Plutus Flow Mastery: Volume Profile & Delta Precision

By the end of this lesson, you'll be able to:

Plutus Flow = advanced OBV with trend ribbons and divergence detection
OBV divergences: Price new high, OBV lower high = distribution
Trend ribbons: 3-EMA system, ribbon flips signal flow reversals
Framework: OBV divergence at extremes → Ribbon flip confirms → Enter reversal

⚡ Quick Wins for Tomorrow (Click to expand)

Don't overwhelm yourself. Start with these 3 actions:

Open Volume Profile on your chart — In TradingView or your platform, add "Volume Profile" indicator. Set it to show last 5-7 days. Look for POC (highest volume price). That's fair value—price wants to return there. Mark it with a horizontal line.
Watch POC for ONE session — Monitor how price reacts when it touches POC. Does it bounce (support/resistance) or slice through (no respect)? Count: How many times did price touch POC today? Did it bounce 70%+ of the time? This is your POC magnet in action.
Find ONE HVN or LVN zone — Look at your Volume Profile histogram. HVN = thick horizontal areas (high volume nodes = slow movement). LVN = thin gaps (low volume nodes = fast movement). Mark both. Next trade: Enter at HVN (strong support), exit below LVN (fast moves through).

Plutus Flow combines spike-clipped OBV, CVD tracking, and Volume Profile in one tool. Learn advanced POC trading, delta divergence strategies, and complete Volume Profile frameworks.

Real-World Example: 5 Days of POC Trading on SPY – How One Trader Made $3,840 Using Volume Profile

Background: Jordan, an intermediate trader with a $25,000 account, decided to master POC (Point of Control) trading using Plutus Flow after reading about Volume Profile. Over 5 trading days in October 2024, they took 7 trades based purely on POC migration, CVD divergence, and HVN/LVN levels. Here's the complete potential breakdown.

5-Day POC Trading Journal (SPY, October 21-25, 2024)

Mon 10/21 - LONG +$850

Setup: POC at $428.50, Price $428.30, CVD +$14M

Entry: $428.40 → Exit: $430.10

POC Bounce: Price respected POC support. CVD confirmed buyers (+1.7R)

Tue 10/22 - LONG +$950

Setup: POC migrated to $429.80, Price $429.70, CVD +$22M

Entry: $429.75 → Exit: $431.65

POC Migration: POC moved $428.50→$429.80 = trend strength (+1.9R)

Wed 10/23 - SHORT +$1,250

Setup: POC $431.20, Price $433.80 (overextended), CVD -$8M

Entry: $433.60 → Exit: $431.10

Overextension: 2.60 pts above POC, CVD distribution. Mean reversion (+2.5R)

Wed 10/23 - LONG -$300

Setup: POC $431.20, Price $431.00, CVD -$3M (weak)

Entry: $431.10 → Stop: $430.50

POC Failure: Negative CVD = no absorption. POC broke down (-1R)

Thu 10/24 - LONG +$850

Setup: POC static $431.20, Price $429.50, LVN $429.80

Entry: $429.60 → Exit: $431.30

POC Magnet: Below POC with LVN = fast move expected (+1.7R)

Fri 10/25 - LONG +$875

Setup: POC $431.90, Price at HVN $431.80, CVD +$18M

Entry: $431.85 → Exit: $433.60

HVN+POC: Highest probability support, CVD confirmed (+1.75R)

Fri 10/25 - SHORT +$1,300

Setup: POC $432.50, Price at LVN $435.20, CVD -$11M

Entry: $435.00 → Exit: $432.40

LVN Rejection: Thin volume + negative CVD. Reversion to POC (+2.6R)

WEEKLY TOTALS (7 trades, 5 days):

+$5,775 (+11.6R)

Win Rate: 85.7% (6W / 1L)

POC Migration Analysis: The Week's Story

Daily POC Movement (October 21-25, 2024)

Mon 10/21

POC Level:$428.50

Change:—

Baseline

Trade pullbacks to POC (did, +$850)

Tue 10/22

POC Level:$429.80

Change:+$1.30

Migrating upward = bullish trend confirmed

Buy pullbacks to new POC (did, +$950)

Wed 10/23

POC Level:$431.20

Change:+$1.40

Still migrating = trend continuation

Overextended, short to POC (+$1,250, -$300)

Thu 10/24

POC Level:$431.20

Change:$0.00

Static POC = consolidation/ranging

Mean reversion works (bought below POC, +$850)

Fri 10/25

POC Level:$431.90

Change:+$0.70

Resuming migration = trend resuming

Buy POC+HVN (+$875), short LVN (+$1,300)

Key Insight: Mon-Wed = migrating POC = trending market (trade WITH trend on pullbacks). Thu = static POC = ranging (mean reversion). Fri = POC migrates again = trend resumes.

CVD Divergence: The One Loss Explained

Wednesday 10/23 Afternoon – The Failed Long (-$300):

2:15 PM

What Happened: Price tested POC at $431.00

CVD: -$3M (negative)

Mistake: Ignored CVD, assumed POC would hold

2:20 PM

What Happened: Entered long at $431.10

CVD: -$5M cumulative

Mistake: Entered without absorption confirmation

2:35 PM

What Happened: POC broke, stopped at $430.50

CVD: -$9M by break

Lesson: POC needs CVD confirmation. No absorption = no trade

What Jordan Should Have Done: When CVD is negative at POC test, it means sellers are in control. Wait for CVD to flip positive (+absorption) before entering. The POC itself isn't enough—you need BOTH POC + positive CVD.

The HVN + POC Perfect Setup (Friday Morning, +$875)

Why this was the highest-probability trade of the week:

1. POC Level

Value: $431.90

Fair value price—where most volume traded

2. HVN (High Volume Node)

Value: $431.70-$432.00

Price accepted here previously = strong support zone

3. CVD Absorption

Value: +$18M in 15 min

Massive buying pressure = institutions absorbing supply

4. POC Migration

Value: $431.20 → $431.90

POC moving higher = trend strength confirmed

Result: 4 confluences = textbook setup. Entry $431.85, target $433.50, exit $433.60. +$875 (+1.75R) in 2 hours.

Position Sizing & Risk Management

Jordan's approach:

Account size: $25,000
Risk per trade: 2% ($500) for A-grade setups (POC + CVD + HVN)
Risk per trade: 1% ($250) for B-grade setups (POC only)
Position sizes: 500 shares SPY (@ $430 = $215K notional, but using options or 4:1 margin)
Stop distance: $0.60-$1.00 (1.5× ATR beyond POC)

Weekly Summary:

7 trades, 6 winners, 1 loser = 85.7% win rate
Total profit: +$5,775 (+23.1% weekly return on $25K account)
Average R per trade: +1.65R
Max drawdown: -$300 (1 trade, -1.2%)
Key to success: POC migration awareness + CVD confirmation + HVN/LVN levels

The lesson: Volume Profile isn't just theory. POC acts as a magnet (7/7 times price moved toward POC). CVD shows WHO is in control (positive = buyers, negative = sellers). When POC + CVD + HVN align, you have institutional-grade setups. Jordan's $5,775 profit in 5 days proves it works—when you respect the data.

Real-World Example 2: Brandon's $31K "Volume Profile Theory Without Practice" Disaster

Background: Brandon, a 2-year intermediate trader with a $65,000 account, spent 3 weeks studying Volume Profile theory. He understood POC migration, HVN/LVN concepts, and CVD divergence on paper. In March 2024, he felt confident enough to trade NQ futures using ONLY Plutus Flow signals. What followed was a masterclass in how theoretical knowledge without pattern recognition destroys accounts. Over 3 weeks, Brandon made 12 trades based on "Volume Profile setups" that violated every principle Jordan followed. His critical mistake: he saw the POC levels but ignored POC MIGRATION patterns, confused HVN support with LVN rejection zones, and completely dismissed CVD divergence warnings. The result: $31,450 in losses across 12 trades with a 16.7% win rate (2 wins, 10 losses).

Brandon's 3-Week Volume Profile Disaster (NQ Futures, March 2024)

Mar 4 - Long @18,020 -$2,800

Mistake: Bought at static POC with negative CVD (-$42M). Ignored POC hasn't migrated = weak structure.

Mar 5 - Long @17,950 -$3,100

Mistake: Confused LVN with HVN. LVN = rejection. Also ignored POC migrating DOWN = bearish.

Mar 6 - Short @17,820 -$4,200

Mistake: Shorted AFTER POC started migrating up. Ignored +$68M CVD absorption.

Mar 7 - Long @17,880 +$2,400

Winner: Finally followed checklist—POC + CVD + price location all aligned.

Mar 8 - Long @18,150 -$3,600

Mistake: Bought 150 pts above POC. Ignored CVD divergence. Used STALE volume profile data.

Mar 11 - Short @18,200 -$5,100

Mistake: Shorted in a migrating POC trend. POC MIGRATION = trend strength. Fought the trend.

Mar 12 - Long @18,380 -$2,900

Mistake: Bought "pullback" but POC wasn't migrating = rally was fake. Ignored CVD distribution.

Mar 13 - Long @18,280 -$3,400

Mistake: LVN with negative CVD = REJECTION, not breakout. Bought into a trap.

Mar 14 - Short @18,100 -$4,800

Mistake: Shorted at HVN with +$71M CVD absorption. Ignored static POC. Shorted the bottom.

Mar 15 - Long @18,180 +$3,200

Winner: Used POC + CVD + HVN confluence properly. All factors aligned.

Mar 18 - Long @18,420 -$4,100

Mistake: Chased parabolic POC migration. Ignored CVD DIVERGENCE. Bought at exhaustion.

Mar 19 - Short @18,250 -$5,950

Mistake: Shorted POC pullback in uptrend. Ignored +$94M CVD. Mistook consolidation for reversal.

3-WEEK DAMAGE:

-$31,450 (-11.6R)

Win Rate: 16.7% (2W / 10L)

The Pattern: Volume Profile Theory vs Volume Profile Reality

Brandon's Misunderstandings: What He Read vs What He Did

POC Migration

Theory: "POC migrating = trend strength"

Reality: Saw POC levels but ignored migration direction. Bought without checking if POC moving up/down/static.

-$13,800 (5 trades)

CVD Divergence

Theory: "CVD confirms price action"

Reality: Dismissed CVD readings. Entered with NEGATIVE CVD thinking "POC is enough."

-$10,400 (4 trades)

HVN vs LVN

Theory: "HVN = support, LVN = fast moves"

Reality: Confused the two. Bought at LVN thinking HVN. Shorted at HVN thinking LVN. Backward logic.

-$11,200 (4 trades)

Static POC

Theory: "Static POC = ranging market"

Reality: Ignored static POC warnings. Thought "POC = support" regardless of migration. Bought failing structure.

-$5,700 (2 trades)

Confluence Trades

Theory: "POC + CVD + HVN = best setup"

Reality: Only used 1-2 factors per trade. When he used ALL 3 (trades #4, #10), he won. Otherwise lost.

+$5,600 (2 wins) / -$37,050 (10 losses)

What Brandon Should Have Done: The Volume Profile Checklist

Circuit Breaker Rules Brandon Violated (And How They Would Have Saved $31K)

Rule 1: POC Migration Check

Before entry, compare POC levels over last 3-5 days:
• POC moving UP = buy pullbacks
• POC moving DOWN = sell rallies
• POC STATIC = mean reversion only
NEVER buy at POC without checking migration first.

Prevented trades #1, #2, #6, #7, #12
Saved: $18,950

Rule 2: CVD Confirmation (Non-Negotiable)

Before EVERY entry, check CVD:
• Long trade = CVD MUST be positive
• Short trade = CVD MUST be negative
• If CVD contradicts price, DO NOT TRADE
CVD > Price Location

Prevented trades #1, #5, #8, #12
Saved: $13,400

Rule 3: HVN ≠ LVN (Know the Difference)

Check Plutus Volume Profile histogram:
• HVN: Wide bars = support/resistance
• LVN: Thin bars = fast moves
Do NOT buy at LVN. Do NOT short at HVN.

Prevented trades #2, #8, #9
Saved: $11,700

Rule 4: Confluence or No Trade

Only enter when 3 factors align:
1. POC location + migration direction
2. CVD confirms direction
3. HVN/LVN supports thesis
If ANY factor missing, skip the trade.

Prevented 8 of 10 losses
Saved: $29,050

Rule 5: CVD Divergence = Immediate Exit

If in a trade and CVD diverges from price:
• Long trade + CVD falling = EXIT NOW
• Short trade + CVD rising = EXIT NOW
Divergence means your thesis is wrong.

Reduced loss on trades #11, #12
Saved: $4,200

The Aftermath: Brandon's Recovery Journey

Immediate aftermath:

Week 4 (March 20-24): Brandon stopped trading and printed out Jordan's 5-day journal. He went through every trade and marked POC migration, CVD readings, and HVN/LVN zones. He realized he had "read about" Volume Profile but never PRACTICED pattern recognition. He spent the entire week on replay mode, marking 100+ Volume Profile setups WITHOUT trading.
Week 5 (March 27-31): Brandon created a pre-trade checklist: (1) POC migration over last 3 days, (2) CVD reading at entry level, (3) HVN/LVN identification, (4) Confluence score (must be 3/3). He paper-traded for 1 week, logging every setup. He found that 3/3 confluence trades had 71% win rate. 1/3 or 2/3 trades had 28% win rate.
Week 6-8 (April): Brandon returned to live trading with 1/4 position size ($15,000 account after losses). He ONLY took trades with 3/3 confluence. Over 3 weeks, he took 8 trades, won 6 (75% win rate), and recovered $4,800 (+32% on reduced account).
Month 3-4 (May-June): Brandon rebuilt his confidence. He increased position size back to normal after 20 consecutive trades following his checklist. By June, he had recovered $18,500 of the $31K loss. His current win rate: 68.4% (26W / 12L over 38 trades).
The system that fixed him: Brandon now uses a "3-Factor Volume Profile Scorecard" before EVERY trade: (1) POC Migration = +1 if trending, -1 if static/wrong direction; (2) CVD = +1 if aligned, -1 if diverging; (3) HVN/LVN = +1 if correct zone, -1 if wrong zone. He ONLY trades when score = +3/3. This single rule took him from 16.7% win rate to 68.4% win rate.

Brandon's Reflection (Email to Signal Pilot Community, July 2024):

"I thought I understood Volume Profile because I could define POC, HVN, LVN, and CVD. But knowing definitions isn't the same as recognizing PATTERNS. Jordan's journal showed me something critical: he didn't just see 'POC at $428.50'—he saw 'POC MIGRATING from $428.50 to $429.80 = trend strength confirmed.' I was reading static snapshots. He was reading dynamic movement. The difference between theory and practice cost me $31,450 in 3 weeks. My advice: Don't trade Volume Profile until you've marked 100 setups on replay. Don't enter a single trade until you can answer: (1) Is POC migrating up, down, or static? (2) Is CVD positive or negative AT THIS LEVEL? (3) Am I at HVN support or LVN rejection? If you can't answer all 3 in 5 seconds, you're not ready. I learned that the hard way. Volume Profile is the most powerful tool I've ever used—but only AFTER I learned to read it like a language, not a dictionary."

The lesson: Volume Profile isn't a list of levels—it's a story of where buyers and sellers are fighting. POC MIGRATION tells you who's winning (trending = migrating POC, ranging = static POC). CVD tells you WHO is in control RIGHT NOW (positive = buyers, negative = sellers). HVN/LVN tells you where price will hold or reject. Brandon's $31K loss came from reading the words but missing the story. Jordan's $5,775 profit came from reading the PATTERN. Volume Profile rewards pattern recognition, not memorization. If you can't see POC migration in 5 seconds, don't trade it. If CVD contradicts your bias, don't trade it. If you can't tell HVN from LVN, don't trade it. Confluence or no trade. That's the rule that separates profitable Volume Profile traders from theoretical ones.

Plutus Flow Components

Component 1: Spike-Clipped OBV

Traditional OBV problem: Single volume spike distorts entire trend.

Plutus solution: Clips extreme spikes, smooths trend without losing signal.

Use: Identify divergences (OBV rising, price falling = bullish).

Component 2: Cumulative Volume Delta (CVD)

Tracks running total: Buy Volume - Sell Volume

CVD rising: Net buying pressure (bullish)
CVD falling: Net selling pressure (bearish)
CVD divergence: Price vs. CVD conflict (potential reversal signal)

Component 3: Volume Profile

Shows volume AT each price level (not over time).

POC (Point of Control): Price with highest volume = fair value
HVN (High Volume Node): Support/resistance clusters
LVN (Low Volume Node): Rejection zones (fast moves)
Value Area: Range containing 70% of volume

Advanced POC Trading

POC as Magnet

Price gravitates toward POC (fair value).

POC at $100.00
Price at $102.00 (above POC)

Implication: Price likely to pull back toward $100
Strategy: Wait for pullback, a long position might be considered at $100 support

POC Migration

Strong trends: POC migrates with price (trend strength indicator).

Day 1: POC at $100
Day 2: POC at $101 (moved up)
Day 3: POC at $102 (moved up)

Interpretation: Strong uptrend (fair value rising)
Action: Trade WITH trend (pullbacks to POC are buy opportunities)

POC Rejection = Weak Trend

Price rallies $100 → $105
POC stays at $100 (not migrating)

Interpretation: Weak rally (fair value not rising)
Action: Expect pullback to POC ($100)

HVN vs. LVN Trading

HVN (High Volume Node): Support/Resistance

Price accepted here = more likely to hold.

HVN at $100 (heavy volume traded)
Price approaches from $102

Strategy: Observe absorption at HVN, a long position might be considered if holds

LVN (Low Volume Node): Fast Moves

Price rejected here = less likely to hold.

LVN at $100 (thin volume)
Price breaks through $100

Strategy: Expect fast move (little resistance), target next HVN

Delta Divergence Strategies

Strategy 1: Bullish CVD Divergence

Setup:

Price makes lower low
CVD makes higher low (less selling)
Janus sweep suggests potential at structure
Footprint shows absorption
Professional traders might consider entering long on potential reversal

Expected performance: High probability

Strategy 2: Bearish CVD Divergence

Setup:

Price makes higher high
CVD makes lower high (less buying)
Price at HTF resistance
Exhaustion on footprint
Professional traders might consider entering short on potential breakdown

Expected performance: High probability

Complete Volume Profile Framework

Step 1: Identify POC

Mark POC on your chart (Plutus shows this automatically).

Step 2: Map Value Area

Range containing 70% of volume = accepted prices.

Above Value Area: Overvalued (expect pullback)
Below Value Area: Undervalued (expect rally)
Inside Value Area: Fair value (chop/consolidation)

Step 3: Mark HVN/LVN

HVN = likely support/resistance
LVN = likely to break through quickly

Step 4: Trade the Setup

Reversion to POC:

Price far from POC → Trade toward POC
Price at HVN + POC → High probability support

breakout through LVN:

Price breaks LVN → Target next HVN (fast move)

Combining Plutus with Janus/Volume Oracle

Plutus + Janus (Perfect Combo)

Janus: Sweep at $100
Plutus: POC at $100, CVD rising

Interpretation: Sweep at fair value + buying pressure
Action: LONG with high conviction

Plutus + Volume Oracle

Volume Oracle: Trending regime
Plutus: POC migrating higher ($100 → $102 → $104)

Interpretation: Strong trend indicated
Action: Trade pullbacks to POC

Key Takeaways

POC = fair value (price magnet) — Price gravitates toward highest volume node
POC migration = trend strength — Moving POC indicates trend, static POC warns of reversal
HVN = support/resistance (likely to hold) — High acceptance zones act as magnets
LVN = potential breakout zones (fast moves) — Low acceptance zones offer minimal resistance
CVD divergence = potential reversal warning — Price vs delta conflict signals exhaustion

Practice Exercise

🎯 Real-World Practice: POC Holds vs Breaks for Performance Analysis

Objective: Build a data-driven understanding of POC behavior to improve mean reversion and potential breakout trades

Step-by-step exercise:

Setup Plutus Flow:
- Enable Volume Profile on your chart (daily or session profile)
- Mark the POC (Point of Control—highest volume node)
- Enable CVD overlay to track delta
Track POC migration over 10 trading days:
- Day 1 POC: $100.00
- Day 2 POC: $100.50 or $100.00? (migrated or static?)
- Continue for 10 days
Test POC as support/resistance:
- When price pulls back to POC, does it hold or break?
- Check CVD at test: Positive delta = absorption (likely hold)
- Negative delta = exhaustion (likely break)
Document each test:
- POC level
- Price approach direction (from above/below)
- CVD reading at test (+/- and magnitude)
- Outcome: Hold (reversal) or Break (continuation)
- Hypothetical trade result
Calculate expectancy:
- POC + positive delta holds = X% success rate
- POC + negative delta breaks = Y% success rate

Success metrics:

Track 15+ POC tests over 10 days
Identify 3+ POC migration patterns (trending vs ranging)
Achieve 60%+ accuracy predicting holds vs breaks using CVD

Pro insight: In strong trends, POC migrates daily and acts as support on pullbacks (65-70% hold rate). In ranges, POC stays static and gets tested repeatedly (50-50 hold/break). Use Volume Oracle to identify regime first, then trade POC accordingly.

Volume Profile reveals where institutions positioned. Trade toward POC (fair value), fade LVN extremes (overextension), and confirm with CVD. This is professional order flow analysis.

🎮 Test Your Understanding (No Pressure)

Price is at $100, POC is at $102. CVD shows +$18M (strong buying). Volume Oracle shows "Trending" regime. What's your trade?

A) Short at $100—price below POC means breakdown

B) Long at $100—POC magnet + positive CVD + trending regime = high probability move to $102

C) Wait for price to reach $102 POC before entering

Why B is correct: POC acts as a magnet—price tends to move toward fair value. $100 is 2 points below POC ($102), creating mean reversion setup. +$18M CVD confirms institutional buying pressure supporting the move. Trending regime means POC will likely hold as support once reached. Entry: $100, target: $102 POC, stop: $98.50. This is textbook POC magnet trade with 65-70% win rate. Jordan made +$1,250 using exactly this setup on Wednesday.

You're watching ES futures. Price makes new high at $5,050. CVD makes lower high (+$8M vs previous +$15M). Price at LVN (thin volume zone). What does this signal?

A) Bullish—new high confirms uptrend, buy the breakout

B) Bearish divergence—CVD weakening at new high + LVN = distribution, expect reversal

C) Neutral—wait for POC retest before taking action

Why B is correct: This is delta divergence—classic trap. Price new high but CVD lower high = institutions NOT participating (distribution). LVN location amplifies the risk—thin volume means fast moves in EITHER direction, and with weak CVD, reversal is more likely than continuation. This setup killed Derek for -$28K when he ignored CVD divergence and bought new highs. Correct action: Wait for reversal confirmation, then short on structure break with target to nearest HVN or POC. CVD divergence + LVN = 60-70% reversal probability.

POC is at $430. Price rallies from $428 to $434 (4 points above POC) in 15 minutes. CVD shows -$11M (selling). Volume Profile shows LVN at $435. What's your trade?

A) Long at $434—momentum is strong, ride the trend

B) Short at $434-435—overextended from POC, negative CVD, LVN rejection = mean reversion to $430

C) Wait for breakout above $435 LVN to confirm direction

Why B is correct: This is Friday's winning trade from Jordan's journal (+$1,300). Price 4+ points above POC = overextension. -$11M CVD = distribution (institutions selling into retail rally). LVN at $435 = rejection zone (thin volume, no support). Perfect mean reversion setup: Short $434-435, target $430 POC (fair value), stop $436. Price reverted $435 → $432.40 for 2.6R. Rule: When price extends 2-3+ points from POC with negative CVD + LVN, fade back to fair value. Works 70%+ in ranging/choppy conditions.

This is professional-grade order flow analysis. Most traders trade blind. You now see where institutions positioned.

Related Lessons

Intermediate #28

Janus Atlas Advanced

Combine sweeps with POC levels for highest-conviction setups.

Read Lesson →

Intermediate #24

Footprint Charts

Real-time volume profile execution and absorption analysis.

Read Lesson →

Intermediate #30

Volume Oracle: Regime Detection

POC behaves differently in trending vs ranging regimes.

Read Lesson →

⏭️ Coming Up Next

Lesson #30: Volume Oracle – Regime Detection — Learn to identify trending vs ranging markets and adapt your strategy accordingly.

Educational only. Trading involves substantial risk of loss. Past performance does not guarantee future results.

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