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 moving away from the long-term composite POC
- The Value Area migration has no directional significance unless accompanied by a gap-up open
- It means the POC of the new session must be higher than the prior session's POC
- The market has accepted a higher price range as fair value, signaling a bullish shift in market structure across sessions
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