the move (trend days).
• A strong open drive suggests trading with the move; an open auction suggests a rotational day.

Common mistakes

• Mixing up the TPO POC and the volume POC; they can be at different prices.
• Labelling the day type before the session has finished.

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