medium · Volume Profile Analysis auction-market-theory

In a TPO (Time-Price-Opportunity) chart, a session high at 1.2650 is marked by 4 periods (letters) trading at the same price tick without exceeding it. Subsequent price action rotates back to the session midpoint.

What structural artifact is left behind?

  1. A 'Naked POC', which will act as a magnetic target for the next session.
  2. A 'Selling Tail', confirming institutional defense and a strong resistance level.
  3. A 'Poor High', indicating an incomplete auction that is likely to be broken on a later test.
  4. An 'Initiating Selling' signature that confirms the start of a bearish trend.

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