Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

Market Profile : Different Types of Profile Days

4 min read

Welcome to the Market Profile Series. In the last tutorial, we discussed the different types of markets (Balanced and Imbalanced). In this tutorial, we will be discussing the different types of Market Profile Days. By analyzing the shape of the profile, one can easily identify

  • who is in control of the market?
  • whether other timeframe players are present for the day.
  • What the market is trying to do. Which direction the market is attempting to move
  • Which are the key levels the market is attempting to test or re-visit

If you are new to market profile it is recommended to start here How to read a market profile charts

What are the Different Types of Profile Structures?

  • Non-Trend Day
  • Normal Day
  • Normal Variation Day
  • Trend Day
  • Neutral Day Center
  • Neutral Day Extreme
  • P-shape profile
  • b-shape profile

Non-Trend Day

A Non-Trend day is characterized by a balanced market profile, usually observed prior to significant economic events, news announcements, or earnings results. This scenario often leads to reduced participation, resulting in a day that can be perceived as dull and uneventful. The trading range, defined by the day’s high and low, is notably narrow, offering limited risk-reward opportunities for intraday traders. These days are marked by low trading volume and a noticeable absence of influence from long-term investors, leaving the market predominantly in the hands of day traders. For intraday traders, scalping strategies tend to be more effective during these non-trend days.



Non Trend Days typically align with ‘inside days,’ where the range of the current day remains confined within the high-low parameters set by the previous day. Price rejections, whether at the high or low, often occur close to the high volume node of the preceding day. Notably, there is an absence of range extensions in either direction, indicating a scarcity of traders operating on different timeframes. During these periods, prices tend to oscillate within the Initial Balance area. The market is characterized by low volatility, and the Initial Balance itself is notably narrow.

Normal Day

A Normal day represents a balanced market profile, distinguished by a broader Initial Balance. This type of profile is the most common, occurring approximately 50-60% of the time across various markets. Trading typically focuses on the Point of Control, which is considered a fair and central location for market activities. Often, there is a noticeable one-sided range extension, or prices may fluctuate around the wider Initial Balance. In either scenario, there tends to be increased trading activity centered around the Point of Control.

Price generally rotates near the center of the profile and the maximum participation happens at the center of the profile with higher volumes at the POC (point of control). Single prints(Buying tails and Selling tails) on both sides indicate a lack of conviction among both the other time-frame buyers and sellers. The profile shape looks like a perfect bell-curved shape.

No one is in control of this market type and the risk-reward ratio is higher for a day trader at the extremes. Wider the initial range, more risk-rewarding for the day trader. However, the profile is low-risk risk rewarding for new shorter-term traders or long-term players (who hold the position for more than a day) as the market closing is very close to the center of the profile.

A Profile day with a wider initial balance with no range extension is also considered a normal day.

Normal Variation Day

Normal Variation Day is typically an imbalanced profile and the day is dominated by large timeframe players (Buyers or Sellers). Long time-frame players are waiting for the market to settle down where they consider the price to be fair and then they take control of who drives the market aggressively post 11.00a.m or 12.00p.m with the range extension outside the initial range. The range extension is more than 2 times the Initial Range And the Initial Balance is typically smaller than the normal day but higher than the trend day.

The above picture shows a typical normal variation up day where the range extension happens in the ‘G’ period and the length of range extension is 2x Initial Balance.

Trend Day

Trend day is an imbalance profile where the day is controlled by the long-timeframe participants and the conviction is very strong among the long timeframe players right from the beginning of the market. Other market participants have no options other than aligning in the direction of a longer timeframe. Many Short-term traders and intraday traders have the characteristics of trading against a trend day.

A Perfect Trend Day one timeframe throughout the day continuously. Hardly such trend days break the one-timeframing once.

On Trend Days, the market profile shape is vertical and elongated, with minimal price rotation, clearly indicating a one-sided trend from the outset. The Value Area on such days is usually quite expansive. For day traders, the Risk-Reward Ratio tends to be higher during these Trend Days.

Double Distribution Day

Double Distribution is an imbalance profile and one form of trend day where the Initial Balance is small and the first price rotation (1st Balance Region) happens at the Initial Balance. Then, in the larger timeframe traders take control and drive the price in one direction. In the later session, another price rotation happens at the other side of the edge(2nd Balance Region). Both the price rotation regions should be separated by single prints. Risk-Reward Ratio is typically higher for a day trader during Double Distribution Days.

Neutral Day Center

Neutral Day Center is a balanced profile where the initial range is smaller than Normal day. Both the Larger timeframe buyers and Larger timeframe sellers are Present. They don’t trade directly with each other but the intraday trader will act as a mediator between both the larger time-frame buyer and seller. Range Extension happens on both sides (i.e. Initial Balance Breaks out on both sides). The first half will be dull and boring with low volume however the second half will be mostly dominated by bigger volumes and the price finally manages to close around the center of the profile.

Neutral Day Extreme

Neutral day extremes are quite common on event days, days where both the larger timeframe players fight. Initial balance breaks out on both sides but the price managed to close at the one side of the day’s extreme.

The first half of the day is dominated by traders with low volume transactions followed by larger timeframe breaking the Initial balance on both the sides with strong volume.

P Profile Shape

P Profile days are short covering days and the letter A or B forms the bottom with single prints in the Initial Range and market opens at the bottom of the profile. The price rotation happens at the top of the profile (i.e at the range extension area).

b Profile Shape

b Profile days are long exit days and the letter A or B forms the top with single prints in the Initial Range and market opens at the top of the profile. The price rotation happens at the bottom of the profile (i.e at the range extension area).

Risk Reward ratio

  • lower in Non-Trend Day, Normal Day.
  • neutral in normal variation day and Neutral Day
  • higher in Trend Days and Double Distribution Day

Initial Balance Range

  • Non Trend Day – Narrow IB
  • Normal Day – Wider IB
  • Normal Variation Day – less than Normal Day IB
  • Trend Day – Narrow IB
  • Double Distribution Day – Narrow IB

In the next tutorial we will be discussing about the how to trade 80% rule , a simple and effective strategy to trade value area

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

What is Market Tempo – Market Profile Tutorial

Market tempo, a nuanced yet pivotal concept in trading, is the rhythm at which market prices fluctuate over a given timeframe, influenced significantly by...
Rajandran R
1 min read

The Essential Guide to Top-Down Analysis in Trading –…

Navigating the markets can feel like trying to find your way through a maze. But what if I told you there's a map that...
Rajandran R
2 min read

Short Term Correction in E-Mini Futures – US Market…

E-Mini on the Monday session ended with an uncleared poor high followed by inventory adjustment. The major short-term inventory adjustment happened after the US...
Rajandran R
44 sec read

11 Replies to “Market Profile : Different Types of Profile Days”

  1. hi. fine attempt to educate on MP with Indian index context. loved it after going through basics of MIP & MOM (thanks to Jay for introduction to it). have some query hoping to be not taken as a ‘finding loop hole practice’. a genuine educative interest only. isn’t ‘p’ shape profile means booking of shorts but absence of fresh longs. older shorts holding positions &/or new ones a\being added. vice verse for ‘b’ shape profile. booking profit by longs but absence od fresh shorts. older longs holding position &’/or fresh ones being added. need to be corrected on this ones. as said before, just eduinformative interested query. thank you for such wonderful easy yet detailed thread on MP. means a lot.

    1. This comment is a couple of years old, so I’m guessing that it won’t reach you. But to anybody reading this comment and wondering the same thing: Don’t use the MP as ways to find automatic entries. Use them to analyze what the market is expected to do. For instance, if price comes up to a high volume node and rejects quickly, the chances are that it will go lower. If it comes up and goes sideways, that’s showing uncertainty/acceptance of price. If it shoots right through, which is rare, that shows great strength. So it’s not as easy as “enter here, exit there”. If the markets were that easy, everybody would be able to trade them. It takes more thinking and analyzing than “enter here, exit there”.

      I hope this helps. If it does, always remember that great Croatian that helped you online 😛 hahaha

  2. When we have a P shape profile; how can we take advantage of this? Go long when prices pullback to the single print region after making daily highs? And vice versa with B shape profiles; short when prices retrace back to A/B period?

  3. How do i determine IB is Narrow, moderate or wider for a stock or index. Could you please share what to calculate to determine IB. Is it important to remember what day type it is forming for today? we need to wait till 10:15 at least to determine day type. Is there any easy way to memorize day types or identify in simplest way as the day progress or before second 30 minute candle closes?

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More