Market Pattern
General market patterns: microstructure, intraday rhythms, sessions and calendar, intermarket, and technical formations (EDT).
Microstructure
Intraday Rhythms
Time & Sessions
Intermarket
Technical Formations
Comprehensive catalog of recurring market behaviors across microstructure, intraday rhythm, time/session, intermarket, and structural formations. All clock references in UTC-4 (New York, EDT). RTH = regular trading hours, 09:30–16:00. Click a box to open it.
Market Microstructure Patterns
Order Flow Dynamics Topics Absorption · Exhaustion · Icebergs · Stop runs · Delta · Imbalance · Spoofing · Vacuum
Absorption large passive limit orders soak up aggressive flow without price moving; often precedes reversal
Exhaustion surge of aggressive volume that fails to extend price; one side depleted
Iceberg orders hidden size that repeatedly refills a level, creating stubborn support/resistance
Stop runs / liquidity sweeps price spikes through a stop cluster, then reverses (stop-hunt)
Cumulative delta divergence volume delta diverges from price, signaling weak drive
Order-book imbalance persistent bid/ask size skew predicting near-term direction
Spoofing / layering footprints large flickering orders pulled before execution
Liquidity vacuum / thin book price gaps between levels when resting depth disappears
Liquidity Shifts Topics Intraday curve · News pull · Futures roll · Rebalancing
Intraday liquidity curve deep at open and close, thin midday
News-event liquidity pull depth withdrawn and spreads widen around scheduled releases
Futures roll liquidity migrates between contract months near expiry
Month/quarter-end rebalancing concentrated flow around index and fund rebalance windows
Algorithmic Execution Windows Topics VWAP/TWAP · MOC/LOC · Index rebalance · Dealer hedging
VWAP/TWAP execution institutional algos work orders through the day; price mean-reverts toward VWAP
Opening/closing auction imbalance (MOC/LOC) published imbalance drives late-day drift into the close
Index rebalance flows scheduled passive buy/sell on reconstitution dates
Dealer hedging flows delta-hedging concentrates activity near large open-interest strikes
Market Maker / Dealer Positioning Topics Gamma · Pinning / max pain · Charm & vanna
Gamma positioning positive dealer gamma dampens vol (pinning); negative gamma amplifies moves
Strike pinning / max pain price gravitates to high open-interest strikes into expiry (acute for 0DTE SPY/SPX)
Charm & vanna flows predictable hedging drift into expiration and month-end
Intraday Anomalies / Recurring Behavioral Rhythms
Intraday Rhythms Topics ORB · Opening drive · IB extension · Lunch reversal · 3 PM turn · Power hour · Gaps · Magnets
Opening range (ORB) first 5/15/30/60 min sets initial balance; range breakouts are tradable
Opening drive vs. opening reversal immediate continuation off the open vs. fade of the open
Initial-balance extension breaking the first-hour range signals a developing trend day
~90% of daily highs/lows in first ~90 minutes early session sets the extremes
Midday / lunchtime reversal low-liquidity chop and mean reversion 11:30–13:30
Afternoon trend resumption second directional leg after the midday lull
3:00 PM turn frequent pivot as positioning shifts into the last hour
Power hour (15:00–16:00) trend acceleration plus MOC imbalance drift
Closing-imbalance drift last 10–30 min pulled by auction order flow
Gap behavior partial gap fill (~48% same day); unfilled gap after first hour flags trend day
Reference-level magnets prior-day high/low/close and overnight high/low act as intraday pivots
Time-Based Anomalies / Session Profiles
Intraday Session Map (EDT) Topics 09:30 open · 10:00 data · Lunch lull · 14:00 FOMC · Power hour · Close
09:30 cash open; peak volatility and volume
09:30–10:30 opening range / initial balance
10:00 common economic-data release; frequent inflection
11:30–13:30 lunch lull; lowest liquidity, chop, mean reversion
14:00 FOMC statement pivot on Fed days
15:00–16:00 power hour; MOC imbalances, trend resumption
16:00+ close, then overnight/Globe session with thinner liquidity
Global Sessions Topics Asia · London open · London/NY overlap · Pre-market
Asia (Tokyo) overnight range and risk tone
London open ~03:00 volatility spike; London breakout
London/NY overlap ~08:00–11:00 peak FX and cross-asset liquidity
Pre-market 04:00–09:30 sets reference levels for the cash open
Day-of-Week Topics Monday · Turnaround Tuesday · Friday · OpEx
Monday / weekend effect gap risk from weekend news accumulation
Turnaround Tuesday tendency to reverse Monday's move
Friday tendencies trend/position-squaring; month-start/month-end Fridays skew to trend days
OpEx Fridays monthly options expiration; triple/quad witching quarterly
Calendar / Seasonal Topics Turn of month · Rebalancing · FOMC drift · Earnings · Seasonal · 0DTE
Turn-of-the-month flow-driven strength around month boundaries
Month/quarter-end rebalancing & window dressing systematic and cosmetic repositioning
FOMC drift pre-announcement drift and post-statement volatility
Earnings-season clustering elevated single-name and index dispersion
Seasonal effects Santa Claus rally, January effect, 'sell in May,' summer doldrums, pre-holiday drift
Daily expirations 0DTE SPX/SPY now expire every weekday, reshaping late-day gamma dynamics
Cross-Sectional & Intermarket Patterns
Intermarket Correlations Topics Bonds · USD · Oil · Gold · VIX · Yields · Copper & crypto
Bonds vs. equities risk-on/risk-off allocation shifts
USD (DXY) vs. commodities broadly inverse
Oil vs. equities / transports energy input and demand signal (correlation is regime-dependent, can decouple)
Gold vs. real yields inverse relationship
VIX vs. SPX inverse; watch volatility term structure (contango/backwardation)
Yields vs. growth/tech long-duration equities sensitive to rate moves
Copper ('Dr. Copper') & crypto global-growth and risk-appetite proxies
Yield Curve / Rates Topics 2s10s · Inversion · Credit spreads
2s10s spread steepening, flattening, and inversion regimes
Curve inversion classic recession lead signal
Credit spreads (HY/IG) risk-stress gauge confirming or diverging from equities
Sector Rotation Topics Business cycle · Risk-on / defensive · Growth / value · Lead-lag
Business-cycle rotation loop early → mid → late → recession leadership rotation
Risk-on vs. defensive cyclicals vs. staples/utilities positioning
Growth vs. value rotation style leadership shifts with rates and cycle
Lead-lag confirmation semis lead tech; transports confirm industrials (Dow Theory)
Cross-Sectional Equity Topics Factors · Breadth · Relative strength · Dispersion
Factor premia momentum, value, size, quality, low-volatility
Breadth divergences advance/decline line, new highs vs. new lows
Relative strength / pairs sector and single-name spread trades
Dispersion index volatility vs. constituent volatility
Ranges & Continuations Topics Ranges · Channels · Triangles · Wedges · Flags · Compression
Rectangle / trading range horizontal consolidation between S/R
Channels ascending, descending, horizontal
Triangles symmetrical, ascending, descending
Wedges rising and falling (often reversal)
Flags & pennants short continuation pauses after an impulse
Compression → expansion inside bars, NR7, coils resolving into a directional move
Reversal Formations Topics Double / triple · Head & shoulders · Rounding · V-reversal · Island
Double / triple top & bottom failure to make new extremes
Head-and-shoulders / inverse classic distribution/accumulation reversal
Rounding top/bottom gradual sentiment shift
V-reversal / spike sharp climactic turn
Island reversal gap-isolated cluster signaling exhaustion
Auction Market / Market Profile Shapes Topics Day types · Value area / POC · Excess · Balance / imbalance
Day types normal (bell), trend (elongated), double-distribution, neutral
Profile references initial balance, value area (VAH/VAL), point of control (POC)
Excess & anomalies single prints, poor highs/lows, tails/excess
Balance vs. imbalance acceptance vs. rejection of price/value
Accumulation / Distribution (Wyckoff) Topics Accumulation · Distribution · Springs / upthrusts · Effort vs. result
Accumulation schematic PS, SC, AR, ST, spring, sign of strength
Distribution schematic BC, AR, UT, UTAD, sign of weakness
Springs / upthrusts & tests false breaks preceding the real move
Effort vs. result volume/price divergence flags absorption or exhaustion
Levels, Gaps & Volume Structure Topics S/R zones · Trendlines / MAs · Round numbers · Gaps · Breakouts
Support/resistance & supply/demand zones reaction levels and order-cluster zones
Trendlines & moving-average dynamic S/R sloping and adaptive reference
Round-number magnets psychological 00 and 000 levels
Gap taxonomy common, breakaway, runaway/measuring, exhaustion, island
Breakout vs. false breakout (fakeout) confirmation vs. trap; volume climax / blow-off
Source: JCR research (General_Market_Patterns.docx). Created 2026-10-19.
