hard · Volume Profile Analysis

A trader notes that for three consecutive days, the Value Area has been entirely above the prior session's VAH.

According to the 'Three-Day Rule', what is the likely market regime?

  1. The Cumulative Volume Delta must be negative due to aggressive sellers entering at higher prices.
  2. The market is experiencing 'Long Liquidation' and will likely reverse to fill the gap.
  3. The market is in a balanced consolidation phase and is due for a mean-reversion move.
  4. The market is in a sustained upward trend and a regime shift is confirmed.

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