easy · 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?

  1. A 'Neutral Day' is likely, as the factor is near its limit.
  2. The market is in a strong bearish trend with persistent lower highs and lower lows.
  3. The market is perfectly balanced and rotational.
  4. Volatility is 14% above the 20-day ATR.

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