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Old 02-18-2007, 12:27 PM
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Re: Need explanation on TPO count

Hello Noal,

Let me try to do my best to answer your questions. I am sure other MP traders can help you out as well.

Regarding TPO count, a TPO count of 70/89 means 70 above the POC and 89 below the POC. This indicates buyer dominance or buying control. The TPO count above the POC represents sellers willing to short above value while a TPO count below the POC represents buyers willing to buy below value. Buyers below POC view the markets as undervalued while sellers above the POC view the markets as overvalued.

Imbalance is created when there is more demand over supply or vice versa. In other words the bulls or bears express more confidence. A market trading inside value is a balanced market. A market that trades above/below value is imbalanced and seeks balance.

I am still unclear about the long-term, short-term activity. I would need to read the entire section from the pdf file. Value area is simply an area where both buyers and sellers agree on market value. It is equilibrium. Is the author referring to activity as volume or the number of transactions?

EDIT: made a slight error regarding seller vs buying control. Fixed now

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