medium · Volume Profile Analysis profile-anatomy

A 'Poor Low' ledge is formed at 150.00. Price then moves to 151.00. Later, price returns to 150.02, stays for 10 minutes, and then prints a 15-tick spike to 149.85 before rallying back to 150.20.

What just happened?

  1. Institutional sellers entered at 149.85 and are now trapped.
  2. The poor low was repaired and replaced by 'Excess', completing the auction.
  3. The market has entered a 'Trend' phase to the downside.
  4. A 'Failed Auction' occurred, and the poor low ledge is now stronger than before.

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