A market is considered in balance when consolidating in a tight range for two or more days. Balance rules provide the framework for the potential scenarios and outcomes: Look above and go. Prices move above the balance area high, find acceptance, and continue higher. The target should be double the balance area. In a gap situation, make sure you are aware if you are gapping right to the target. Don’t forget gap rules if it is a true gap. Look above and fail. Prices move above the balance area high but fail to find acceptance and reverse back into the balance area. This is now a short with a stop above the high just made above the balance area, with a target to cover at the opposing low end of the balance area. Look below and go. Prices move below the low of balance and find acceptance and continue lower. The target should be double the balance area. Look below and fail. Prices move below the low of balance but fail to find acceptance and reverse back into the balance area. This is now a long with a stop below the low just made below the balance area, with a target to sell at the opposing high end of the balance area. Remain in balance. Prices remain within the confines of the balance area. Responsive trade is in play. Look for smaller, counter-trend moves against the extremes of balance and/or technical/market profile nuances. It pays to trade in the direction of the developing value area and volume point of control. Responsive trades work well when a market is in balance.