medium · Volume Profile Analysis reference-levels-migration
A trader is monitoring 'Value Migration'. Day 1 VA is [1.0700, 1.0740]. Day 2 VA is [1.0745, 1.0780]. Day 3 VA is [1.0785, 1.0820].
If Day 4 opens at 1.0825 and immediately prints an 'Open Drive' higher, what is the strategy?
- Enter long at market immediately, placing a fixed 50-pip stop just below the Day 2 VAH level
- Short near 1.0830, expecting a rare Reversal Day to print and pull price back down to fill the gap toward VAL
- Look for Trend Setup entries on pullbacks; directional conviction is high after 3 days of migration.
- Fade the move as overextended; value is stretched and must eventually rotate all the way back down to the Day 1 POC
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