Normal day
Volume Profile Analysis glossary · Auction Theory & Market Profile (TPO)
Definition
A session in which a wide Initial Balance is established and the session trades within or only slightly beyond that IB for the remainder.
Normal day in plain English
To understand a 'normal day' you first need the Initial Balance (IB): that's just the price range — the high and low — that gets set during the first hour of trading, when the biggest, most active players place their opening bets. On a normal day, that first-hour range comes out WIDE, and then price spends the rest of the day mostly rattling around inside it, poking only a little past. It's like the opening act draws such a big, confident box that the rest of the crowd is content to trade within it all day — the early players basically decided the day's fair range up front.
Learn these first
Related Volume Profile Analysis terms
Volume Profile Analysis practice questions · Volume Profile Analysis flashcards · Volume Profile Analysis study guide