TPO Range Indicator

The TPO Indicator calculates and shows historical values for the following TPO Profile pricing levels: POC, Value Area High (VAH), Value Area Low (VAL), developing POC. It allows you to look back in time and see how prices behaved when they were reaching these levels. Traditional TPO Profile charts simply display the present values while developing POC, VAH, and VAL vary during the day. The TPO Indicator allows the user to go back in time and observe where the levels were at any particular point. TPO stands for Time/Price Opportunity.

What is the TPO Range Indicator?

The TPO Range is a price-action trading indicator for MT4. It provides significant price levels as well as real-time volume data. Assessing market critical event areas is a critical task for technical traders. They usually keep an eye on how the price reacts near solid support and resistance levels. At such a target price level, confirmation of rejection or breakout is critical. Particularly useful for determining potential buy/sell zones across market sessions. The TPO Range confirms price activity with a volume indicator. It displays the quantity of trade activity that occurred within a specific candle period. So, while looking for trade signals, you can get a sense of market emotion.

Setting up the TPO Range Indicator
Setting up the TPO Range Indicator

TPO Range Strategy

The TPO Range examines the market’s recent highs and lows to identify crucial price levels. The dotted horizontal lines across the chart reflect probable levels of support and resistance. You may want to wait till the price enters an S/R zone before anticipating buy-sell signals. Next, you could watch how the price reacts in the vicinity of the event locations. You may then look for a price reversal or a breakout indication. Then, using the volume bars on the right side of the chart, you could confirm the signal. The indicator, for example, may illustrate that the number of trading operations is largest during a bullish breakout. It may signify that maximum entries are long, and the price is likely to start moving up. You may want to use the nearest support/resistance zones to establish the stop-loss limit after activating an order. You could consider exiting when the price fails to exceed a critical market level and begins to move against your trading direction.

Buy Signal

This could be your checklist for a buy trade:

  • When the indicator’s information corresponds with your strategy for a long trade.

Once this event occurs:

  • You could open a buy position based on your strategy after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade based on your strategy’s exit plan.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
TPO Range Indicator Buy Setup
TPO Range Indicator Buy Setup

Sell Signal

This could be your checklist for a sell trade:

  • When the indicator’s information corresponds with your strategy for a short trade.

Once this event occurs:

  • You could open a sell position based on your strategy after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade based on your strategy’s exit plan.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
TPO Range Indicator Sell Setup
TPO Range Indicator Sell Setup

TPO Range Pros & Cons

Pros

  • The TPO Range Indicator may be used to identify potential trend reversal and trend continuation zones.
  • This indicator may inform the trader on what the market momentum is and the prevailing trend.

Cons

  • The TPO Range Indicator requires the trader to have a strategy in place which he/she would combine with it.
  • This indicator may require knowledge of price action by the traders in order for them to be able to carry out their technical analysis.

Conclusion

The TPO Range Indicator is a nice indicator for price-action trading in the forex and stock markets. It not only allows you to determine critical price levels, but it also allows you to track the ups and downs of live trading activity. Furthermore, it can be used to predict pullback and breakout trade opportunities during highly volatile market conditions. However, this indicator could generate false signals sometimes and it is better combined with price action and other technical indicators.

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