Lesson 1 of 2 · 2 min
Reading a TPO chart
Letters, POC, value area, single prints, tails and poor extremes — the parts of a TPO profile.
A TPO chart can look like alphabet soup at first. It's easier once you know the handful of features to look for.
Building blocks
Definition
- TPO (Time Price Opportunity) — one letter printed at a price for each period in which that price traded.
- TPO POC — the price with the most letters: where the market spent the most time.
- TPO value area — the range around the POC holding roughly 70% of all TPOs.
Features worth marking
- Single prints — prices with only one letter in a column, left behind by a fast move. They mark areas the market moved through without building any two-sided trade.
- Tails / excess — single prints at the very top or bottom of the day, showing a sharp rejection.
- Poor highs and lows — flat extremes with several letters at the same high or low and no tail, suggesting the auction ended without a clear rejection.
- Range extension — letters beyond the initial balance.
Key Insight
A poor high says "unfinished business" more than a tail does. A tail says "rejected here, decisively".
Profile shapes
- Normal / balanced — a bell shape with value in the middle; rotation.
- Trend — elongated, thin, value migrating in one direction.
- P-shape — heavy at the top, thin below; often short-covering or buying late in the day.
- b-shape — heavy at the bottom, thin above; often long liquidation or selling.
- Double distribution — two separate areas of value joined by single prints, usually after news or a strong move.
Trading implication
Read the shape before the level. The same price can mean different things on a balanced day and a trend day.
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