medium · Volume Profile Analysis auction-market-theory

A session prints a 'Narrow Initial Balance'. What is the most likely reason this often leads to a Trend Day later in the session?

1. Narrow opening ranges keep the market from establishing any value for the day.
2. Institutional desks generally prefer to delay their largest block orders until the afternoon session.
3. Most participants have already finished their main business in the opening hour.
4. The low-conviction early trading indicates pent-up participation that will enter later.

Sign up free to see the explanation and track your rank →