medium · Volume Profile Analysis profile-anatomy

When price approaches a 'Low Volume Node' (LVN) in an imbalanced market, how is it expected to behave?

  1. It will likely accelerate through the zone because there is little positioning to slow it down.
  2. The spread will narrow markedly as market makers crowd in and lift their quoting activity sharply.
  3. It will tend to find firm support or resistance as many resting traders aggressively defend their entries.
  4. It will likely stall out and begin building a fresh balance area centered right within the LVN.

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