hard · Volume Profile Analysis trading-strategies
A month of composite profile data reveals a clear b-shape: a bell body representing the lower value area, with a thin tail rising above the body spanning 30 price levels. A new session opens at the top of the tail.
What is the structural implication of this b-shape for the new session?
- The b-shape tail above the body signals strong support — the new session opening at the top of the tail should trend higher without resistance
- A b-shape always means the next session will be a Trend Day lower — the tail above will be liquidated by initiative sellers
- The b-shape indicates the tail region was visited but not accepted — opening at the top of the tail is at a price level with thin historical volume; the high-probability structural expectation is a return toward the body's POC unless initiative buyers build new value at the tail
- The b-shape tail and body represent two equal value areas — the new session should rotate between the top of the tail and the base of the body
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