All language subtitles for 2. D Type profile

Type D profiles suggest that there is an
overall balance of market forces.

Buyers and sellers have very similar
valuations, and this causes the market

reflect this by moving sideways or
within a range.

In this type of context, the only trade
that should be applied is a range trade,

where a short position is sought on the
highs and a long position is sought on

the lows.

The rationale for using this trade is
that if the balanced context continues

hold, Any move that goes to visit the
extremes of the range will be seen as an

opportunity for those traders looking
for a reversal that brings the price

to the mean, the VPOC.

Here are two examples of balanced days
using the session profile.

As we can see, the price continuously
rotates up and down, pivoting around the

center, around the VPOC, which leads the
distribution of the D -shaped profile.

But we can identify it using any of the
other profiles.

For example, Here we have a distribution
structure on which we have manually

plotted a fixed range profile.

As I said, the key to identifying this
type of profile is the trading context

leaves us, where we should favor market
rotation once the price reaches the

extreme zones, the rejection zones of
the profile.

It is advisable to continue this type of
trading in the range until the market

generates an event that can unbalance
the price to one side or the other.

For those who are unfamiliar with the
Wyckoff method, This method focuses on

objective of assessing where the market
is most likely to become unbalanced and,

once that imbalance has occurred,
analyzing whether it is likely to be

or rejected.

But as is obvious, the market will not
always develop D -shaped profile

distributions because that would mean
that we are in an infinite equilibrium

context. At some point, something will
happen in the market that will break the

equilibrium and its participants will
generate the break to one side or the

other.

As we know, the market can be in only
two contexts, range or trend.

Profile type D represents the pure form
of range, where profiles type B and P

represent a more complete cycle of price
movement, i .e., they identify a range

and a trend movement, although not
necessarily in this order.

On the other hand, it is necessary to
allow some flexibility in the

interpretation of these profile forms.

It is important to always apply logic.

because they do not have to be perfect.

Any profile that leaves us the area of
value in its lower part, most of the

time, can be treated as a profile type
B.

Similarly, any profile whose area of
value is well defined in the upper part

be treated as a profile type P.

And with the profile D is exactly the
same, although not perfect.

An area of value in the middle part with
well -identified rejection zones at the

ends will suggest that we are facing
this type of profile.