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

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

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reflect this by moving sideways or
within a range.

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

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

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the lows.

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

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

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

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to the mean, the VPOC.

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

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

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

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

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

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plotted a fixed range profile.

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

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

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extreme zones, the rejection zones of
the profile.

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

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

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

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

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

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or rejected.

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

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

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

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

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other.

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

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

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

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

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

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interpretation of these profile forms.

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It is important to always apply logic.

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because they do not have to be perfect.

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

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time, can be treated as a profile type
B.

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

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be treated as a profile type P.

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

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

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