medium · Volume Profile Analysis reference-levels-migration
A volume profile analyst is building a composite profile for GBP/USD covering a 15-session bullish sequence. The composite POC resides at 1.2855. Individual daily session POCs from the most recent three sessions sit at 1.2875, 1.2890, and 1.2910 — all untested Naked POCs above the composite. Price is currently at 1.2840, below the composite POC.
Which description of the structural hierarchy is most accurate?
- The composite POC at 1.2855 is the immediate overhead resistance; the three Naked POCs above form a sequential upside target chain accessible only if price first accepts above the composite POC
- The Naked POC at 1.2875 is the only relevant reference because it is the nearest individual-session level
- The composite POC and all three Naked POCs have equal weight; price will be attracted to all four simultaneously
- Because the composite covers 15 sessions and the Naked POCs are from only 3 sessions, the composite POC is at least five times more significant and the individual Naked POCs can be disregarded
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