medium · Volume Profile Analysis profile-anatomy

A trader identifies a 'Support/Resistance Flip' at a prior-session Point of Control.

Why does this level frequently reject on a retest?

  1. The level instead marks an 'excess' auction extreme that the auction itself never actually reached
  2. Captive participants who were long at the POC seek to exit at breakeven, creating a net supply at that price
  3. The Point of Control is really a Low Volume Node that price reliably accelerates straight through on any retest
  4. The execution algorithms are strictly programmed to only buy positions back at the current session's developing VWAP

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