medium · Volume Profile Analysis auction-market-theory
An 'Open Test Drive' is identified when the market opens, probes a prior reference level such as a Naked POC or prior VAH, and then immediately reverses to drive aggressively in the opposite direction.
What does the initial 'test' signify?
- A search for responsive participation to confirm the lack of opposing interest
- The establishment of a Normal Day structure
- The start of a sustained trend in the direction of the test
- A failed auction at the opening print
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