medium · Volume Profile Analysis reference-levels-migration
During a London session for EUR futures, a 30-minute bar reaches a new high at 1.08620 and closes at 1.08540, with the overwhelming majority of the session's volume transacted between 1.08535 and 1.08545, and very little volume at the 1.08615 extreme. Volume is 3.1 times the rolling average.
How does the volume profile of this bar characterize the zone at 1.08615?
- An HVN sitting at 1.08615 that should attract and draw price back up toward it on the open of the next regular trading session lying ahead
- The POC of the bar locating at 1.08615, because that print is the single price spot where the session's very highest transacted price actually changed hands
- A Low-Volume Node at the extreme of the bar, indicating price was rejected there and the market's fair value for that bar lies well below the spike high
- Merely a single print left at 1.08615 that the ongoing auction is essentially certain to revisit and then immediately gap-fill on the very next bar of trading to come
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