medium · Volume Profile Analysis reference-levels-migration

Which property of volume distribution BEST explains this statistical tendency?

1. Naked POCs are visible to every participant as the prior session's VWAP, so a shared consensus memory of that single average price is precisely what systematically draws the entire auction back to retest the level
2. The market is perfectly fractal, so any prior support or resistance level will be retested with roughly equal probability inside any fixed time window, regardless of how much actual volume happened to trade there at the time
3. Naked POCs are retested purely because technical traders cluster their passive limit orders at the printed level en masse, a pure self-fulfilling prophecy that is entirely unrelated to the underlying volume distribution structure itself
4. The heavy volume concentration at a prior POC represents a broad zone of price discovery and two-sided interest that remains an unresolved reference for the auction; the market gravitates toward unresolved high-volume areas

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