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Value Area Breakout (VAB) Trading Framework

A practical execution guide for trading institutional value area breakouts in ES futures

📖 Abbreviations​

AbbreviationMeaning
AVWAPAnchored VWAP
CVDCumulative Volume Delta
ETEastern Time
ETH VPExtended Trading Hours (18:00-09:30 ET) - Volume Profile
ETH VP-VAExtended Trading Hours (18:00-09:30 ET) - Volume Profile Value Area
ETH VP-VAHExtended Trading Hours (18:00-09:30 ET) - Volume Profile Value Area High
ETH VP-VALExtended Trading Hours (18:00-09:30 ET) - Volume Profile Value Area Low
ETHExtended Trading Hours (18:00-09:30 ET)
GEXGamma Exposure
HSIHorizontal Stacked Imbalances
OFAOrder Flow Analysis
OPOpening Price
PD RangePrevious Day Range
PDPrevious Day
PDHPrior Day High
PDLPrior Day Low
PVDPeriodic Volume Delta
RTH VPRegular Trading Hours (09:30-16:15 ET) - Volume Profile
RTH VP-VARegular Trading Hours (09:30-16:15 ET) - Volume Profile Value Area
RTH VP-VAHRegular Trading Hours (09:30-16:15 ET) - Volume Profile Value Area High
RTH VP-VALRegular Trading Hours (09:30-16:15 ET) - Volume Profile Value Area Low
RTHRegular Trading Hours (09:30-16:15 ET)
VAValue Area
VABAlgoStorm™ Value Area Breakout Framework
VAHValue Area High
VALValue Area Low
VDVolume Delta
VDBAlgoStorm™ Volume Delta Bars (similar to Periodic Volume Delta)
VDTAlgoStorm™ Volume Delta Thrust
VOFAlgoStorm™ VWAP-Based Order Flow Framework
VPVolume Profile
VPAVolume Price Analysis
VSIVertical Stacked Imbalances
VWAPVolume Weighted Average Price

📘 What is VAB?​

The Value Area Breakout (VAB) framework is a systematic approach to trading ES futures by identifying when price returns to institutional value area extremes (RTH VP-VA or ETH VP-VA) and breaks out with order flow confirmation.

Core Principle​

Institutions establish value through overnight activity (ETH VP-VA) and prior NY session participation (RTH VP-VA). When price returns to these extremes during RTH and breaks away with volume profile confirmation and strong volume delta, high-probability directional moves occur.

Starting Points​

  • RTH VP-VA: Regular Trading Hours (09:30-16:15 ET) Volume Profile Value Area
  • ETH VP-VA: Extended Trading Hours (18:00-09:30 ET) Volume Profile Value Area
  • Whichever comes first is your entry trigger zone

Who This Is For​

  • Traders who prefer clear structural reference levels
  • Those who want to trade with institutional positioning
  • Systematic traders who follow checklists

Prerequisites​

  • Read the Essential Theory for VAB & VOF document
  • Understand Volume Profile structures
  • Understand CVD patterns
  • Understand Opening Cases
  • Understand Gamma Exposure (GEX) concepts

Framework Overview​

CategoryDetail
Analysis Starting PointRTH VP-VA / ETH VP-VA - (whichever the price action touches first)
Core StrategyVPA + Relatively High VD + 2-min Candle Close Beyond 30-min VP's VA
ConfluencesCVD, VDT, HSI / VSI, Volume Bubbles (Big Trades), Gamma Exposure (GEX)
Trading Hours09:40 – 12:00 ET (NY Morning Session)
Timeframes15-min (Context), 2-min (Execution)
Default Target1:2 – 1:2.5, no partials
Breakeven TargetAfter 12:00 ET (end of trading zone) and 1:1.5 R:R achieved
Risk Per Trade0.25%
Max Daily Loss−0.5%
Max Trades Per Day1–2 (one trade if opening price Case 4 occurs; two trades per day at most otherwise)

⚙️ Indicator Settings​

Periodic Volume Profile (PVP)​

Volume ProfileVolume TypePeriodValue Area %Ticks Per Row
30-Minute VPDelta30-min40%1
RTH VPDelta09:30-16:15 ET70%1
ETH VPDelta18:00-09:30 ET40%1

Anchored VWAP (AVWAP)​

  • Type: Session (resets at 18:00 ET)
  • Standard Deviations: Enable 2nd and 3rd bands (±2σ, ±3σ)

Volume Delta (VD) / AlgoStorm™ Volume Delta Candles (VDC)​

  • Calculation Timeframe: 1 second
  • Display: Read relatively (no fixed threshold)

Periodic Volume Delta (PVD) / AlgoStorm™ Volume Delta Bars (VDB)​

  • Lower Timeframe: 1 second
  • Indicator Timeframe: 10 minutes
  • Display: Benchmark for relative VD strength

AlgoStorm™ Volume Delta Thrust (VDT)​

  • Lower Timeframe: 1 second
  • Speed: Balanced
  • Smoothing: Smooth

Cumulative Volume Delta (CVD) / AlgoStorm™ CVD​

  • Anchor Period: 1 day
  • Timeframe: 1 second

Volume Footprint Chart​

  • Imbalance Threshold: 400%

Gamma Exposure (GEX)​

  • Source: SqueezeMetrics or equivalent data provider
  • Review Frequency: Daily, before market open
  • Purpose: Macro volatility context and framework bias

✅ Daily Preparation Workflow​

Pre-Market (After 09:30 ET and Before 09:40 ET)​

1. Check Calendar & Blackout Periods

  • Economic calendar for major releases during 09:40-12:00 ET window
  • Not a blackout day (FOMC, Jackson Hole, Holy Week, late Dec/early Jan, bank holidays)

2. Check Gamma Exposure (GEX)

  • Review daily GEX reading (High Positive, Neutral, or Negative)
  • Note Zero Gamma Level (if available)
  • Identify major Gamma Walls near current price
  • Set framework bias:
    • High Positive GEX → Expect mean reversion (choppiness, shorter moves)
    • Negative GEX → Expect trending behavior (breakouts sustain, larger moves)
    • Neutral GEX → Standard conditions, both setups viable
  • Adjust target expectations:
    • High GEX → Consider 1:1.5 to 1:2 targets
    • Negative GEX → Consider 1:2.5 to 1:3 targets
    • Neutral GEX → Standard 1:2 to 1:2.5 targets

3. Review Higher Timeframe Context

  • Open 15-minute chart
  • Identify daily/weekly trend
  • Note weekly high/low, monthly high/low if relevant

4. Mark Previous Day References

  • PD Range: Mark PDH (prior day high) and PDL (prior day low)
  • RTH VP-VA: Mark RTH VP-VAH and RTH VP-VAL
  • ETH VP-VA: Mark ETH VP-VAH and ETH VP-VAL

5. Draw Anchored VWAPs Draw AVWAP from:

  • Overnight high (highest price during 18:00-09:30 ET) and Overnight low (lowest price during 18:00-09:30 ET)
  • Prior day high (PDH)
  • Prior day low (PDL)
  • Prior week high (if within 2-3 days)
  • Prior week low (if within 2-3 days)

6. Draw Anchored Volume Profiles (AVP) Anchor AVP from same pivots as AVWAPs to identify:

  • High Volume Nodes (HVNs) - potential resistance for shorts, support for longs
  • Low Volume Nodes (LVNs) - potential rejection areas or gaps
  • Note significant nodes within 10-20 points of current price

7. Mark Key Levels

  • Round numbers (ES: 4500, 4550, 4600, etc.)
  • Visible HSI (Horizontal Stacked Imbalances) on footprint chart
  • Visible VSI (Vertical Stacked Imbalances) on footprint chart

8. Workspace Verification

  • All indicators loading correctly
  • 2-minute execution chart open
  • 30-minute VP visible
  • CVD displaying with correct anchor
  • Bracket order functionality tested

📊 Opening Case Classification​

At 09:30 ET: Classify the Opening Case​

Opening Price (OP) is the first RTH price at 09:30 ET.

CaseConditionActionMax Trades
1OP inside PD Range and inside RTH VP-VASkip unless the previous day was a skip day for the same reasonx0
2OP inside PD Range but outside RTH VP-VAStart your OFA after the price returns to starting pointx2
3OP outside PD Range, re-enters within 30 minWait until 10:00 ET, then start your OFA after the price returns to starting pointx2
4OP outside PD Range, remains outside 30+ minWait until 10:00 ET, then start your OFA after the price returns to starting pointx1

Case #1 Exception: If yesterday was also a Case #1 skip day (opened inside PD Range and RTH VP-VA), you may trade today. This pattern signals a multi-day consolidation, which can precede a breakout. All core setup criteria must still be met, and you may not take more than two trades.

🎯 Step-by-Step Execution Process​

Step 1: Determine Trade Eligibility (09:40 ET or 10:00 ET)​

  1. Classify Opening Case (see table above)
  2. If Case #1 (and not Day 2+ exception): Close platform, day is over
  3. If Case #2: Begin monitoring at 09:40 ET
  4. If Case #3 or #4: Set alarm for 10:00 ET, do not trade until then

Step 2: Identify Which Value Area Comes First​

Monitor price action to determine:

  • Will price touch RTH VP-VAH / RTH VP-VAL first, OR
  • Will price touch ETH VP-VAH / ETH VP-VAL first?

Whichever comes first = Your entry trigger zone

Step 3: Wait for Core Setup Criteria​

All three must be present:

1. Location Requirement

  • Price has returned to RTH VP-VAH or RTH VP-VAL, OR
  • Price has returned to ETH VP-VAH or ETH VP-VAL
  • (Whichever came first)

2. Volume Profile Breakout

  • 2-minute candle CLOSES beyond 30-minute Volume Profile's Value Area
    • For longs: 2-min close above 30-min VAH
    • For shorts: 2-min close below 30-min VAL
  • Note: Wicks don't count—only the candle close matters

3. Volume Delta Confirmation

  • Current 2-min candle's VD is relatively strong in the setup direction
  • Compare to recent 10-minute PVD/VDB readings (top 25-30% of session)
  • Not just positive/negative—must be strong relative to recent context

If ANY of these three are missing → DO NOT TRADE

Step 4: Verify Mandatory Core Checklist​

Before entry, confirm ALL items:

⚠️ MANDATORY CORE CHECKLIST - ALL MUST BE TRUE

  • Time: Between 09:40 ET and 12:00 ET
  • Blackout: Not a blackout day
  • Opening Case: Case #2, #3, or #4 (not Case #1, unless exception applies)
  • Case #3/#4 Timing: If Case #3 or #4, it is now 10:00 ET or later
  • Location: Price touched RTH VP-VAH/VAL or ETH VP-VAH/VAL (whichever came first)
  • VP Breakout: 2-min candle CLOSED beyond 30-min VAH (long) or VAL (short)
  • Volume Delta: VD relatively strong vs. recent 10-min readings
  • Stop Defined: Know exactly where stop will be placed (behind structure)
  • Position Size: Calculated for exactly 0.25% account risk
  • Trade Count: This will not exceed 2 trades today (including breakevens)
  • Daily Loss: Not at or beyond -0.5% daily loss limit

If even ONE item is missing → SKIP THE TRADE

Step 5: Evaluate Optional Confluences​

Once core checklist is complete, check for additional conviction factors:

🔍 OPTIONAL CONFLUENCE CHECKLIST

  • CVD Direction: CVD rising (for longs) or falling (for shorts)
  • CVD Conviction: CVD showing slope/momentum (not flat or opposing)
  • CVD Context: No exhaustion or absorption warning at this level
  • GEX Alignment: GEX regime matches setup type
    • Breakout setup + Negative GEX = ✅ Strong alignment
    • Breakout setup + High Positive GEX = ⚠️ Lower probability (mean reversion expected)
    • Mean reversion setup + High Positive GEX = ✅ Strong alignment
    • Mean reversion setup + Negative GEX = ⚠️ Lower probability (trending expected)
  • Gamma Wall Context: Not attempting to break through major positive gamma wall (unless very strong conviction)
  • AVWAP Alignment: AVWAP from major pivot supports the setup
  • AVP Node: HVN nearby (for shorts) or LVN nearby (for longs)
  • HSI/VSI: Horizontal or vertical stacked imbalances present
  • VDT: Not opposing the move OR showing acceleration in setup direction
  • Volume Bubbles (if available): Large trades confirm or don't oppose
  • Liquidity Heatmap (if available): Wall/absorption/sweep supports setup
  • HTF Bias: 15-min timeframe aligns with setup direction

Confluence Scoring:

  • 3+ confluences: Good setup → Full 0.25% risk
  • 5+ confluences: High-quality setup → Maximum confidence, full 0.25% risk
  • 1-2 confluences: Acceptable if core is very strong → Consider 0.20% risk
  • 0 confluences: Skip the trade

Important: Confluences add conviction but NEVER override core requirements.

GEX-Specific Considerations:

High Positive GEX Day (Mean Reversion Regime):

  • VAB breakout setups have lower probability (market makers suppress volatility)
  • If taking breakout setup anyway, consider:
    • Reducing target to 1:1.5 or 1:2 (instead of 1:2.5)
    • Requiring 5+ other confluences for entry
    • Reducing position size to 0.20% (instead of 0.25%)
  • Best approach: Skip breakout setups on high GEX days; wait for clearer trending regime

Negative GEX Day (Trending Regime):

  • VAB breakout setups have higher probability (market makers amplify moves)
  • Consider:
    • Extending target to 1:2.5 or even 1:3 if momentum strong
    • Taking setups with only 3 confluences (if core is perfect)
    • Trailing stops more aggressively to capture extended moves
  • Caution: Even in negative GEX, don't chase—wait for proper value area return

Neutral GEX Day:

  • Standard VAB execution rules apply
  • No special adjustments needed
  • Follow standard 1:2 to 1:2.5 target range

Step 6: Execute the Trade​

Position Sizing Formula: Position Size = (Account Size × 0.0025) / (Stop Distance in Points × $50)

Round down to nearest whole contract (never round up).

Stop Placement Rules:

Place stop behind meaningful structure, such as:

  • Opposite extreme of RTH VP-VAH/VAL or ETH VP-VAH/VAL
  • Recent swing high/low that invalidates the setup
  • Strong momentum candle low/high that defined direction
  • Key AVWAP level that should hold
  • HVN/LVN that defines the trade thesis

Never use arbitrary distances (e.g., "always 10 points"). Stop must be logical within current market structure.

Entry Execution:

  • Preferred: Limit order (control price, reduce slippage)
  • Acceptable: Market order if momentum is strong and immediate fill critical
  • Best practice: Pre-stage bracket order (entry + stop + target) before execution

Target Setting:

  • Default: 1:2 to 1:2.5 risk-reward ratio
  • High Positive GEX: Consider 1:1.5 to 1:2 (shorter moves expected)
  • Negative GEX: Consider 1:2.5 to 1:3 (extended moves possible)
  • No partial profit-taking (maintains R:R integrity)

Step 7: Trade Management​

During the Trade:

  • Do NOT interfere unless clear invalidation occurs
  • Monitor CVD for exhaustion/divergence near target
  • Watch for VSI formations that could accelerate/reverse
  • Check price behavior at intermediate levels (AVWAPs, HVNs, round numbers)
  • GEX-aware monitoring:
    • High GEX day: Watch for quick reversals at intermediate levels
    • Negative GEX day: Allow more room for volatility, expect momentum continuation

Breakeven Rule:

  • After 12:00 ET (end of trading zone) and 1:1.5 R:R achieved
  • Once at BE, never move stop back

Exit Conditions:

Default Exits:

  • ✅ Target hit at 1:2 or 1:2.5 R:R (take profit)
  • ❌ Stop hit (accept loss)
  • 🟦 Breakeven stop hit (accept breakeven)

Discretionary Early Exit (optional, must be tracked separately):

  • CVD shows strong exhaustion/divergence well before target
  • Price consolidates for 15+ minutes with declining volume
  • Major structural level shows strong rejection
  • Opposing setup forms against position
  • High GEX day: Price stalls at intermediate level (1:1 to 1:1.5) with absorption signs

Step 8: Post-Trade Documentation​

Immediately after trade close, journal:

Trade Logistics:

  • Date and time
  • Opening Case (#1, #2, #3, or #4)
  • GEX Regime: High Positive / Neutral / Negative
  • Entry location (RTH VP-VA / ETH VP-VA)
  • Entry price, stop price, target price
  • Position size (contracts)
  • Actual P&L (dollars and R multiples)

Setup Quality:

  • Which value area triggered entry (RTH VP-VA / ETH VP-VA)?
  • VPA context (30-min VP shape/breakout)
  • VD strength (relative to 10-min benchmark)
  • Confluences present (list which ones, including GEX alignment)
  • CVD behavior during setup
  • GEX alignment: Did GEX regime match the setup type? (Y/N)

Execution Quality:

  • Why did you take this trade? (1-2 sentence narrative)
  • Stop placement reasoning
  • Target reasoning (did GEX influence target selection?)
  • Any deviations from plan

Trade Performance:

  • Outcome (TP/SL/BE/discretionary)
  • R:R achieved (actual)
  • MAE (Maximum Adverse Excursion - worst drawdown)
  • MFE (Maximum Favorable Excursion - best profit)
  • Time in trade (minutes)
  • GEX accuracy: Did market behave as expected given GEX regime?

Reflection:

  • What went well?
  • What could be improved?
  • Would you take this exact setup again? Why/why not?
  • GEX-specific: Should I have adjusted expectations based on GEX?
  • Screenshot/chart save

Daily Limits:

  • After 2 trades (including BE), STOP for the day
  • If daily loss reaches -0.5%, STOP immediately

🛡️ Risk Management Rules​

Position Sizing​

  • Fixed: 0.25% of account per trade
  • Optional GEX adjustment: Reduce to 0.20% if GEX conflicts with setup type (e.g., breakout setup on high positive GEX day)
  • Never increase based on confidence
  • Never decrease based on fear (if setup is valid, take it at 0.25% or skip)

Daily Loss Limit​

  • Maximum: -0.5% per day
  • Enforcement: If hit, close platform immediately
  • No exceptions - even for "perfect" setups

Trade Count Limit​

  • Maximum: 2 trades per day
  • Includes: Breakevens (they count toward the limit)
  • Rationale: Prevents overtrading and revenge trading

Blackout Periods (Do NOT Trade)​

  • 🚫 US Bank Holidays
  • 🚫 FOMC Meeting Days & Fed Chair Speeches
  • 🚫 Jackson Hole Symposium Week (late August)
  • 🚫 Holy Week (week before Easter)
  • 🚫 Last 2 weeks of December & first 2 weeks of January
  • 🚫 Case #1 Days (unless Day 2+ exception)
  • 🚫 Major economic releases during 09:40-12:00 ET window (CPI, NFP, GDP, etc.)

❌ Top 10 Common Mistakes​

  1. Trading before price returns to RTH VP-VA / ETH VP-VA

    • Entering at random levels with no location edge
    • Fix: Wait patiently for price to touch value area extremes

  2. Not waiting until 10:00 ET for Case #3 or #4

    • Acting too early, misclassifying opening case
    • Fix: Set alarm, do not trade until 30-minute confirmation

  3. Using wicks instead of candle closes for VP breakout

    • Entering on intra-bar moves without commitment
    • Fix: Only trade after 2-min candle CLOSES beyond 30-min VA

  4. Ignoring CVD conflicts at VA extremes

    • Taking trades when CVD is flatlining or opposing
    • Fix: Skip trades where CVD clearly conflicts at critical levels

  5. Exceeding 2 trades or -0.5% daily loss

    • Revenge trading, trying to "make it back"
    • Fix: Hard stop after limits hit, close platform

  6. Placing stops inside value areas instead of beyond structure

    • Stops get hit on normal volatility
    • Fix: Place stops beyond meaningful structure (swing high/low, opposite VA extreme)

  7. Trading Case #1 days (OP inside PD Range AND RTH VP-VA)

    • Trading balance days with no edge
    • Fix: Skip Case #1 unless Day 2+ exception applies

  8. Chasing after missing RTH VP-VA / ETH VP-VA entry

    • Entering 10+ points away from value area extreme
    • Fix: If you miss it, let it go. Wait for next setup

  9. Ignoring GEX regime when setting expectations

    • Taking breakout trades on high positive GEX days expecting large moves
    • Fix: Adjust target expectations and conviction requirements based on GEX

  10. Not checking GEX before the session

    • Missing critical volatility context that affects probability
    • Fix: Make GEX review part of daily pre-market routine

❓ FAQs​

Q1: What if price never returns to RTH VP-VA or ETH VP-VA by 12:00 ET?​

A: Skip the day. Your edge exists at value area extremes. Do not create arbitrary levels or chase mid-range moves. There will be another setup tomorrow.

Q2: My account is too small to trade ES with 0.25% risk. What should I do?​

A: Trade Micro E-mini S&P 500 (MES) instead. MES is 1/10th the size of ES ($5/point vs. $50/point). Even with MES, you may need $15,000+ to trade comfortably with proper risk management. Do NOT increase risk above 0.25% to compensate for small account size.

Q3: I followed the process perfectly but still lost. What did I do wrong?​

A: Nothing. You executed correctly. Losses are part of trading. Even with a 60% win rate, 40% of perfect setups will lose. Judge yourself on process adherence, not outcome. If you followed the checklist, identified RTH VP-VA / ETH VP-VA correctly, waited for VPA + VD, and managed risk properly, you did your job.

Q4: Should my take profit be at 1:2 or 1:2.5?​

A: In most cases, your take-profit target should be 1:2. This provides a balanced reward-to-risk ratio while maintaining a high win probability. However, if your analysis indicates a strong directional bias with sustained momentum — supported by volume delta, trend structure, or multiple confluences — you can extend the target to 1:2.5. Additionally, consider GEX regime:

  • High Positive GEX: Favor 1:1.5 to 1:2 (mean reversion environment)
  • Negative GEX: Favor 1:2.5 to 1:3 (trending environment)
  • Neutral GEX: Standard 1:2 to 1:2.5

Q5: My prop firm or broker doesn't support Futures, or I'm not eligible to trade Futures due to my citizenship or location. What should I do?​

A: If you don't have access to Futures markets, you can trade CFDs (Contracts for Difference) as an alternative. CFDs typically mirror the price movement of the corresponding Futures contracts (e.g., NAS100 CFD tracks Nasdaq-100 Futures, US30 CFD tracks Dow Futures), allowing you to follow the same setups and directional bias.

It's recommended to perform your market analysis on Futures charts, since Futures data offers accurate volume, structure, and institutional context. You can then execute your trades on CFDs with your broker, as the price action will usually align closely.

Keep in mind the following differences:

  • CFDs are broker-based instruments, not exchange-traded, so spreads, pricing, and execution may vary by broker.
  • CFD volume data is not real Futures volume, so always rely on Futures charts for volume-based or contextual analysis.
  • Leverage, margin, and swap costs differ by region and broker; adjust your position sizing and risk management accordingly.

In short, analyze using Futures data, execute through CFDs, and be aware of the structural differences between the two instruments.

Q6: How important is GEX compared to other confluences?​

A: GEX provides macro context that helps you understand the volatility regime for the session. It's not as critical as core requirements (location, VP breakout, VD), but it's more important than most other confluences because it affects the entire session's behavior, not just a single level.

Priority hierarchy:

  1. Core requirements (location, VP breakout, VD) - Mandatory
  2. CVD alignment - Highly important
  3. GEX regime - Important for expectation setting
  4. Other confluences (AVWAP, HSI/VSI, volume bubbles, etc.) - Supporting evidence

Think of GEX as the "weather forecast" for your trading session. You wouldn't cancel a trip because of weather, but you'd adjust your plans and expectations accordingly.

Q7: Can I trade without access to GEX data?​

A: Yes, absolutely. GEX is an enhancement, not a requirement. The VAB framework has been profitable without GEX analysis. However, incorporating GEX can:

  • Help you skip lower-probability setups (breakouts on high GEX days)
  • Adjust your target expectations realistically
  • Improve your win rate over time by selecting higher-probability regimes

If you don't have access to GEX data, simply execute the core VAB framework with standard 1:2 to 1:2.5 targets and focus on the other confluences.

Q8: What if GEX is Negative but I see a mean reversion setup at VWAP ±2σ?​

A: In this situation, you're facing a regime conflict:

  • Negative GEX suggests trending behavior (breakouts sustain)
  • VWAP ±2σ suggests mean reversion (price should return to VWAP)

Best approach:

  • Skip the trade if you're using the VAB framework (which is breakout-focused)
  • If you're using the VOF framework (VWAP-based), you can take the setup but:
    • Reduce target to 1:1.5 (instead of 1:2)
    • Require 5+ other confluences
    • Accept that probability is lower than usual
  • Never fight both GEX and your framework's core thesis

🎯 Final Checklist: Am I Ready to Trade VAB?​

Before going live, confirm:

  • I have read the Essential Theory for VAB & VOF document
  • I understand Opening Cases and can classify them in under 30 seconds
  • I can identify RTH VP-VA and ETH VP-VA on my chart
  • I understand GEX concepts and how to interpret High Positive, Neutral, and Negative regimes
  • I know where to check GEX daily (SqueezeMetrics or equivalent)
  • I know how to calculate 0.25% position size
  • I have tested bracket orders on my platform
  • I have completed 30+ replay/sim trades following this playbook exactly
  • I have the cheatsheet printed/visible during trading hours
  • I understand that 40% of perfect setups will lose (it's probability, not certainty)
  • I am psychologically prepared to follow the 2-trade and -0.5% limits with discipline

If any box is unchecked → Return to study/simulation before live trading

Framework Selection Note:

VOF and VAB are nearly identical frameworks with different starting points. Choose ONE and stick with it—do not mix them in the same session. Most traders find one resonates more with their cognitive style:

  • VOF: Prefer statistical/probability thinking, comfortable with VWAP as primary reference
  • VAB: Prefer structural/institutional thinking, comfortable with value area extremes as primary reference

Both work. Pick the one that makes the most sense to you.