medium · Volume Profile Analysis profile-shapes
A composite volume profile for ES shows an LVN at 5,610-5,620 sitting between two well-established HVNs: 5,590 (prior week's POC) below and 5,635 (prior month's POC) above. Price is at 5,625, just below the upper HVN.
What is the structural expectation as price approaches and touches the 5,635 HVN?
- Price will accelerate past 5,635 because HVNs always act as momentum launch pads in an uptrend
- Price will tend to slow, consolidate, or test acceptance near 5,635 as the market negotiates at a prior high-volume reference level
- Price will immediately and sharply reverse at 5,635 because HVNs are always the strongest form of price resistance
- The LVN at 5,610-5,620 will pull price back before it can reach 5,635
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