 Here we see price breaking above VWAP and holding 1, 2, 3, 4 times before breaking below. Why didn't it hold on the 5th test, and is there anything in the order flow to help us see this coming? The heat map shows high liquidity entering on the bid, prior to the 5th test of VWAP. Note on the first 4 tests, the bid was relatively thin. Now think about where long positions may have placed their stops. It's common to use VWAP as an invalidation level. This indicator confirms a bunch of stops being triggered as price breaks through VWAP. We don't know for sure, but it seems likely this liquidity was placed here anticipating a break lower to absorb stops. High liquidity areas often act like magnets for price. This is just one example of why that happens. So, can you actually use liquidity to signal a breakout? Why not back test it? Build a robust trading plan.