medium · Volume Profile Analysis profile-shapes
A stock trading at 95.00 produces a b-shape profile after failing a breakout attempt above the prior week's high. The Point of Control sits at 93.40, near the low of the session, and the Value Area Low is at 92.80.
Where do volume profile traders most commonly look to enter a long trade on the following session?
- At the Point of Control (93.40) or Value Area Low (92.80) on a retest, as these represent the fairest accepted price levels from the prior session
- Above the session high where the thin upper tail of the b-shape ends, anticipating a clean breakout continuation higher next session
- At the exact midpoint of the total session range, since the b-shape supposedly implies symmetric mean reversion back toward the center area
- At the prior week's high, since the failed breakout level will inevitably be retested from below before any further downside can develop next session
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