hard · Volume Profile Analysis
An instrument has been oscillating with overlapping Value Areas for five days. On session 6, price gaps above the prior VAH and prints an 'Open Drive' on significantly elevated volume.
According to Auction Market Theory, how should this gap be treated in the context of regime transition?
- As an exhaustion gap because five days of balance implies the market has already reached its fair value limits.
- As a common gap that is likely to be filled by the end of the London session due to the lack of prior price discovery.
- As a breakaway gap that likely marks the start of a new trend, making a fade attempt extremely low probability.
- As a responsive selling opportunity because the gap creates an immediate Low Volume Node (LVN) that must be filled.
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis practice
- If today's Value Area High (VAH) is $1.0820 and tomorrow's Value Area Low (VAL) is establi
- 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
- A session is trending higher. A consolidation forms mid-day… — What does this skew imply?
- A session on AUD/USD has a Value Area of $0.6650 to $0.6680. The following session's Value
- According to auction market principles, what is the most likely outcome?
- On USD/JPY, Session 1 Value Area is $151.20 to 151.80. Session 2 Value Area is $151.30 to
- Comparing two sessions on Brent Crude: Day 1 VAH is $82.50, VAL is 81.20. Day 2 VAH is $81