All lessons
Volume and TPO: two different questions
A busy shop and a shop that stays open longer tell different stories. Profiles do too.
Read volume and time-block profiles without treating their bars or POCs as the same measurement.
Volume Profile counts measured quantity at price. TPO counts the time blocks in which price was visited.
Volume Profile groups measured quantity into price rows over a chosen interval. With exchange trade data, the units may be contracts. A wider row means more quantity was recorded there; it does not tell you how many people traded or who they were.
TPO means Time Price Opportunity. In our example each letter represents one 30-minute block. A row receives a letter if that price was visited during that block; repeated visits within the same block do not add that letter again. Three letters are three blocks, not proof of 90 continuous minutes at that exact price.
POC means Point of Control: the row with the largest count under the selected measurement. A volume POC and a TPO POC can therefore differ without either chart being wrong. Keep units beside the bars so you know which question you are answering.
Check the source first. OTC spot forex has no single global trade tape; a broker tick profile may count price updates rather than executed contracts. Some profiles estimate distributions from smaller candles. Neither a TPO letter nor an up/down-volume colour turns those data into verified aggressive buying or selling.
Let’s work through it
- Write the instrument, feed, interval and unit beside the chart.
- Count quantity and distinct time-block letters separately.
- Find each POC, then explain why they can differ.
Let’s use numbers · hypothetical example
Our hypothetical rows are 100, 101 and 102. Recorded quantities are 80, 30 and 10 contracts, so volume POC is 100. Letters are AB, ABC and AC: counts 2, 3 and 2, so TPO POC is 101. The same interval produces two different POCs.
Easy mistakes to watch for
- Calling every horizontal histogram traded volume.
- Reading three TPO letters as 90 uninterrupted minutes.
- Treating a POC as the identity or intention of a large trader.
Keep in mind
A high count describes the selected historical data. It does not guarantee support, resistance or a future return.
Your turn
Draw the three rows twice. Use contracts on one copy and letters on the other; circle both POCs and name their units.
A quick check before we move on
Which row is the TPO POC in the example?
- 102, because it is the highest price
- 100, because it has most contracts
- 101, because it has most time-block letters
Check answer
101, because it has most time-block letters 101 has three distinct letters. The volume POC at 100 answers a different question.
Sources and further reading
- www.sierrachart.com/index.php
- www.tradingview.com/support/solutions/43000502040-volume-profile-indicators-basic-concepts/
Content reviewed: 29 October 2026
Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.
