easy · Volume Profile Analysis profile-shapes
A composite weekly volume profile for ES shows a well-developed High-Volume Node (HVN) at $5,600. Price is currently trading at $5,625 — above the HVN.
What is the typical short-term expectation if price pulls back to the HVN?
- The HVN at $5,600 will act as support; buyers are expected to re-engage there because it represents a prior zone of high value acceptance
- An HVN sitting below current price is irrelevant for support — in volume profile only the High-Volume Nodes located above current price truly matter
- The HVN will draw price rapidly straight through it on the retest, because heavily traded nodes behave as frictionless 'fast markets'
- Price will immediately reverse back above $5,625 on the touch, because weekly High-Volume Nodes only carry weight on the monthly timeframe
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