medium · Volume Profile Analysis profile-shapes

What is 'Initiative Selling' in the context of a b-shape's upper tail?

  1. Market makers who are compelled to sell purely because of exchange rules and posting obligations.
  2. Sellers who are aggressively pushing price below the previous day's value area to find new fair value.
  3. Buyers who seize the initiative to halt the decline by stepping in to absorb supply at the lows.
  4. Sellers who passively wait for price to revisit the session high before they are willing to enter short.

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