hard · Volume Profile Analysis
Yesterday's session closed at $1.3200. Today's session opens at $1.3240, creating a 'gap' through a prior Low Volume Node (LVN) zone.
According to 'Gap Rule' logic, what is the most likely behavior when price returns to the $1.3200-$1.3240 region?
- Consolidation; the market will likely balance within the gap to 'fill' the volume profile.
- Reversal; gaps of this size ($0.40 ATR units) are almost never filled and lead to 'Trend Days.'
- Rapid traversal; the 'gap' is an LVN magnet that price will tend to move through quickly once entered.
- Strong support; the gap acts as a 'wall' that price will bounce off of 80% of the time.
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