hard · Volume Profile Analysis reference-levels-migration
A D-shaped composite profile built over 8 sessions shows a single prominent bell with the POC at 5,500 and the value area occupying 70% of the total range. The prior-day VAH is 5,520 and the prior-day POC is 5,505. Today opens at 5,518 and the first hour develops a small value area between 5,514 and 5,522. By midday, this new single-session value area stacks inside the prior-day value area but has not reached the composite POC.
What condition would upgrade this session's profile from a potential inside day to a confirmed acceptance above the composite POC?
- Any session that opens above the composite POC and then also closes above the prior-day POC will automatically and reliably confirm composite acceptance, no matter where on the broader price scale the actual single-session value area itself happens to end up building over the course of the day.
- The single-session value area need only manage to close above the prior-day VAH at exactly 5,520 in order to fully, cleanly, and finally confirm genuine acceptance above the composite POC, with no further volume development at the lower 5,500 level being required of the market whatsoever at any later stage.
- Confirmation strictly requires price to reach all the way up to the composite VAH on a clean closing basis, since the composite POC at 5,500 already sits below the session open and therefore simply cannot serve as any valid upside acceptance target whenever the market price already trades freely above it now.
- Acceptance above the composite POC would require the single-session value area to extend and build volume at or above 5,500 on the composite scale, with the single-session POC migrating above 5,500 and closing there, showing the market has shifted its center of gravity above the multi-session POC.
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