hard · Volume Profile Analysis auction-market-theory

A market has been in a multi-day balance. Today it opens well ABOVE the balance area, trades there for the first 90 minutes building a small initial balance, then breaks back DOWN into the prior balance and accepts value inside it by mid-session.

For an auction-market reader, what is the highest-probability read for the remainder of the day?

  1. Continuation higher, because opening above balance confirms an upside breakout that the early pullback merely retests
  2. Rotation back toward the FORMER balance's opposite (lower) extreme, because the failed breakout above signals the auction is re-exploring the full balance to find rejected sellers
  3. A new balance will form at the open's elevated level, because the first 90 minutes of trade there established fresh accepted value
  4. An immediate sharp trend down through the entire balance, because any failed breakout instantly converts into a same-magnitude move the other way

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