Market Profile Balance Indicator For NinjaTrader – $399.00
A balance area refers to trading ranges, brackets, congestion areas, and consolidation ranges. Balance areas define price ranges in the market that are containing trade. Within these containment ranges reversion to the mean trades are the favorite of short-term traders. Jim Dalton (Market Profile creator) often refers to these containment ranges as “paradise” for short-term traders. Bigger opportunities occur as price auctions outside of these containment ranges. Balance areas occur in all time frames. Balance is an important concept because it signifies the potential for change to take place.
The following 2 pics detail one of the 5 things that can and do happen on every time frame around balance areas.
The high volume node of the area of balance is now plotted. This is where to look for a market response and trade entry.