Balanced and Imbalanced market will give idea about market performance and in which direction it is heading. These the two different types of market which will show who were in control through out the trading day. Balanced and Imbalanced markets are two different types of markets that gives traders lot of opportunities to trade.
By analyzing market profile one can decide about trading and making the most of these opportunities with right investment decisions. Intraday and swing traders will make it big if they can analyze the market profile correctly. Read on to know different markets.
Read on to know what are different balanced markets.
Non Trendy Day
Non trendy day is one of the balanced markets. Where traders won’t observe much deviations in price. These markets generally occurs before or after any news and government policies. These balanced markets won’t fetch any big profits to intraday or swing traders. Intraday and swing traders book profits with market swing or volatility which lacks in a Non trendy day.
Normal Trending Day
Normal trending day is one of the balanced market where traders can book profits with swing or trend. These trends might be occur due to news, press release, profit/loss, etc about company stocks. With these swings and volatility in the market traders can book huge profits.
No one will be in the control and risk/reward ratio will be higher than your expectations.
Normal Variation Day
One of the imbalanced market types where traders are not sure about stocks trend. Long or short term traders waits for market to settle down and invest. In Normal variation day it won’t easy to guess market trends as correction happens continuously throughout the trading day.
Trend day is one of the imbalance market situation where traders worry about trend. Long term traders will have biggest advantage as market trend tends to bit more stable than it use to be. Risk reward ratios will be higher as the trends going up or down are there to stay for some time.
These are the different balanced and imbalanced markets. Intraday or swing traders will have biggest advantage in these situations. Make sure you go through market profile to analyze market trends and start booking profits. By analyzing market profile one can judge who are in control, timeframe plays a major role, in which direction market is heading etc. Use market profile to your advantage and learn how to use market profile to your advantage.