Three-day rule
Volume Profile Analysis glossary · Value Migration & Reference Levels
Definition
A Market Profile heuristic: value-area migration in the same direction for three consecutive sessions indicates a meaningful trend change.
Three-day rule in plain English
Market Profile tracks the price zone where most trading happens each day, called the 'value area' — basically where the crowd agreed prices were fair. The three-day rule is a simple rule of thumb: if that fair-value zone keeps sliding in the same direction (up or down) for three days running, it's a real sign the market's mood is genuinely shifting, not just one random day of noise. It's like noticing your friend group's favorite hangout spot: one day at a new café could be a fluke, but three days in a row means the whole crew has actually moved.
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