Popular theories falsified · small real effects Volume profile / market profile Bybit perps (230 liquid) 90,283 trading days

VolProf — Volume Profile
& the Daily Open

Does where the day opens relative to yesterday’s volume profile (POC / VAH / VAL, 70% value area) predict the day? 230 liquid Bybit perps, 90,283 trading days, every edge shown gross AND after ~10bps round-trip costs.

Open location ≠ crystal ball · London-session VA + POC shape = small real signals
+19 bps
Open below prior VAL
The one significant open-location effect — mild bounce; OOS +53 bps, net +9 bps after costs
−17.8 bps
London VA open spread
Only session whose VA predicts next day (p=0.0055)
+22 bps
London P-shape → next day
Strongest single session effect (p<0.0001)
80%
Gaps eventually fill
…but slowly — not a clean fast edge

Verdict

The classic market-profile theories — “open above yesterday’s value = bullish day, open below = bearish” — do not hold in crypto perps. Opening above prior VAH gave 45.5% up-days (+8 bps, not significant); opening below prior VAL gave a mild +19 bps bounce (significant, stronger OOS at +53 bps, marginal net at +9 bps after costs).

The real signal lives in the structure of yesterday: POC near yesterday’s high → next day +13 bps (significant, holds OOS — supports the absorption reading); POC near yesterday’s low → −13 bps. And the London session’s value area is the only session reference that significantly predicts next-day direction (spread −17.8 bps, p=0.0055); a London session closing near its highs (P-shape) → next day +22 bps (p<0.0001).

The “first hour predicts the day” theory mostly fails (43–46% continuation), and 80% of outside-value opens eventually fill — but slowly. A decision tree using prior-day/session features nudges accuracy to ~54–55% OOS. Real but small; use as context, not a standalone signal.

The questions asked

Open location

Open above/below/inside the prior day's 70% value area → does it predict day direction? Mostly no — the popular “open drive” idea is falsified.

Profile shape

POC proximity to VAH/VAL and volume distribution influence next-day direction — the absorption reading (POC at highs = buyers defending) is supported; the distribution/bearish reading is not.

Session structure

Separate volume profiles for Tokyo/London/NY: London VA is the only session reference that predicts next day; London P-shape is the strongest single effect (+22 bps).

Counterfactuals

UP vs DOWN days within each scenario, using only open-time information: calmer buyer-heavy prior days distinguish up-days after above-VAH opens; wide NY VA distinguishes the bounce after below-VAL opens.

Open-location table (230 liquid perps, 90,283 days)

You open…Day went UPAvg day returnVerdict
Above yesterday's VAH45.5%+8 bps❌ no real edge
Inside value, above POC46.3%−4 bps
Inside value, below POC47.0%+4 bps
Below yesterday's VAL48.9%+19 bps⚠️ small bounce — OOS +53 bps, net +9 bps

What actually predicts

SignalEffectSignificance
POC near yesterday's high (VAH)+13 bps next daysignificant, holds OOS — absorption reading supported
POC near yesterday's low (VAL)−13 bps next daydistribution reading not supported
Open vs London session VA−17.8 bps spreadp=0.0055 — only session VA that predicts
London closed near highs (P-shape)+22 bps next dayp<0.0001 — strongest single session effect
Open below VAL in high-vol regime+57 bpsvs +2 bps calm — volatility amplifies the bounce
Dominant prior session+13 / −11 / +10 bpsTokyo-heavy / London-heavy / NY-heavy

How it was tested

Data

Real Bybit klines (liquid tier), 15m history, UTC 00:00–00:00 daily profiles, 70% value area, ~522 days per symbol. No fabricated data — every number traces to a dataset file.

Statistical tests

Hypothesis tables H1–H17 and session tests S1–S5 with significance verdicts, out-of-sample checks, per-symbol consistency, and gross-vs-net (~10 bps RT) for every edge.

Counterfactual analysis

UP-vs-DOWN separations within scenarios using only open-time information, plus decision trees with OOS accuracy (~54–55% vs 51–55% base rate).

Site

site/index.html dashboard: headline finding cards, every hypothesis table, session tests with charts, decision trees, full findings report. Dataset JSON embedded — opens from file:// or any static host.

Run it yourself

cd /home/jose/workspace/volprof
python3 src/fetch.py --tier liquid   # fetch liquid-tier 15m history
python3 src/features.py             # build profiles + features
python3 src/analysis.py --all       # hypothesis tests + reports
python3 src/make_site.py            # regenerate the dashboard
./run_pipeline.sh                   # end-to-end