Market Profile and TPOTPO
Market Profile organises price by time: each time period (often 30 minutes) is shown as a letter, called a time-price opportunity (TPO), at every price traded in that period. The result shows where the market spent the most time — the value area and point of control.
Market Profile organises a session by price and time: each block of time that trades at a price leaves a letter. The shape shows where the market spent time and where it found fair value.
- Category
- Indicators and Tools
- Reading time
- 3 min
- Also called
- Market Profile, TPO chart, Time price opportunity profile
- Updated
Market Profile in plain words
TPO stands for time price opportunity.1 The concept came from Peter Steidlmayer at the Chicago Board of Trade in the 1980s.2
Each time block — often 30 minutes — gets its own letter, placed next to every price it traded at.2
The widest row is the point of control, and the value area surrounds it.
How a TPO profile is built
Choose the block size
Split the session into equal time blocks; common choices run from 5 minutes up to 4 hours.2
Assign letters
Label each block with the next letter of the alphabet.2
Stack by price
Print the letter at every price traded in that block.
Find the point of control
Find the point of control — the price where the market spent the most time — and the value area around it.1
Mark the value area
Mark the value area: the band holding a set share of TPOs around the POC, 70% by default.1
Read the next session
Watch whether price opens inside or outside yesterday’s value area.
Worked examples
Example 1 — Balanced day
BalanceA hypothetical futures session shows a POC at 102 and value area 100–104.
| POC | 102 |
| Value area | 100–104 |
Most of the letters sit between 100 and 104, so that is where traders agreed on value.2
Example 2 — Acceptance higher
Trend day upThe next hypothetical session opens at 106 and builds new letters above 104 for hours.
| Open | 106 |
| Prior VAH | 104 |
Time spent above prior value — many TPO blocks — suggests value is moving up.2
Example 3 — Rejection
Failed breakoutA hypothetical session spikes to 107 for one letter, then returns to 103.
| Spike | 107 |
| Close | 103 |
Only a few letters at 107 means little time was spent there, unlike at the POC.1
TPO profile vs volume profile
| Aspect | TPO (Market Profile) | Volume profile |
|---|---|---|
| Measures | Time at price | Volume at price |
| Unit | Letters or blocks | Contracts or shares |
| POC means | Most time | Most volume |
| Origin | CBOT, 1980s | Later platform tools |
Where Market Profile is used
Intraday levels
Mark Support and Resistance from value edges.
Day-type reading
Spot Range versus trend days in Day Trading.
Context for entries
Combine with Order Flow.
Session planning
Compare against the prior Trading Session.
Advantages and disadvantages
Advantages
- Shows fair value zones clearly.
- Captures time, not just price.
- Works across sessions.
- Objective POC and value area.
Disadvantages
- Takes time to learn.
- Settings change the levels.
- Best on liquid, session-based markets.
- Says little about the reasons behind moves.
Going deeper
Read as far as you need. Each level builds on the one before it.
Letters as time
Beginner
A tall stack of letters at one price shows the market lingered there.2
The 70% convention
Intermediate
The 70% value area is just a default setting, not a law.1
Block size matters
Advanced
Because the profile depends on the block size you choose, 5-minute and 30-minute profiles can show different POCs.2
Common mistakes
Treating value area as a 70% probability
It describes past time, not odds.
Mixing TPO and volume POC
They can differ.
Using illiquid markets
Profiles get noisy.
Ignoring the open
Where price opens versus value matters.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- TPO means Time Price Opportunity.
- Letters mark time blocks, often 30 minutes.
- The POC is where most time was spent.
- The value area holds about 70% of TPOs.
- Settings change the levels.
Frequently asked questions
Who created Market Profile?
Is 30 minutes required?
TPO or volume profile?
Further learning
- Volume-Weighted Average Price
Another fair-value reference.
- Order Flow
Who is trading at those prices.
- Trading Session
How sessions frame profiles.
- Support and Resistance
Using value edges.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- Sierra Chart. TPO (Time Price Opportunity) Profile Charts (opens in a new tab) Checked .
- TradingView. Time price opportunity (TPO) indicator (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.