easy · Volume Profile Analysis profile-shapes
A D-shaped profile shows that today's Value Area is entirely above the prior session's Value Area with less than 20% overlap.
According to Volume Profile principles, what does this 'Value Area migration higher' indicate?
- It is a bearish sign, because the market is steadily migrating away from its established long-term composite POC reference level
- The Value Area migration carries no real directional significance unless it is also accompanied by a clear gap-up on the open
- It simply means the new session's POC must by definition print higher than the prior session's POC level
- The market has accepted a higher price range as fair value, signaling a bullish shift in market structure across sessions
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