Types of Market Days
Trend Day: A trend day is a day when the market moves in a clear direction, either up or down. Large price swings and high trading volume typically characterize trend days.
On a bullish Trend Day, the open usually marks the day’s low, while the close usually marks the day’s high, with a few ticks of tolerance in either direction. On a bearish Trend Day, the open will usually mark the day's high, while the market will usually close near the session’s low.
Trend Day is the most aggressive type of market day. Price conviction is strongest during a Trend Day.
The market will typically start fast on this type of day, and the farther price moves away from value, the more participants will enter the market, creating sustained price movement on increased volume. Initiative buying or selling is the culprit on this type of market day, as these participants are confident they can move the price to a new area of established value.
Quite Day - Trend Day - Quite Day
Double Distribution Trend Day: A double distribution trend day is a type of trend day with two distinct distribution areas or price consolidation. Double distribution trend days are often seen as a sign of a pause in the trend, and they can be a good opportunity to enter a trade in the opposite direction of the trend.
The initial balance is defined as the price range of the first hour of the day containing the initial balance high (IBH) and the initial balance low (IBL). If the initial balance is too narrow, the price will break free from the range and auction toward new value, creating range extension. If the initial balance is wide is hard to break.
The Market starts in a Quite Manner, then Breaks the Range in one direction and again trades quite in the last hours.
Typical Day: A typical day is a day when the market moves within a relatively narrow range. Typical days are typically characterized by low trading volume and small price swings.
Expanded Typical Day: An expanded typical day is a type of typical day that has a wider range of price movement. Expanded typical days are often seen as a sign of increased volatility, and they can be a good opportunity to enter a trade in either direction.
Trading Range Day: A trading range day is a day when the market moves sideways with no clear direction. Trading range days are often seen as a sign of indecision in the market, and they can be a good opportunity to wait for the market to break out of the range before entering a trade.
Sideways Day: A sideways day is a type of trading range day with a very narrow price movement range. Sideways days are often seen as a sign of low volatility, and they can be a good opportunity to wait for the market to break out of the range before entering a trade.
Trend Day
Large price swings, high trading volume
Double Distribution Trend Day
Two distinct areas of distribution, pause in trend
Typical Day
Narrow range of price movement, low trading volume
Expanded Typical Day
Wider range of price movement, increased volatility
Trading Range Day
No clear direction, indecision in the market
Sideways Day
The very narrow range of price movement, low volatility
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