medium · Volume Profile Analysis auction-market-theory
A 'P-shape' profile often features a string of single prints at the bottom.
What is the most common auction narrative behind this structure?
- A 'Neutral Day' in which the Initial Balance (IB) was extended roughly equally on both sides.
- Short-covering: a rapid rally driven by exiting sellers, followed by acceptance at higher prices.
- A trend day where price closed at the absolute lows of the session range after persistent selling.
- Fresh other-timeframe institutional accumulation building durable value at the session lows.
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