medium · Volume Profile Analysis auction-market-theory
If an Open Drive starts to form but then stalls at a major psychological level like a 'round number' (1.1000 or 5000), this indicates:
- Responsive sellers (or buyers) are providing enough liquidity to absorb the initiating drive.
- All market participants have completely vacated the order book at this price level.
- The drive has officially failed and a clean 100-tick reversal back to value is now guaranteed.
- Institutional execution algorithms have malfunctioned and stopped routing orders out to the venue entirely.
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