medium · Volume Profile Analysis profile-shapes
A composite volume profile is built across 20 sessions of ES data. It shows a dominant POC at 5,560, a Value Area from 5,530 to 5,590, and three satellite HVNs outside the value area at 5,510, 5,480, and 5,620. A new session opens at 5,510.
How should a volume profile trader frame the day's likely auction hypothesis?
- Opening at the satellite HVN at 5,510 suggests the market may auction back toward the composite value area — a return above 5,530 (the composite VAL) would confirm acceptance of the broader value range
- Opening at 5,510 is entirely irrelevant to today's auction hypothesis; only the current live session's own developing intraday profile carries meaningful context for framing the day's trades
- The three satellite HVNs sitting at 5,510, 5,480, and 5,620 will each behave as fast-travel rejection zones that price slices straight through on any directional move away from the composite value area today
- Opening outside the value area at a satellite HVN definitively confirms an outright trend day lower toward the 5,480 node, since price has already completely and decisively abandoned the broader composite value range
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