medium · Volume Profile Analysis trading-strategies
A trader identifies a 'Poor High' on the E-mini Nasdaq (NQ) at 20,540.50, where three TPO periods converged at the same price without rejection.
If the next session opens at 20,520 and rallies toward 20,540, what is the most high-probability mechanical trade according to Auction Market Theory?
- Wait for a Naked POC fill below, as poor highs act as reversion magnets pulling away.
- Position for a breakout, as poor highs represent incomplete auctions likely to be breached.
- Fade the 20,540 level, treating the three converged TPO periods as a firm overhead resistance ceiling.
- Enter long immediately at the open and hold all day, since an overhead poor high guarantees a trend day.
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