medium · Volume Profile Analysis reference-levels-migration

In the context of 'Value Migration', what does it mean if the Value Area moves higher while the POC remains at the lower end of the profile?

1. The classic three-day rule has been fully invalidated by the divergence between the mode and the session mean.
2. The market is now perfectly balanced and in equilibrium, so no directional trade should be taken at all here.
3. A 'b-shape' liquidation top is forming overhead, signalling that aggressive sellers have now seized absolute control of price.
4. The market is exhibiting 'Short Covering' or aggressive 'Initiation' that hasn't yet consolidated into a new balance.

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