Three-wave post-release pattern
Volume Profile Analysis glossary · Auction Theory & Market Profile (TPO)
Definition
The typical three-stage price reaction after a high-impact economic release: algorithmic burst (0–60s), discretionary reaction (1–15 min), and directional settlement (15–60 min).
Three-wave post-release pattern in plain English
When a big economic report drops (like a jobs number), price usually reacts in three quick stages instead of one clean move. First, in the opening seconds, computer programs fire off trades instantly, causing a sharp burst. Next, over the following minutes, human traders digest what the news actually means and push price around as they react. Finally, over the next hour or so, the market settles into the direction it really wants to go once everyone's had time to think — a bit like a classroom hearing surprise news: instant gasps, then buzzing side-chatter, then everyone finally agreeing on how they feel about it.
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