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 construction of a balanced two-sided Normal Day structure
- The opening leg of a sustained one-timeframe directional trend day
- A failed auction printing outright rejection right at the opening reference level reading
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