 Thanks everyone for visiting the Trader's Lab. I'm your host Tom B. and I stream live Monday through Friday 1130 to one piece and standard time, and I appreciate y'all stopping by to visit their lab today This stream is for educational purposes only It is about integrating book map order flow tools with auction market theory in other words how the market works based on Participant behavior the interaction between buyers and sellers and also using a tool called the volume profile in the Intra-day developing timeframe price and volume versus price on its own all prices are not created equal and Based on the volume at price can potentially give us insight into Participant intent not only intent but areas of potential Exhaustion whether it's buyer exhaustion or seller exhaustion and at the same time Where is their potential agreement on price or retail the thing about an auction is? think of this like shopping and The buyers and sellers are interacting to try to figure out. What is this product worth? So the market moves from location to location and it doesn't in all timeframes or as I think Fractals and if we can identify these behaviors in alignment with the actual Context of the market we may have an opportunity to get an alignment and then subject to a vetted trade plan Interact with the market and then of course the outcome of any interaction is random So what you're going to see here and what I do every day is the top-down approach top-down higher time frame and drilling down into Intra-day developing time frames down to Micro Structures to potentially interact or triggering structures And this is what we do every day in the trader lab and those of you who might be interested in following this stream So you can understand the terminology and also the setups as they show up in advance You're invited to go to the trader lab in the bookmap discord chat and download 60 PDFs of setups and Overviews of potential behavior so you can track. This is not a trade calling room. So if you have this Information available as you follow the stream, you'll get a lot out of it I think and again, thanks for visiting the trader lab. Let's take care of some business General disclosure all bookmap limited materials information and presentations are for educational purposes only and should not be considered specific Investment advisor recommendations live trading is in simulation demo paper trading mode and strictly for educational purposes Live trading executed in simulation cannot accurately represent realistic trading performance risk disclosure trading futures equities and digital currencies Involves substantial risk of loss and it's not suitable for all investors and investor could potentially lose all or more than the initial investment Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle Only risk capital should be used for trading and only those with sufficient risk capital should be considered trading Past performance is not necessarily indicative of future results and please remember. This is not a trade calling room This is really a trading process and the goal of the trader lab is to help individual traders Create the business side of trading to understand how the business of trading works and to potentially Career paths for individual traders subject to trade plans. They can create and vet Now, why would we vet a trade plan? The business of trading is a math based or statistically based Business it is very much operates the same way a casino operates and if you can separate yourself from the Mental aspect that need to be right the adrenaline You know the endorphins that are released the fear that's triggered, you know all of those things we feel The house the casino is not an emotional Participant it is a statistical participant it executes their execution is dealing the cards and knowing that by doing Everything the same way in a consistent process that they have a statistical edge that shows up and over time the dollars flow from the gamblers Back to the house. That is what's called an edge and in trading. It is really about Creating trade plans that have a statistical edge and then the hardest part for traders Assuming you get to the place where you actually know you have an edge and how it's to actually execute So you can derive the edge. So in the trader lab, it's about building out a process so you can identify where your edge might show up and Helping you understand that this is a metrics based game And that if you have the edge the gamblers the typical retail traders who are just basically slamming indicators over rotations or using random inputs over time Statistically unless they have a vetted plan with a statistical edge They potentially will not be long for the business. The business is a math-based Business the outcome of any trade is random But if you have a statistical edge, it gives you the confidence To be able to interact with the market because you understand that losses are Really cost of production and when you take a loss you are protecting your account Losses are overhead the casino pays the electric bill They give you the buffet ticket send you to the show pick you up at the airport Maybe comp your hotel and they still are building bigger and larger casinos in Vegas. Think about it That's where we are and that's the business of trading So let's go take a look at the business of trading and let's go take a look at how we start our day Now let me go back here one day Or two actually now you remember this is the day before yesterday and on this day the market made a new high but left this wick and Close near the low of the day That was potentially now you don't know right like everything in trading. It's maybe but what we had was remember We broke out of this consolidation and you want to remember this number around 3860 you should write that down That's going to be a higher time frame target for the current move that we're in moving down yesterday We opened we went to the overnight high and we discussed this in the stream and We failed to take out this high So this was your potential underline exhausted Failure to take this out brought out the sellers and the longs now You have to think from both sides the longs had their stops under here under here under here and Under here and this was a small gap. So yesterday in the stream We were talking about potential to get under these areas why sellers and if you're long What are you doing the subject to the time frame you operated you're trailing your cell stops cell stops become cell lures Right. So you guys know that so yesterday What do we have? Market fails and this is called a trend day in other words It wasn't a rotational day like this one. It was I'm long and I'm out of here all these longs Became sellers. So that's what leads to potentially outsized moves and look what where we went Build the gap. Isn't that interesting sell stop sell stop sell stops now. Let's take it next step What would happen today now? Let me take you back to yesterday's clothes and then we'll be ready to get into today and remember If you're in YouTube, there's a 15-second delay If you have questions post them in there if they're related to the current Discussion if they're technical questions As far as support or anything you can go to book map comm if it's you know related to the software And I'll do everything can to try to answer questions that are applicable to everybody and Again, thanks for being here and if you do want to follow the stream Remember there are 60 PDFs you can download so you know in advance what we're anticipating and when the setups show up You'll know what we're referring to and again these aren't trade recommendations not a trade calling room So what I do is I go back like I am here Get to the higher time frame because we trade inside an intermediate time frame But we need to know the lay of the land. What's the condition of the market? So Here we are now yesterday, and I posted this in the trader lab and I don't If you're in the trader lab When what we had yesterday was the volume point of control remember what the volume point of control is It's the highest volume price What is high volume? Think of when you go shopping. It's like going to the store, you know retail seller says I'll sell it to you here buyer says I'll buy it here and everybody is wonderful But it's at the low of the day that means everything above us was unfair in other words too high We close at the low of the day Settlements at the low and the volume point and controls at the low and it's cut off at the bottom What that suggests and everything I always say potentially because that's all you have in trading that suggests Continuation the market basically got the door got closed on the market before it was finished You know market says hey, we're done. Everybody go home But the auction the price discovery process was cut off So it and based on that close and this is what I posted in the trader lab It's not so relevant that I post something, you know because anything can happen But based on auction principles, it was cut off who's soon So we opened in the ETH and then the selling Continued and the reason was that we weren't done. We were looking for excess and we weren't there So that's why this morning when we came in we had a gap Because we continued the selling because the auction was interrupted and this is our gap So now we're gonna get into real-time now. There's a couple things that happen and those you who are in the trader lab and And potentially I've been following the stream. What might we anticipate when there's a gap lower open? anybody I'm getting a question. What's the the higher timeframe charting is investor RT Then I've been using it. I think since 2009 so you know and For what I use it for for higher time frame and for statistics and all it's a very good tool Let me try to get back here to YouTube Sorry guys. Okay. Thank you. Yes responsive buying. What a and let's think why would you have buyers? This market looks like it's going, you know, wherever south of the border Everybody is looking for the exit. They can't even get out the door fast enough. So who would be buying this, right? Here's who might buy it Imagine you had gotten short yesterday and you are more of a position trader you hold positions overnight or a higher time frame trader You get a gap lower What might you do? Is it reasonable to think that you might respond? Respond, that's why it's responsive respond to the gap and cover Think about it. Is it logical? Would you sell the gap? Maybe some or And think about it there, of course, there might be sellers on the open Oh, I got to get out of here. They might be just liquidating But would there be shorts coming in the market as in short-term traders also? What would happen to them? Well, they're gonna come in they might sell We might get a little selling those buy stops come above and if you're sitting holding a short in the gap And then the market starts rotating up and it starts feeding on the buy stops you might cover also creates more buying so you're responding if You're covering and if you sold in the hole and you have buy stops you are covering So buyers buyers buyers now the thing about it is if we think the trend is down What do we want to do about that? Do we want to get long or do you think maybe we want to wait or Attempt to wait and then look for opportunities to get short That's up to your trade plan. But so let's take a look. Okay. Is Everybody with me? That's right, Tony Okay, so this is the open now, let's take a look at the lay of the land, right a couple of things This is gonna be our cash open Remember, we had a target down at 39 19 isn't that interesting now? Let me show you some key things and we always go over the levels when you trade the auction, which is what I do I'm not just trading out in space now. Yes and no, I know what creates levels This is part of understanding auction market theory is to know why now We don't know what will happen ever on any trade or anything in the market, you know, that part is all random but if we understand what creates something and What the nature of the market mechanics are we might underline be able to anticipate and I think in trading if you can recognize a condition of the market and then setups are about anticipating behavior and then locations to interact Trigger put your risk on and then have an idea of what might happen That's about as deep as it gets in trading because we don't know what will happen. So then it's about What is the context of the market context means condition? What is the potential based on the condition of the market? where might the condition or the Location exist to interact and then where might a trigger show up to help you get Engaged in the market manage your risk potentially get risk neutral and then go on to the Target and everything is random. Remember we talk about a statistical edge, right? So that's let's go back This is the overnight volume point of control Volume point of control is retail. So for the ETA The most volume was down here. Okay, that's like retail. So overnight ETH session Think about your store when you buy a product you pay retail, right? Well, that's the fair price Now if the market moves lower the participants if they think this price is fair and the market moves lower They may think well, it's on sale Relative to retail so they may buy it down here and the market might come back And then the market can go on the other side. Well, what's too high and then potentially come back and check And it does this in fractal. So we're gonna look at that But here's a couple things you need to know and write this down if you're not familiar and again Thanks for visiting the lab and I also want to remind you guys There's 60 PDFs of what we're gonna be talking about here. So you can also Anticipate just like we do in the trader lab where our trades might show up and remember the outcome of every trade is random And that's why this isn't a trade-calling room, but after we do some of this Looking back on how the market develops intraday, which is the key to staying in alignment. We will get into real time and Now that the market's moving along I can't see it So for me, it's like looking at it for the first time once I get past Our setups that we had this morning. There's over a 90% probability either the overnight high or the ETH high or low We'll get taken out during our th write that down There's probably and I think it's you know, I don't have the statistic handy I think it's maybe 60% probability will test the overnight VPock Don't quote me on that. I have to go look at the stat, but I know that and I'll explain why it's an important stat The initial balance higher low is the first hour higher low of our th There's over 90% probability one of these will get taken out So over 90% probability this will get taken out during our th and or and this and also The I be high over 90% probability and it's one or the other or the overnight high will get taken out Now we know where the overnight high is it's where we closed yesterday. So not so much So I think it might be reasonable to think if we have a 90% probability it would be this Does that make sense? So before the market even opens And we're gonna have a gap We anticipate these as viable targets is everybody tracking This is the lay of the land. This is before it put the first trader unless you're trading eth You see So now we know Potential targets. We know what happened in the eth We know this is retail in the eth and we know we have over 90% Probability of taking the overnight low out past performance not necessarily take your future results and and we know responsive buying So now that's what we know and the market has it open jet is everybody tracking very important This is what a trade plan is about. Okay before you put the trade on You anticipate now what you're gonna be looking for is locations To potentially interact is that makes sense and I'm checking in YouTube because I think they passed out I always get concerned guys. Should I send the ambulance in the oxygen? And if you're in YouTube, make sure you're on 1080p I gotta see what's going on in YouTube. I think they fell out that I think somebody hit their head on the monitor Okay, great. Thanks. Hey, John. How are you doing John? I haven't seen you a while John I'm still waiting for you to ship a pizza up this up this way. Okay, let's continue So this is our open now, you know the lay and the land so let's look remember What are we looking for? potential selling selling the gap by stops responsive buying profit-taking and then because of our statistics and We are away from the last retail price to potential to come back down and then that's that's going to be so we're gonna look Potentially for something called mean reversion. So all this is all happening before the market even there's the first tick So now let's go. We all ready to go I hope you find this useful Because to me and I'm just giving you an opinion and that's saying it's right for anybody for me I got to do this. This is what called what a trade plan is What's to lay the land? What's the probabilities based on? Statistics and by the way, you need to vet these statistics and you need tools to do this You know, no matter what you hear from anybody and remember I'm not a vendor But whatever you hear, it's important that you confirm them and let me tell you why confirmation is important It creates belief The more belief you have the more courage and The more disciplined you'll have because the more you can believe something the more you can act on it And manage the monkey, you know that emotional state that is the crazy, you know It's like Jekyll and Hyde, you know, that's how I kind of think of it, you know hides of the lunatic Who talks in your ear and and and scrambles your intentionality? That's something that we all live with as traders And that's the biggest obstacle you'll face as a trader everyone everybody who comes to trading thinks it's the setups I've got 60 pds that are yours. They're all setups. So you can enjoy yourself with that not the problem at all And this is what we do in the trader lab, by the way, there's no secret guys, you know Everybody holds their cards and think about it. Now by the way, here's your open a little selling and now what do you see? Here's the buyers So let's watch now And you guys follow the stream, you know how we use the tool This is called the developing volume point of control. What is it? This is based on auction market theory and it's very simple volume and price remember Is this volume too low? And if the price is moving higher is volume moving with it Now we anticipate when the market opens remember, there's no volume. So this is reset to zero This and this it starts here and what this is showing us Here at the moment is the volume at the price And it's the same thing over here now What's going to happen is as this develops during the day This is all the volume for the day and there's a reason why this is important It isn't just you see a blob over here. It's what happens in this And where does it happen as the market's moving higher? The volume is moving with it Observe the behavior Too low this is like shoppers right remember participant behavior Too low Too low i'm going to turn this off so you can see this clear Just temporarily It's the liquidity marker. It's really cool. You know, we have a heat map that shows us, you know, the order flow in the order book That liquidity marker actually actually shows how much trades how much pulls it's a nice little tool and it's you know part of book map um but And i you know in actual live trading It's pretty useful right this just depends what your priorities are there's so many tools you can use So but let's look at the auction. Okay This is migrating higher you see how it tests Is this too low and we blast away from it notice what's happening Think of this like shoppers This is my and i'm tell you i'm very simple, you know We all think trading is complicated and I think we need to make it complicated So we think we're going to find that secret pieces You know what they call it the needle in the haystack and that nobody else is going to find it but us I have to tell you why does the software package have 80 to 100? indicators in it Do you think maybe we only need the three or two or one that really works? Why did they keep adding indicators? Um, I'm going to suggest maybe because none of them work You're going to probably be oh, no, I've got one that works and you maybe you do The reason I say they don't work It's not that indicators don't work is that traders don't know how to deploy indicators. It's a whole different bag Uh, a lot of us as traders think that it's a matter of putting the right indicators together in the right time frames and all of this You know and we're tweaking and tuning and mixing. I don't know if any of you ever did it But when I built trading systems in essence, that's what I was doing But what happens is You're kind of putting as they say the cart before the horse because indicators are context specific And when you have a generic process the market moves in different waves or different behaviors or conditions Part of a trade plan is differentiating the condition of the market In other words yesterday was a trending condition today At the moment in this situation with responsive buying and here's your buying is not a trending condition at the moment It is a responsive Condition looking for a outside edge to get short. That is the plan So it's not trending at the moment. It is counter Trending so let's watch the behavior. So retail too low Too low So as the volume is moving with price that is suggesting at the moment We are going higher. Now. We don't know remember. Nobody knows. This is like what where how watch Now we are anticipating a seller somewhere And of course this gets I think the term is tricky This is your two-sided trade now here So here's what you have let's look right here I call this a variable high volume node and I mark them now I don't know anything about where it might come But let's remember what this was Too low So I go over here and you we do this in the trader lab and we mark it. We go, okay We call it a variable high volume node. All it is is high volume and remember what creates high volume It's the interaction between a buyer and a seller and let's look where it is Let's come back This is how the auction tends to work. This is the open and remember how this was going Too low Too low Too low This is another one Watch just watch what I do here Now I have no clue remember. I'm the clueless And I I do that Because my mind absolutely must be open. So I'm interpreting And what I do is I do something called if this and that if not then what So if this is moving up and this is moving what's it then what then up? Okay Now I'm looking for a short Now I don't have one This is moving up right here. It breaks Now under different conditions. This would be a short But this is too close and I I'm nowhere here If you're aggressive, you could short this but your targets would be Mid Potential vhv in here vhv in here and maybe lower. Okay This is very tough trading But we test here If you can't get below here, it is saying too low and that's why you see the reversal Now nobody knows what it's going to do What we do in the trader lab though is we mark these as potential areas to observe And remember that we're looking for the response of buying now Let me show you This right here now we're looking for selling and this is called mean reversion if you're not Skilled at this. This is nothing you would do. You would just hang out Into liquidity This is a potential. Let me show it to you triggering structure Here's here's your trigger. Let me show you a trigger and guys This is worth screenshots if you find this useful. Let me explain how a trigger might work What is a trigger? A trigger is a consolidation That is basically what a trigger is because every time you have it's always buyers and sellers buyers and sellers The market is moving higher. We run into this liquidity 26 buy stops. Remember we'd have sellers. We'd have shorts in the market We get buyers and we're looking for something called mean reversion the market needs to get outside Away from this. This is retail or the mean You don't know where it's going to show up. That's the fun part of this and the hard part of it too So you don't know but here we have confluence. Let me show you here's the trigger and you can grab Uh, no, thanks, john. I'm looking forward to it. Um This grab screenshots or come to the trader lab you can review these streams They're up for 24 hours if you're interested in them You know, you might want to record or screenshot things you find interesting So the trade is to try to come back here And that's what remember I said at the beginning of the stream We're going to try to find an outside edge and the where's the outside edge and that's where of course You know problem Challenge, but here's what it looks like you get this is a chop chop now. What is a chop chop? Consolidation. Okay. So the market is moving up. You see the energy you see the chop here It breaks high There's micro high volume right in here. This is like retail think of these like stores This is how I think of them. I had to kind of get, you know, simple, right? Keep it simple Let's not be complicated because I think the mind at least for me. I need to relate to something else You know, when you look at this, I mean, what the heck is that right? Well, to me, it's shoppers And it was an these guys interacted buyers too low too high Retail is right here in this little store and you can see it. Let me show it to you Just so you know what I look at this here There's that little volume and I'm just it's just a consolidation, right? It's nothing big no big deal So, you know, we're up above And I'm going okay come outside somewhere Now right here you look at this and I'm going okay. Maybe that's it. That's not very far Fires Insolidation break. Where does it come? To the volume too low so this volume in here too low shopping volume Break Too low 26 stops break I'm looking at this. This is we hit this We got buy stops. There's less stops as we go higher The virgins 101 it's the only thing I remember from indicators at this point because that's all I use This is the stop and iceberg Detector in book map. It basically is measuring The amount of stops based on Market buy order data provided from the CME so we actually know That's the exact number of stops that went off Okay, and because we can open this up we can see now this looks like a potential short So I'm looking at it now. Let's look we come up here There's only one stop. There's only one and they're lifting here. They're not going anywhere So let's watch this. This is potential exhaustion watch here right here Is high volume right here and what's different? No buyers Who stops eight stops 26 you see the difference Let's look Sellers so I have sellers We come back Less buyers Less buyers see then this guy Higher nobody's lifting eight stops. This is kind of this is a triggering structure. So let's watch it And what's the target this Okay, mean reversion. I'm taking my time because I like to show you guys this stuff We break Now your volume is right there In other words retail in this store Is there break you'd be getting short in here Your stop would need to be up here and your target is here for scale. Whatever happens happens on this now Let's watch Price check in the in the aisle. So let's look at price checks in the micro structure Same process as this. This is fractal. So this too high Short if you didn't get in there you have it here, but more risk up to you the high volume is where the trade fails So, you know, you could be in here. You could be in here if you're quick You could be in here, you know It's all subject to if you can't get in it within your risk reward parameters. There's no trade There's plenty of buses coming by Market breaks down if you had gotten your short on you'd be risk neutral very important the next trade Now let's go back Let's remember what's going on variable high volume node too low in the micro structure Pull back to here in the next higher time frame potential short here and here If you've got a short off here You're go you have to get scaled before here If you get a short off here, you have to get scaled. So let's just see what it does You'd be stopped out if you took it here If you took it here, you'd either have a scale or you'd be stopped out. This is the real world I can't make it any different than it really is So and it was very choppy. So now we're up above here And we're looking again For this so the context you understand what it is. It's rotational trade two-sided trade not my favorite environment because we're not we didn't just come out Come back and then go south of the border. Remember what our targets are overnight volume point of control and overnight low So the idea with this whole thing in here is to try to get short To come back Again to here same trade different location So let's watch the behavior See So it's the same this trade here is the same as this trade That's all Just the way it is Short boom no plano. Oh, actually not bad short Scale or no scale Scratch short No scale stop Real world guys This is trading, you know Everybody takes stops and the thing about a stop is we Experience it emotionally one way But the reality is the stop has just cost of production and we really need and this is exhaustion You see it one stop. So this is showing you the exhaustion and this is a very hard trade to get on Because it didn't give you, you know, look at it bang. So right here There's just no way to get into this thing You have everything you want Except you would have to get in you really have to be in this In here And this takes skill. Uh, and if you don't have it, it's no big deal. I'm just saying This is part of what you have to kind of learn in uh, you have to learn this But let me show you the trigger Chop chop we're chopping We have these buyers Then it gets hit with the sellers. Okay, it's rejected here We're breaking below this volume right there. That's your retail. You can see it over in here Now this becomes resistance Now this might be too aggressive for you. You might not like this. So it's not your trade But where are we going back here mean reversion? This is the same context. You see And where's our target? So let's go back Here and here Now depending on your skills, you can be slipping and sliding in between this higher rotation Uh, and that's up to you in your trade plan or you just putting it on and you're managing it Let me show you this right here You see and this is was very choppy. It was a very annoying trade. I will tell you Because it took a lot of stabs This is now your variable high volume node hv in That's high volume node. It kind of I have this set up from investor rt that these are automatically populated These are cloud nodes and these are these micro high volume areas which are like little retail stores also automatically populated Thank goodness for that Let me mark this I think that in there and then we'll continue Thanks for your patience. I could just got to keep up with this So The volume point of control Shifts from here To here and you can see it's ping-pong That's high volume the market is trying to figure out what it's worth If this is too high And we can come back and check it and the market says no, I'm not going to pay that Then we have that potential potential underlined and that's all you have in trading to come down Now this is a high volume from the eth That was retail back then so what the participants are trying to figure out where's too high What's fair if and remember when we started how the volume point of control was moving up Well now It's potentially starting to shift And if it can come down it's going to say this one is too high and this becomes resistance Remember who knows Very choppy See the behavior Back here These are selling opportunities Back to the volume in here Selling opportunities It is not easy Because it's like I in almost like it's flying A plane into turbulence. So this is turbulence So you'd be looking to sell against here. This is your selling structure And you're going don't forget for that Comes back and tests where here Guys it's horseshoes and hand grenades, you know, there's no precision in this Too high Selling so let's see what it does And you'll notice this Even though it's moving around is shifting down it's shifting lower that is saying what's above it is potentially underlined too low This is a target overnight volume point of control. We got that target And the next one is here. So we got that target And there's another thing I got to mention to you guys Before I forget we have a setup in the trader lab called the i b Continuation trade and we have something called the i b failure two trades In this context, there is no long the i b failure is a counter trend trade Okay, and it's again subject to your trade plan the i b failure So in other words, there's two ways to play this It comes back to the i b remember initial balance and I had to say I have to remind you guys There was over a 90 probability to get down to the overnight low, which is a target, right? and The first hour which has already passed at 9 30 So the initial balance Which is the low First hour is there so over 90 probability. We're going to take it out I consider that gives me what you might say courage And based on what we already discussed before the market even opened you knew I was trading towards these things This is what a trade plan is now whether it works or not any individual trade does whatever No clue Remember losses or cost of production. So we have another trade here Now This Is called and I'm going to show them to you now if you're already short You're not you know, you're not going to be doing anything with this But here's something and I'm just putting it out there is something that you could consider It's not a recommendation. We have two setups one of them is what's called the i b continuation Remember over 90 probability. We're going to come out under Here and our target's right below it. So I felt pretty good about that So and I still have this open right down here. So oh seven Oh, what about 13? So break under the i b pull back potential short Add here The overnight stat is still open You see so Here it is. You're short from wherever fine You have a selling structure right here. See the high volume break pull back potential short here if it's part of your plan break the i b watch Now i'm taking into microstructure and this is not a recommendation. It's just the way you can dance with it You here's your high volume right in here Break Pull back to the volume and to the i b for what's called the i b continuation trade And you have this still as your target. So it would either be a short here an add or nothing And you're going to your next target. So what you could do is if depending on what you could be short off of here Right here. You could be short off of here You could be short off of here And you're still going for this or you're just short here You wear a helmet and you manage the trade up to you This high volume is support. You could be putting trades on back to high volume and scaling getting risk neutral. That's how I use them Pull back high volume Location for the continuation stop pick over the i b. It's a requirement not necessarily but just me Uh short again Statistic over 90 percent. That's why I could add here. Are you guys tracking? Hope it makes sense I don't take the i b f in a downtrend I'm getting a question about the i b failure um That is not along for me. It's not qualified in this context for me It's outside in mean reversion to try to get alignment after the response of buying remember Then it's about my statistics down here If I get the i b f which is a mean reversion trade Then I am looking to use it to get back short again Back to the i b low and then wherever, you know That's how I use it. So for me So let's take a look at how this plays out Does that answer the question about the i b failure why you would not get long? But you would use the i b failure which is a long Setup that is not qualified in the context for for to get repositioned for a short Does that make sense guys? And if you're in the uh youtube and you don't know what this is Of there's 60 pdf so you can download of setups so you can follow the stream And you'll know what we're talking about or what the mechanics of the trade is and all these setups are based on the auction In other words participant behavior You know not an indicator. It's based on participant behavior. So we're going to see an i b f But there's no long. Is everybody with me. Are you guys tracking? How about in the bookmap discord trade a lab chat and how about in youtube? kevin Kevin in youtube is asking. How do we know it won't fill the gap? We don't know kevin but Given the condition of the market. I would say that if there's here's another way to think about this those who are short In our holding shorts either put stuff, you know, there's a gap They see the buyers come in it feeds on itself and there's going to be buy stops The sellers that sold the gap lower also have buy stops. They're going to be in there. So that creates the buyers Is it going to fill the gap? We have no idea. What are the probabilities in this context after a trend day down? I would say not high probability But anything can happen. So what i'm looking for is statistics. Remember the overnight high Is pretty much we open where we closed? Yesterday is it with the kind of gap we have what are the possibilities of actually closing that gap? Who would want to be a buyer? Other than somebody covering Do you think those are still short might want to use any kind of upward rotation to sell? That's kind of the way to think about it. I I would say kevin at least that's how I think about it And I also know it could do anything You see So if it if it did that that then that's what it does And you know if i'm trying to get and what i'm trying to do is get on the short side because that's the trend That's why I go over that higher time frame You know and and remember any one interaction with the market is just a random event really as far as what might happen I see a trigger. I'm trying to get in alignment with it for my statistical edge Which is very important guys. I know over 90 probability either the first hour higher or low gets taken out I know this was retail overnight volume point of control. Remember this is the developing volume point of control Retail and the market is telling us it's too high. I'm not paying that. I'm going elsewhere Oh, let's lower the price retail. I'm not paying that. That's too expensive. Well, let's go back and check eth Is that the fair price? Hmm Too expensive, but what about this over 90 probability the overnight low? I mean that's the low Let's check this Okay, that's why all these were targets. Then it's In the clueless mode Now the trend is down So and I have you know other targets, but let's go see what it does from here. That's absurd Now watch This sets up something called again the ib continuation It also If we come back in it's going to set up a retracement And where are the stops? So let's start thinking of like a retail trader, but not acting like one stops are going to be up at the vwap The mid and here's retail. So if this becomes too low now look where we are We're underneath this And our stops are up in here at this outside edge So we'd be looking for it to potentially go lower and continue down again. Nobody You know, we're in the I don't know did we get back to the ib we did not I don't think let me look. I wish I had lines here so I could see better We did not get back here. So there's no short here But now let's let's watch a little further This is called the ibf now The ibf I call it the ib failure and what it is so you know is This is that first hour low This was our overnight low, which was our primary primary target at the moment and you can see we we got that We came back and tested it and we rejected it There's micro volume and let me show you how you might do this Now this is not a long right for me, you know, I'm sure there's some of you out here That's think you should be buying and selling everything Uh, I don't have that skill My skill is to try to stay in alignment and take trades where So shall we say the wind might be at my back? I know the market is short. Let's go back to the rationale The market short What's above the market by stops? So there's always two sides in the market and if the market gets lopsided one way or the other And it runs out of momentum in one direction. Everybody who's sitting short Potentially is going to cover and we don't know when or if that'll happen, but right in here Take a look. You see this here That's high volume right there that little note That is created by this right here this chop Now you don't know. I don't know. You know, what do I know? I don't know But here's what I see And so when I'm watching the market and trading I'm in a narrative And here's how and write this down because it'll help you keep a wind with the market if if this is a time frame You're interested in you know operating it and I'm interested in operating in this time frame because The more micro I can get the more I can better Potentially manage my trade or see when there might Underline might be a change in the condition of the market and again, nobody knows, you know It could just give a little rotation. So there's the mystery of the market, right that randomness right here is your high volume There's your break high This potentially Becomes a buying structure now. Here's what's important where it happens here it's not You know it can happen anywhere, but It's more important because we are just testing below a key target Break high now. This is support now. I'd like it to take it out wouldn't it doesn't It comes back Now where does it come look? Against the volume it needs to get under here now if you're trailing a stop You could be out of this thing right here If you were short if you were holding a position Comes back here now if this had checked this and we had a triggering structure, it would be another short It did not It breaks. It does not take this out subject to your trade plan. You'd be Uh Warning will robinson moment right here right here. See the volume If this is too low in the micro aisle then potentially Up and you don't know see nobody knows no don't know but anyway it goes up So that's why you need to vet trade management processes. Remember, you know random environment You're never going to catch all of it. You're there's you're going to always rack your head and think you should have done something different So let's take a look at the next trade This is called the ib failure. It's a mean reversion trade. The mean is the volume point of control We have the mid the v-wap and the volume point of control. So let's look This shifts down right too high. This sets up a potential short. Let's watch it You're you have to scale here. So you know, so your short would be here Here Here Scale has to be ahead of this and then hold and then I remember what happened These are trader lab setups. Is everybody tracking so far? Are you guys with me? How we doing in youtube guys? These are just setups, you know I mean and it's based on what the market participants are telling us about value Remember what the purpose of the market is to try to figure out what's this thing worth What are we going to pay for this s&p? Do we you know, we want to own one of these? I don't know. So look where you come back here So this is the area to short back to here So this is a setup called the ib failure, which under different conditions is a long For me not so much For me when I see this setup for a long that doesn't fit with the context in other words, I understand It's a long. It's not a long. It's a long Setup not qualified in the context. Remember setups or context are in it But when we see one that is not in alignment Um, at least for me my plan says Don't get short now wait because The ib continuation trade in other words, I'm sorry the Mean reversion outside in is a stop pick. That's how I see these and if this is too high And we have the mid and the v-wap. What happens in the downtrend at the mid in the v-wap might we get sellers? Right, so this is a short here stops above here or this shifts down. I'm not paying that Here Here see the volume Break here. These are all short locations stops are here You get in here your stop is here These are trader lab setups and if you don't have the 60 pdfs of all these setups I encourage you to visit the trader lab download them. So when you follow the stream, you already know what we're going to do You know, that's why this isn't a trade calling room. I don't need to call them You know where you'll know where they are Then it's just a matter of watching triggering structures and seeing how they show up So I'll find the short here we go now where to I don't know Here's another consolidation. Let me show it to you When you go into consolidation or chop, you see the high volume. It's right there Right here and look where it is right at the overnight low. So we are auctioning the low Here's the high volume We break away from it. This now becomes resistance And down we go now where are we going? I don't know come back now. There's two ways to look at this You're depending and this is time frame oriented. This is resistance We notice we pull back to it here see the behavior how this has order So your stop would be right in here right above this Test low now the other side of this is Volume is sitting there right here and we move Away from this that is saying this auction and we don't know potentially It's too low because when you do this, right? This is chop chop. This is your consolidation and remember What is a consolidation? It is an auction think about so when you see this kind of thing, you know, all this is showing you is the volume Here's the high volume. This is retail in this store Now right in here it looks like yay, we're going Do it bang buyers so now I see the buyers And I left this Here, let's go back. I'm going to show you before it even happened what it looks like So right in here. We're below here. We're below this high volume node. So going you know breakdown Getting the champagne ready Got it in the ice bucket High volume is here. We are below it Resistance rejected feeling good luis High volume here looking for it Not to come back above here, but to break below Here so this is my area that I want to Get below keep going right looks great, huh? Uh-oh, what happened? What are these guys doing? See? And a buy iceberg steps into thank you appreciate that So right here is my volume I need to get below this to continue if I can't get back below the high volume Then this trade that support. Okay, so let's just look what it does Watch Here is your volume See it there Think again, how do we think of this? I look at buyers and sellers And I think that in where the volume is is where there's an agreement on price between these guys They're battling in here now. Here's what's important about it Is this price too low? Now we don't know But when we see the buying it's like warning will robinson moment, but look where we come. Oh too high resistance too low too high Break up warning moment. It's that uh-oh Because of the buyers Pull back and you got a clear here support What do you do? Uh, and this is remember resistance Not so much out of the trade. Are you okay with that? Oh, here's another one Now I haven't seen these so I don't even know this is your vhvm 39 20 And there's another thing about 39 20. That's kind of important Let me just mark this and I want to show you this symmetry The thing with this is uh, at least the way I Kind of slice and dice it I look at high volume is a very important element Do you remember we had a target yesterday coming down to 39 19? Just reminding you that was retail That was left behind so it has some relevancy from as a previous location This in our current auction was too high Let's look at what happens and that's at 39 20 Where do we come? 39 20 now guys i'm gonna offer a thought And nobody needs to agree. It's not about right wrong or knowing I'm gonna I want them underlined. I don't know anything All I know is The auction and potential participant behavior and levels and what happened here This is too high And what the shoppers these guys the participants tend to do is come back and check levels So if we blow through this and take remember what's sitting at the mid in the v-wap stops Is it reasonable to anticipate stops? Where every all retail traders keep their stops? This where's where it was too high? 20 what happens at 20? Let's look This and if you're in the trader lab guy, you all have these these are called setups What happens? No idea. It's all random. So what happens? Let's look we come up to our level Coincidentally underlined in quotes. There's a liquidity sitting at our level. Isn't that interesting? huh It must be a coincidence Or is it? I'll let you figure that out. I'm still figuring out. Here's your high volume Break there's your seller. You see the change in the behavior sellers pull back to the Volume fractal. So we're to pull back to the volume Developing timeframe volume that we left behind too high seller Micro structure right here. There's your volume. So there's your break. Here's your test This is your short. This is your stop and now you're back in the game And where are you going here? This is called mean reversion Let's see what it does That's your scale and now you just have a helmet on and whatever happens happens There you go. Is everybody tracking? These are trader lab setups if you're interested in this I invite you to come to trader lab Download the 60 pdfs. So now when the stream is on since I don't start until two hours after the open That's why I always go back because the thing about at least for me in my and this is just the way I kind of Reverse engineered the behavior of the market Is it it's how does it develop? Because if we're in a trend configuration, we're trading it one way like yesterday if you followed the stream It was just short short short short short short short puns, right? Today we had two-sided trade. It's a different configuration But in the downtrend, you don't see me getting along. I'm not saying you can't I'm saying I can't because Who is moving forward? Which army? Who are the buyers? Are they Short covering and are they weak hands in other words? Well, if you wanted to get out of the market if you're holding something Uh, would you be using the rotations up to be seller or would you really be a buyer? Now? I'm not saying it can't go higher. I'm not saying because I don't know But what the way I look at it is I only want to be on the short side because that's where the wind is It's at my back. So I'm only looking to sell outside back in And Potentially I know I have another target down here at some point. This is a higher time frame target down here So in the higher time frame, this is where I'm looking for this thing to go not necessarily now ever or never It doesn't matter to me What matters is I know that what was above us was too high 3915 This is a higher time frame volume point of control. We are Checking it. It came And this just shifted down Saying too high. So let's watch this remember we can come back and check this or this is going to push us down. So It's just shorts for me and then it's trade management guys. So So Short this is another short right and now holding if we can do this is Resistance now is up here in the developing time frame and we can push off from here. We'll see if it does it We're below the I be And this is negative potentially I always say potentially because anytime you put a trade on it's like I don't know And this is this is the thing nobody wants to hear Everybody's looking for certainty and I have to tell you Uh, there's no certainty in this. Uh, I think you know for me, um And I've been doing this almost 43 years now what I and it's still emotionally There's all the noise is still in my head. But what I've figured out is any trade The outcome is random My job is to get risk neutral It's like buying a ticket to ride for the runners or runner if you're running a too lot And then what happens? I either comes back takes me out. I scratch right Or I take a full stop and I have some choice words. I utter to release my emotions That's okay. And it's overhead and cost of production It's just the reality of the business. We're in remember the casino That's the business write that down. You're like the casino If you can execute a vetted trade plan and remember your whole job as a trader is to just wait for the bus Which is where's your setup and you already know where it is You are anticipating it. You know the condition of where it might show up Now, we don't know where we don't know anything We don't know but why was it only shorts today? And why were we looking for a responsive buying? And where is the outside edge? Which is very hard to find for what's called mean reversion, which is outside in from the top down That's all part of a trade plan now Trying to find the location to interact for that outside in trade. That's where you're going to pay with a stop And you got to get over it It's not, you know, it is what it is, right? It's just the business It doesn't make you a good guy or bad guy or lady or girl It doesn't make you smart or brilliant. It's just random. Please write that down You have to take yourself off the hook. In other words, that ego is a big obstacle Um and put your the hook is about the trade plan That is who you or what you are accountable to and your trade plan is something that's created outside of market hours In other words, your job is to wait if you Impulse in FOMO in oh this thing's going wherever, you know, it's going to zero and I got to be on it And it's not your plan. You're on your way out of the business Um the trader lab is about creating career traders and it doesn't it's not it's a toolbox Here's process. Here's how to maybe think or understand market mechanics Why it does what it does in the random nature of it, you know, it is And then any iteration with the market has a certain probability If you do the work and you can do it one setup at a time just one setup at the time And create a template or process then you can build it out As you can see this is a short right so that's a short Scale is here Now your risk neutral now you have a helmet on and you just hang out Stop can stay here subject to your time frame or You can manage it behind behind high volume as it develops that's subject to an individual plan How do you know what the best way is to manage your trade? How about doing the numbers? You see Once you have the numbers you are empowered and the reason the numbers are important is it takes you out of the Gambler side of the table at the casino puts you on the house side It also gives you the confidence to calm your noise in your head and your fear Because you can open to your trade plan to the specific setup and see and see that it has X probability that when this occurs that you get risk neutral If you get risk neutral now, you're not going to be flip flopping emotionally You'll be more willing to give the trade the room for rotation because the market is You know it can go like a bullet but most of the time It's rotational because there's something called a harmonic in here, which is just ebb and flow ebb and flow You know and if it comes back and takes you out you scratch your broker sends you to gift basket Thanks for playing and you go on to the next trade That's as significant as this becomes and it's over these large Sample size of interactions where your edge shows up in the dollars flow across the table Towards the house and in this case you are the house. I hope you find that useful And does this make some sense and you have any questions? So that's kind of that's kind of how it works guys, you know So this is what we have and now we're waiting so Now there's nothing more you can do with this If you have a trade on here, you manage the trade subject to your process And if you want to follow the stream And anticipate where the setups are going to show up you go to trader lab download the pdf You know remember it's not a trade calling room if you have the pdf's you need to actually review them Watch the primer webinar. I did see understand the process here in this stream And then it's you know up to you the you know the ride benefit If you're interested in the trader lab you're invited to come and visit You know, it's a group of like minded traders who are interested in a career in trading Now remember this is this this process is not for everybody. It's one way to slice and dice But if you guys have been following the stream, I think you know the idea is consistency So I just do the same thing every day So This is our 20 This is our vhv and this is a trader lab setup So Now we're in real time and now the thing is to manage this trade and we are going Potentially 3900 and it just doesn't matter really Because I don't know how it's going to get there if it's going to get there. It's not my job I cannot know what I need to be doing now After getting risk-neutral and having a scale is to manage this trade And for me the way I do it is I look at the volume Now this is the fair price Currently this is unfair. It's too high So we want to kind of stay if we can there's your high volume So this is your resistance at the moment now you can use this any way you want and everybody has to kind of find their own You know kind of where where your comfort is psychologically I know traders that you know, they're going to manage it with a scalpel And there's others that are more comfortable trying to move outside of the noise and go for higher time frames This is where your work needs to come in And um, you know Yeah, obstacle rare. Uh, yeah, it is an obstacle It's the retail price. The thing is what is happening to retail? It's moving lower. So if the participants are saying This is too high That was our short This is too high And now it's moving lower that is suggesting potentially underline that That being too high and it's moving down what it's saying to you is All of these consolidations where we had these vhvms, right? Price is too high Price is too high And now we're down here This is retail now the market can come back and check a previous price just like it did up at 20 But those are setups for us in a downtrend configuration. They're not long So if I see a long currently If I see a long it's a reason the cover is short. It's not a reason to get long at least for me in my plan I'm just talking me and it's not a recommendation. There are traders who will get long and trade them Because this is a target you see For me, it's just a reason to cover a short It's not a reason to get long and then look to get short again See, so that's how I trade it. But if you have a counter trend trader and you have a high skill level See for me, I can't uh My stomach lining doesn't let me get long here Because I don't want to trade counter trend in the current context I want to use the counter trend triggers uh and structures To get reposition with what I perceive to be the dominant side It's just a different way to kind of think of it if you are a counter trend trader This is a viable long, but I kind of consider it has more risk Than this one that's all because I'm with the trend here. I'm in the uh, you might say I'm really just playing the squeeze See him see these guys coming out. So that's why for me, it's short only in for other guys. It's long and short See does that make sense? In rare did I answer your question on that? Anyway, I hope this is logical Um, I don't think trading has to be complicated. It's tough enough You know and that's why I don't use any indicators. Um, because the indicator is the participant behavior. You see Um, that's my indicator. It's one of the buyers and sellers think it's ultimately it's not a You know mac d or an oscillator following this that tells me what's going on. I see it right here You know right here right here That's all I need Because it's the participants that ultimately is what the market's all about and again It's just another way to kind of But you know find a way in trading it how can you relate? You know, how can you get in sync? That you can create belief in well comes from research, you know, we've all done that years of study Throwing away great ideas that don't work A lot of time a lot of dead ends Um, most of the things I would say a lot of you guys have done or are doing I've done, you know, I've been at it 43 years Um, I also managed money as you guys know. So my experience is you know, I think uh And over the course of those years I went down many different roads I mean, I don't want to even enumerate them because I can't remember all of them except a lot of it was I did system design Um, trend swing trading trend following. I was not a day trader, you know, that didn't exist when I started In fact, we didn't have computers There weren't weren't even computers. Um when I started 1980. Uh, there were dumb terminals And we really the apple one, you know, it just come out that kind of thing, you know So that's kind of where we were with the technology. I mean swapping floppy disks, you know When I used to get data to do research you had to buy it on a desk I'm just telling you so and over that time, you know, I started out Doing what we all do because what else we don't know what to do, right? So, you know, read a book go to a seminar Hmm There you go And off you go down the dead ends and the rabbit holes Um So it was hard for me to let go of indicator world because when I was starting out and trading well's wilder And if you've ever read about him, you know, he created a lot of stuff the mi adx parabolic reversal They I don't even know but all kinds of stuff and I Worked with that stuff early on and then I worked with George Lane shared an office with him Uh, and he created stochastics, which as you guys know is an oscillator And then I went into derivatives of oscillators and then built systems So that's me And all I all I can say is I I wish there was more information when I started out We didn't have an internet. We only had a book in a in a seminar I don't know about you guys but Anybody read a book and have a change your life and trading or go to one of these seminars and come out You know what I'm saying Anyway, um If you're interested in this I invite you to come to trader lab at least download those 60 pdf So if you are interested in the stream, you can follow the setups because you'll know what they are before we even get there Um, I I can't call trades Because I don't need like this here. This is a setup in the trader lab. I didn't know it happened because I haven't seen it But once it's there there it is Here's your ib so you have this Short to the ib for the scale. That's a trader lab setup. This drops down is pressure That says stay short. That's all it says after that. It's uh, I don't know trade management What's your time frame? Now here remember this high volume. This was too low Right there So you can trade the targets you can trade to this high volume here or to here and be done with the trade What's your time frame? That's something that you individually determine And that's what the idea of the trader lab is to give you a toolbox And then you kind of go okay in a template. Here's how you create this here's here's here's what Behind all of this and then you isolate Uh setups and then you understand and and start understanding Where that setup is qualified to be applied and when it isn't That's why a generic process doesn't work necessarily in trading because the market is in different conditions at different times You know, and that's something that most retail traders don't understand. They think this is a business of indicators Uh, not so much So i'm just saying that's just just another way to kind of slice and dice it. There is no right way to trade You know, um, I would say that um The right way to trade is however you can extract a statistical edge Doesn't matter how you get it, you know, it could be a dartboard or the magic eight ball If you can derive a consistent statistical edge and you can execute it Then you're all good because that's all this business really is. How do you get that? See And if you can get it with an indicator, uh, that's all good too. It doesn't matter I mean, it really doesn't I found that indicators for me didn't work And part of the reason for that was they're not context sensitive. They're just generic, you know So what might work one day, you know gets your run over the next day Uh, and the reason is we're trying to apply a generic process to the market. It's not generic and the market is actually different Uh interday it develops it changes, you know So here we go down Look at the counter rotation, you know short boom counter rotation. This is rotational trading. You just see short boom You know and where does it go from here? No clue and if it comes back above the volume You just dump the trade off and you forget it Nothing else to even think about If you're short from 20, I'm I'm all right with that you know It's just the way it is. It's just one trade One of the things uh to think about is, you know a day like yesterday What we work for is to interact with the market subject to what the market offers. We have no control And that's about risk management getting risk neutral when you can taking stops and protecting your account I mean, that's just what we do All that is overhead if you're taking losses it's cost of production if you have a statistical edge If you're gambling and taking losses, uh, I don't think it's realistic to think that what you're doing is going to change You see So if you're not satisfied and you don't have a trade plan or a statistical edge I would suggest maybe reconsider that approach if you know if you're not satisfied with the outcome Trader lab, I think gives you some tools and then it's up to you To determine how it fits. I mean in the trader lab. We have swing traders option traders Guys who trade other markets just using this process By the way, this works across all markets as long as there's a buyer and a seller and you got some volume Doesn't matter because this is what a market is right here You're seeing a representation of the of what the market is built on and its participant behavior not indicators What did the participants think it's worth so with the part and right here by the way you'd be out of this trade I'm okay with that no problem So let's watch the behavior. We're going to watch the behavior up here now for this vwap Mid vhv in we're going to watch it for potential return here. Not a recommendation. Let's watch Not trade calling You got to see a triggering structure And even them who know So stops are here And here We're looking for triggers to come back here Not a recommendation Let's see what happens So you have to be careful here because there's stops And there's the mid which is stops watch this guy here. You might skew the book. Let's see what happens So you're looking for a potential trigger So right here So here's your squeeze going on. So there's nothing yet We're watching behavior. Let me look where the vhv in is again here. We got one Here So let's watch this. This is our most recent vhv in So this is the area Let's watch You have to be careful with the mid So this is what you're called dicey. I think it's the term vhv and alignment mid Let's watch see what happens Location is funky, you know, so this is where you got to be careful. Of course, you always got to be careful So we're looking for potential squeeze And then and now you get icebergs Let's watch and exhaustion and potentially stop pick not a recommendation It's potentially in this area and this is where we're going But let's wait see what it does And this is not a recommendation Okay, let's get some stops out less buyers up here Let's see not a recommendation guys. Let's watch it. Okay. Here's your stops above the mid now We want to watch for potential exhaustion. Let's just keep an eye on it now not a recommendation Remember retail trader behavior think like one don't act like Let's watch So nothing to do So no trade there back here. Take a look at what's going on 25 area to watch Not a recommendation. We're just going to want to see if we get any behavior This hvn right here So this is an area Keep an eye on it potential exhaustion keeping an eye You got uh selling icebergs sitting up here 500 stops nine three potential exhaustion or up in these high volume areas out towards an Outside edge 25 above us. So this is an area again. We keep an eye on we'd still be coming back towards here So we just have to watch Not a trade recommendation. We're looking for Structure here's some selling Nothing to do and I'm not calling a trade. So let's observe it. It's your high volume. So This is your trigger And what you're doing is you're gonna go for Your first obstacle for your scale Because and here's why We might get retail behavior at the vwap or the mid. This is the mid Because there are automatic mid buyers anybody here would just buy the mid So we have to scale here In case it comes back and takes us out. So we're risk neutral Then if the trade's gonna work, we're coming back here. So we'll see But this is your first Are you guys tracking? Remember, I don't call trades, but I'm just trying to share Mechanics with you. Is this useful? So you're risk neutral in here And now you hold so here's how this would work. This is your high volume Here Now let me point a little more out to you here this now. Let's go back to context I know this will make you crazy. What what is this trade? What do we call this this kind of trade? What is it anybody? Allen in oh, I think I answered your question Mean reversion guys. Thank you. This is called mean reversion And the idea is if we think the trend might be down And we let's say we may or may not I'm gonna say Maybe so let's go back and look at this thing too high too high Now here's how this might work If this is retail Now there's a few ways to trick to think of this. There's a few things you got these vhv ends which are too high Too high too high. That's one element The other element is this is retail at the moment now if it flips back up that puts the short creates a problem But until it does it hasn't When you remember what a consolidation is Somewhere out in the outside edge is too high. I'm not paying that and then in the other edge Too low and too low outside here So if we can identify an outside edge where I'm not paying that We have the potential to come back to retail and that's basically what's going on in this trade So we came outside and remember We had a selling structure here And we anticipate retail behavior Here So we have to scale here And the trade fails if we come back above here So you'd be risk neutral and you'd have a couple burgers in the bank And then either it comes up Or And this is your resistance this right here This high volume which came out of here. So your stop stays here Not a recommendation naturally And uh, you're hanging out Because there's buyers here anticipated, right Why would we anticipate that does anybody know why we would anticipate buyers? At the mid and vwap Retail exactly the reason we anticipate the counter rotation and it doesn't have to do it as retail trader behavior in other words The mechanical traders that go. Oh, it's going up and I'm going to buy the mid and the vwap And I have no idea if they're gonna this they're the gamblers, right and they may be They may win today on this trade. It's just one. So my job is to anticipate their behavior And I have to scale Before that counter force might come in so I consider them and the location an obstacle and in my trade plan I got a scale Because now I can sit here And uh, not flip flop Psychologically with every rotation and tick. Oh, it's down ticked. I feel good it up ticked. I'm going to jump out the window, right Anybody ever have that experience? So by having the scale and anticipating the counter rotation and And how about this my resistance is that I keep my stop above here. Where does it come back? Under here resistance, huh? And what about these guys? What happens to them fuel? Where's my target? Next one is here. This is called and who knows what it's going to do mean reversion, right? So that was the short In real time, you know For all of those who say, oh, you don't call trades. No, I do not call trades What I do is Give you 60 PDFs to download so you could see the trades And then you anticipate up here in the street see I think that's how we might learn Or I can at least transfer my experience And that's all this is about this stream I'm attempting to transfer some experience and maybe you know You guys can actually Think about this as a business and then start approaching it as a business person not as a gambler We take risk in this business and we get paid for taking the risk An important part of taking the risk is no knowing that we have a statistical edge if we Don't know that we have an edge. We are strictly a gambler Um And I don't think that builds longevity into our process Here we have VWAP buyers They may be right on this trade and then they're going to take us out and then that's just one trade And if it comes up here you scratch or here's the next thing this micro volume right in here This is an area to observe right here So let's see what it does So there's a few ways you can manage those first of all you can leave your stop here and it has to fail That's one If you want to micro manage it, this is your high volume in here So your stop would be here You know so you would pretty much scratch the runner And you'd still have your scale in your pocket But you'd still you'd still make burgers and pizza on this one But this does not so there's two ways Here you know up here Or here manage the trade if that's your plan and you have to vet these ideas So this we'll do whatever it does and that's we have no control remember. It's all random The idea is to try to use structure Get risk neutral job number one and then whatever happens is just random, you know If you don't know I don't know That's trading any questions It's this logical guys. I mean because it makes some sense what you're seeing here 46 I think you're asking me you don't see it. It's right there The other thing about triggering structures. They're they're an animal into themselves and it takes practice to read them quickly See the high volume See the reaction see this There's your volume This is also another short if it's in your plan right back here So this trade is safe remember where we're going right, so You're seeing this one in real time nothing else I can do for you guys except just say this is there it is and and again who knows I you know, we have to you know part of The emotional state of trading You know needing to be right the ego The fear of loss not wanting to lose that's all normal and it's just part of the way we're wired The casino when they sit at the when the dealer hands out the cards at the blackjack table Okay, this just shifted. This is the v-pock. This is a warning will rob in some moment right here, so If we can't break below here This trade is going to be over because this is saying too low Now remember the possibility is to come back and check this trend is down So this is now You know if it comes back here, it's over. So this is still where we're looking But it's the warning will rob in some moment. What is it saying potentially too low? So what is the possibility? Roll up from here. That's right. Of course always has been or Make sure this is really too low So let's watch and see it develop 46. You have book map. Don't you you can open it up and see it exhaustion micro here sellers break Pull back Pull back here or or break pull back here So this one if we get back above Here It could be over, you know, we always did was test these guys And if the trade is over, it's over and that is fine This is our warning will rob in some moment. Remember That is very important right in here. You could just be out of this thing. It's up to your plan That's why I said warning will Robinson That is saying this is too low. So the possibility remember, what are the possibilities trades over or Down here. This trade is over. Are you guys tracking? So now in park, that's about it So this one you would have your scale and this was your target. Let's let's analyze this The volume point of control shifted higher, which puts the trade in jeopardy Right here It needs to break and go here It did not do that This trade is over now your trade management process is up to you, but this is in the trader lab also This is v park migration And you notice What was the market doing? Let's go. Let's go back too high too high Too low So that changes it Doesn't make it along means Get out of the way for me. I'm not saying what it is for you. I'm just talking about me. So I just Go into park Is that makes sense? All good as far as I'm concerned trade worked trade did its job trade got a scale but put a few Dragma in the bank If you had taken this one wherever it was, I don't So here I can't remember any one of these but um, or maybe here Can't remember uh rarer. I'm in I would be in park now because the condition has changed And I just sit back in other words, uh Sit back one of the things here is when this shifted up That was my warning will rob in some moment that meant that this was too low Well, I want to trade outside in but right now I see these buyers I see 857 stops coming out. So let's just sit back Now I have my levels up here my variable high volume nodes up on this outside So I want to see What's going to go? Uh, also, so you guys know statistically now we took out the initial balance low And to take the initial balance high out You know, I don't have these on the top of my head, but I think it's around 28% Or so that we take them both out And that creates something called a neutral day in other words both sides active So it's possible we take out the high of the day now we have to see and if we don't it sets up another short opportunity The short opportunity would be up in this area But I understand there's a speech going on so you might have short covering ahead of that So that's a fundamental input. So we'll have to see what happens in here. Let me just check and see if it's the highest Um, so right in here. We want to observe the 25 area of this high volume area So we're going to observe it and it looks to me like it's just a by spring So these are not trades. This is just observations right here. We want to observe it 24 20 So we're observing right potential selling structures. You can see it VHV in potential outside edge mean reversion Keeps going you take a stop not a recommendation This is that trader lab setup Break shop break. So we can come back here Or if you can read this here's the thing you'd be short here. This is why it takes practice To get unconscious competence If you're very mechanical on this you need to spend time on the weekends So you can recognize this and not be trying to get back in here The idea is you want to be able to enter Here's what the quiesce is The location is here. You would know that what you don't know is Here's what you don't know Are we going to take the high of the day out? There's buy stops in there I mean that's always possible and who know All right, so that's a trader lab location Who potentially interact and this is your triggering structure this so now What you need to be doing is looking to get risk neutral so you can keep your stop up above here Or here, you know subject to and now you're coming back here. This is still mean reversion Now what's it going to do? I don't know And one of the reasons for it is why This was too high here This was too high 25 26 remember areas Who knows? So, you know, that's why we're looking at this So this is your short This is your back to the mean mean reversion Uh, this is what's out called mean reversion or outside in trading and what you're attempting to do and I'm not saying It's the right thing to do If if you think the trend is down and we're going to get the short squeezed remember if you run out Of the buyers which are the stops See the volume See the break See the pullback See there's no buyers no buyers. You got louis with the one lot up here Where are the buyers? Where are the buyers? Where are the buyers? This is why on the weekends you got to look at triggers during the day go back And replay look at them. I mean study them screenshot them And see what changes in the behavior see the green the buyers the buyers the buyers the buyers The buyers the buyers the buyers the buyers. Hey, we're going through the roof Alice And location This is the location It's an area remember horseshoes hand grenades and clueless No buyers No buyers Louie No buyers no buyers That is how I look at this And it's very nuanced But here Here's your volume. Here's your volume See it so you could be once you understand and this takes a lot of practice. Okay Once you understand now you're using book map you're looking And and remember I look at this and just me as a chassis in other words This gives me all the volume for the day I look at how the high volume moves throughout the day because that's where the shoppers or the participants are saying Oh, yeah, this is now. We're not shopping here. We're out of here. Well, we can revisit the store where I don't know I just know areas of what it might do Then I'm going to be looking because it's mean reversion and what did I say about the initial balance height Which of course can get taken out. Well, the statistics for that are low It's like 25 percent or something that both get taken out something like that Well, that means 75 probability it won't so I want to be short because the trend is down And this was a target See I do guys tracking You got to keep an eye right so that's your remember mean reversion. There's the mean any questions on the mean reversion So here's how you play this trade Trigger scale risk neutral job number one Stop here You can do other things with trade management. You have to vet it This is resistance chop chop break low right here. You have high volume. This is resistance There it is right there. See it you can see this. It's all right here. So there's your volume break resistance volume break it's resistance Developing daily time frame higher time frame Volume support But it's the mean so when you're here You're coming here in the next fractal. This is fractal trading and I understand you may go what is going on These are those russian dolls Higher time frame, which is the big doll Then as you go down and those little russian dolls they get smaller and smaller and smaller and smaller so this one Is a developing daily time frame doll Right and retail is there and we anticipate the market to come back and check that's mean reversion In here This chop is the little doll because it's a triggering structure the retail up in here is too hot That's why we broke away and now we came back and we checked this one This trade could be over or And i'll tell you in the trader lab if you're running a two lot risk neutral flat What's wrong with this If you're developing you see If you're running multiple contracts, which is not The conversation in the trader lab because the trader lab is really about building a process and a career in trading and it starts with kind of a Call it a fundamental process of vetting and in other words, here's a setup Can you recognize the context? Can you begin to identify the locations? You know, what do you do right and how do you how do you put a trade together? Well, by the way, now, I don't know what this thing's going to do by the way This looks like some reasonable buying coming in but right now that's your resistance. You see, but this is your target So this trade would be done or Or you'd have another runner on and you'd scratch it I mean nobody nobody jumps out the window about that You know, and that's okay This is your resistance right here And we'll see what it does but that trade for me no problem We came back right to the high volume Now you got to see what it does here What you're going to see Potentially is symmetry and the doesn't mean that What the market will do because nobody knows that so there's none of that you're looking for that prediction pool um I don't think you're going to find it in trading What you're going to find in trading is you can measure Probability of getting risk neutral Versus taking the full stop Let me here's a here's something I want you to think about just think about this if you knew Based on doing the work and the research that you had a 65. I'm picking a number out of thin air So I'm making it up could be more could be less whatever, but you had a 65 probability Of getting risk neutral on any trade that you have vetted Would that help you put the trade on when it shows up? Versus No idea If you knew that would it give you courage If you knew that Would would it help you manage your fear? You see that's the differentiator between gamblers and someone in the business of trading is they know Because they've done the work and none of us want to do the work We all want to trade how about if you want to be in business I think there's some work involved if you want to compete Against the other traders that who don't do the work Um, maybe if you do the work that gives you an edge, right? That's that's kind of what this is all about Anyway, if you're interested in this i've gone over my time come to the trader lab Download the 60 PDFs So you can follow along and there's a primer webinar there that gives you an overview of these market mechanics Thanks for visiting us if you're interested go to bookmap.com join the discord chat come to the trader lab and Download the 60 PDF so you can follow in real time and anticipate these setups And also there's a lot of additional education available and it's all free You don't have to be a book map subscriber and you won't be solicited Thanks for visiting the trader lab guys. Apologize for going over and i'll see you guys tomorrow