This article covers the six day types defined by Mind Over Markets: Normal, Normal Variation, Trend, Double Distribution Trend, Nontrend, and Neutral. Day types are not rigid categories to memorise but expressions of the level of other timeframe directional conviction on any given day. Understanding day types helps a trader visualise how the day is developing, estimate range potential, and calibrate profit expectations. The key skill is identifying the developing type early in the session — not after the fact.
- Part I: Overview and the Conviction Spectrum
- Part II: The Six Day Types
- Part III: Day Type Identification and Application
Part I: Overview and the Conviction Spectrum
The Role of Other Timeframe Conviction
Every day type is the result of a specific level and form of other timeframe activity. The initial balance serves as the base for the day. The stability of that base — whether it holds or is disrupted — is determined by how confidently the other timeframe enters the market.
Arranged from lowest to highest directional conviction:
| Day Type | Other Timeframe Involvement | Range Extension |
|---|---|---|
| Nontrend | Absent | None |
| Neutral | Both sides active | Both directions |
| Normal | Early entry, then balance | Contained within IB |
| Normal Variation | Later entry, one direction | One side |
| Double Distribution Trend | Late entry, strong move | Dramatic, one direction |
| Trend | Dominant throughout | Strong, one direction |
The labels are for learning only. What matters is reading the underlying conviction level as early as possible.
Part II: The Six Day Types
Normal Day
Dynamics: A Normal day is created by swift early entry of the other timeframe participant, which establishes a wide initial balance. Thereafter, price balances between both extremes as two-sided trade ensues. Normal days are often triggered by an early news announcement that drives price aggressively in one direction, attracting the opposite participant to cut off the move.
Structural signature:
- Wide initial balance (strong base)
- Tails on both extremes (other timeframe at both highs and lows)
- Price balances within the initial balance for the rest of the session
- Low probability of further range extension after the initial balance is set
Trading note: Despite appearing straightforward in hindsight, Normal days require buying or selling against the most recent aggressive price move — which is psychologically difficult.
Normal Variation of a Normal Day
Dynamics: The Normal Variation differs from a Normal day in that early activity is less dynamic. The initial balance is narrower. The other timeframe enters later in the session — having watched the early auction and decided price is opportune — and substantially extends the range in one direction. Two-timeframe trade then develops at the new level.
Structural signature:
- Moderately narrow initial balance
- Range extension occurs in one direction, usually early in the midday period
- Value is established at the new level after the range extension
- Both buyers and sellers active after the extension (two-timeframe mode)
Contrast with Trend day: The Normal Variation day resolves into balance at the new level. A Trend day never resolves — it keeps extending.
Trend Day
Dynamics: The Trend day is the highest-conviction day type. The other timeframe buyer or seller is in control from the opening bell to the close. Price auctions in one direction for the entire session without meaningful counteraction. The trend draws in progressively more participants, fuelling continued movement.
Structural signature:
- The open is usually the day’s high or low (other timeframe in control from the start)
- Thin, elongated profile (typically 4-5 TPOs wide at any point)
- Each successive half-hour period extends beyond the previous in one direction (one-timeframe market)
- No significant counterrotations
- Very little time spent at any single price
IMPORTANT
Failure to recognise a Trend day is one of the most expensive mistakes a trader can make. Attempting to fade a Trend day — selling into a buying trend or buying into a selling trend — can wipe out multiple sessions of profits in a single day.
Trading note: On a Trend day, there is no good trade location from the start. The goal is to get positioned early in the direction of the trend and hold. Getting on board early and staying on board is the only way to capture a Trend day’s full move.
Double Distribution Trend Day
Dynamics: A variant of the Trend day characterised by a period of inactivity during the first few hours, followed by a dramatic move to a new value area where a second distribution forms. Unlike the standard Trend day, the Double Distribution pauses to establish acceptance at the new level.
Structural signature:
- Very small initial balance (narrow base, easily disrupted)
- Strong range extension during midday, typically 3-6 periods
- Single-print area separating the two distributions (representing the swift move between value areas)
- Second distribution builds at the new level for the remainder of the day
The single prints: The single-print area separating the two distributions is an important reference. If price returns to fill those single prints (creating double TPOs), something has changed — the second distribution is no longer accepted as value. Monitor closely.
Nontrend Day
Dynamics: The Nontrend day has no directional conviction at all. The other timeframe is completely absent. These days often occur immediately before a major economic announcement or significant news event. Participants have balanced their positions in anticipation of the market’s reaction.
Structural signature:
- Narrow initial balance (similar to a Trend day setup — early confusion)
- No range extension in either direction (the other timeframe never arrives)
- Very small range and low volume
- Often looks like it might become a Trend day early in the session
Trading note: Nontrend days have almost no opportunity for day traders. The low volume environment makes for erratic, random rotations that do not follow any recognisable structural logic. Standing aside is the correct decision.
Neutral Day
Dynamics: A Neutral day indicates day timeframe balance. Both the other timeframe buyer and seller are present and active, but neither is dominant. They trade through the local as intermediary. The market auctions back and forth as both sides probe to determine conditions.
Structural signature:
- Moderate initial balance width (between Trend and Normal)
- Range extension occurs on BOTH sides of the initial balance (the defining characteristic)
- All timeframes involved = market in balance
Two types of Neutral days:
| Type | Close Location | Implication |
|---|---|---|
| Neutral-Centre | Middle of range | Balance between both OTF participants. Low conviction for next day. |
| Neutral-Extreme | High or low of range | One participant won the day timeframe battle. Strong signal for next-day direction. |
NOTE
A Neutral-Extreme day closing on the highs indicates the other timeframe buyer had greater conviction. Studies show that 92% of the time, the next session opens within or better than the previous day’s value area — one of the most reliable Special Situations. See special-situations.
Part III: Day Type Identification and Application
Reading the Day in Real Time
The challenge is not labelling the completed day (which is easy in hindsight) but identifying the developing type during the first hour. The following signals help:
Within the first few minutes:
- Open-Drive activity with strong tail: likely Trend or Normal day
- Narrow opening range with both sides testing: potential Nontrend or Double Distribution
- Open-Auction within prior value: likely Normal or Nontrend
Within the first hour:
- Wide initial balance that holds: Normal day developing
- Narrow initial balance, no extension: Nontrend developing, stand aside
- Extension on only one side of initial balance: Normal Variation or early Trend
- Extension on both sides: Neutral developing
Midday signals:
- Consecutive extensions in one direction: Trend day. Add to position with the trend.
- Range extension then balance at new level: Double Distribution Trend
- Rotational activity within range: Normal or Neutral
Adjusting Profit Expectations by Day Type
Each day type implies different profit potential and strategy:
| Day Type | Strategy | Profit Expectation |
|---|---|---|
| Trend | Enter early, hold with trend | High. Do not fade. |
| Double Distribution Trend | Enter with breakout of initial balance | High on the distribution-to-distribution move |
| Normal Variation | Responsive at one extreme, take gains at other | Moderate |
| Normal | Responsive at both extremes, take gains in middle | Low to moderate |
| Neutral | Trade the extremes responsively | Low. Be quick. |
| Nontrend | Stand aside | None. The juice is not worth the squeeze. |
Sources
- Jim Dalton, Eric Jones, Robert Dalton, Mind Over Markets (Updated Edition, Wiley Trading)