medium · Volume Profile Analysis profile-shapes
The 'Rotation Factor' for an index session is calculated as -14 after the first four hours of trade.
What does this numerical result tell the analyst?
- A choppy 'Neutral Day' is likely here, since the factor is near its lower limit
- The market is in a strong bearish trend with persistent lower highs and lower lows.
- The market is perfectly balanced and rotational, with highs and lows being tested symmetrically
- Realized volatility is reading roughly 14% above the prevailing 20-day ATR figure
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