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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.