medium · Volume Profile Analysis trading-strategies
A trader monitoring a 10-year Treasury futures contract observes that the composite volume profile over the past month has a clear HVN centered at 108-16. A macro event causes price to gap below the HVN to 107-24. The developing profile in the post-news session shows price ranging between 107-16 and 107-28 on above-average volume, with the new session POC forming at 107-22.
What is the profile-based interpretation of this post-news session structure?
- The gap below the HVN at 108-16 confirms that the trend is now decisively and irreversibly lower, so the prior high-volume node carries zero ongoing analytical relevance and can be safely discarded from the composite map for all future session reference work
- Price is always strictly obligated to fill an HVN gap, so the entire move down below the 108-16 node must be fully and completely retraced back into prior accepted value before the close of this very same regular cash trading day, with no exception whatsoever permitted
- A fresh post-news session POC forming below a prior HVN automatically invalidates every single previously mapped volume-profile level on the entire chart and therefore forces the trader to perform a complete composite-profile rebuild entirely from scratch right away before continuing
- The gap below the HVN creates an LVN air pocket between 107-28 and 108-16; the new post-news session building a POC at 107-22 shows the market accepting value at the new lower level — the HVN above remains a significant resistance reference for any attempted recovery
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