MARKET PROFILE
DAY TYPE: Normal Variation Day – As the name suggests, this is a variation to the normal day type. Here, the pickup in activity gathers momentum later in the day rather than early in the session.
The figure 1 shows the initial balance. The base is smaller compared to the normal day. The other timeframe sellers entered the market and pushed the market down in the D period which resulted in range extension in the D period as shown by figure 2. The other timeframe buyers responded to the lower prices and entered the market in the E period and pushed the market up. The rest of the day was a two sided trade with local [intraday] buyers and sellers establishing the balance around the arrow mark.
The range extension to the downside resulted in the value area being established lower as denoted by the arrow in the figure 3.
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