medium · Volume Profile Analysis profile-shapes
After three consecutive D-shaped sessions building a tight value area on NQ between 19,200 and 19,280, today's session opens outside this range at 19,310 and holds above the prior VAH for two hours without returning.
How should a volume profile trader interpret this price action?
- The sustained hold above the prior VAH signals successful auction above value — the market may be accepting a new, higher value area
- The open above value is merely a false breakout; the market will rotate back inside the prior value area before the close
- The point of control built across the prior three sessions is now obsolete and should simply be removed from the working chart
- A balanced D-shaped profile is essentially guaranteed today, since three balanced sessions almost always produce a matching fourth one
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