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Lessons › Module 2: Building a TPO Profile › Lesson 2.1

Lesson 2.1 · about 5 minutes

What Is a TPO?

ObjectiveAfter this lesson you can explain what a TPO is and count the TPOs that a 30-minute period prints.

Concept

TPO stands for Time Price Opportunity. Market Profile splits the session into 30-minute periods and gives each period a letter. For every price a period trades at, it prints its letter once on that price row. Each printed letter is one TPO: a record that the market traded at that price during that half-hour. A TPO counts time, not volume. A period that trades at five prices prints five TPOs, whether one contract or a million changed hands. Rows with more letters are prices where the market spent more time. The POC, the Value Area and the other tools in later lessons are all built by counting TPOs.

Six columns of letters A to F between 100 and 105. Column B is the tallest (101-104, four letters). The 102 row is crossed by five columns; the 105 row only by C. A A A B B B B C C C D D D E E E F F F 105 104 103 102 101 100 102: 5 TPOs (A, B, D, E, F) 105: 1 TPO (C) time → (one column per 30-min period) XYZ (hypothetical): every letter is one TPO Hypothetical data. Range 100-105
XYZ (hypothetical): every letter is one TPO. Hypothetical, synthetic data generated from code. Six columns of letters A to F between 100 and 105. Column B is the tallest (101-104, four letters). The 102 row is crossed by five columns; the 105 row only by C.

Worked example

Hypothetical XYZ trades six 30-minute periods, A to F. A trades 100–102, so it prints an A on three rows, 100, 101 and 102: 3 TPOs. B trades 101–104 (4 TPOs), and C 103–105, D 102–104, E 101–103 and F 100–102 print 3 TPOs each. That is 19 TPOs in total. The row at 102 holds five letters (A, B, D, E and F), more than any other price. The row at 105 holds just one (C), so the market traded there in only one period.

Key takeaway

One TPO is one letter: one price traded during one 30-minute period. TPOs measure time, not volume.

Check yourself

Pick an answer to see instantly why it is right or wrong.

Question 1 of 3

What does a single TPO on a Market Profile chart represent?

Question 2 of 3

In the XYZ example, period B traded from 101 to 104. How many TPOs did B print?

Question 3 of 3

In the XYZ example, the 102 row has five letters and the 105 row has one. What does that tell you?

Not financial advice. Educational content only, not financial advice. All tickers and prices are hypothetical, synthetic data. Market Profile is an organizing tool, not a trading system or a prediction. Trading involves substantial risk of loss.