medium · 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 an extended period because low-volume nodes attract trading interest
- Price will move rapidly through 1.0950 because low-volume nodes offer little support and are traversed quickly
- The LVN at 1.0950 becomes a POC because traders will rush to fill the volume gap
- Price will reverse sharply at 1.0950 because LVNs always act as strong resistance
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis auction-market-theory practice
- According to the daily open framework, what is the bias?
- If price is currently trading at $5,640 and the session Point of Control is at $5,615, wha
- According to auction market principles, what is the most likely outcome?
- What is the most likely market context?
- A session Profile shows a heavy concentration of volume at t… — What does this 'P-profile'
- A price level is touched by five separate 30-minute periods… — How should this 'Poor Low'
- A session prints a 'Narrow Initial Balance'. What is the most likely reason this often lea
- An E-mini S&P session opens. The 09:30-10:30 range is 15 poi… — According to the 'Range Ex