medium · Volume Profile Analysis profile-shapes
An index moves from 5,600 to 5,620 during a morning session, producing a P-shape profile with the upper value area between 5,612 and 5,620. The afternoon session produces a distribution centered lower, between 5,595 and 5,610.
What does the downward migration of value from morning to afternoon tell a volume profile analyst?
- Value is migrating higher; the afternoon distribution above 5,595 confirms buyer dominance
- The sessions are independent; value area migration has no analytical significance in intraday profile work
- Value accepted in the morning was rejected by the afternoon auction; the market found a lower fair value range, suggesting sellers took control after the morning P-shape exhausted short covering
- The afternoon distribution confirms the P-shape is permanent; the market will return to 5,620 by the end of the week
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis profile-shapes practice
- A session is trending higher. A consolidation forms mid-day… — What does this skew imply?
- The 'Rotation Factor' for an index session is calculated as… — What does this numerical re
- A trader observes the E-mini S&P 500 (ES) opening at 09:30 E… — What is the Initial Balanc
- After three consecutive D-shaped sessions building a tight v… — How should a volume profil
- During an equity session, price forms a P-shaped profile. La… — What is the standard inter
- After a prolonged uptrend, a P-shaped profile forms, but ins… — How should this two-sessio
- A session has a 'b-shape' profile. The price spent the first… — What was the likely partic
- In volume profile terms, what has occurred to the prior consolidation zone's LVN between 1