NIFTY Options trade : Why and what-if...

[linkon7]

The low side tgt is done..!!
So do we go long considering day high tgt will also b hit.. :lol::lol:

Tathashtu...!

Market heard ur wish...:lol:

 

[sunny_cool]

IB stands for

 

[linkon7]

IB stands for

IB (Initial Balance) is the opening range that sets the market up for the day. IB is determined by those who are desperate to act in the first 5 to 15 minutes. Some use first 30 min as IB.

Range extension is calculated based on this IB...like todays IB was 23... so expected range extension was 2 times as it was expiry...!

4714+23 = upper tgt 1
4691 - 23 = lower tgt1

4714 + 46 = upper tgt2
4691 - 46 = lower tgt2

 

[anayash]

IB (Initial Balance) is the opening range that sets the market up for the day. IB is determined by those who are desperate to act in the first 5 to 15 minutes. Some use first 30 min as IB.

Range extension is calculated based on this IB...like todays IB was 23... so expected range extension was 2 times as it was expiry...!

4714+23 = upper tgt 1
4691 - 23 = lower tgt1

4714 + 46 = upper tgt2
4691 - 46 = lower tgt2

How well does it hold on other days? I mean are the target levels seen often after the break of low/high of IB?

 

[linkon7]

How well does it hold on other days? I mean are the target levels seen often after the break of low/high of IB?

We need a blue print on what to expect based on where we open, how well bigger players are responding to the IB. Are the initiating positions or are they reacting to prices....! These form the core of profiling concept....!

There are basically 6 type of days classified in MP...! All calculations are made based on this IB...!

 

[trade4joisar]

We need a blue print on what to expect based on where we open, how well bigger players are responding to the IB. Are the initiating positions or are they reacting to prices....! These form the core of profiling concept....!

There are basically 6 type of days classified in MP...! All calculations are made based on this IB...!

Thanks.

MP?

 

[anayash]

Thanks.

MP?

Market Profile!

 

[linkon7]

We need a blue print on what to expect based on where we open, how well bigger players are responding to the IB. Are the initiating positions or are they reacting to prices....! These form the core of profiling concept....!

There are basically 6 type of days classified in MP...! All calculations are made based on this IB...!

There are 6 types of day identified by using the Market Profiling technique.

* Normal Day Not as common as the name might suggest. Typified by early entry of other-frame buyers or sellers creating a large initial price range. The action then wanders back and forward during the day in standard auction fashion as buyers and sellers struggle to get the upper hand.

* Normal Variation on Normal Day Less extreme initial price action, as if the other-frame buyers/sellers are waiting and watching in order to build their conviction. Then the market mnakes a more dramatic move followed by standard 2 way auctioning to the close.

* Trend Day One side of the other-frame is in control right from the open, and for the whole day. A succession of higher highs/lower lows forms. Experts have determined that this day type shows a high level of directional confidence throughout the day. The initial range is often narrow.

* Double Distribution Trend Day This is a variation on a trend day. Looks similar to a normal variation on a normal day, except more time is spend wandering in the first range while the other-frame buyers/sellers build up conviction to make the market move. Something changes mid session to cause a change in conviction perhaps insider news or a report.

* Non Trend Day Often looks like a Trend day at start (narrow range). Then meanders with no conviction in a range bound area. Often seen before a big news announcement as the market waits to see whether it should jump up or down.

* Neutral Day Like a non-trend day, except other-frame buyers and sellers are active, they just happen to agree on value (broadly speaking). Traders say this day type is characterized by range extension beyond the initial balance during the session as the two sides test the edges of each others tolerances. Has 2 variations Neutral Center in which price closes near the open (no resolution between buyers/sellers), and Neutral Extreme, one side wins, closing either up at the top of the range, or down at the bottom.

 

[trader.trends]

There are 6 types of day identified by using the Market Profiling technique.

* Normal Day Not as common as the name might suggest. Typified by early entry of other-frame buyers or sellers creating a large initial price range. The action then wanders back and forward during the day in standard auction fashion as buyers and sellers struggle to get the upper hand.

* Normal Variation on Normal Day Less extreme initial price action, as if the other-frame buyers/sellers are waiting and watching in order to build their conviction. Then the market mnakes a more dramatic move followed by standard 2 way auctioning to the close.

* Trend Day One side of the other-frame is in control right from the open, and for the whole day. A succession of higher highs/lower lows forms. Experts have determined that this day type shows a high level of directional confidence throughout the day. The initial range is often narrow.

* Double Distribution Trend Day This is a variation on a trend day. Looks similar to a normal variation on a normal day, except more time is spend wandering in the first range while the other-frame buyers/sellers build up conviction to make the market move. Something changes mid session to cause a change in conviction perhaps insider news or a report.

* Non Trend Day Often looks like a Trend day at start (narrow range). Then meanders with no conviction in a range bound area. Often seen before a big news announcement as the market waits to see whether it should jump up or down.

* Neutral Day Like a non-trend day, except other-frame buyers and sellers are active, they just happen to agree on value (broadly speaking). Traders say this day type is characterized by range extension beyond the initial balance during the session as the two sides test the edges of each others tolerances. Has 2 variations Neutral Center in which price closes near the open (no resolution between buyers/sellers), and Neutral Extreme, one side wins, closing either up at the top of the range, or down at the bottom.

Is this used for post market analysis? Because looking at the IB we cannot make out which of the six days it is going to be until it becomes clear only later or by EOD. Or is there a way of judging it using the IB?

 

[linkon7]

Is this used for post market analysis? Because looking at the IB we cannot make out which of the six days it is going to be until it becomes clear only later or by EOD. Or is there a way of judging it using the IB?

IB is the yard stick....just a rough measurement of potential future extension...!

Say we open above yesterday's value area and the low of the IB is respected, it means bulls are willing to chase price and bears want higher prices to go short...! This scenario might lead to a DD or Trend day...!

If we open inside yesterday's range or the IB is wide.. we have a scenario where we might develop a neutral or NV kind of day...!

Its a subject by itself and MP is discussed actively in indi-trader....!