Glossary · R
What is Range extension?
Price moving beyond the initial balance range, often a sign that other-timeframe participants have become active.
In context
The Market Profile reasoning goes like this. Day-timeframe traders tend to rotate within the IB. For price to leave the IB with conviction, larger or longer-horizon participants (the OTF) usually have to get involved. So range extension can be seen as a possible footprint of the OTF. That is why the CBOT's Market Profile study material and Dalton's books note that the absence of range extension usually means short-term traders are in control.
Learn it in depth
Related terms
Every term in context, with real gold examples: the free 301-page eBook.
Get the free PDFRead the academy