medium · Volume Profile Analysis auction-market-theory
If the Initial Balance (IB) width for a session is extremely narrow (e.g., less than 25% of the 20-day ATR), what is the statistical implication for the remainder of the session?
- There is a high probability of a range extension and directional move
- The bid-ask spread will stay widened all the way into the cash close
- There is a strong likelihood of a textbook 'Normal Day' rotation outcome
- The session should remain trapped inside the IB range
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