Market Profile Days Structure

Normal Day
Swift early entry of other time frame participant—has the effect of establishing a wide initial
balance. Often caused by a new announcement early in the morning that triggers other time frame
reaction. Wide initial base, not upset throughout the day. These days present the best days to buy—“the
best trades often fly in the face of the most recent market activity, and never lose sight of the bigger
picture.”
Norman Variation of a Normal Day
Market activity early in the day that is less dynamic than a normal day. As day progresses, other
timeframe enters the market and substantially extends the range. It is as if the other timeframe
participant had watched the auctions for a while, then decided price was opportune and entered
aggressively. Typically do not have as wide of a initial balance as Normal days
Standard Trend Day
High level of directional confidence that is evident throughout the day. The other time frame
buyer or seller remains in control of the auction process from the day’s open to its close. As the trend
auctions higher or lower, it continues to draw new business into the market, thus creating
unidirectional, sustained price movement fueled by higher volume. The open forms the upper or lower
extreme in the large majority of cases. In a one-time frame market, each time period will auction to a
higher (or equal) price without auctioning below the previous period’s lows. One-time frame conditions
are a good indication of other timeframe control and a potential trend day. A trend day differs from a
Normal Variation day in that the Trend day’s profile is generally thinner and more elongated, usually no
more than 4 or 5 TPOs wide at any given point (on a 30 minute, non-extended trading session chart). It is
important to early on in a Trend day to identify it as such and position yourself with the other timeframe
buyer or seller.
Double-Distribution Trend Day
Relatively inactive during the first few hours. Market participants possess a low level of
conviction, a change in events causes the other timeframe to perceive price to be unfair at current price
levels, enter the market aggressively, and substantially extend the range. This later entry by the other
timeframe drives price to a new level, where a second balance region develops. This kind of day does
not possess the steady confidence of a typical Trend day and must stop and reassure itself after a
substantial move.
Very small initial balance. Again, the more narrow the base, the easier it is to overwhelm the
this area with auction quickly to a new level. This new trading range generally holds throughout the day
and provides good trading opportunities for day traders.
Nontrend Day
Complete lack of directional conviction. Occur before release of a big economic number, news
event, or a holiday. Market participants balance their positions in expectation of the market’s reaction
to the external stimuli . Trade is not facilitated in any direction—there is like market participation and no
confidence. Starts out like a Trend day for the initial range is narrow. However, the other timeframe
never surfaces and there is no range extension. Market is waiting for new information before making its
next directional move.
Neutral Day
Neutral day indicates that other timeframe buyer and seller are not far apart in their views. When they
have similar views of value, the market balances, auctioning back and forth between them. The base
width is somewhere between a Trend and Normal day. It is not so small as to be easily upset, and not
wide enough to hold the day’s extremes. The salient feature on a Neutral day is the fact that both the
other timeframe buyer and seller are active, as is evidenced by range extension on both sides of the
initial balance
Neutral-center: the day closes with price in the middle of the range, indicating a lack of confidence and a
balance between the other timeframe buyer and seller.
Neutral-extreme. Price closes on either the high or low extreme of the day, indicating a hypothetical
victory in the day timeframe battle for control between the other timeframe buyer and seller.
Directional Conviction According to Day Type
Least
Nontrend
Normal
Neutral-Center
Normal Variation
Neutral-Extreme
Double Distribution Trend
Trend
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Normal Day

Norman Variation of a Normal Day

Standard Trend Day

Double-Distribution Trend Day

Directional Conviction According to Day Type

Double Distribution Trend

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