What is TPO Indicator
The TPO indicator (Time Price Opportunity) is a technical analysis tool used in financial markets to track the distribution of trading activity over time. It is used in market profile analysis, which focuses on understanding how markets behave over time by analyzing the patterns of price and volume.
TPO (Time Price Opportunity) Indicator
The TPO indicator displays the number of trades that occurred at each price level within a given time frame, typically a day. It creates a histogram of horizontal bars that represent each price level, and the height of each bar corresponds to the number of trades that occurred at that price level during the given time frame.
This indicator provides traders with valuable information about the market's behavior, such as the areas where there is strong buying or selling pressure and areas where prices are likely to encounter support or resistance. By analyzing the patterns created by the TPO indicator, traders can identify potential areas of support and resistance and make informed decisions about when to enter or exit a trade.
Overall, the TPO indicator is a useful tool for traders looking to understand the behavior of financial markets over time, and can provide valuable insights into potential trading opportunities.