hard · Volume Profile Analysis profile-anatomy

On a normal (bell-shaped) day, the point of control, the volume-weighted settlement, and the geometric center of the value-area range all sit within a tick of each other. The next session opens, builds a clean single distribution, but its POC, its VWAP, and its value-area midpoint fan out into three visibly separated prices, with POC well above VWAP and VWAP above the VA midpoint.

What does this divergence most precisely diagnose about the session's auction?

  1. It diagnoses random tick noise; on any single-distribution day these three measures are mathematically equivalent, so visible separation can only be a charting artifact rather than real structure
  2. It diagnoses a skewed (asymmetric) distribution in which heavy volume concentrated high while time and range extended lower, so the volume mode, the volume centroid, and the range center legitimately separate and rank-order the skew
  3. It diagnoses a completed trend day, because POC sitting above VWAP above midpoint is the textbook signature of price trending and never occurs within a balanced single distribution
  4. It diagnoses a b-shaped liquidation profile specifically, since only long liquidation can pull VWAP below the point of control by exhausting late sellers into the low

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