Order Flow Analysis Pattern Library
This is an optional pattern library for advanced traders who have mastered VAB or VOF frameworks.
Non-Negotiable Rules:
- ❌ Never trade these patterns as standalone signals
- ✅ Only use as confluence at VAB/VOF starting points (RTH VP-VA / ETH VP-VA or VWAP deviations)
- ✅ All framework rules apply (timing, risk, position sizing, trade limits)
- ✅ Prerequisites: 50+ framework trades with positive expectancy
If you haven't mastered your framework yet, close this document and return to the playbooks.
Quick Reference Matrix
Pattern Priority by Framework:
| Pattern | VAB Priority | VOF Priority | Best Used At |
|---|---|---|---|
| Order Flow Absorption | Essential | Essential | RTH VP-VA / ETH VP-VA extremes, VWAP ±2σ/±3σ |
| Institutional Sweeps | Essential | Very Useful | RTH VP-VA / ETH VP-VA, Round numbers |
| Volume Shelf (HVN/LVN) | Essential | Very Useful | Any framework starting point |
| CVD Divergence | Very Useful | Essential | VWAP ±2σ/±3σ, RTH VP-VA / ETH VP-VA extremes |
| HSI (Horizontal Imbalance 400%+) | Very Useful | Very Useful | Framework starting points |
| VSI (Vertical Imbalance 400%+) | Useful | Useful | Path between entry and target |
| Block Trades (Large Footprints) | Very Useful | Useful | RTH VP-VA / ETH VP-VA tests |
| Liquidity Voids | Useful | Useful | Between entry and target |
| Opening Range Structure | Useful | Useful | Context for Case classification |
| Composite Profile Breakout | Advanced | Advanced | Multi-day context |
Introduction
What This Document Is
A reference library of institutional order flow patterns for ES, NQ, and FDAX futures traders who have already achieved consistency with VAB (Value Area Breakout) or VOF (VWAP-Based Order Flow) frameworks.
Purpose:
- Deepen understanding of institutional behavior at key levels
- Provide additional confluence filters for framework entries
- Support continuing education in order flow analysis
This is NOT:
- A standalone trading system
- A replacement for VAB/VOF frameworks
- For beginners or struggling traders
Prerequisites
Before using this library:
- ✅ 50+ documented trades with VAB or VOF framework
- ✅ Positive expectancy over 30+ trades minimum
- ✅ >95% adherence to framework rules
- ✅ Understanding of Essential Theory (Volume Profile, CVD, VWAP)
- ✅ Platform with footprint charts and Level 2 data
If missing any prerequisite → Return to framework playbooks first.
Applicable Markets
Primary Focus:
- ES (E-mini S&P 500) - CME
- NQ (E-mini Nasdaq-100) - CME
- FDAX (DAX Futures) - Eurex
Also Applicable To:
- Other liquid futures: YM, RTY, CL, GC
- Large-cap stocks: NVDA, MSFT, AAPL, AMZN, GOOG, META, TSLA
- Major ETFs: SPY, QQQ
Requirements:
- High liquidity (tight spreads)
- Centralized volume data
- Full market depth (Level 2)
- Footprint charting capability
Data & Platform Requirements
Essential Data Feeds:
- CME Group (for ES/NQ) - Real-time Level 2
- Eurex (for FDAX) - Real-time Level 2
- Minimum 10 levels of order book depth
- Time & Sales (tape) data
- 1-second resolution for delta calculations
Recommended Platforms:
- TradingView (Our choice)
- Sierra Chart
- NinjaTrader
- MotiveWave
- ATAS
Note: Premium subscriptions required for order flow features.
Trading Hours & Optimal Windows
ES/NQ (CME):
- RTH: 9:30 AM - 4:00 PM ET
- Best for patterns: 9:30 AM - 11:30 AM ET (opening period)
- Avoid: 12:00 PM - 1:00 PM ET (lunch)
FDAX (Eurex):
- RTH: 9:00 AM - 5:30 PM CET (3:00 AM - 11:30 AM ET)
- Best for patterns: 9:00 AM - 11:00 AM CET (European open)
- Avoid: 12:00 PM - 2:00 PM CET (mid-day)
Extended Hours:
- Lower liquidity, wider spreads
- Less reliable order flow signals
- Higher false signal rate
How to Integrate Patterns
Phase 1: Study (No Trading)
- Review patterns in replay/historical charts
- Identify patterns at YOUR framework starting points only
- Note when patterns appear vs when they don't
- Duration: 2-4 weeks
Phase 2: Paper/Sim Testing
- Add 1 pattern as confluence to framework trades (sim only)
- Track: Does pattern improve conviction? Win rate? R:R?
- Minimum 20 trades with pattern tracked
- Duration: 4-6 weeks
Phase 3: Live Integration (If Validated)
- If pattern genuinely improves edge, add to live trading
- Start with 1 pattern only
- Continue tracking performance separately
- Duration: Ongoing
Phase 4: Pattern Stack (Advanced)
- After mastering 1-2 patterns, consider adding more
- Never use more than 3 patterns per setup (complexity kills)
- Continuously validate each pattern's contribution
Integration Example:
Before (Core Framework Only):
VAB Long Setup:
- Price returns to RTH VP-VAL or ETH VP-VAL ✅
- 2-min closes above 30-min VAH ✅
- Strong positive VD ✅
→ Enter long
After (With Absorption Pattern):
VAB Long Setup:
- Price returns to RTH VP-VAL or ETH VP-VAL ✅
- 2-min closes above 30-min VAH ✅
- Strong positive VD ✅
+ Absorption visible at RTH VP-VAL or ETH VP-VAL (500+ lot passive bids absorbing sells) ✅
→ Enter long with HIGHER CONVICTION
What NOT to Do:
- ❌ Trade absorption pattern alone (without VAB core criteria)
- ❌ Wait for "perfect" 5-pattern stack (analysis paralysis)
- ❌ Override framework rules because pattern looks good
- ❌ Add patterns when you're struggling with core framework
Pattern Categories
Patterns organized by order flow concept (not strategy type):
- Institutional Footprints - Large trader participation (absorption, sweeps, blocks, icebergs)
- Delta Patterns - Buying/selling pressure analysis (CVD divergence, momentum, sequences)
- Volume Distribution - Acceptance/rejection zones (HVN/LVN, shelves, composites)
- Imbalances - Supply/demand extremes (HSI, VSI, voids)
- Session Structure - Time-based context (opening range, VWAP, TPO)
1. Institutional Footprints
1.1 Order Flow Absorption
Concept: Large passive orders absorbing aggressive market flow without price movement—classic institutional positioning before reversals.
What It Looks Like:
- Price "stuck" at a level despite high volume
- Footprint shows large lot sizes (100+ for ES) at bid or ask
- Repeated market orders hitting same price, absorbed
- CVD flatlining while price attempts to move
How to Identify:
- Watch footprint at your framework level (RTH VP-VAL / ETH VP-VAL, VWAP -2σ, etc.)
- Look for clusters of large passive orders (500+ lots for ES, 200+ for NQ)
- Observe multiple aggressive hits being absorbed (5+ within 2-3 minutes)
- CVD should flatline or turn opposite despite price push
Framework Integration:
| Framework | When to Use | What It Confirms |
|---|---|---|
| VAB | Price testing RTH VP-VA or ETH VP-VA | Institutions defending value extreme |
| VOF | Price at VWAP ±2σ or ±3σ | Exhaustion, mean reversion setup |
Contract-Specific Thresholds:
- ES: 500+ lot absorption = significant
- NQ: 200+ lot absorption = significant (more volatile)
- FDAX: 100+ lot absorption = significant
Timeframe:
- Minimum 3-5 minutes of sustained absorption
- Best during respective RTH core hours
If-Then Scenarios:
Scenario 1: VAB Long at RTH VP-VAL or ETH VP-VAL
IF: Price tests RTH VP-VAL or ETH VP-VAL
AND: 2-min closes above 30-min VAH (core)
AND: Strong positive VD (core)
AND: 700-lot passive bids absorbing at RTH VP-VAL or ETH VP-VAL (absorption pattern)
THEN: High-conviction long, institutions defending support
Scenario 2: VOF Short at VWAP +2σ
IF: Price at VWAP +2σ
AND: 2-min closes below 30-min VAL (core)
AND: Strong negative VD (core)
AND: 600-lot passive asks absorbing at +2σ (absorption pattern)
THEN: High-conviction short, institutions capping rally
Warning Signs (Skip Trade):
- Absorption volume declining (300 → 150 → 50 lots)
- Price breaking through absorption after 2-3 tests
- CVD accelerating in original direction (absorption failing)
Notes:
- Most reliable at round numbers (ES: 4500, 4550; NQ: 15000, 15500; FDAX: 18000, 18500)
- Focus on round numbers for FDAX (50-point increments)
- Iceberg orders may replenish (see pattern 1.4)
1.2 Institutional Sweeps
Concept: Large aggressive orders "sweeping" multiple price levels in succession—often precedes major moves or stops hunts.
What It Looks Like:
- Multiple large lot trades (1000+ for ES) hitting in rapid succession
- Price moving through several levels quickly
- DOM thinning as orders get taken out
- Time & Sales showing large prints scrolling fast
How to Identify:
- Watch Time & Sales for clusters of large trades (within 10-30 seconds)
- Footprint shows aggressive orders taking out multiple levels
- Price accelerates through zone
- Volume spike visible on chart
Framework Integration:
| Framework | When to Use | What It Reveals |
|---|---|---|
| VAB | Near RTH VP-VA / ETH VP-VA extremes | Stop hunt (reversal) or genuine break (continuation) |
| VOF | Near VWAP ±2σ/±3σ | Exhaustion sweep (reversal) or momentum (continuation) |
Contract-Specific Thresholds:
- ES: 1000+ lot sweep = major
- NQ: 500+ lot sweep = major
- FDAX: 200+ lot sweep = major
Two Types of Sweeps:
Type A: Stop Hunt (Reversal Setup)
- Sweep beyond key level (RTH VP-VAH / ETH VP-VAH, VWAP +2σ)
- Immediate reversal (within 1-2 candles)
- Price closes back inside structure
- CVD doesn't confirm sweep direction
Type B: Genuine Breakout (Continuation Setup)
- Sweep beyond key level
- Price sustains beyond level (3+ candles)
- CVD confirms sweep direction
- Follow-through with volume
If-Then Scenarios:
Scenario 1: Stop Hunt at RTH VP-VAH or ETH VP-VAH (VAB Short)
IF: Price sweeps above RTH VP-VAH or ETH VP-VAH with 1200-lot aggression
AND: Reverses within 2 candles, closes back below VAH
AND: CVD flat or declining (didn't confirm sweep)
AND: Now have VAB short setup (2-min below 30-min VAL, negative VD)
THEN: High-conviction short, stop hunt failed, trapped longs
Scenario 2: Genuine Breakout at VWAP +2σ (VOF Continuation)
IF: Price sweeps through VWAP +2σ with 800-lot aggression
AND: Holds above +2σ for 3+ candles
AND: CVD accelerating upward (confirming)
AND: No VAB/VOF short setup forming (respect the breakout)
THEN: Skip mean reversion trade, wait for pullback continuation setup
Warning Signs:
- Sweep on low volume (fake sweep)
- Multiple sweeps in short time = indecision
- Sweep during low liquidity hours (less significant)
Notes:
- Most common near session opens/closes
- Watch for correlated market sweeps (ES/NQ often sweep together)
- Pay attention to round numbers (retail stops cluster there)
1.3 Block Trades (Large Footprints)
Concept: Single large transactions (100+ contracts for ES) indicating institutional participation—shows conviction at specific levels.
What It Looks Like:
- Single trade of 100+ contracts (ES), 50+ (NQ), 30+ (FDAX)
- Visible as large number in footprint chart cell
- May or may not move price significantly
- Often appears at key technical levels
How to Identify:
- Footprint chart showing unusually large single trade
- Compare to recent average trade size (2-3x normal = significant)
- Note if on bid (sell block) or ask (buy block)
- Check if cluster of blocks or single occurrence
Framework Integration:
| Framework | When to Use | What It Reveals |
|---|---|---|
| VAB | At RTH VP-VA / ETH VP-VA tests | Institutional participation/defense |
| VOF | At VWAP deviations | Institutional positioning at extremes |
Interpretation Matrix:
| Block Type | Location | Meaning |
|---|---|---|
| Buy Block | Support (VAL, -2σ) | Institutional buying dip |
| Sell Block | Resistance (VAH, +2σ) | Institutional selling rally |
| Buy Block | Resistance | Possible breakout preparation |
| Sell Block | Support | Possible breakdown preparation |
If-Then Scenarios:
Scenario 1: Buy Block at RTH VP-VAL or ETH VP-VAL (VAB Long)
IF: Price tests RTH VP-VAL or ETH VP-VAL
AND: 150-lot buy block prints at VAL
AND: Followed by VAB long setup (2-min above 30-min VAH, positive VD)
THEN: Institutions committed to support, high conviction
Scenario 2: Repeated Sell Blocks at VWAP +2σ (VOF Short)
IF: Price at VWAP +2σ
AND: Three 120+ lot sell blocks within 5 minutes
AND: VOF short setup forms (2-min below 30-min VAL, negative VD)
THEN: Strong institutional selling, high conviction short
Warning Signs:
- Single block without follow-through (may be exit, not entry)
- Block on opposite side of your setup (conflicting)
- Block size declining over time (conviction waning)
Notes:
- More reliable when multiple blocks cluster at same level
- ES typically shows 100+ lot blocks, NQ 50+, FDAX 30+
- Filter by time of day (more significant during prime hours)
- Consider correlation: ES/NQ blocks often appear simultaneously
1.4 Iceberg Orders
Concept: Large orders split into small visible portions that replenish automatically—institutions hiding true size.
What It Looks Like:
- DOM showing consistent small size at a level (e.g., 10 lots)
- Orders replenish immediately after execution
- Footprint shows repeated trades at same price
- Total volume at level exceeds visible DOM size
How to Identify:
- Watch DOM at key framework level
- Observe if size replenishes after trades execute
- Footprint shows multiple trades, DOM stays constant
- Pattern continues for 5+ minutes
Framework Integration:
| Framework | When to Use | What It Reveals |
|---|---|---|
| VAB | At RTH VP-VA / ETH VP-VA extremes | Institutional defending level (strong support/resistance) |
| VOF | At VWAP ±2σ/±3σ | Mean reversion support (absorption via iceberg) |
Iceberg vs. Absorption:
- Iceberg: Consistent small visible size, replenishes, DOM static
- Absorption: Large visible size, decreases as hit, then gone
If-Then Scenarios:
Scenario 1: Iceberg at RTH VP-VAL or ETH VP-VAL (VAB Long)
IF: Price testing RTH VP-VAL or ETH VP-VAL multiple times
AND: DOM shows 15 lots bid at VAL consistently
AND: Footprint shows 200+ lots traded at VAL (but DOM still 15)
AND: VAB long setup forms
THEN: Strong institutional support via iceberg, high conviction
Scenario 2: Broken Iceberg (Skip Trade)
IF: Iceberg at VWAP -2σ (replenishing bids)
AND: Price suddenly breaks through with large sweep
AND: Iceberg stops replenishing (institution gave up)
THEN: Skip mean reversion long, wait for new setup
Warning Signs:
- Iceberg stops replenishing (support/resistance broken)
- Visible size increases (no longer hidden = desperation?)
- Multiple tests in short time (iceberg absorbing but pressure building)
Notes:
- Most common at round numbers and major technical levels
- Difficult to detect without DOM/Level 2 access
- Institutions use icebergs to avoid tipping hand
- Breaking an iceberg = major shift in control
2. Delta Patterns
2.1 CVD Divergence
Concept: Price and Cumulative Volume Delta moving in opposite directions—reveals hidden institutional positioning.
Already Covered In: Essential Theory (Section 8: CVD Patterns)
Quick Reference:
| Divergence Type | Pattern | Meaning |
|---|---|---|
| Regular Bullish | Price: Lower low, CVD: Higher low | Sellers exhausting, reversal likely |
| Regular Bearish | Price: Higher high, CVD: Lower high | Buyers exhausting, reversal likely |
| Hidden Bullish | Price: Higher low, CVD: Lower low | Healthy pullback, continuation up |
| Hidden Bearish | Price: Lower high, CVD: Higher high | Weak rally, continuation down |
Framework Integration:
| Framework | Best Use | Priority |
|---|---|---|
| VAB | At RTH VP-VA / ETH VP-VA extremes | High |
| VOF | At VWAP ±2σ/±3σ (mean reversion) | Very High |
If-Then Scenarios:
Scenario 1: Bearish Divergence at VWAP +2σ (VOF Short)
IF: Price at VWAP +2σ making higher high
AND: CVD making lower high (bearish divergence)
AND: VOF short setup forms (2-min below 30-min VAL, negative VD)
THEN: Very high conviction short, buyers exhausted
Scenario 2: Bullish Divergence at RTH VP-VAL or ETH VP-VAL (VAB Long)
IF: Price testing RTH VP-VAL or ETH VP-VAL making lower low
AND: CVD making higher low (bullish divergence)
AND: VAB long setup forms (2-min above 30-min VAH, positive VD)
THEN: Very high conviction long, sellers exhausted
Contract-Specific Notes:
- ES: Requires larger divergence (clearer separation)
- NQ: More pronounced divergences (higher volatility)
- FDAX: Best during continuous European hours (avoid session transitions)
Minimum Requirements:
- At least 3 swing points to confirm divergence
- Divergence at major framework level (not mid-range)
- Follow-through with VPA + VD (never trade divergence alone)
2.2 Delta Momentum Shifts
Concept: Identifying acceleration or deceleration in volume delta that precedes price moves.
What It Looks Like:
- Steep CVD slope = strong momentum
- Flattening CVD slope = momentum waning
- Sharp V-shape CVD reversal = abrupt control shift
How to Identify:
- Monitor CVD slope on your timeframe (2-min for execution)
- Compare recent slope to prior swings
- Look for inflection points (slope changes)
Framework Integration:
| CVD Slope | Framework Context | Meaning |
|---|---|---|
| Steep upward | VOF at -2σ | Strong buying, continuation likely |
| Flattening (up to flat) | VOF at +1σ | Momentum waning, near reversal |
| Sharp V-reversal | VAB at RTH VP-VAH or ETH VP-VAH | Sudden shift, potential high/low |
If-Then Scenarios:
Scenario 1: CVD Acceleration Confirms Breakout
IF: VAB breakout setup (price through RTH VP-VAH or ETH VP-VAH)
AND: CVD slope steepening (accelerating positive delta)
AND: Volume expanding
THEN: Genuine breakout, not false break
Scenario 2: CVD Deceleration Warns Against Entry
IF: VOF setup forming at VWAP -2σ (mean reversion long)
AND: CVD slope flattening despite price falling
AND: No clear exhaustion visible
THEN: Reduce conviction or skip, momentum may continue down
Warning Signs:
- CVD steep slope against your trade direction
- CVD flat despite strong price move (no conviction)
- Multiple CVD reversals in short time (choppy, indecisive)
2.3 Sequential Delta Pattern
Concept: Specific sequences of delta behavior indicating potential major moves.
Pattern Example: Three consecutive bars showing:
- Rising price, declining positive delta
- Rising price, declining positive delta
- Rising price, negative delta appears
→ Exhaustion sequence, reversal likely
Framework Integration:
- VAB: Confirms rejection at RTH VP-VA / ETH VP-VA extremes
- VOF: Confirms exhaustion at VWAP ±2σ/±3σ
If-Then Scenario:
Exhaustion Sequence at VWAP +2σ (VOF Short)
IF: Price reaching VWAP +2σ
AND: Last 3 bars show declining positive delta each bar
AND: Current bar shows negative delta
AND: VOF short setup forms
THEN: High conviction short, exhaustion confirmed
Notes:
- Advanced pattern, requires experience reading delta sequences
- Most reliable at major framework levels
- Minimum 3 bars needed for valid sequence
3. Volume Distribution
3.1 Volume Shelf (HVN/LVN)
Concept: High Volume Nodes (HVN) and Low Volume Nodes (LVN) from Volume Profile act as support/resistance.
Already Covered In: Essential Theory (Section 2: Volume Profile Structures)
Quick Reference:
| Node Type | Visual | Trading Implication |
|---|---|---|
| HVN | "Mountain" on VP | Support (long) or Resistance (short) |
| LVN | "Valley" on VP | Void zone, price moves fast |
Framework Integration:
| Framework | How to Use HVN | How to Use LVN |
|---|---|---|
| VAB | HVN at RTH VP-VAL or ETH VP-VAL = strong support | LVN between entry/target = fast move |
| VOF | HVN at VWAP -2σ = strong support | LVN between -2σ and VWAP = fast fill |
If-Then Scenarios:
Scenario 1: HVN at RTH VP-VAL or ETH VP-VAL (VAB Long)
IF: RTH VP-VAL or ETH VP-VAL aligns with major HVN (prior day POC)
AND: VAB long setup forms at this level
THEN: Very high conviction, institutions will defend strongly
Scenario 2: LVN Path to Target (VOF Long)
IF: Entry at VWAP -2σ targeting VWAP
AND: Clear LVN (void) between -2σ and VWAP
AND: VOF long setup forms
THEN: Expect fast move to target (minimal resistance)
Scenario 3: HVN Above Entry (Reduces Conviction)
IF: VOF long at VWAP -2σ
AND: Major HVN sits at -1σ (between entry and target)
THEN: Reduce target expectation, may stall at HVN
Contract-Specific Notes:
- ES: HVN/LVN hold very reliably, respect them
- NQ: Can punch through HVN more easily (higher volatility)
- FDAX: Often respects prior session HVN/LVN
Minimum Significance:
- HVN should be at least 2x average volume at surrounding prices
- LVN should span at least 3-5 points (ES), 10+ (NQ), 20+ (FDAX)
3.2 Composite Profile Breakout
Concept: Multi-day composite Volume Profile reveals larger institutional value areas—breakouts from these are significant.
What It Shows:
- Where institutions have built positions over 3-5+ days
- Larger "fair value" range than single session
- Major support/resistance zones
How to Build:
- Create Volume Profile composite over 3-5 sessions
- Identify composite Value Area (70% VA)
- Mark composite VAH and VAL
- Note composite POC
Framework Integration:
| Framework | How to Use |
|---|---|
| VAB | Check if RTH VP-VA or ETH VP-VA aligns with composite extremes |
| VOF | Check if VWAP deviations align with composite extremes |
If-Then Scenarios:
Scenario 1: ETH VP-VAH = Composite VAH (Major Resistance)
IF: Current ETH VP-VAH aligns with 5-day composite VAH
AND: VAB short setup forms at this level
THEN: Extremely high conviction, multi-day resistance confluence
Scenario 2: Breakout from Composite (Trend Change)
IF: Price breaks above 5-day composite VAH with volume
AND: VAB breakout setup forms (not mean reversion)
AND: CVD confirming
THEN: Major trend change, institutions accepting higher value
Warning Signs:
- Composite built during holiday week (lower significance)
- Composite includes major gap days (distorts value)
- Too many days (7+) = less relevant for day trading
Notes:
- 3-5 day composites most useful for intraday trading
- Weekly composites provide broader context
- Best used as confirmation, not primary signal
3.3 Range Balance Distribution
Concept: When Volume Profile shows balanced distribution (D-shape), market is consolidating—trade the breakout or extremes.
What It Looks Like:
- Symmetric bell curve Volume Profile
- POC near center of range
- Value Area covers most of range
- Price oscillating within range
Framework Integration:
- VAB: Identifies whether RTH VP-VA / ETH VP-VA will hold or break
- VOF: Shows if VWAP deviation will hold (balance) or break (trend)
If-Then Scenarios:
Scenario 1: Balanced Profile at RTH VP-VAL (Range Day)
IF: Volume Profile shows balanced D-shape
AND: RTH VP-VAL and RTH VP-VAH define range extremes
THEN: Expect mean reversion trades at extremes (VAB Case #1 characteristics)
Scenario 2: Profile Extending (Trend Day)
IF: Volume Profile showing extension (P-shape or b-shape)
AND: New value developing outside prior range
THEN: Favor continuation setups, not mean reversion
Contract-Specific Notes:
- ES: Balance areas develop over 1-2 days typically
- NQ: Shorter balance periods, violent breakouts
- FDAX: Often respects overnight balance into RTH
4. Imbalances
4.1 Horizontal Stacked Imbalances (HSI 400%+)
Concept: Single price level showing 400%+ bid/ask imbalance—strong directional pressure at specific price.
Already Covered In: Essential Theory (Section 11: Order Flow Principles - Imbalances)
Quick Reference:
- 400%+ buy imbalance (4x more buys than sells at price) = bullish pressure
- 400%+ sell imbalance (4x more sells than buys at price) = bearish pressure
Framework Integration:
| Framework | How to Use |
|---|---|
| VAB | HSI at RTH VP-VA / ETH VP-VA confirms direction |
| VOF | HSI at VWAP ±2σ confirms exhaustion or continuation |
If-Then Scenarios:
Scenario 1: Buy HSI at RTH VP-VAL or ETH VP-VAL (VAB Long)
IF: Price at RTH VP-VAL or ETH VP-VAL
AND: 500%+ buy imbalance visible on footprint at VAL
AND: VAB long setup forms
THEN: Strong buying pressure, high conviction
Scenario 2: Sell HSI at VWAP +2σ (VOF Short)
IF: Price at VWAP +2σ
AND: 600%+ sell imbalance at +2σ level
AND: VOF short setup forms
THEN: Strong selling pressure (rejection), high conviction
Warning:
- Do NOT trade HSI alone (only as confluence at framework levels)
- HSI can be "absorbed" by large passive orders (watch for continuation)
4.2 Vertical Stacked Imbalances (VSI 400%+)
Concept: Multiple consecutive price levels with one-sided 400%+ imbalances—shows strong momentum/initiative.
Already Covered In: Essential Theory (Section 11: Order Flow Principles - Imbalances)
Quick Reference:
- 3+ consecutive buy imbalances = strong bullish momentum
- 3+ consecutive sell imbalances = strong bearish momentum
Framework Integration:
| Framework | How to Use |
|---|---|
| VAB | VSI confirms breakout conviction |
| VOF | VSI shows path between levels (continuation) |
If-Then Scenarios:
Scenario 1: VSI Confirms VAB Breakout
IF: Price breaks above ETH VP-VAH (VAB long setup)
AND: 4 consecutive buy imbalances visible above VAH
AND: Strong positive VD
THEN: Genuine breakout, strong momentum
Scenario 2: VSI Shows Fast Path (VOF)
IF: Entry at VWAP -2σ (VOF long)
AND: VSI (buy imbalances) stacked between -2σ and VWAP
THEN: Expect fast move to target, momentum supporting
Warning:
- VSI at extremes can signal exhaustion (too much one-way flow)
- Best early in moves, not after extended runs
4.3 Liquidity Voids
Concept: Areas of minimal volume (LVN) where price accelerates due to lack of resting orders.
Already Covered In: Essential Theory (Section 2: Volume Profile Structures - LVN)
Quick Reference:
- LVN = "Valley" on Volume Profile
- Price tends to fill voids quickly (mean reversion to value)
- Little support/resistance in void zones
Framework Integration:
| Framework | How to Use |
|---|---|
| VAB | Void between RTH VP-VA and ETH VP-VA = fast movement path |
| VOF | Void between VWAP deviation and VWAP = fast fill |
If-Then Scenarios:
Scenario 1: Void Between Entry and Target (Good)
IF: VOF long entry at VWAP -2σ, target VWAP
AND: Clear LVN (void) spanning -2σ to -0.5σ
THEN: Expect fast initial move (minimal resistance)
Scenario 2: Void Beyond Entry (Risk)
IF: VAB short at ETH VP-VAH, stop above
AND: Clear LVN (void) immediately above VAH
THEN: If invalidated, stop may get hit fast (widen stop or skip)
5. Session Structure
5.1 Opening Range Order Flow
Concept: First 10-15 minutes establish opening range—breakouts with order flow confirmation often lead to directional moves.
What It Shows:
- Where institutions positioned early
- Key levels to watch for breakouts
- Initial commitment vs. testing
How to Mark:
- Identify high/low of first 10 minutes (ES/NQ) or 15 minutes (FDAX)
- Draw horizontal lines at OR high and OR low
- Watch for breakout + order flow confirmation
Framework Integration:
| Framework | How to Use |
|---|---|
| VAB | Check if OR aligns with RTH VP-VA or ETH VP-VA |
| VOF | Check OR position relative to VWAP |
If-Then Scenarios:
Scenario 1: OR High = ETH VP-VAH (Confluence)
IF: Opening range high aligns with ETH VP-VAH
AND: VAB short setup forms at this level
THEN: Major resistance confluence, high conviction
Scenario 2: OR Breakout Confirmed
IF: Price breaks above OR high with volume
AND: Strong positive VD and CVD
AND: Footprint showing institutional size
THEN: Potential trend day, favor continuation setups
Contract-Specific Timing:
- ES: First 10 minutes (9:30-9:40 ET)
- NQ: First 10 minutes (9:30-9:40 ET)
- FDAX: First 15 minutes (9:00-9:15 CET)
Warning:
- False breaks common in first 5 minutes (wait for full OR)
- Low volume breaks = less significant
5.2 VWAP Mean Reversion
Concept: Price at VWAP ±2σ/±3σ deviations tends to revert to VWAP.
Already Covered In: VOF Framework (this IS the VOF core concept)
Quick Reference:
- ±2σ = 95% probability zone (mean reversion likely)
- ±3σ = 99.7% probability zone (mean reversion very likely)
Framework Integration:
- VOF: This is the primary framework starting point
- VAB: VWAP as additional confluence
Notes: See VOF Playbook for full details. This is not an "additional" pattern—it's the VOF framework itself.
5.3 TPO / Market Profile Context
Concept: Time Price Opportunity (TPO) profiles show time spent at each price—extremes indicate potential reversal zones.
What It Shows:
- Price acceptance (many TPOs = value)
- Price rejection (few TPOs = fast traverse)
- Balance vs. trend characteristics
Framework Integration:
| Framework | How to Use |
|---|---|
| VAB | TPO extremes often align with RTH VP-VA or ETH VP-VA |
| VOF | TPO context for VWAP deviation significance |
If-Then Scenario:
TPO Extreme at RTH VP-VAL or ETH VP-VAL
IF: TPO profile shows single prints (poor low) at RTH VP-VAL or ETH VP-VAL
AND: VAB long setup forms
THEN: Price likely to revisit/fill this area, high conviction
Notes:
- Advanced concept, not essential for VAB/VOF
- Most useful for multi-day context
- Best studied after mastering core frameworks
Integration Guidelines
Start Small
Phase 1 (Months 1-3): Core Framework Only
- Trade VAB or VOF with zero additional patterns
- Focus: Perfect execution of framework rules
- Goal: 50+ trades, positive expectancy
Phase 2 (Months 4-6): Add ONE Pattern
- Choose highest priority pattern for your framework:
- VAB: Order Flow Absorption
- VOF: CVD Divergence
- Track separately: Win rate with vs. without pattern
- Goal: Validate pattern adds value (30+ trades minimum)
Phase 3 (Months 7-12): Add 1-2 More Patterns
- If first pattern validated, add second:
- Institutional Sweeps or Volume Shelf (HVN/LVN)
- Maximum 3 patterns total at this stage
- Goal: Build YOUR pattern stack
Phase 4 (Year 2+): Advanced Pattern Integration
- Experiment with additional patterns as needed
- Remove patterns that don't improve edge
- Develop intuitive pattern recognition
Pattern Combination Matrix
High-Conviction Stacks (3+ Confluences):
VAB Long at RTH VP-VAL or ETH VP-VAL:
Core: Price at RTH VP-VAL or ETH VP-VAL + 2-min close above 30-min VAH + Strong positive VD
+ Absorption (500+ lot bids at VAL)
+ Volume Shelf (HVN at VAL)
+ Bullish CVD divergence
= Maximum conviction long
VOF Short at VWAP +2σ:
Core: Price at +2σ + 2-min close below 30-min VAL + Strong negative VD
+ Bearish CVD divergence
+ Sell imbalances (HSI) at +2σ
+ Volume Shelf (HVN resistance at +2σ)
= Maximum conviction short
What NOT to Do
Never:
- ❌ Trade patterns without framework core criteria
- ❌ Add 5+ patterns per trade (analysis paralysis)
- ❌ Override framework timing/risk rules for patterns
- ❌ Add patterns when struggling with core framework
- ❌ Cherry-pick patterns to justify bad trades
If Pattern Conflicts with Core:
- ✅ Always follow core framework
- ✅ Skip trade if major conflict (e.g., CVD opposing at critical level)
- ✅ Treat pattern as warning, not overrule
Performance Tracking
Pattern Validation Template
For each pattern you test, track:
Pattern Name: Order Flow Absorption
Test Period: [Date] to [Date]
Total Trades: X
Trades With Pattern: X
Trades Without Pattern: X
Performance With Pattern:
- Win Rate: X%
- Avg R: X
- Expectancy: X
Performance Without Pattern:
- Win Rate: X%
- Avg R: X
- Expectancy: X
Conclusion:
[ ] Keep (improves edge)
[ ] Discard (no improvement or worse)
[ ] Continue testing (inconclusive)
Red Flags to Stop Using a Pattern
- Win rate decreases with pattern
- Avg R decreases (taking profits too early due to pattern?)
- You're missing valid framework setups waiting for pattern
- Pattern causes hesitation or analysis paralysis
- You can't execute pattern consistently (too subjective)
Final Reminders
This Library Is Optional
- Not required for VAB/VOF success
- Many profitable traders use zero additional patterns
- Simplicity often beats complexity
Pattern Hierarchy
Framework Core (VPA + VD at starting point)
↓
ALWAYS REQUIRED
↓
Optional Patterns (Confluence)
↓
ENHANCE CONVICTION ONLY
Prerequisites Checklist
- 50+ framework trades completed
- Positive expectancy established
- >95% rule adherence
- Risk management automatic
- Seeking to refine edge (not fix broken process)
If ANY unchecked → Skip this library, return to framework playbooks
Quick Reference: Top 5 Patterns
Most Useful Across Both Frameworks:
- Order Flow Absorption - Institutions defending level
- Volume Shelf (HVN/LVN) - Volume-based support/resistance
- CVD Divergence - Hidden strength/weakness
- Institutional Sweeps - Stop hunts vs. genuine breaks
- HSI (400%+ Imbalances) - Directional pressure confirmation
Master these 5 before exploring others.
For comprehensive theory on these patterns, see:
- Essential Theory for VAB & VOF (Volume Profile, CVD, Order Flow principles)
- VAB Playbook (Execution procedures)
- VOF Playbook (Execution procedures)
- Cheatsheet (Quick reference during trading)