medium · Volume Profile Analysis auction-market-theory

A trader identifies an 'Open Rejection Reverse' (ORR) opening type in Gold futures (GC). Price opens at 2350, rallies to a prior-day HVN at 2358, then sharply reverses through 2350 to 2345 on 3.5× volume.

What is the tactical rule for this setup?

  1. Enter short on the break of the open (2350); the day's high at 2358 is the protective stop.
  2. Buy at 2345 anticipating a 'Normal Day' rotation back toward the session open price.
  3. Wait for a re-test of 2358 before entering long, since the high volume signals a clean breakout.
  4. Short at 2345 and place the protective stop exactly at the 2350 session opening price.

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