hard · Volume Profile Analysis trading-strategies

A four-day balance area has formed a tight, overlapping composite profile with a well-defined POC. On day five, price breaks below the composite low on volume only slightly above average, then within ninety minutes reclaims the composite low and closes the session back inside the balance area near the POC.

Under AMT logic, what should a breakout-trend trader conclude about day five's action?

  1. The break below the composite low was a failed breakdown, since the market rejected new lows and returned to balance instead of building acceptance
  2. The break confirms a valid new downtrend, since any excursion beyond a multi-day composite boundary is sufficient evidence of a directional shift
  3. The reclaim is irrelevant noise, since once a composite boundary is breached the market is structurally committed to trend in that direction going forward
  4. The session proves the four-day balance area was mismeasured, since a genuine balance area can never be broken by only slightly above-average volume

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