medium · Volume Profile Analysis profile-shapes
A five-day composite profile in EUR/USD shows a primary distribution centered at 1.0870 (POC 1.0868, VAH 1.0895, VAL 1.0845) and a secondary distribution centered at 1.0920 (POC 1.0918), separated by a thin LVN at 1.0900. Price rallies to 1.0930, then pulls back to 1.0905 on lower volume.
Which of the following best describes what the retest of 1.0900 area signifies in this split profile context?
- Price is testing the upper edge of the LVN; if volume remains low and price holds, the upper distribution's POC at 1.0918 continues to act as the dominant reference
- The LVN at 1.0900 is now a confirmed High Volume Node because price has visited it twice
- The retest of 1.0900 invalidates the entire five-day composite profile
- Price must return to the lower distribution's POC at 1.0868 before any new high can be made
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