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 remains the controlling reference, and price is now statistically obligated to revert back downward into that established value area before the week concludes
- 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 sustained price action above 79.00 should be read purely as a single-print profile tail and excess high, meaning it carries no informational weight and the trader should disregard it entirely
- The newly developing POC at 79.45 mechanically cancels and overwrites the prior week's old POC, leaving 79.45 as the single valid volume reference for the market going forward
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