hard · 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 together with the lower next-day open simply confirms the established uptrend is continuing after a brief, healthy retracement back into prior value
- 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 upside follow-through on the next session regardless of where the prior session actually closed within the belly, so the weak close is irrelevant
- The only reference point that matters here is the opening price of the second session; the prior day's completed profile shape and its close location carry no analytical weight whatsoever
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