hard · Volume Profile Analysis trading-strategies
Price has been in a balance zone for four sessions, developing a composite D-shape profile with the POC at 5200. Price breaks above the composite VAH at 5215 on the fifth session with expanding volume and holds above it for three consecutive TPO periods.
What profile-based confirmation best validates this as a genuine breakout from balance rather than a false probe?
- Price exceeds the composite VAH by at least 20 points, because breakouts always need a minimum extension to be genuine.
- The composite POC at 5200 must be re-tested and hold as support before the breakout can be confirmed.
- Volume on the breakout bar must be exactly double the session average for the auction to confirm acceptance above value.
- The current session's Value Area begins migrating higher and the developing POC is above the prior composite VAH, indicating that new acceptance is being built above the old boundary.
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