Balanced profile
Volume Profile Analysis glossary · Profile Shapes & Distributions
Definition
A Volume Profile whose distribution approximates a bell-shape — a clear single POC with comparable volume tapering on either side. Indicates two-sided participation and a market in equilibrium.
Balanced profile in plain English
A 'balanced' profile is a Volume Profile shaped like a smooth hill or bell — one clear peak in the middle (the price where the most trading happened) with roughly equal amounts of trading fading off above and below it. This shape means buyers and sellers were both showing up in similar force, so the market found a comfortable middle and stayed near it — it's in equilibrium, a fancy word for 'balanced, not strongly pulled either way.' Picture a well-attended party where most guests cluster around the food table in the center and thin out evenly toward the edges.
Related Volume Profile Analysis terms
Volume Profile Analysis practice questions · Volume Profile Analysis flashcards · Volume Profile Analysis study guide