Lesson 3 of 4 · 2 min
Patterns
Walls, pulling, stacking, absorption and liquidity voids as they appear on a heatmap.
Patterns
- Persistent band — size that sits at a price for a long time. It may act as a reference while it stays.
- Pulling — a band that fades as price approaches. Liquidity stepping away; the level may not hold.
- Stacking — size added ahead of price. Participants positioning — or appearing to.
- Absorption — trades hit a band repeatedly and the band stays bright; price stalls.
- Liquidity void — an area with little displayed size; price can move through it quickly.
- Following liquidity — bands that move with price, typical of market makers repricing quotes.
Key Insight
The most informative moment is the interaction: when price reaches a band, does it get absorbed, pulled, or ignored?
Trading implication
Combine the heatmap with executed volume. A band that holds while trades hit it is more meaningful than a band that simply exists.
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