medium · Volume Profile Analysis profile-shapes
After observing a D-shaped balanced profile on the ES that ended with the POC at $5,610, the next session opens with price driving directly to $5,635 — well above the prior VAH — and volume begins building at the higher level.
According to auction-market theory, what is the most likely carry-forward scenario?
- Responsive sellers will immediately drive price back down to yesterday's fair value because that prior level remains the only valid anchor.
- The market is attempting to establish a new, higher value area; if volume continues to develop at the higher level, value acceptance has occurred
- The prior session's D-shaped balance structure guarantees that price must return to its session POC within roughly thirty minutes of the new session open.
- The previous session's prior VAH level is automatically inherited and then adopted as the new session's developing session POC reference.
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis profile-shapes practice
- A session is trending higher. A consolidation forms mid-day… — What does this skew imply?
- A trader observes the E-mini S&P 500 (ES) opening at 09:30 E… — What is the Initial Balanc
- The 'Rotation Factor' for an index session is calculated as… — What does this numerical re
- After a prolonged uptrend, a P-shaped profile forms, but ins… — How should this two-sessio
- After three consecutive D-shaped sessions building a tight v… — How should a volume profil
- During an equity session, price forms a P-shaped profile. La… — What is the standard inter
- Where do volume profile traders most commonly look to enter a long trade on the following
- Which scenario is most consistent with a bullish resolution of the prior b-shape?