medium · Volume Profile Analysis profile-shapes
A technology stock's prior week composite profile is b-shaped: the bulk of the week's volume is in the 148-152 range, with a thin upper tail reaching to 158. This week, the stock opens at 157.50 — inside the thin upper tail of last week's b-shape.
Based on the b-shape structure, what is the primary volume profile hypothesis for the current session's opening?
- The opening in the thin tail confirms bullish accumulation; price will continue higher because the b-shape is always a bullish pattern
- Opening in the thin tail of the b-shape places price in an LVN; a failure to attract new volume here increases the probability of a return toward the dense lower cluster at 148-152
- The thin upper tail acts as a structural magnet, pulling price upward with no resistance until a new profile forms
- Opening in the upper tail of a b-shape automatically confirms a new double-distribution is developing
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