Setup 2: continuation on a pullback

The second setup follows the move instead of fighting it. When the market has broken a level and accepted beyond it, or when it is trending clearly above a rising VWAP, you do not buy the breakout candle: you wait for the first pullback and buy if it holds, above the broken level or on the VWAP. This is the setup for trend days, the days when beginners lose money trying to sell the top.

Here the order flow read serves one precise purpose: checking that the pullback is made of profit taking (sellers who are not very aggressive, with no follow through) and not of a reversal (aggressive sellers consuming the support).