After the gap-fill earlier in the week, the Nasdaq futures bounced up to the Volume Profile Point of Control (VPPOC), now at 4480, where the expected consolidation is underway.
There are many different types of Volume Profile patterns and some are categorized according to whether the VPPOC is in the middle or near the top or the bottom. The current VPPOC is in the middle of a symmetrical distribution, and also the fulcrum of a potential megaphone that resolves at my previously mentioned upside target of 4617-4627.
It would be rather bearish is this doesn’t play out.
A Note on Volume Profile
The histogram on the left side of the chart shows the volume distribution in the Nasdaq futures for different periods of time. Key support and resistance levels are indicated by the peaks and troughs. If you would like to receive a primer on using Volume Profile, please click here.
