medium · Volume Profile Analysis profile-shapes
After a prolonged uptrend, a P-shaped profile forms, but instead of closing near its high, the session closes at the midpoint of the belly. The following session opens inside yesterday's belly and immediately moves lower.
How should this two-session pattern be read using profile shape analysis?
- The close at mid-belly and the lower open confirm the uptrend is continuing with a brief retracement
- The P-shape closing at mid-belly (not near the high) suggests weakening bullish acceptance; the lower open the next day adds evidence that value is at risk of migrating downward
- A P-shape always produces an upside follow-through the next session regardless of the close location
- The only relevant reference point is the opening price of the second session, not the prior day's profile shape
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