hard · Volume Profile Analysis

A trader identifies 'Value Migration' occurring over three consecutive days with each day's VAL being higher than the previous day's VAH.

What is the 'Three-Day Rule' implication here?

  1. A high-conviction bullish trend has been established, and one should look for long entries on pullbacks.
  2. Volume is likely to decline significantly on the fourth day, creating a non-trend day.
  3. The market is in a 'Neutral' state because three is an odd number of sessions.
  4. The market is overextended and a mean-reversion trade back to the first day's POC is imminent.

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