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Decoding Day Structures to Develop Trading Strategies for Intraday Trading (Market Profile)

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Indrazith Shantharaj

Market Profile is a methodology used by traders to analyze and visualize market activity. It organizes price and volume information in a way that helps traders understand the dynamics of supply and demand within specific time frames.

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In Market Profile, there are several day structures that traders commonly look for:

Normal Day: A normal day is characterized by a balanced market, where the opening and closing prices are close to each other, and the market spends most of the day trading within a relatively narrow range. This suggests that both buyers and sellers are in equilibrium, and there is no significant imbalance in supply and demand.

Double Distribution Day: This type of day occurs when there are two distinct bell curves (or distributions) in the Market Profile chart, indicating two separate areas of high trading activity. This suggests that there may have been a shift in sentiment or a change in market dynamics during the trading session.

Trend Day: A trend day is marked by a strong and persistent directional movement in the market, either upwards or downwards. In a trend day, there is typically little or no significant retracement, and the market closes near the high (in an uptrend) or near the low (in a downtrend) of the day. This indicates a strong imbalance in supply or demand.


Neutral Day: A neutral day occurs when the market opens and closes at similar levels but experiences significant volatility and fluctuation throughout the trading session. On a Market Profile chart, a neutral day often appears as a wide, bellshaped distribution with a prominent point of control (POC) near the middle of the range.

Normal Variation Day: This type of day occurs when the market breaks out of a previous trading range and extends its range significantly in one direction. Range extension days often indicate a shift in market sentiment or a decisive move by one group of traders, leading to a new trading range or trend.

NonTrend Day: This type of day forms when the complete days' price range stays within the ib range.

Understanding these different day structures in Market Profile analysis can help traders identify trading opportunities, manage risk, and make more informed decisions based on the evolving dynamics of supply and demand in the market.

posted by Ghankaye