Here is a follow up on a post we had done back in April of last year where we showed the importance of trading the Initial Balance or IB as we call it in Market Profile.
That post is here – http://www.vtrender.com/content/nifty-daily-stats-2
We are one of the very few markets in the world which does not have the concept of a 24 hour moving market and as such Market Profile and it's precepts work extremely well with us.
This chart below is from the period 1st January 2013 till the close of trading on Tuesday 4th June.
The reading is about the same as last time around.
Of a 106 sessions evaluated from the start of the year, the IB trade could be taken for a 102 days and the balance 4 were what we call Normal Days in Market Profile.
In the Pre Electronic age, the market rarely moved beyond the IB , hence those days exhibited a then normal structure. But in today;s age we are guaranteed of an IB breakout almost every time.
From the chart above 26 times the market attempted to break above IB High and 40 times below.
On 36 occasions we had neutral days when the market traded both sides of IB.
The rules for trading the IB are at this link : http://www.vtrender.com/content/nifty-daily-stats-2