The market is being flooded with news flow this week with the RBI governor on Tuesday, the FED chairman yesterday and the ECB president today unleashing large scale policy wordings on the market.
Amidst all that we saw a Gaussian distribution in the market yesterday.
A Gaussian distribution is a market which has symmetry or is balanced.
Refer to the chart above and once can note that the last distribution was seen on 19th July.
Generally a move away from such distributions create low risk high profitability trade setups as can be seen from the move on 20th July which was a 200 point move away from the balance.
Within the balance structure there is no clear trade edge as buyers and sellers are equal and push pull the market.
How ever the break is always profitable as one party cedes control to the other creating the imbalance .