medium · Volume Profile Analysis auction-market-theory
The ES initial balance (first 60 minutes) for the session establishes a range of 5,600 to 5,620. By the third hour, price trades to 5,635, breaking above the IB high on elevated volume.
How is this price action classified in Market Profile terminology?
- A failed auction, because price broke above the initial balance and must return back inside it again
- A value area extension, because the breakout is building entirely new accepted value above the 5,620 composite VAH
- Upside range extension — the time frames beyond the A/B periods are accepting trade above the initial balance
- An Open-Drive continuation, because any break above the IB high on elevated volume gets classified as an Open-Drive
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