hard · Volume Profile Analysis trading-strategies
CL (crude oil futures) has traded between 78.20 and 79.10 for three consecutive sessions, forming a composite profile with the POC at 78.65 and the Value Area spanning 78.40-78.90. On the fourth session, price opens at 78.30 — below the Value Area Low — and holds there for the first two 30-minute periods.
Which statement CORRECTLY describes how the 80% rule applies to this scenario?
- The 80% rule triggers immediately at 78.30 simply because price has opened outside the value area, so a trader should short the open and target the prior range low at 78.20.
- The 80% rule requires no specific trigger at all; any print below the VAL is sufficient on its own to activate a directional bias toward the opposite boundary.
- The prior range low at 78.20 is the only valid structural reference here, and the 80% rule does not apply to composite multi-session value areas.
- The 80% rule triggers only after price re-enters above the VAL at 78.40; the long entry targets the POC at 78.65 and ultimately the VAH at 78.90 as the opposite boundary.
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