Recognizing the day type early — ideally within the first 30-60 minutes of RTH — changes your entire approach for the rest of the session. The four main day types have different probability distributions for how price will behave, and trading them correctly is one of the most practical applications of AMT.
Trend day
A trend day is characterized by strong directional movement from open to close. The entire day's range is established early (one-time-framing in TPO), with very little overlap between successive 30-minute periods. Value area does not overlap with the previous day.
In a trend day, the only edge is with the trend. Fading any move is expensive. Entries on pullbacks to the VWAP or 30-min POC are the best opportunities. Trend days occur roughly 10-15% of sessions — but they produce outsized R if you're positioned correctly.
Early signs: price opens at or near one extreme and doesn't return. First 30-minute candle is large and directional. Delta is strongly positive (bullish trend) or strongly negative (bearish trend) throughout.
Normal variation day
The most common day type. The market establishes a range in the first 30-60 minutes, then extends it in one direction without full reversal. Extensions of the initial balance are common but limited. Price doesn't trend but has a bias.
Setups: fade overextensions beyond 1.25-1.5x the initial balance, look for responsive activity when the extension stalls.
Normal day
Balanced. Price establishes the IB and stays mostly within it for the rest of the session. This is a tight-range, balanced day — the market is in equilibrium. IB extremes hold as support/resistance. POC gets multiple tests.
Setups: IB extreme fades with tight stops, targets at POC. Short time window for trades — don't overstay.
Neutral day
A neutral day extends both above and below the initial balance, ending somewhere near the middle. It's the most common sign of a directional transition — the market is testing both sides and rejecting both.
Neutral days often occur at multi-day balance extremes or after trend days. The closing location within the range gives you the bias for the next session.
If the day closes in the upper half of its range, buyers were more aggressive. If it closes in the lower half, sellers were more aggressive. This colors the next day's opening hypothesis.
Day type identification process
- First 30 minutes: What is the opening type? Where did price open relative to the previous day's value area?
- After IB: Did price respect or break the IB? Which side extended, and how much?
- By 11am ET: Is there a trend developing, or is price rotating?
- Midday: Confirm the day type and adjust your remaining trade opportunities accordingly