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 closes above the prior-day POC automatically confirms composite acceptance, regardless of where the session value area builds.
- The single-session value area merely needs to close above the prior-day VAH at 5,520 to confirm acceptance above the composite POC.
- Confirmation requires price to reach the composite VAH on a closing basis; the composite POC at 5,500 is below the open and cannot serve as an acceptance target when price is already above it.
- 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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