Continuing from TPO Part 3.
This lesson is focused on an all in one template created by our Lead Analyst Daniel, merging TPO, Volume Profile, and Candlestick data.
It is known as the TPO Chart Template.
Each aspect of the template will be explained in this tutorial.
Time Stamps
3:22 – THE TEMPLATE
- It is an all-in-one template
- It includes all the TPO, Volume profile and candles
- A/B TPO = it shows us the time spent above or below the time POC
- A/B TPO e.g. 10% / 90% = price spent 10% of time above the TPO and 90% of time below TPO
- It is helpful to compare it with the volume POC
- A/B VOL = it shows us the volume above or below the POC
NOTE: on ExoCharts the calculation of VA POC can be calculated based on volume or time (you can choose that in settings)
- Total delta shows the total delta for the day
- R/F = rotation factor for the day
- IB H = initial balance high for the day
- IB L = initial balance low for the day
- ACR = average candle range (it says the average candle size during the day). It can be used like the ATR (average true range)
- If price starts breaking above the range with a higher than average candle size, plus an increase in volume, and delta, that’s a good sign
- V shows the total volume for the day
- On the left side of the TPO profile, we can see the day's statistics. On each TPO row, we can easily see the number of TPO blocks, total volume and total delta in each row.
- TPO open and close have an arrow next to them and the block is highlighted to show exactly when it happened.
- TPO letters in heat-map colours – the heat-map splits into four zones of 12. First is the red, moving to yellow, moving to green and ending with blue. Where the most time is spent is also lighter and less time is darker.
- The POC is always highlighted. We can easily see the difference in the time POC and the volume POC.
- When zooming into the volume you can see the volume percentage of each row and if the delta is positive or negative.
- When the time POC is lower than volume POC you can look to fade it and trade back to volume POC. Because the price is spending a lot of time down there but there is no volume transacting, that is bullish.
- Daniel uses 30 minutes and 50 ticks currently
- Double-clicking on a day will bring up the menu to merge or expand the blocks
- Rotation factor – each 30-minute column is given a score of +1 or -1 (or 0) and the RF is the overall number that shows us which way the market attempted to push
- If there are many negative RF days but the price is going sideways, one can say the price is likely to rally upwards.
- For example, if there are many negative RF days but the price is going sideways, one can say the price is likely to rally upwards. Because the price is trying to go somewhere and doing a bad job at it, it means a bigger player is thinking the opposite way.
34:24 – TIME VS. VOLUME
- By having the VP and TPO in one view we can easily see discrepancies between time and price
- If price spends a long time at a level but there is no volume that would be considered a weak move and look to fade.
- Recognising discrepancies such as this, is vital to knowing when to fade a move or not.
42:25 – SUMMARY
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