hard · Volume Profile Analysis
During a trending session, a trader observes a 'Buying Imbalance' on a footprint chart with a 3 × multiplier across four consecutive price levels. Simultaneously, the Cumulative Volume Delta (CVD) is making higher highs while price is stagnating at a historical High Volume Node (HVN).
What is the most probable outcome of this divergence?
- Absorption by a passive seller followed by a mean-reversion move.
- Initiative buying driving price through the HVN to the next resistance.
- A 'Short-Squeeze' as sellers are forced to cover their positions.
- A 'Neutral Day' formation where price rotates back to the session open.
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