Volume Profile V3.0 — Complete Skill

Source: GetClaw | For: Wilee | Date: 2026-06-27
Version: V1.0 (Shapes) → V2.0 (Physics + Patterns) → V3.0 (Acceptance/Rejection + Decision Tree)

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MODULE 1 — Core Concepts

Term	Definition	AMT Field
POC	Price level with MOST volume. Market's "fairest price"	POC
VAH	Upper boundary — 70% of volume	Range upper
VAL	Lower boundary — 70% of volume	Range lower
HVN	Dense volume cluster — magnet	HVN
LVN	Thin gap — price blows through	implied (B-shape)
Value Area	Zone between VAH and VAL	Range

Core Principle: Volume = Agreements. High volume = agreed. Low = nobody agreed → price moves fast.

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MODULE 2 — Why Price Returns To Value (The Physics)

1. Balance Point — Returns to rebalance before trending
2. Order Flow — Limit orders at POC/VA boundaries pull price back
3. Institutional Execution — Large fills only inside VA
4. Market Efficiency — Return to traded zones to complete price discovery
5. Multiple Touch Reinforcement — More touches = higher probability

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MODULE 3 — The Four Shapes

Shape	Description	Strategy
D-Shape	Bell curve, POC middle. BALANCE = UNCERTAINTY	Fade extremes: buy VAL, sell VAH, target POC. Don't pick direction.
P-Shape	Volume heavy at TOP. BULLS IN CONTROL	Buy pullbacks to VA/POC. VAH = new support.
b-Shape	Volume heavy at BOTTOM. BEARS IN CONTROL	Sell rallies to VA/POC. VAL = new resistance.
B-Shape	Two HVNs, LVN middle. TWO AUCTIONS	Respect both POCs. Never stop in LVN.

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MODULE 4 — Shape Transition Logic

From	To	Trigger
D	P	2 closes above VAH + volume migrating up
D	b	2 closes below VAL + volume migrating down
D	B	Two HVNs with LVN between
b	D	Returns VA, volume redistributes evenly
P	D	Returns VA, bull momentum stalls
Any	B	News/event creates two auction zones

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MODULE 5 — Three Reaction Patterns

Pattern 1: Rejection At Value Area

Price enters VA → rejected → reverse. Entry on rejection candle. Target: opposite VA boundary.

Pattern 2: POC Magnet

Price drawn to POC by order density. Every rally/dip gravitates back. Primary target for all fade trades. POC must be cleared before targeting VAH.

Pattern 3: Value Hold → Continuation

Price returns to VA edge → holds → volume re-accumulates → continuation same direction. Not reversal — continuation. Difference from Pattern 1: hold + retest vs bounce OFF.

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MODULE 6 — Probability Stacking (Touch Count)

Touch Count	Probability Tier	Action
1	BASELINE	Note the level
2	HIGH	Standard size
3+	VERY HIGH	Full conviction
Failed break	REINFORCED	Highest — trapped traders

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MODULE 7 — VP × AMT Brief Translation Table

AMT Signal	VP Meaning
DEVELOPING_BALANCE	D-shape forming — wait
VAL_ABSORPTION	Buy orders at VAL — potential bounce
HVN: range	Core magnet zone
POC value	Highest density — primary magnet
State: TRENDING	P or b dominant — follow
ADX > 35	Trending confirmed
ADX < 25	D-shape zone — balance
Delta flip: True	Momentum shifting — transition signal
Absorption: DETECTED	Level being defended — reinforced

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MODULE 8 — MTF + HTF Confluence (VP × AMT Integration)

Volume Profile tells WHERE. AMT tells WHEN.

Four Confluence Zones

Zone	Condition	Action
ZONE 1 — STRONG	VP level + all 4 AMT layers aligned	Full size, tight stop
ZONE 2 — MODERATE	VP level + 3 of 4 layers. LOCKOUT on 1D	No trade. Watchlist.
ZONE 3 — WEAK	VP level + only 1H/15m aligned	Skip or paper trade
ZONE 4 — ANTI	VP says one thing, AMT says opposite	Do nothing. Wait.

HTF Alignment Matrix

Timeframe	VP Role	Weight
Weekly	Sets macro VA	Highest
Daily (1D)	Regime master — LOCKOUT if bearish	High
4H	Directional engine	High
1H	Timing confirmation	Medium
15m	Trigger only	Low

Rule: NEVER trade a VP level that conflicts with the Daily regime. 1D overrides.

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MODULE 9 — Quick Reference Card

Shape	Market State	One-Line Strategy
D	Balance/Uncertainty	Fade VAH and VAL, target POC, wait for break
P	Bulls in control	Buy pullbacks to VA, ride continuation
b	Bears in control	Sell rallies to VA, ride continuation
B	Two auctions/transition	Respect both POCs, avoid LVN

Decision shortcut:

• Price inside VA → ACCEPTANCE → fade extremes
• Price outside VA with 2 closes → REJECTION → follow direction

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MODULE 10 — Dashboard Integration

JSON Schema

{
  "vp_card": {
    "shape": "D | P | b | B",
    "poc": 59800,
    "vah": 60760,
    "val": 58500,
    "hvn_range": "59100-60600",
    "lvn_above": 62000,
    "lvn_below": 57000,
    "touch_count_val": 2,
    "touch_count_vah": 1,
    "probability_tier_val": "HIGH",
    "probability_tier_vah": "BASELINE",
    "acceptance_rejection_state": "ACCEPTANCE | REJECTION_UP | REJECTION_DOWN",
    "rejection_direction": "UP | DOWN | null",
    "consecutive_closes_outside_va": 0,
    "confirmation_status": "PENDING | CONFIRMED",
    "active_pattern": "POC_MAGNET | REJECTION_AT_VA | VALUE_HOLD | DUAL_POC",
    "strategy_bias": "FADE | FOLLOW | WAIT",
    "confluence_zone": "ZONE_1 | ZONE_2 | ZONE_3 | ZONE_4",
    "amt_lockout": true,
    "amt_verdict": "NO_TRADE | LONG | SHORT",
    "adx": 31.8,
    "absorption_active": true,
    "absorption_level": 60500,
    "absorption_side": "buy",
    "entry_level": 58250,
    "t1": 59800,
    "t2": 60760,
    "t3": 62000,
    "stop_loss": 57400,
    "invalidation": 61761,
    "rr_t1": 1.8,
    "rr_t2": 2.95,
    "size_recommendation": "50_PERCENT | STANDARD | FULL | SKIP",
    "btc_price": 60490,
    "session": "LONDON | NY | ASIA | WEEKEND",
    "last_updated": "2026-06-27T08:02:00Z"
  }
}

Auto-Logic Rules

// Shape determination
closes_outside >= 2 AND price > vah → shape="P", bias="FOLLOW", direction="UP"
closes_outside >= 2 AND price < val → shape="b", bias="FOLLOW", direction="DOWN"
price BETWEEN val/vah AND closes_outside < 2 → shape="D", bias="FADE", state="ACCEPTANCE"
2 distinct HVN clusters + LVN gap → shape="B", bias="WAIT", pattern="DUAL_POC"

// Probability tier
touch_count 1→BASELINE | 2→HIGH | 3+→VERY_HIGH | failed_break→REINFORCED

// Size
amt_lockout → "50_PERCENT"
!lockout AND ZONE_1 → "FULL"
!lockout AND ZONE_2 → "STANDARD"
ZONE_3 OR ZONE_4 → "SKIP"

5 Integration Questions

1. Static HTML or dynamically populated from JSON/pipeline?
2. Framework — React, Vue, or vanilla JS?
3. Shape label — live from AMT pipeline or manually set per brief?
4. Which dashboard sections should the VP card link to?
5. Mobile-first or desktop-first layout for the card?

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MODULE 11 — Acceptance vs Rejection Framework

Two States Only

ACCEPTANCE — Price stays inside VA

• Lower volatility. Rotation.
• Strategy: FADE extremes → trade toward POC
• Buy VAL, sell VAH, target POC

REJECTION — Price leaves VA AND doesn't come back

• Higher volatility. Trend potential.
• Strategy: FOLLOW the strength
• Buy break above VAH, sell break below VAL. Use pullbacks to broken edge. Never fade.

The Golden Rule

"Price ACCEPTS value when it stays in the value area."
"Price REJECTS value when it leaves AND DOESN'T LOOK BACK."

The "doesn't look back" clause:

• Wick outside + close back inside = still ACCEPTANCE
• Two consecutive closes outside = REJECTION confirmed

Confirmation Checklists

ACCEPTANCE: Price in VA ✓ · No 2 closes outside ✓ · ADX < 30 ✓ · Volume around POC ✓
REJECTION: 2 closes outside ✓ · ADX > 35 ✓ · Volume leaving old POC ✓ · CVD confirms direction ✓

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MODULE 12 — Complete 5-Step Decision Tree

STEP 1: IDENTIFY THE SHAPE
  D? P? b? B? → Sets macro context. Every decision flows from this.

STEP 2: MAP KEY LEVELS
  POC → primary magnet, first target
  VAH → upper extreme · VAL → lower extreme
  HVN → secondary magnets · LVN → fast-move zones
  Draw once. Respect all session.

STEP 3: ACCEPTANCE OR REJECTION?
  Inside VA → ACCEPTANCE → Step 4a
  2 closes outside → REJECTION → Step 4b
  1 close + wick back = still ACCEPTANCE. Wait.

STEP 4a: ACCEPTANCE TRADE
  Buy VAL / Sell VAH (touch count ≥ 2)
  Target: POC → opposite VA edge
  Stop: outside VA with buffer

STEP 4b: REJECTION TRADE
  Break above VAH → wait retest → buy. Target: next VA. Stop: inside VA.
  Break below VAL → wait retest → sell. Target: next VA. Stop: inside VA.
  NEVER chase the initial break. Always wait for retest.

STEP 5: STACK THE PROBABILITY
  Touch count ≥ 2 → standard size
  Touch count ≥ 3 → full size
  AMT 4-Layer aligned → full conviction
  CVD + Absorption → highest probability
  All aligning = only time for maximum size

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APPENDIX — Infographic to Module Map

Infographic	Core Teaching	Modules
#1 — Four Shapes	Shape recognition, trading strategy	M3, M4, M9
#2 — Why Price Returns	5 physics, reaction patterns, probability	M2, M5, M6
#3 — Acceptance vs Rejection	Two-state framework, confirmation rules	M11, M12