Classic

TPO - Part 7: Merging Profiles

TPO Profiles show where volume was transacted and where the most time was spent.

Merging Profiles shows a detailed view of where time is spent and where volume is transacted.

Merging profile levels are stronger than the Daily Volume Levels and will provide you with more efficient levels going forward.

By using Merging Profiles you are essentially finding a range and merging all the candles within that range and compiling that data into one candle.

For example, You could find a range on a daily chart consisting of 10 candles and then merge them into one candle.

Within that one candle, you will find a VAH, POC, and VAL.

To go a step further you can find additional ranges and consolidate them into 1 candle each. The result is that you could have 100 days of data condensed into a few candles.

Time Stamps

3:04 – MERGING PROFILES

Merging profiles is extremely helpful to get a better idea of where time is spent and where volume was transacted
Daniel likes to merge profiles from each trading range
Merged profile levels are stronger than the daily volume levels
Merging profiles together is a way of collecting all the data together and creating stronger data to trade from
Daniel merges together HTF daily profiles within a larger range to form one set of data
On the intraday, he will always merge together ‘inside-days’
He also merges together profiles where price forms small deviations but goes back into the smaller range
The inside day – the day’s PA is inside of the prior day’s PA. Daniel likes to merge them together to get the average
Data we want to gather is the VAH, VAL and POC of the merged range
Daniel is still aware of the Daily POC etc. but he will place more weight on the merged profile range data
The reason for this is more volume + time + transactions have gone on over the whole range (more data = more helpful)
Time and price discrepancy is important information
When the range is well respected and the price leaves it, it is very likely if the price comes back inside that it will make a rotation to the bottom/top of the range (or at least the POC)
Knowing how many profiles should be merged together can only be learned via experience because there are no hard rules. It is all about visually recognising a range and merging those profiles together
When Daniel ‘predicts the range before it forms’ he merges the profiles together of the potential range
The reason this is so helpful is that you already have a great idea of the range levels ahead of the competition to trade from
Once the range is ‘complete’ the levels and profiles to merge become clearer, of course