easy · Volume Profile Analysis Profile Shapes & Distributions
On a balanced D-shaped session profile for NQ, the POC sits at $19,850. Price is currently trading $50 above the POC at $19,900.
A volume-profile trader interpreting this location within the balanced session would most likely expect:
- A strong directional continuation higher, since price trading above the POC is always an outright bullish signal
- An immediate, fast reversal running all the way down to the Value Area Low, no matter the price action
- A gravitational pull back toward $19,850, as price tends to rotate toward the POC on balanced days
- The POC to mechanically reprice up to $19,900 on the very next print that occurs there
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis Profile Shapes & Distributions practice
- A session is trending higher. A consolidation forms mid-day… What does this skew imply?
- The 'Rotation Factor' for an index session is calculated as… What does this numerical…
- A trader observes the E-mini S&P 500 (ES) opening at 09:30… What is the Initial Balance…
- A session has a 'b-shape' profile. The price spent the… What was the likely participation…
- After three consecutive D-shaped sessions building a tight… How should a volume profile…
- During an equity session, price forms a P-shaped profile… What is the standard…
- In volume profile terms, what has occurred to the prior consolidation zone's LVN between…
- A daily volume profile displays a large volume cluster at… Which profile shape does this…
All Profile Shapes & Distributions questions · Volume Profile Analysis study guide · Volume Profile Analysis glossary · Volume Profile Analysis flashcards