medium · Volume Profile Analysis profile-shapes

A 10-day composite volume profile in the Russell 2000 futures (RTY) reveals three distinct bell-shaped clusters, each with its own POC, stacked vertically. The clusters are separated by two LVN gaps.

Which of the following correctly interprets the structure?

  1. This is a Normal Variation day profile; the three clusters are part of a single balanced distribution
  2. This is a triple distribution structure; the three areas of acceptance suggest the auction has repeatedly relocated value upward (or downward), and the LVN gaps are imbalance zones vulnerable to fast-move traversal
  3. This pattern is invalid in futures markets and should only be interpreted in equities
  4. The three clusters indicate three separate instruments overlaid on the same chart

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