From last Monday, every single day which has been a 3I day has been reversed the next day .
Here's the definition again :
A 3 I day is a type of distribution when the market does three time the initial balance ( IB) as the range of the day. Thus if IB is about 25 points, a 3I day will have a range of 75 points or more. The interesting thing about this day is the next day where we look to have the lows in the first hour ( if prev day was lower) or highs ( if prev day was higher) and you can take a call on direction based on that.
Girish & Kris made some excellent trades in the BankNifty today based on this rule.
As mentioned in the chat of yesterday at close we had a Double distribution day and were eyeing the top of the distribution at 5083- 5088 for a move to 5117 which was the highest volume node of the rise from 4800.
The market did exactly that and there were a number of other things to support the activity including a move above IB high to 2IB.
Range extensions above IB should always be taken as trade management is easy with stops just below the IB extension or even vwap/ dpoc.
Today's trades :
1) a move above PDL in BN which got VAL. It's a move from the 3rd standard deviation to the first standard deviation of the previous day and always a high probability trade
2) a Move from VAL in BN to POC
3) A move above IB high in NF to 2IB
The system was on buy at the close.