medium · Volume Profile Analysis profile-anatomy

On a strong bullish trend day, the developing VWAP is at 4450 and the developing POC is at 4430.

What does the POC lagging behind the VWAP indicate?

  1. Price is trending higher too quickly for volume to consolidate, common in aggressive initiation.
  2. A market maker is distributing longs to retail buyers up at VWAP while quietly re-accumulating down at the POC.
  3. A reversal is imminent because the lagging POC reveals true fair value sits lower.
  4. The session is becoming a Normal Day, since the volume is now concentrating tightly near the session lows.

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