easy · Volume Profile Analysis profile-shapes
The E-mini S&P 500 has built a D-shaped balanced profile over the past week with a composite Value Area from 5,605 to 5,615. Price probes to 5,620 — above the composite VAH — on higher-than-average volume and the profile begins building a new node there.
Compared with a low-volume probe above the VAH, why does the above-VAH volume building change the analyst's interpretation?
- High volume above the VAH confirms that price will return to the composite POC by end of session
- High volume above the VAH indicates value acceptance at the new level, raising the probability that the balance area is breaking to the upside
- The volume build above the VAH has no meaning because the Value Area cannot shift intraday
- High volume at any level above the POC always signals an imminent reversal
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?
- The 'Rotation Factor' for an index session is calculated as… — What does this numerical re
- A trader observes the E-mini S&P 500 (ES) opening at 09:30 E… — What is the Initial Balanc
- 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
- After a prolonged uptrend, a P-shaped profile forms, but ins… — How should this two-sessio
- A session has a 'b-shape' profile. The price spent the first… — What was the likely partic
- In volume profile terms, what has occurred to the prior consolidation zone's LVN between 1