medium · Volume Profile Analysis auction-market-theory

A session high at 5600 is tested five times over three hours, with price never extending more than 0.5 points above the level. The session closes at 5599, and the Volume Profile shows 8% of total volume concentrated at the high.

How should this extreme be classified?

  1. An excess high, marking a structural end of the auction and a dependable pivot to fade
  2. A poor high, indicating an incomplete auction that is likely to be broken in the next session.
  3. A buying tail, reflecting strong institutional demand that ought to continue to defend this level firmly
  4. A naked POC, which acts as a price magnet drawing future auctions back to retest this exact level later

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