hard · Volume Profile Analysis auction-market-theory
A trader sees a 'buying tail' from yesterday at 1.0820 and a 'selling tail' from two days ago at 1.0880. Price is currently at 1.0850 in a balanced 'D-shape'.
What is the most likely structural 'draw' for price?
- Price will remain in the current balance (near 1.0850) as the tails represent completed auctions that have been 'flushed'.
- Price will gravitate toward whichever session extreme happens to hold the 'Naked POC' that sits closest to the current price.
- Price will break out and run to 1.0880 because a selling tail is a structurally 'weak' boundary that price easily absorbs.
- Price will sweep down to the 1.0820 buying tail to fill the central single-print 'void' left behind in that prior session.
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis auction-market-theory practice
- What is the most likely market context?
- According to the daily open framework, what is the bias?
- If price is currently trading at $5,640 and the session Point of Control is at $5,615, wha
- According to auction market principles, what is the most likely outcome?
- A session prints a 'Narrow Initial Balance'. What is the most likely reason this often lea
- What is the most likely 'Open Type' classification?
- A session Profile shows a heavy concentration of volume at t… — What does this 'P-profile'
- A price level is touched by five separate 30-minute periods… — How should this 'Poor Low'