hard · Volume Profile Analysis
What is the structural implication of 'Excess' on a TPO profile, and how does it inform the placement of a Stop-Loss order?
- Excess marks a 'High Volume Node' that will act as a magnetic support/resistance level.
- Excess indicates 'unfinished business' that price must return to; stops should be placed far away to avoid being hit by the 'magnet' effect.
- Excess is a sign of a retail-driven spike; the stop-loss should be placed at the Point of Control to wait for institutional confirmation.
- Excess represents a completed auction and a 'true' extreme; a stop-loss should be placed just beyond the excess tail as it is unlikely to be tested soon.
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