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?

  1. Balance; the symmetric distribution anchored at the bottom shows the market has clearly settled into its accepted fair value.
  2. Institutional accumulation of fresh long positions concentrated at the bottom of the day's developing trading range.
  3. Bullish acceptance; price was readily accepted at the new session highs after only a brief and shallow initial dip lower.
  4. Long liquidation or aggressive selling; price rallied early but found sellers who drove value to the bottom of the range.

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