Market Profile: Types of Opens and the Anatomy of a Trading Day

In the first part of our guide, we explained the basic anatomy of the Market Profile. We showed how the market creates a fair value zone (Value Area) and why the first hour of trading, known as the Initial Balance (IB), is the most important compass of your day.

Today, we will take a step further and show how the market’s opening often determines what type of day will unfold. You will learn to recognise 4 basic open types and 6 profile types, allowing you to know exactly whether to trend with the market or play counter-trend.

Aggressiveness at the "Open": 4 Types of Market Opens

Trading immediately after the main session opens is one of the most demanding disciplines. The very first minute creates the so-called Open Range (OR), an initial range that acts as the first minor S/R zone. What happens immediately after this reveals the level of aggressiveness of large players.

We distinguish 4 basic open types:

• Open Drive: The most aggressive start. Right after the bell rings, the market shoots in one direction (long or short) without returning to test the opening price. This indicates massive initiative activity by institutions and very often leaves a so-called tail (buying or selling tail) at the edge of the profile.

• Open Test Drive: The market shoots in one direction after opening (moves away from the opening price as in an Open Drive), but then returns to it, tests this opening level, and uses it as support (or resistance). Only then does it bounce and continue in the established trend.

• Open Rejection Reverse: A tricky start for beginners. The market accelerates in one direction during the first half-hours, hits hidden liquidity, gets completely rejected, and then aggressively returns, breaking through the Open Range itself.

• Open Auction: A calm start. The market has no clear direction and moves just above and below the opening price. This usually indicates a normal, rotational day, where the opening and closing prices of the day tend to be at a very similar level.

Global Context: The Power of Three Sessions

Before moving on to day types, it is necessary to understand the broader context. The market (e.g., futures) runs 24 hours a day, and the profile is divided into three eight-hour sessions: Asian, European, and American.

• American Session (from 15:30 CET / 9:30 AM EST): Carries the absolute greatest weight and forms the main volume of the day.
• Europe and Asia (Overnight Session): Carry less weight.

Pro Tip for index traders: If you trade the S&P 500 or its CFD version US500, the most important initial range (Initial Balance) that sets the tone for the day is not the European morning but the first two half-hours of the American session (15:30 – 16:30 CET). If the European and Asian sessions created a strong trend, the American session often tends to reverse it and seek balance (unless significant macroeconomic data is released).

6 Types of Trading Days: What Does the Initial Balance Predict?

By combining how wide the Initial Balance (IB) forms and how aggressively the market opens, we can accurately determine one of the six types of trading days:

1. Normal Day (ND)

A very rare phenomenon. It is characterised by an extremely wide IB. The market makes a massive move in the first hour and fails to exceed this initial range for the rest of the day. The profile eventually takes the shape of the letter "D" with tails at the top and bottom, as the market only seeks balance and rotates after the initial shock.

2. Normal Variation Day (NVD)

Occurs in 60 to 70% of cases. The market forms an average IB during the first hour. Then, in the third half-hour (TPO "C"), it breaks this range on one side. It doesn't test the other side of the IB again, and the market creates a nice drive in one direction. The target (Take Profit) after the breakout is usually 1.5 to 2 times the size of the IB.

3. Trend Day (TD)

It doesn't form often, but it provides the best profits. You can recognise it by a very narrow IB and an aggressive breakout as early as the third half-hour. The market creates a vertical move in one direction, and the half-hour blocks (TPOs) barely overlap. On a trend day, do not try to look for counter-trend trades.

4. Trend Day with Double Distribution (TDDD)

Often occurs on days when important macroeconomic news is released. The profile has two separate "mounds" (distributions) separated by a low-volume area. The market establishes a balance, then macro news arrives, the price quickly drops or shoots to a new level, and starts forming a second balance area there.

5. Neutral Day (NEUT)

A day full of false breakouts. The market first breaks the IB on one side, buyers lose momentum, and the market completely reverses, crosses the entire width of the profile, and breaks the IB on the other side as well. On such a day, the price reacts better to S/R zones, and the market likes to return to the opening price, which acts as a strong magnet here.

6. Non-Trend Day (NTD)

An extremely narrow IB, almost zero overlapping, and no breakout. This day usually occurs right before major holidays or key news releases when institutional players are absent from the market. The advice is simple: do not trade at all on such a day.

What's Next?

In this part, you learned to read the context of the day. Once you know a trend day is forming, you won't lose money looking for counter-trend bounces. If you see a neutral day, you know the edges of the profile will provide perfect entry points to trade back towards the centre.

In the third and final part of our series, we will combine all this into specific trading strategies. We will show vulnerable anomalies in the profile, strong market "magnets" (such as unfinished auctions), and exact conditions for entering long and short positions.