medium · Volume Profile Analysis profile-shapes
You observe a 'Double Distribution Trend Day' where the first distribution (VA₁) is separated from the second distribution (VA₂) by a series of single prints.
If price retraces into the single print zone in the following session, what is the expected market behavior at the edge of VA₁?
- The POC of the composite profile will shift immediately to the single print zone as liquidity is added.
- Strong resistance (or support) as the transitional zone acts as a structural 'cliff edge' that the market rejects.
- High volume acceptance, as the market seeks to fill the volume void and normalize the profile into a 'D-shape'.
- A 'Failed Auction' signal, because the single prints indicate that business was never completed at those prices.
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