medium · Volume Profile Analysis auction-market-theory

What does a 'Narrow Initial Balance' (IB) relative to the 20-day average signify for the rest of the session?

  1. A high probability of a 'Trend Day' or significant 'Range Extension'.
  2. That institutional volume is exceptionally high.
  3. The Value Area will likely stay 'Overlapping' with yesterday's profile.
  4. A high probability of a 'Normal Day' where price stays inside the IB.

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