What is a P-shaped volume profile?

A P-shaped Volume Profile typically occurs when a market rises sharply and then consolidates. After price reaches the upper end of a P-shaped profile, there can be a period of consolidation where balance is reached between buyers and sellers. The lower portion of a P-shaped profile is long and thin representing low volume rejection.

What is a P shaped volume profile?

While P-shaped profiles often occur during uptrends, a P-shaped profile can also mark the end of a downtrend indicating a possible short covering rally. Since short covering is usually seen as temporary strength within a market, P-shaped profiles can be interpreted as bullish signals. b-Shaped Volume Profile

What is a B shaped volume profile?

b-shaped profiles are commonly found during downtrends but when a b shape is seen during an uptrend, it can potentially indicate a reversal. Because b-shaped profiles represent longs exiting the market, they are generally understood as bearish signals. D-Shaped Volume Profile D-shaped profiles occur when there is a temporary balance in a market.