medium · Volume Profile Analysis profile-anatomy

A 'Buying Tail' is identified at the bottom of a session profile. The following session opens above the 'Buying Tail' but within the previous day's Value Area.

If price returns to the 'Buying Tail' and volume spikes without a lower low, what setup is forming?

  1. A 'Rejection Setup' short entry, since the volume spike shows the buying tail is now failing.
  2. A 'Trend Setup' long entry, since the market is clearly one-time-framing higher away from the open.
  3. An 'Accumulation Play' long entry, as the previous tail acts as a zone of institutional responsive buying.
  4. An 'Open Test Drive' that probes lower toward the previous day's POC before reversing to resume the prior uptrend.

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