Original link: https://muyexi.im/ru-he-shi-yong-initial-balance/
The most important trading hours for U.S. stocks are 1 hour after the market opens and 1 hour before the market close, which generally determine the highest and lowest prices of the day.
Market Profile calls the first hour as Initial Balance, and Initial Balance has the following trends:
trend
The most powerful trend, after which the price will most likely move forward, starting from the high or low point of the day.
The starting point determines the day’s low
The starting point determines the high point of the day
The day may be a large interval day :
Days with a broad uptrend usually open near the lows and close near the highs. Days with a broad downtrend typically open near the high and close near the low. [1]
N word structure
After the rise/fall, backtest, and then continue to run in the original direction, the pullback determines the high and low points of the day.
Backtest after opening higher
Backtest after opening low
shock
There is a high probability that the market will fluctuate that day, with no clear direction.
how to use
- Use Initial Balance to judge intraday trends and conduct short-term transactions.
- Avoid staying up late to watch the market.
- Determine whether the current day is a large interval day.
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