> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/toolkits/orderflow-concepts-tm/framework.md).

# Framework

<figure><img src="/files/ZQzcURu71P01X9Xrv13N" alt=""><figcaption></figcaption></figure>

This page outlines how to actively read and trade using the Order Flow Concepts toolkit. You use it to build context and anticipate moves before the structural patterns even form.

### Step 1 - Assess the Liquidity Landscape

Start by looking at the **Liquidity Mappings** (the heatmap blocks or dotted lines). These represent historical swing highs and lows where stop-losses and breakout orders are clustered.

Liquidity acts as a magnet. The market will naturally gravitate toward the largest clusters.

* If you see a massive red cluster (sell-side liquidity) below current price, and the dashboard confirms a bearish bias based on proximity or gravity, the market is likely being drawn down to that level.
* **The Core Rule of Liquidity**: When price reaches a liquidity cluster, watch the reaction closely.
  * If price taps the cluster and immediately **reverses** with strong momentum, the liquidity was absorbed by institutions to build a position in the opposite direction. This is a high-probability **trend change**.
  * If price pushes through the cluster, stalls, but **does not reverse**, the market is likely using that liquidity as fuel to hunt the *next* cluster further down. We assume continuation until a strong rejection occurs.

### Step 2 - Watch for Volume Anomalies at Key Levels

As price approaches these liquidity pools, turn your attention to the candles themselves. This is where the **Volume Anomalies** come into play.

* **Exhaustion**: If price spikes into a liquidity pool on climax volume, but leaves a massive wick and closes weakly, this is an Exhaustion anomaly. It confirms the "trend change" scenario from Step 1.
* **Absorption**: If price is grinding into a level with extremely high volume but very small candle bodies, institutions are absorbing the aggressive buying/selling. A reversal is imminent.
* **Trapped Traders**: If you see a high-volume breakout candle pushing through a liquidity level, but the next candle immediately reverses and closes back inside the range, the breakout traders have been trapped. The indicator will mark this "Bait Candle," signaling an excellent fading opportunity.

### Step 3 - Confirm with Stacked Imbalances and Big Orders

Once you anticipate a reversal from a liquidity sweep (confirmed by an anomaly), look for immediate confirmation in the order flow that follows.

* **Big Order Bubbles**: Look for unusually large volume bubbles printing in your anticipated direction. This confirms big money is stepping in.
* **Stacked Imbalances**: If price displaces away from the liquidity pool and leaves behind a stack of imbalances (3 or more consecutive imbalances), it confirms that aggressive market orders are driving the move. This displacement often leaves behind FVGs or Breaker Blocks that you can use for your actual entry execution.

### Summary Workflow

1. **Identify the Magnet**: Where is the thickest liquidity pool?
2. **Wait for the Tap**: Let price reach the pool.
3. **Read the Reaction**: Does price reverse (trend change) or consolidate (hunting next level)?
4. **Find the Anomaly**: Look for Exhaustion, Absorption, or Trapped Traders at the liquidity pool to confirm the reversal.
5. **Confirm the Flow**: Look for Big Order Bubbles and Stacked Imbalances driving price away from the pool.


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