"The Best Confluence-based Gold reversal and liquidity detection system”
- Chris Trader
- Aug 16
- 4 min read
This chart is a very good illustration of why Quantflow Dynamics is more useful as a confluence system than as a single-indicator signal.
The key strength is that it combines Volume Profile, liquidity, market structure, supply/demand, momentum and reversal confirmation into one decision-making framework.
Quantflow Dynamics analysis of the chart
The Gold 10-minute chart is showing a clear sequence:
Demand → accumulation → bullish structure shift → expansion → supply → rejection → pullback
That sequence is exactly the type of market behaviour Quantflow Dynamics is designed to identify.
🟢 1. The original BUY opportunity
The strongest long area on the chart was around:
4,307–4,318
This area is particularly significant because several things came together:
Price had experienced a substantial sell-off.
Price entered the lower demand zone.
Volume Profile showed substantial trading activity around the lower range.
Selling momentum began to weaken.
A CHoCH appeared.
A subsequent BOS confirmed that the market was beginning to transition from bearish to bullish.
Quantflow shows Buy Power: 80.
That is much more meaningful than simply buying because an oscillator is oversold.
The sequence was essentially:
Liquidity/sell-off → demand → exhaustion → CHoCH → BOS → bullish expansion
That is a classic Quantflow reversal structure.
🚀 2. The bullish move
Once Gold broke the bearish structure, price began producing:
Higher highs + higher lows
The blue moving average also began flattening and turning upward.
The important point is that Quantflow wasn't trying to predict the entire rally from nowhere.
It identified the area where a reversal was becoming probable, then the market structure provided confirmation.
Gold subsequently travelled from approximately 4,310 toward 4,390+.
That is the type of move where having the correct location before the move begins provides a major advantage.
🔴 3. The major SELL area
The next important area is around:
4,390–4,400
This is the obvious upper supply/liquidity region on your chart.
Notice what happened:
Gold rallied strongly into the area, tested the upper supply and then began rejecting.
Quantflow identifies:
Supply
High-volume/Volume Profile information
Sell Power: 70
Structure deterioration
Subsequent bearish BOS
Price falling back toward the demand area.
This is where the system changes from looking for continuation longs to looking for a potential reversal/short setup.
The important lesson is:
Don't chase Gold after a large bullish expansion. Wait for price to reach a quantified supply/liquidity area and then look for evidence of exhaustion and structure failure.
📊 4. What the Volume Profile adds
This is one of the most valuable parts of the Quantflow approach.
Volume Profile tells you where the market has actually done business.
Rather than drawing arbitrary horizontal support and resistance levels, you're looking at areas where substantial volume was transacted.
On your chart, you can see the large horizontal volume distributions.
This allows you to distinguish between:
High-volume areas
Potential acceptance/value areas.
Low-volume areas
Potentially fast-moving areas where price can move rapidly through the range.
POC
The price where the greatest amount of volume was traded within the selected profile.
VAH / VAL
The upper and lower boundaries of the value area.
This gives Quantflow something extremely important:
A LOCATION.
Then the other components determine whether you actually enter.
🔥 5. This is where Quantflow becomes powerful
I would describe the system as a five-stage decision process:
STEP 1 — LOCATION
Volume Profile + Supply/Demand
Where is price?
↓
STEP 2 — LIQUIDITY
Previous highs/lows + VAH/VAL + liquidity sweeps
Has price taken liquidity?
↓
STEP 3 — EXHAUSTION
Divergence + momentum
Is the move losing strength?
↓
STEP 4 — STRUCTURE
CHoCH/BOS
Has the market actually changed direction?
↓
STEP 5 — ENTRY
Outside Bar / displacement / Quantflow signal
Has price provided an actionable entry?
That is considerably more robust than using one indicator in isolation.
🟢 Current chart — what would I watch?
Current price is approximately 4,375 on the chart.
The immediate area around 4,374–4,377 is interesting because it is acting as a short-term demand/support region.
However, I wouldn't automatically buy here.
I'd want to see:
Price sweeps below the current demand → rejects → bullish outside bar → CHoCH → bullish displacement
Then a long becomes much more attractive.
Potential upside areas
4,385 → 4,390 → 4,397–4,400
The 4,390–4,400 region is where I would be particularly cautious about chasing longs because of the visible supply.
🔴 Short scenario
If Gold rallies back toward:
4,390–4,400
I'd watch for:
Liquidity sweep → rejection → bearish divergence → CHoCH/BOS → bearish outside bar
That would create a much stronger Quantflow short than simply selling because price touched resistance.
Potential downside objectives could then be:
4,375 → 4,366 → 4,353 → 4,340
⭐ The real value of Quantflow Dynamics
The biggest value isn't necessarily that the software "predicts" where Gold will go.
It's that it helps answer three critical trading questions:
1. WHERE should I trade?
Volume Profile + Supply/Demand + Liquidity
2. WHEN should I trade?
CHoCH/BOS + Divergence + Outside Bar
3. WHERE am I wrong?
Structural invalidation / swing high or low
That is a much more professional way of approaching the market.
Instead of:
"Gold is going up, I'll BUY."
Quantflow encourages:
"Gold has reached a high-probability location. Liquidity has been taken. Momentum is showing exhaustion. Market structure has shifted. Now I have confirmation to enter."
🏆 Quantflow Dynamics trading model
For your system, I'd summarise the complete methodology as:
VOLUME PROFILE↓IDENTIFY VALUE + LIQUIDITY↓WAIT FOR LIQUIDITY SWEEP↓CHECK DIVERGENCE / MOMENTUM↓WAIT FOR CHoCH/BOS↓CONFIRM WITH OUTSIDE BAR / DISPLACEMENT↓ENTER↓STOP ABOVE/BELOW STRUCTURAL INVALIDATION↓TARGET OPPOSITE LIQUIDITY / VALUE AREA
The key principle:
Quantflow Dynamics doesn't attempt to predict every Gold move. It attempts to identify when multiple independent pieces of market information align at the same location.
I hope this explains the reversal system it works on any timeframe and any asset. YouTube video coming soon.
Chris
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