hard · Volume Profile Analysis auction-market-theory
A trader labels a session a Trend Day because price closed near its high, up sharply from the open. Reviewing the tape, the first ninety minutes actually show price chopping in a range half the width of the eventual daily range, testing both the prior day's high and low twice each, before a single 15-minute bar on triple the average volume breaks the range and the market one-time-frames higher for the rest of the day.
Is the trader's Trend Day label correct, and if not, which classification better fits the full session?
- Incorrect, since a single late move fitting Normal Variation caused the extension.
- Incorrect, since repeated tests of the prior high and low make this a Neutral Day.
- Correct, since closing near the session high is the only Trend Day requirement.
- Correct, once the early chop is read as a delayed IB before sustained migration.
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