medium · Volume Profile Analysis auction-market-theory

An 'Open Rejection Reverse' (ORR) occurs in the DAX. Price opens at 18,200, probes the prior session's High Volume Node at 18,230, and immediately reverses to break the opening price.

What is the expected day type and trading posture?

  1. Open Auction; wait for the first hour to complete before taking any bias.
  2. Non-Trend Day; avoid trading as the market is in balance.
  3. Trending or Normal Variation; bias toward the reversal direction.
  4. Normal Day; fade both extremes of the Initial Balance.

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