easy · Volume Profile Analysis auction-market-theory
A volume-profile analyst examines a 10-day composite profile on EUR/USD (6E) and identifies a low-volume node (LVN) at 1.0950. Current spot is at 1.0920 and is trending higher.
What behavior does the LVN at 1.0950 predict as price approaches it?
- Price will consolidate at 1.0950 for a long time because low-volume nodes attract heavy resting interest
- Price will move rapidly through 1.0950 because low-volume nodes offer little support and are traversed quickly
- Price will stall and form a fresh point of control at 1.0950 since low-volume nodes accumulate new participation
- Price will reverse sharply right at the 1.0950 level because low-volume nodes essentially always act as firm resistance
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