Lecture on TPO Charts

Introduction

• Discussion on TPO charts, their purpose, and components.
• How traders can use TPO charts on the Optimus Flow platform.
• Comparison with other chart types like candlesticks.

Basics of TPO Charts

• TPO Chart Layout: Different from candlesticks, information is collapsed from right to left.
• Both TPO and candlestick charts can represent a full day of trading in 30-minute intervals.
• Letters Representation:
  • Each 30-minute period is represented by a letter (A, B, C, etc.) instead of colored candles.
  • Market open is marked by a small triangle in the "A" period, and market close is marked in the "M" period.

Fair Value and Point of Control

• Fair Value:
  • Highlighted area in the profile, representing the most active 70%.
  • Price extremes (30% remainder) are areas where market didn't find fair value.
• Point of Control:
  • White line in profiles, shows where price transacted the longest.
  • Important for future reference, acting as support/resistance.

Advanced Concepts

• Excess and Poor Low:
  • Excess: TPO prints at the top/bottom showing price rejection.
  • Poor Low: Horizontally stacked TPOs indicating unfinished auction process.
• Day Type Structures:
  • P-shape Day: Long buying tail, distribution at top, often after short covering.
  • B-shape Day: Long selling tail, distribution at bottom, due to liquidation.
  • Double Distribution: Two balanced distributions separated by single prints, bullish or bearish based on breakout direction.
  • Trend Days: Long and narrow profiles, price moves consistently without forming distributions.

Analyzing TPO Charts

• Importance of identifying day types early for better trading positioning.
• Recognition of day types provides trading edge and context.

Optimus Flow Platform Features

• Collapsing Days: Ability to merge days for a bigger picture view.
• Important for understanding previous weeks' market activity.
• Advanced Settings:
  • Rotation Factor: Indicates market drift direction based on 30-minute periods.
  • TPO Up/Down: Compares TPOs above and below the point of control to determine market dominance.

Conclusion

• Encouragement to explore Optimus Flow and its free tools.
• Invitation to ask questions and explore more features not covered in this lecture.