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Old 02-06-2007, 08:01 AM
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Re: Market Profile Trading Concepts

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For intraday trading Mind Over Markets focuses on the TPO count but that was probably more useful in the days when intraday volume was not widely available. The developing intraday value area on top of a candlestick chart may not provide the same strict support and resistance levels that yesterday's value area does but it does give you a good idea of which prices the market is comfortable trading at.
Hi,

I wouldn't necessarily agree that TPO counts were more useful in days when intraday volume wasn't widely available. TPO counts still give you a good gauge of who is in control of the market by very quickly looking at the count. Yesterday, for instance, on the ER buyers had control looking at the TPO count of 95/192. On the NQ, however, sellers were in favor by 137/115. On the ES, 65/48 in favor of sellers, and YM 111/100, showing sellers with the slight favor. One problem with the TPO count I sometimes run into is on days like yesterday...when it seemed sellers were in control of the ER2 at the 811.0 mark. We had a HUGE 5 TPO ledge there showing sellers were dominating that level, and then it broke, only to break back down below 811 again. So while the TPO count favors the buyers, it seems to me that sellers had a good hand in things on the ER2 as well.

So often times its a very good gauge, as long as you take the days action into account. I never look at it as a pristine forcasting tool.


Last edited by TinGull; 02-06-2007 at 08:12 AM.
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