TPO Stats

Jan

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Yes, "Rotation Factor" and ideally also "TPO count" which is defined in Jim Dalton's book as:

"The TPO count is found by isolating the point of control (the longest line closest to the center of the range), summing all the TPOs above it and comparing that number to the total number of TPOs below it. Single-print tails are excluded from the count." (page 42, Mind over Markets) Page 43 contains a graphics explaining the procedure.

The "TPO count" is used to determine if buying / selling tails were responsive or initiative. Essentially it gives you the ratio of TPOs above vs. below the POC (minus single print tails)
 

aminus04

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Also, may I add that you can add naked high and low lines on the TPO chart? There is the option for a naked VPOC and value area lines but no option for the high low lines. Thanks!
 

Daimao

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Yes, "Rotation Factor" and ideally also "TPO count" which is defined in Jim Dalton's book as:

"The TPO count is found by isolating the point of control (the longest line closest to the center of the range), summing all the TPOs above it and comparing that number to the total number of TPOs below it. Single-print tails are excluded from the count." (page 42, Mind over Markets) Page 43 contains a graphics explaining the procedure.

The "TPO count" is used to determine if buying / selling tails were responsive or initiative. Essentially it gives you the ratio of TPOs above vs. below the POC (minus single print tails)

The part about excluding the single print tails is an extremely important nuance. I always wanted to ask Dalton how one should treat a double/triple distribution day where there are singles within the profile. My instincts tell me you should not count them, treating them as a tail. If price auctions back into them and repairs the structure then they would no longer be singles and you would count them up to the next set of singles, whether it's a tail or an excess within the profile. Multi-distribution days are essentially multiple overlapping distributions, after all.
 
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