TPO counts

         Use the TPO counts question to examine what happens as a result of how many TPO's fit a given criterion.

Example:

         The number of selling TPO's is greater than 55.

Questions from Traders:

         Does a high number of selling TPO's influence the next day’s trading? Does a high number of one type of TPO's lead to increased market volatility?

Setting Up the Search:

Click on the parts of the box below where appears for explanations of features.

Answers:

         When we tested for selling TPO counts greater than 55, we found 134 days which fit our criteria. Our traders wanted to know if the high number of selling TPO's could be expected to lead to further market weakness the following day. To answer this question we ran a refined search for days when yesterday’s TPO count was over 55 and today’s value area intersected below yesterday’s value. Surprisingly, in only 15.6% of the cases did the large number of selling TPO's lead to a day of general price deterioration on the following day.