medium · 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 underlying support, so a new session that opens at the very top of that tail should simply trend higher straight from the open without ever encountering any meaningful overhead resistance or supply along the way at all
- A b-shape always means the very next session will inevitably be a clear Trend Day lower, because the thin tail standing above the body will be liquidated in full by aggressive initiative sellers right from the opening bell without any responsive defense whatsoever at all
- 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 the body represent two equally weighted and fully interchangeable value areas, so the new session should simply rotate back and forth between the top of the tail and the base of the body throughout the entire trading day from the open to the closing bell at the end
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