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TPO and forex

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Wiltshire, United Kingdom
 
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The main thing to be aware of for TPO or traditional market profiling is that all half hour bars are equal. In that I mean the volume during the Asian session is light which is taken account of in volume profiling but with TPOs or half hour bars each bar has the same validity. This is especially relevant for the POC calculation and the Initial Balance.

One method of Market Profiling I have seen used by Forex traders is to build profiles only for the global session they intend to trade. Therefore a UK trader might have a Profile from 8am -4.30pm only (or start it at 7am to include the European open, the IB might then be one or two hours). This would give a POC and IB based on the data session you trade. Everything else would be considered as the overnight session. This would also give opening gaps showing whether sentiment had changed markedly from when the UK session closed.

Or if still wanting to see all the data then a day could be divided in to three profiles, one for the Asian session, Euro/UK session, and the US session.

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