The market state in which acceptance behavior has persisted — both sides absorbing each other within a defined range.
Full Explanation
A balanced state is not tradeable for direction. Neither side can sustain relocation beyond the range boundaries, and the direction of the eventual break cannot be predicted from the balance itself. A balanced state is tradeable for range behavior — anticipating absorption at the boundaries — and as a breakout structure when the balance eventually resolves. The range it defines, and the mid-range it establishes, become structurally important when a breakout occurs.
In the Book1 chapter
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Chapter 13 · Reading the Current Market
The Three States
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