medium · Volume Profile Analysis profile-shapes
A stock trading at 150.25 breaks above a multi-day consolidation with the composite profile POC at 148.80. The breakout session closes at 151.10, forming a P-shaped profile with the POC at 150.60 and almost no volume below 149.50. The following session gaps up to 151.50 and quickly adds volume between 151.00 and 152.00.
In volume profile terms, what has occurred to the prior consolidation zone's LVN between 149.50 and the new value?
- The LVN between 149.50 and the new value area has been converted into an HVN by the breakout session
- The LVN will automatically become the new session POC if price returns to it
- The LVN is irrelevant once a new higher value area has been established above it
- The LVN remains; if price revisits the 149.50-150.60 zone in a future session, it should travel through rapidly on its way to the composite POC near 148.80
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