medium · Volume Profile Analysis profile-shapes
A weekly composite profile in crude oil (CL) shows a well-developed single distribution with POC at 77.80 and a tight value area from 77.10 to 78.50. The following week, price opens at 79.20 (above the prior VAH), trades between 79.00 and 79.80 for three days, and begins developing a new POC at 79.45.
Which volume-profile observation best describes what is happening?
- The prior week's POC at 77.80 is now the dominant reference and price will revert to it during the week
- A second distribution is forming above the prior week's value area; if it solidifies, the composite view will show a split profile with the LVN around 78.50 to 79.00 as the imbalance zone
- The price action above 79.00 represents a profile tail and should be ignored as excess
- The new POC at 79.45 cancels the prior week's POC and becomes the only valid reference going forward
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