hard · Volume Profile Analysis auction-market-theory

A market opens with an 'Open Rejection Reverse' (ORR) type. It initially probes above the previous day's VAH, but quickly reverses to break through the previous day's VAL on high volume. This results in an IB extension that is 2.0x the IB range.

What is the highest probability day-type classification?

  1. Normal Variation Day (Bearish), as the IB extension is significant but the initial rejection limits it from a full Trend Day.
  2. Non-Trend Day, since the initial sharp reversal off the prior session VAH plainly signals a broad lack of conviction.
  3. Trend Day, because any single IB extension exceeding 1.5x the initial balance range is automatically classified as a trend.
  4. Neutral Day, because price traded both above the prior VAH and below the opening print before extending lower late on heavy volume.

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