Flow.42 Analytics: Interpretation Guide Version: 2026-07-11 · Evidenced on two live cases, MNQ 09-26, 2026-07-10

The core insight in two sentences: An S/R level from VolImbalance tells you that a large participant stood there. An absorption diamond from AbsorptionMap tells you whether he won or lost.

The second, equally important insight: Absorption tells you where, not when. It is a context signal, not an entry trigger.

1. Why this guide exists

An ASK cluster is red and means "resistance". A green absorption diamond means "bullish". When both appear at the same price, in the same minute, it looks like a contradiction, and the obvious reaction ("red line = short") is then exactly wrong.

They do not contradict each other. They describe two halves of the same event.

2. What the two indicators actually measure (code semantics)

VolImbalance: where was the order?

A cluster ([5x] 649) = several stacked imbalances of the same type, here 5, totalling 649 contracts. The level is drawn because size demonstrably traded there.

AbsorptionMap: did that order work?

The diamond appears only when the aggressive side failed: volume was pushed through, and price still did not move. Large ringed diamonds = strong/confirmed absorption; small pale ones = provisional candidates.

3. The core insight

A level exists because a seller (or buyer) stood there. A diamond exists because that very participant failed.

When both sit on top of each other:

The seller is real, but he is being eaten.

The level is then not a place to fade. It is a target that will break.

4. The four constellations (2×2 matrix)

Rule of thumb: - Same color for cluster and diamond (red+red / green+green) → the level holds. - Opposite color (red cluster + green diamond, green cluster + red diamond) → the level is a trap and will break.

5. ⚠️ Absorption is context, not a trigger

This is the part that costs money if you have not internalised it.

The diamond says: "the aggressive side failed HERE." It does not say: "the reversal starts NOW."

Between the absorption and the resolution the market can keep moving against you, in Case B below by 18 points, even though the absorption was correct and the later break was correct too. The seller won the moment and still lost the round.

Practical consequence:

This is exactly why the Deviation setting is not cosmetic: it is your trade trigger (see chapter 10).

If you do enter on the diamond, size the stop to survive an adverse excursion on the order of Case B (≈18 MNQ points).

6. After the break: polarity flip

A broken trapped level flips into the opposite role:

• Broken resistance (trapped seller) → becomes support. The covering seller and the new longs defend it.
• Broken support (trapped buyer) → becomes resistance.

The retest from the other side is often the better entry than the break itself.

7. Case study A: the clean case (19:29 / 19:30)

MNQ 09-26, 2026-07-10

19:29: ASK cluster [5x] 649 at roughly 30046.9 to 30048.75. Five stacked ask imbalances, 649 contracts. A large seller, clearly visible. Resistance is drawn.

19:30: 🟢 Large ringed green diamond, right inside the zone. Selling absorbed. The aggressive selling was soaked up by passive buyers. Price does not fall.

Reading: Trapped seller. The red line is a target, not a short.

Resolution: Price runs up without a detour, from ~30047 to above 30065 by 19:42. No drawdown, no hesitation. The [5x] 649 band is drawn dashed and truncated at the break point = invalidated.

This is the textbook form: big trapped seller, immediate absorption, direct break.

8. Case study B: the honest case (19:56)

Same chart, 27 minutes later. Same signal, different path.

19:56: ASK cluster [3x] 280 at 30049.25 to 30050.75, with a 🟢 green diamond right on it. At first glance exactly the same constellation as Case A.

But then: price first drops ~18 points, from ~30049 to ~30031. The sellers won the moment. Anyone who went long on the diamond was underwater.

And only then: price returns, pushes above the zone from ~20:05 and finally breaks it with a green impulse. The level has held as support since.

This is the real-world form: the signal was right, but not immediately. Absorption shifts the odds; it does not guarantee timing.

9. What separates Case A from Case B

Same pattern twice, two very different paths. Observable differences (indications, not law):

Rules of thumb: - The larger the trapped seller, the more fuel the squeeze has (he must cover). - Absorption into an ongoing move (Case A) resolves faster than absorption against a rolling-over, extended move (Case B). - A small cluster at the extreme of the day is the weaker setup, even when the signal colors look identical.

10. Confirmation stack

A trapped signal is strongest when the auction context agrees:

If all point the same way, the break is the likely resolution. If they conflict, it is a context signal, not a trade.

Note when reviewing: the AuctionEngine panel always shows the current live state, not the state at the time of a historical bar. To judge the auction context of a past signal, set Auction Context to Historical. Otherwise you read today's state into yesterday's setup.

11. Practical checklist

1. Found a cluster? Note the type (ASK = resistance, BID = support).
2. Is there a diamond on it? If not → ordinary S/R level, trade it classically (fade it).
3. Diamond in the opposite color? → Trapped. Discard the fade idea.
4. How big is the trapped cluster? [5x] 649 ≫ [3x] 280. More trapped size = more fuel.
5. Where is price in the move? Absorption into an ongoing move beats absorption at an extended extreme.
6. AuctionEngine disagrees? → context only, no trade.
7. Do not enter on the diamond. Enter on the break. The close beyond PriceMax + Deviation is the trigger.
8. Watch the retest from the other side as the better entry.

12. Common mistakes

• "Red line = short." Wrong the moment a green diamond sits on it.
• Entering on the diamond instead of the break. Case B costs you 18 points even though the signal was ultimately right.
• Judging by wick instead of close. A wick through the zone is confirmation that the level holds, not a break.
• Leaving the deviation too wide. You are waiting for the break, and the indicator reports it 21 minutes late, or not at all.
• Trading a trapped signal without auction context. Without backing it is an observation, not a setup.
• Ignoring signal size. [3x] 280 and [5x] 649 look the same but are not equally strong.

Code references: Flow42VolImbalance.cs → ImbalanceType, AskImbalanceColor / BidImbalanceColor, ValidateClusterAbsorption (break logic), CalculateDeviationPrice. Flow42AbsorptionMap.cs → BidAbsorbedColor / AskAbsorbedColor (line 1023-1024), tooltip "Bullish absorption / selling absorbed" vs "Bearish absorption / buying absorbed".

Figures: MNQ 09-26, 2026-07-10, 1-minute, calibrated from the live chart. Figure annotations are deliberately English so that both language versions share the same images.

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