Module 3 · The Core Setups
Setup 2 — Stacked-Imbalance Continuation
Going with acceptance through an LVN.
In this lesson you'll
- Build the breakout/continuation setup
- Confirm acceptance (not rejection)
- Manage a go-with trade
The trend/continuation counterpart — used when the regime is trending or a balance is breaking.
- Context: price breaks a value edge or pushes into an LVN (a fast zone) heading toward the next HVN / naked level.
- Confirmation (acceptance): footprint prints a stacked imbalance in the breakout direction; CVD expands with price; on the heatmap, opposing liquidity is consumed or pulls (not a holding wall); fresh volume builds at the new prices.
- Trigger: the breakout itself, or the first shallow pullback into the stacked-imbalance zone / LVN edge that holds.
Key takeaways
- Use when trending or a balance is breaking, through an LVN toward the next node.
- Confirm acceptance: stacked imbalance + CVD expansion + opposing liquidity consumed/pulled.
- Enter on breakout or first pullback into the stacked zone; stop below it.
- Target the next HVN/naked level; confirm acceptance, not a snap-back poke.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: A holding wall + divergence is the REJECTION/absorption case.
Why that's off: Snapping back inside is rejection, not acceptance.
Why that's off: Exhaustion (shrinking volume) signals a stall, not continuation.
Acceptance shows the market building new value beyond the level: stacked imbalances driving through, CVD expanding with price, and fresh volume at the new prices. The opposite signs would mean rejection (Setup 3).
Why that's off: A stop above the breakout would be on the wrong side for a long.
Why that's off: The next HVN is the target, not the stop.
Why that's off: Continuations can fail; you need invalidation.
The stacked-imbalance zone is the aggressive buyers' footprint; if price falls back below it, they've failed to hold and the thesis is invalid — so the stop sits just below that zone.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.
