hard · Volume Profile Analysis reference-levels-migration
A volume profile practitioner is reviewing EUR/USD. The current session has developed a balanced D-shaped profile with the POC at 1.0865 and the value area from 1.0850 to 1.0880. Price is at 1.0880 — the Value Area High. The practitioner knows that a prior session's Naked POC sits at 1.0920.
What is the most structurally coherent volume profile interpretation of this situation?
- The Naked POC at 1.0920 is the primary trade target; enter long immediately at the VAH because the upside reference demands it
- Because the D-profile is balanced, the Naked POC at 1.0920 is cancelled out and should be removed from the chart
- A responsive buy at the VAH is correct because the Naked POC above always overrides session structure in balanced markets
- In a balanced session, the VAH at 1.0880 is a responsive sell zone targeting back toward the POC at 1.0865; the Naked POC at 1.0920 only becomes relevant if price breaks out of the current session's value area and accepts above the VAH
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