Who this entry is for — For anyone who closes in the red because they apply the same strategy every day. Steidlmayer classifies three session types — P, b, and T — with different operational logics.
Source: Steidlmayer, CBOT Market Profile (1984–85); Jim Dalton — Mind Over Markets (1990), day type classification. Raw:
raw/sources/steidlmayer/.
Prerequisites
Initial Balance, Equilibrium and imbalance, Market Profile.
The three types
Steidlmayer and the CBOT tradition distinguish three dominant shapes of the daily profile. Classification is not final at the open: it refines as the session proceeds, but Initial Balance and behaviour relative to the previous VA give early clues.
| Type | Name | Profile shape | Regime | Strategy |
|---|---|---|---|---|
| P | Normal / Profile | Double distribution or central POC | Balance → possible transition | Fade extremes, target POC |
| b | Non-trend / Bracket | IB = day range, POC at centre | Tight balance | Range trade IB/VA |
| T | Trend | POC at extremes, IB extension | Imbalance | Follow direction, pullbacks |
In plain terms — **P**: the market explores then decides. **b**: stays in the box. **T**: exits and does not return.
P day (Normal)
The P day is the most common. The market forms an initial range (IB), may extend in one direction, then rotates towards the central POC. The profile resembles a «P» or a double distribution.
Early signals: contained IB; open inside previous VA; single extension (1× IB) followed by return towards POC.
Operationally: after the initial extension, seek mean-reversion towards POC. Avoid directional chase after the first move — it is often discovery, not trend.
Example — ES opens in balance, IB 10 points. At 10:00 it extends 10 points above IB High, then by midday returns towards the central POC: classic P-day. Short at post-extension VAH targeting POC makes sense; a long breakout at 10:05 would have been premature.
b day (Bracket)
The b (bracket) day is a sideways session: price stays inside the Initial Balance for the whole day or nearly so. POC at the centre, narrow VA, no significant extension.
Early signals: IB wide relative to subsequent movement; open in multi-day VA overlap; absence of directional news.
Operationally: range trade between IB High and IB Low (or VAH/VAL). Target POC. Tight stops beyond extremes. Avoid trend strategies — the market has not chosen direction.
Frequent mistake — Forcing breakout trades on a b-day. If at 11:00 price is still inside IB and volume drops, the probability of a bracket close is high — every false breakout costs.
T day (Trend)
The T (trend) day shows clear imbalance: open outside previous VA, IB extension beyond 1.5×, POC at the extremes (top or bottom of the profile). Price does not return to the central POC.
Early signals: gap or open outside VA; IB extended in one direction; no return to previous VA within 90 min.
Operationally: follow the direction. Enter on pullbacks to LVN, broken IB High/Low, or session POC. Do not fade. Targets: IB extensions (1×, 1.5×, 2×).
| Subtype | Description | Notes |
|---|---|---|
| T↑ | Bullish trend | POC at top, narrow VA at top |
| T↓ | Bearish trend | POC at bottom, narrow VA at bottom |
| T neutral | Trend with shifted POC but bilateral extension | Less clean, caution |
Real-time identification
| Session time | What to observe | P | b | T |
|---|---|---|---|---|
| 9:30–10:30 | IB formation | Normal IB | IB = range | Extended IB |
| 10:30–12:00 | Extension or rotation | Extension + return | Inside IB | Extension without return |
| 12:00+ | Confirmation | Central POC | Central POC, range | Extreme POC |
Card — Day types
- P: discovery + rotation; fade post-extension.
- b: bracket; range trade, no trend.
- T: imbalance; follow direction, no fade.
- Filter: IB + relationship with previous VA.