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?

  1. 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
  2. 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
  3. 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
  4. 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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