medium · Volume Profile Analysis auction-market-theory

A bearish spike is identified between 1.0850 and 1.0830. The next day's 'Initial Balance' forms entirely between 1.0835 and 1.0845.

According to AMT, what is the market currently doing?

  1. The market is rejecting the spike since it trades above the close.
  2. The market is carving a clean 'Selling Tail' right at the spike base.
  3. The market is gapping lower, signaling an outright continuation of the prior selling.
  4. The market is balancing within the spike, indicating tentative acceptance.

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