How does @TheFlowHorse treat levels, and why do they matter for order flow?
One of the most comprehensively answered questions in the group is now structured in a thread 🧵:
One of the most comprehensively answered questions in the group is now structured in a thread 🧵:
1/ I look at PDH, PDL, weekly opens, Monday’s range, VAH/VAL, and similar levels as more than just lines on a chart but also as memory points for order flow.
A previous day high or low is usually where large traders and algos had resting orders, stops, or breakout triggers.
A previous day high or low is usually where large traders and algos had resting orders, stops, or breakout triggers.
2/ The market tends to revisit them because they’re decision points where aggressive buying or selling either succeeded or failed.
They also act as liquidity pools.
Stops from shorts stack above PDH, stops from longs build below PDL.
They also act as liquidity pools.
Stops from shorts stack above PDH, stops from longs build below PDL.
3/ Liquidity-seeking players, including market makers and larger entities, will often try to shove price into those zones to trigger orders, which is why you’ll often see quick spikes and reversals there.
4/ In terms of market context, the prior day’s range is a good boundary marker.
If we’re trading inside it, I’m expecting more balanced, rotational conditions.
If we break and hold outside it, that leans toward initiative activity like a trend day or range expansion.
If we’re trading inside it, I’m expecting more balanced, rotational conditions.
If we break and hold outside it, that leans toward initiative activity like a trend day or range expansion.
5/ Value areas add another layer.
VAH and VAL show where most of the business was done the prior day. If price moves from outside back into value, there’s a good chance of rotating toward the POC.
VAH and VAL show where most of the business was done the prior day. If price moves from outside back into value, there’s a good chance of rotating toward the POC.
6/ If it can’t get back in or can’t hold inside, that can be a signal for continuation away from that area.
These levels also shape setups and risk placement - fading a failed breakout above PDH back into value, or going with a strong break above PDH if volume and delta confirm.
These levels also shape setups and risk placement - fading a failed breakout above PDH back into value, or going with a strong break above PDH if volume and delta confirm.
7/ They give you predefined areas for entries, profit targets, and stops without having to force trades in the middle of nowhere.
I’d say the simplest way to think about it is that those levels don’t exist in isolation.
I’d say the simplest way to think about it is that those levels don’t exist in isolation.
8/ They’re part of a hierarchy, and the market will often show you which one it “cares” about in the moment.
9/ PDH/PDL and session opens are more immediate reference points, so they tend to matter more for intraday flows, whereas something like the weekly or monthly open, or Monday’s high/low, will frame the larger bias for multiple days.
10/ When I’m lining them up, I’m looking at confluence first, e.g., if a PDH lines up with VWAP, a HVN, or a Monday high, that’s going to carry more weight than if it’s floating out on its own.
11/ The other big nuance is watching the behavior around them instead of treating the level as the trade by itself.
Do we see acceptance above PDH with aggressive buying & holding? Or is it a quick probe and rejection?
That tells you whether the level is a pivot or just noise.
Do we see acceptance above PDH with aggressive buying & holding? Or is it a quick probe and rejection?
That tells you whether the level is a pivot or just noise.
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