Patterns logic

Reverse Volume

This pattern is based on the principle of volume shifting upward (for long signals) or downward (for short signals), indicating a potential shift in market control — as buyers or sellers attempt to take the initiative.

Locked Volume

This pattern is based on the assumption that volume located in the lower wick (for long signals) or upper wick (for short signals) may indicate trapped traders. A move in the opposite direction can trigger a chain reaction of stop-loss activations, fueling a stronger momentum.

Momentum Shift

This pattern is an enhanced version of the Locked Volume pattern. It requires confirmation on the second candle, where the initiating volume should appear in the body or lower wick (for a long signal), or in the body or upper wick (for a short signal).

Locked Delta

This pattern also reflects the idea of trapped traders — by identifying candles where the extreme bottom clusters show negative delta (for a long signal) or the top clusters show positive delta (for a short signal). This behavior often signals potential reversals driven by trapped positions.

Locked imbalance

It’s the same core concept as the Locked Delta pattern — but viewed through the lens of stacked imbalances, offering an alternative perspective on identifying trapped traders and potential breakout points.

Volume Test

The logic behind it requires that the signal candle's wick must test the cluster with the maximum volume from the previous candle.

Activating the Clear Test filter will display only those patterns on the chart where the retest of the cluster with the maximum volume occurs tick by tick.

Low volume node

This pattern highlights situations where the extreme clusters of a candle show significantly lower volume compared to the candle’s POC. This can indicate a "lack of interest" in continuing the previous price direction — often signaling a potential shift or pause in momentum.

Delta Absorption

This pattern highlights candles where the delta is opposite to the candle's direction — a bullish candle with negative delta or a bearish candle with positive delta. This indicates absorption of aggressive orders by passive limit orders, often signaling a potential reversal or exhaustion of momentum.

Last updated