medium · Volume Profile Analysis profile-anatomy
You observe a 'b-shaped' Volume Profile at the end of a London session in EUR/USD. The POC is at the bottom of the day's range ($1.0820), with a thin upper tail extending to $1.0870.
What does this profile 'shape' reveal about the session's participant behavior?
- Balance; the symmetric distribution anchored at the bottom shows the market has clearly settled into its accepted fair value.
- Institutional accumulation of fresh long positions concentrated at the bottom of the day's developing trading range.
- Bullish acceptance; price was readily accepted at the new session highs after only a brief and shallow initial dip lower.
- Long liquidation or aggressive selling; price rallied early but found sellers who drove value to the bottom of the range.
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