medium · Volume Profile Analysis auction-market-theory
During a DAX futures session, the Initial Balance (IB) is established between 16,850 and 16,878 (28 points). At 11:00, price probes below 16,850 to 16,845, but rejects with a 5-point wick on elevated volume. At 13:15, price breaks above 16,878 and holds.
How should this session be classified and what is the extension target?
- Trend Day; expect price to close at the day's high without any pullbacks.
- Non-Trend Day; avoid trading as the moves lack institutional conviction.
- Neutral Day; target an extension of 10 to 12 points above the IB high.
- Normal Day; expect price to rotate back to the IB midpoint of 16,864.
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