medium · Volume Profile Analysis profile-shapes
When a session ends with 'Excess' at the highs, what does it signify about the balance/imbalance state?
- The upward discovery process (imbalance) has likely ended and price has returned to balance.
- Sellers have withdrawn entirely, allowing price to float higher indefinitely without rejection.
- A fresh accumulation zone is being constructed at the very top extreme of the day's range.
- The market is becoming increasingly imbalanced to the upside and should gap sharply higher next session.
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