[steve46]

I'd like to offer a comment here if I may

I like to incorporate additional data into my decision making when using MP whether it be TPO based or Volume based.

For example, I find that refering to $DVOL and $ADD (Esignal indicators) adds value. These indicators show me where which way volume is trending, and in the case of $ADD I can see whether participants are "selling into a market" anticipating a reversal.

Other data elements that help me include Market Delta's footprint chart. That perspective is helpful to break any deadlock because I can see the "turning points" as the market cycles from bid to offer and back. In my opinion it can't be used in and of itself, but when I am near an entry or exit, it lets me pinpoint my execution.

I realize these are not directly related to MP, but frankly as was mentioned in previous posts, there an art to trading this way, and in my opinion, one has to be able to integrate additional data elements if they want to improve their decision making abilities.

If we switch back for a minute to MP, I would suggest looking carefully at "singles" (confirmed singles). Traders tend to overlook this. Singles are either potential reversal points, or if they fill in the both the pit and the ES market, can inform the trader that a run to extremes is possible. This in concert with range extension tells the trader that "other" participants are active and looking for a specific kind of move. Also look at the size and range of the Initial balance. Small IBs tend to be easily "overturned" creating the conditions for a directional move. Wider IBs in contrast tend to accomodate rotational days, and inside those days we can see further nuance when for instance specific brackets range and test other brackets. Let me just say that this is all market specific as I specialize in trading the S&P contract, and while I certainly respect Dalton and others who authored this concept, most of what I am talking about is based on observation. In other words you can learn it yourself by simply keeping your eyes open and spending time on the screen. I think these comments relate to both TPO and Volume based MP.

I hope they provide you with some workable ideas for your research.

Best Regards
Steve

[JohnnySDG]

I often notice a difference between TPO and VOL on my DTN MP.

[JohnnySDG]

I usually go with the volume.

[clmacdougall]

I've found that a TPO based value area is an excellent measure of price comfort and popularity in a price range. Because it is formed only when price rotates back to a specific tick value it proves an accepted price range on the day. In essence it graphically displays price popularity.
The drawback to a volume based value area is that it's POC is derived only through a, "point," of greatest purchase action, instead of a constant rotation through it throughout the day. In essence you are choosing action over popularity when deciding the most important point of measurement when figuring your value area.

[ant]

As others have stated, TPOs are usually a good proxy for actual volume. However, if the value area differs between a TPO and volume-based profile (e.g., during a trend day), I would defer to the volume profile. Volume always rules. If the value area differs by a tic or two, I wouldn't sweat it since trading isn't an exact science anyway. Having said that, I think most traders that use MP use TPO-based profiles. Volume-based profiles are very CPU intensive to run and many volume-profiles in charting software are just an approximation. For example, charting software will take the volume of a minute bar chart and then divide the volume across all the prices that traded during that minute interval.

[clmacdougall]

I am in no way trying or meaning to be disrespectful towards the accepted understanding of a value area as everyones opinion is valuable. But I think that volume vs tpo when calculating the value area is truly apples and oranges.
Imagine how important this measurement is to many traders. A measure must be proven worthwhile in order to be leaned on when trading.
There is no way that the central point of your bell curve when measuring your value area could simply be an elongated volume spike at a singular particular price tick. This could simply be the result of an institution choosing to buy or sell with no thought of price, in fact that could simply be a time based decision.
The value area has one definition, "acceptance," and the only way to prove this is through price rotating across a range over time. This graphically demonstrates acceptance and value.
No disrespect meant, simply my opinion.

[ckait]

Both work equally well. If your tring to pinpoint to the tick where things are going to happen you will dissapointed. Having said that the two are usually not that far apart, and if you are concistant in doing the same thing (provided it is a good stratagy) you should do ok. If your bouncing back and forth between the two and looking too close for entries it can be frustrating. using a filter such as tape or delta or some type of order flow at you level could help as well.

[qewcool]

I think macdougall answers shows understanding of the MP concepts the most.

The key goal of MP is to find indeed balance and acceptance of a price level that will facilitate trade (rotation).

A spike in volume not confirmed by time cannot be a control price that will serve as trade facilitator. It is in fact a symptom of imbalance which is the opposite of the idea of a POC.

I also find it funny that the answer from the dalton course is the most cryptic and convoluted answer of the thread while macdougall answer is straight-forward, simple and efficient.