hard · Volume Profile Analysis trading-strategies
ES futures close a session with a prior-day profile: VAH 5,640, POC 5,610, VAL 5,580. The next day opens at 5,598, inside the prior-day value area but below the prior-day POC. The developing session profile begins to show heavier volume at 5,600–5,605 rather than at the prior-day POC of 5,610. As the session progresses, the session POC stabilizes at 5,602.
What does the relationship between the session POC (5,602) and the prior-day POC (5,610) indicate for mean-reversion participants?
- The session POC forming below the prior-day POC indicates short-term accepted value is below yesterday's fair price; a responsive long from below the session POC now targets the session POC at 5,602 rather than the prior-day POC at 5,610, and reaching 5,610 requires the session POC to migrate higher first
- The session POC forming below the prior-day POC is unambiguously bullish for participants, because it clearly shows buyers are actively supporting prices beneath the prior-day POC, a configuration that effectively guarantees a continued rally up to the prior-day VAH at 5,640 today
- The eight-point difference between the developing session POC at 5,602 and the prior-day POC at 5,610 is far too small to carry any real meaning for an auction this size, so a mean-reversion trader should simply treat the two of them as one single identical level for trades
- The prior-day POC at 5,610 automatically overrides today's developing session POC in every single case here; the session POC printing at 5,602 carries no real significance whatsoever for mean-reversion participants whenever an already-established prior-day POC happens to sit nearby just above it on the profile
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis trading-strategies practice
- Where is the most logical place for your protective stop-loss?
- Based on the concept of 'naked POC decay' and magnetic pull, what is the most disciplined
- What is the most defensible stop-loss placement for a short entry based on this rejection?
- How should a trader manage counter-trend resistance levels in this environment?
- If the first target is an HVN at $1.37500, what is the Reward-to-Risk (R:R) ratio of this
- What is the primary risk of using a 'fade' strategy at the VAH or VAL during a balanced se
- From a profile structure perspective, where is the most logical location to trail the stop
- A price probe at $1.3615 is followed by a sharp retreat, lea… — How should this 'Failed Au