hard · Volume Profile Analysis

If a session produces a P-shaped Volume Profile following a sustained multi-day downtrend, which market participant behavior is most likely represented in the thin lower tail?

  1. Aggressive initiation by new institutional buyers.
  2. A liquidity sweep of retail stops that failed to attract institutional interest.
  3. Passive accumulation by commercial hedgers at fair value.
  4. Responsive buying and short-covering by participants closing out profitable positions.

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