hard · Volume Profile Analysis reference-levels-migration

What does re-entry into the prior-day value area below the VAH signal in auction-market terms?

1. A gap above the prior-day VAH followed by a close inside the value area is mechanically a failed breakout only if the close is below the prior-day POC; a close between the VAH and POC is neutral.
2. Closing inside the prior-day value area below the VAH is a bullish signal because it confirms the prior day's value area is still valid and buyers are defending it.
3. Re-entry below the prior-day VAH after failing at the composite monthly POC signals the market rejected the attempted upside discovery; by returning inside prior-day value, the auction is reverting to the prior session's accepted range, which shifts the near-term bias to neutral or bearish.
4. Re-entry into the prior-day value area is only meaningful if it happens in the first 90 minutes of the session; afternoon re-entries carry no structural significance.

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