The series of July started out with a big upmove, lost steam around 5350, revisited the lows yesterday and now poised at a critical level, contemplating direction.
Here's a profile chart –
The chart above shows :
a) volume picture in black also called volume at price
b) value lines in purple also called VAH/ VAL
c) vwap in Orange
d) developing POC is white
e) Standard deviations of the orange vwap band in yellow.
The chart shows that we are poised currently at Value area low with a break inside promising to take us straight to at least the DPOC or dVAH as per the 80 % rule theory we follow in Market profile.
1) Most of the volume has been in the value area ( over 70 % of the series), hence chances of a close within the value area at this moment for the series appear bright.
2) the yellow bands represent the max movement away from current price for the series. It's not expected to expire away from these yellow lines.
3) A close above the vwap band will cut out the down move seen and once can expect a move to VPOC.