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.
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