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 breakout continuation
- At the midpoint of the total range, since the b-shape implies mean reversion toward the center
- At the prior week's high, since the failed breakout will be retested before any further downside
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis profile-shapes practice
- A session is trending higher. A consolidation forms mid-day… — What does this skew imply?
- The 'Rotation Factor' for an index session is calculated as… — What does this numerical re
- A trader observes the E-mini S&P 500 (ES) opening at 09:30 E… — What is the Initial Balanc
- After three consecutive D-shaped sessions building a tight v… — How should a volume profil
- During an equity session, price forms a P-shaped profile. La… — What is the standard inter
- After a prolonged uptrend, a P-shaped profile forms, but ins… — How should this two-sessio
- A session has a 'b-shape' profile. The price spent the first… — What was the likely partic
- In volume profile terms, what has occurred to the prior consolidation zone's LVN between 1