hard · Volume Profile Analysis trading-strategies
A weekly composite profile for ES shows the POC at 5,480 with the Value Area spanning 5,450-5,510. The current day's session has built value between 5,505 and 5,515, entirely above the weekly VAH at 5,510. A mean-reversion trader wants to short from 5,512 back toward the weekly POC at 5,480.
What is the MOST important profile check before entering this trade?
- Whether the current session's profile is D-shaped or skewed.
- Whether the weekly POC at 5,480 has been tested in the last three sessions.
- Whether the session high is at or near a prior year's high price level.
- Whether the current session has built two or more 30-minute TPO letters above 5,510, which would indicate accepted value above the weekly VAH — potentially invalidating the mean-reversion short thesis.
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