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Time Price Opportunities
Time Price Opportunities are an advanced charting tool to determine and evaluate market value as it develops in the day time frame. They were devised by J. Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT) as “Market Profile ®”. The Time Price Opportunities indicator plots a histogram on the chart to show significant price levels based on price action.
Market indices (DAX, CAC, DOW,…)
: Forex (EUR/USD,…)
: Commodities (Oil, gold,…)
|: Futures, CFD, forex and stocks
|: Day trading, swing trading
|Using NanoTrader Free+Full
Time Price Opportunities in detail
Time Price Opportunities are a constantly developing graphic that organizes market data based on Auction Market Theory. They compare price (the variable) on the vertical axis to time (the constant) in the horizontal axis in order to create a distribution over the specified period. Time Price Opportunities can be displayed in the MasterChart or in a SubChart. The data used to calculate the Time Price Opportunities is independent of the MasterChart. Usually a value of 30 Minutes per Box is used to create the distribution. This value can be changed in the DesignerBar.
Time Price Opportunities show levels of significance like:
- Point of Control (POC or VPOC): The price level at which the most number of TPOs for the chosen time period occurred.
- Value Area (VA): The range of price levels in which a specified percentage of TPOs occurred during the chosen time period. Typically, this percentage is set to 70%. Like always this value can be changed in the DesignerBar.
- Value Area High (VAH): The highest price level within the value area.
- Value Area Low (VAL): The lowest price level within the value area.
- Initial Balance (IB): The first hours range.
- IB High: Higher band of the Initial Balance (1st hour of trading).
- IB Low: Lower band of the Initial Balance (1st hour of trading).
The following example shows the compressed view, which is the usual form of this type of price representation.
This example shows the split view of the profile. Also note that when the vertical scale is tightened, the letters are replaced by colors.
Using Time Price Opportunities
Time Price Opportunities have various number of uses. The concepts of Time Price Opportunities are not actual indicators in the narrower sense of the term, rather they serve as a decision-making tool in daily trading. So they can very well help to bring the current market situation into an overall context. It graphically conveys complex information to reflect a composite, broad perspective of the market as a whole.
Time Price Opportunities can even be used with non-time-based aggregations of the MasterChart. The following example show Daily TPOs on a Renko chart.
Also higher time frame Time Price Opportunities can be displayed. The following example shows monthly TPOs in the DAX Future.