Typical Day

• The Typical Day is characterized by a wide initial balance established at the day's outset.

• Today, the price rallies or drops sharply to begin the session and moves far enough away from value to entice responsive participants to enter the market.

• The responsive players push prices back in the opposite direction, establishing the day's trading extremes. The market then trades quietly within the day's extremes for the session.

• The opening rally or sell-off is usually sparked by reactions to economic news that hits the market early in the day. This opening push creates a wide initial balance, which means the day's "base" is wide and will likely go unbroken.

• A wide base during the first hour of the market will likely mean that the day's extremes will remain intact or unbroken.

• During this type of day, you will usually see price trade back and forth within the boundaries of the opening range, as fair trade is easily facilitated.