Tuesday Day type

We had a neutral extreme day in the markets today.


A neutral extreme day is when the markets operate on either side of the Initial Balance or IB.


So we had a move higher above the first hour's high and we came back into the IB and proceeded to auction lower below IB.


Such kind of days are usually followed up with either a normal variation day or even a trend day as one party completely gives up on their existing holdings.


Have a look at these 2 charts :


Daytypes%202 0 Tuesday Day Type


Daytypes 4 Tuesday Day Type


The open is the biggest give away after a neutral extreme day with an open lower than the previous day's close confirming continuity of the previous day's auction.


Hence tomorrow if we open and stay lower in the first 20 minutes the bias will continue to be that of sell.


The more important takeaway after a neutral extreme day is that there is one time frame control in most cases the next day.


Hence trading is relatively easier as one party controls the market activity.


Both normal variation and trend days are examples of one time frame activity.