easy · Volume Profile Analysis reference-levels-migration

A currency trader analyzes the 'Value Migration' of EUR/USD over three days. Day 1: VA is 1.0810--1.0830. Day 2: VA is 1.0825--1.0845. Day 3: VA is 1.0840--1.0860.

According to the 'Three-Day Rule,' what is the primary takeaway?

  1. The prevailing trend has meaningfully changed to bullish; three days of progressive value migration indicates sustained institutional re-pricing.
  2. The market is in balance; look for a neutral-center day signature, since overlapping daily Value Areas rotating around a stable POC define equilibrium
  3. The market is overextended, so expect a clean mean-reversion trade carrying price back down toward the original Day 1 POC reference
  4. A failed auction has occurred on Day 3 purely because the latest VAH has now printed at a fresh session high standing above all prior value

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