 Good morning bookmap traders Welcome to the live stream Looks like we got 38 people hanging out Smash that thumbs up button if you can say good morning in the chat My name is Charles. I run a community called pirate traders where we hang out. We're day traders Focus mostly on the ES the NQ and the two-way auction process between them My focus is on market profile book map and market internals Three different platforms that I use to give me an idea of what's going on in the market The chart over here on the left is the market profile chart That is TPO charts that show how much time the market spends in certain areas and Volume profile charts that show how much volume traded in those areas Over here on the right it is book map That shows me the liquidity in the order books and then how the liquidity plays out throughout the day and Then in the back here behind the two you'll find what I call the market internals Which is basically the breadth the advanced search versus to cleaners and the ticks and those just give me some sort of under the belly Perspective of the market what's going on with the underlying assets Generally on a Monday morning I think the best way to start the week is to zoom out to get some perspective on What's been happening in the market and context moving forward So the last few weeks have been a little bit tricky here The market has been trying to decide what it wants to do. We created a small balance area The market broke out of that balance came back up created another small balance area broke out of that re-entered the previous one and Rotated up to the opposite end so we can look at this whole thing as one large balance area over the last few weeks and the tricky thing about opening right smack dab in the middle of a balance area is That it can be very very hard to know which way the market is going to break Are we heading back up towards that balance area high or are we turning around to head back down towards that balance area low? Which way does the market really want to go here? So to look for some insights, let's start by zooming out all the way on the monthly chart and Work our way back So the first thing that we see when we look at the monthly chart is That the market has pulled back to the 20 simple moving average on the monthly And it is now holding as support Nothing super special in that information But it is an area where if the market wanted to bounce on a month time frame and turn around and head higher It could do that here. We are also back testing previous support and right now that support is holding So now let's zoom in and take a look at the weekly So on the weekly we see that the market is finding support both on a trend line From the lows although it's sitting right on it right now at the open Finding support from a trend line in the low. It has also re-entered an old balance area from March to May and So that re-entry was the pull down to the opposite end at the lower part And then we triggered a turn right around to the top So support from here Balance from here and then lastly let's zoom in and take a look at the daily and see if there's anything that jumps out at us here Yeah, I would just say it looks like a larger balance area Same as on the market profile chart. This just looks like balance to me And so the way we'll treat it as is if it's just a larger balance area So if we were going to do that if that was going to be our context this morning To create a narrative to guide us forward as to what could take place today in the market And we were thinking that this was just a larger balance area. How would we be playing that? What will we be looking for? Well first off, we'd be assuming chop inside the overnight range Okay, normally I would combine the little tiny bit of trading that happened on Friday after 4 p.m. And include that with the overnight but because of this massive gap down that we had I'll just ignore this. We'll pretend this isn't even here We'll just completely ignore it and we'll just treat this range here as the overnight range for the ES Which means the high is up around 43 22 and the low is around 4,300 Okay, so in between that area, I will assume chop. I will assume if we push down They'll find support and come back up if we push up they'll find resistance and come back down They'll just continue to grind around inside this overnight range until they're ready to break out What would a breakout of the range look like they would either push above the high and Then find new buyers up there and keep going or they would push below the low and find new sellers there and keep going so to me if I know two things if I know the fact that we are in a balance area Right, we're right smack dab in the middle of a balance area one of two things is gonna happen today Either the market is gonna start to head back up to the upper end of balance because it wants to try to break out and keep going higher Or it's heading back down to the lower end again because we looked below Failed pushed up. We looked up pulled back down. So now we're heading back down to the opposite It's got to be one of those two things that comes next now I'm not saying we have to do one of those two things today But from this moment one of those two things is happening over the next let's say the next three to four days One of those two things is happening. We're not going nowhere for four days I'll put it to you that way We are either gonna head up to the balance area high and try to break out up there Or we're gonna head back down to the balance area low so This morning what happens with this overnight range between 4300 and 4324 we'll give us our first insight as to which of those two is happening if it pushes Above the overnight high and it finds support We'll look for continuation up to the opposite end of balance if it pushes below and finds resistance We'll look for it to head to the lower end of balance okay, but If it looks above and fails or look below and fails So it tries to get above and comes back in tries to get below and comes back in Then we might be looking at a day where the market just goes sideways all day Because hey, we're in the middle of a balance area a Perfect location to balance and to go nowhere and to just go sideways So that overnight high and overnight low as I'm calling them here 4324 and 4300 that area is the sort of Deal or no deal level for the market to decide is it ready to go higher or not lower or not And so all we can do is wait and watch We'll be keeping a close eye on the liquidity and book map To see is there big pockets of liquidity? Popping up towards the upper or lower end of that range. Are we starting to see liquidity up at 58? Are we starting to see liquidity down at 4240 We'll also be looking for the liquidity right around price. Is it even is it the same amount of liquidity above and below price? Or is there a huge imbalance where there's way more liquidity on one side or another? For example right now, there's 1,300 contracts above and 1,300 below no big deal But is there does there become a huge imbalance? We got to wait and see when that opening bell rings in 15 minutes If you have not yet, please smash that like button Give me that thumbs up and say hello in the chat. Good morning. Gino nap is here Global investments welcome global trading for a living good morning to you JK in the house a Low sit aloo the lowest good morning to you PSC welcome It's a hill good to see you. He says the Israel war news might affect lower opening Here's the good news that I can give you as far as that is concerned whatever effect the News about the war is going to have on the market The market will tell us by first pushing above the overnight high and finding support or pushing below the overnight low and finding resistance I mean that it doesn't matter right. It doesn't matter how the market reacts to the news It doesn't matter if the market is going up or if the market is going down today We will know because of what happens at the overnight high and the overnight low That's what we'll tell us So I don't know how the market will react to the news, but I will know Once I see what's happening Good morning, Tom Allen David G mint rock Busta and Nicholas any other questions for the chat. I got 15 minutes to fill Come on hit me with your questions Truman says what will more inventory above price than below tell you that the market is likely to go higher than lower So The market is always moving towards the direction of liquidity Now it can be tricky because this is happening on different time frames, right? So there may be there are times in bookmap where you may zoom way out and you may notice that there's like a giant thing of Orders just like sitting up here some random spot and you'll say to yourself. Well, there you go We got to be heading up towards that. That's the biggest pool of liquidity and it's waiting up there The market must be going up to 43 75 And then all day long the market will trade down here It'll do its thing and nothing will happen and that'll just be sitting there And it'll be there all day and it'll be there the next day when the market opens and nothing will have happened with it So sometimes there is liquidity in the order books Which is playing a longer time frame? It's a swing trader who's got their orders sitting in there And they'll be sitting there for as long as it takes until the market gets to that level or not but It does imply that as long as that liquidity is still up there The market is probably not going to make some giant move to the downside It is probably just going to keep going sideways until it either can pop up and tag that liquidity or It goes sideways long enough that this disappears that that trader decides to remove those You know move those levels often down to a lower level and then you see liquidity build up somewhere down here, so That is an insight that you have based on where the most liquidity is sitting in the order book You know, that's a magnet and that price eventually is going to try to go up there and tag it It doesn't always happen right this minute But wherever the most liquidity is that is where the market will go It'll go there in the most confusing path though Corpman says NQ. Yeah, let's take a look at the NQ NQ it up. I'll be buddy. But he be be be be be look at that folks. Look at that Look at that That's a market imbalance Beautiful absolutely beautiful So they created a balance area Last week you rotated from the lower end of balance right back up to the upper end of balance back filled a gap That needed to be back filled Okay, so you basically got rid of that magnet that was pulling on price to fill the gap and Now you've turned right back around and you're heading down again, so We can keep it simple with the NQ folks exactly the same as the ES Whichever way it breaks this lower overnight range. So we'll call the NQ's overnight high 15044 and the NQ's overnight low 14 970 that's the range whichever way it breaks out of there Look for continuation higher and it's sitting right on that balance area high So this is either Today it'll break out of balance and it'll get continuation, which probably means we're heading up towards 15356 or It looks above and fails and then it's heading down So that overnight high on the NQ will be very very important can they hold it That's what we need to know So yeah exactly the same as the ES watch that overnight high watch that overnight low Pushing above finding support would be bullish for continuation pushing below finding resistance would be very bearish that we're heading to the opposite end of balance and Anything in the middle Would be a diddle because we're likely to just keep rotating Remember the market loves to grind around on a balance area high So Hill says I'm a newbie to your course Ideally, what time is the best to start trading? Like give an hour for the market open Yeah, so This is a great question and it is something that every trader needs to figure out about themselves So throughout the trading day between 9 30 a.m. And 4 p.m. There are three different markets that the market experiences three different sort of Just Personalities that it takes on throughout the day So you got the initial balance. That's the first hour It is exactly what it's called balance right that first hour of the day is where the market needs to figure out Which way it wants to go it needs to play tug of war and one side needs to tell the other side Hey, fuck you we're going higher or hey, fuck you. We're going lower But first they need to have that balance they need to have that tug of war where they compete with each other So that's the first hour of the day. We call that the initial balance That is often very very difficult to have a clue of What is going to come next right? We can have an idea of the behavior the market is going to have if it's a gap We know it's likely to try to fill the gap if it's like today opening inside the previous day's range We know it's likely to be chop the market. We know what will be support and resistance We know the areas where the market is likely to reverse and head back down But in that initial balance, it is very very difficult to know when to enter a trade and Where to put a stop because it's just kind of bouncing all over the place and it can reverse anywhere and anything can happen And it's very frustrating So yes, most of the time most days You would be it would be in your best interest to just watch the market for the first hour Let it balance let it play tug of war and you wait to see who wins that game Because seeing who wins the game at the end of the first hour will give you insights for the rest of the day Right, you could take 10 20 trades today If you want based on the information you got from that first hour If you're patient enough to wait for that information of who wins that that tug of war so I Don't have any hard rule that says I cannot take a trade in the first hour Look if I'm looking at the chart and I see an opportunity. I go listen We're pushing into resistance. The market is likely to pull back down to this level down here. I could go short it's just I Want to be very cautious. I want to be absolutely certain that I'm right Because it's in this balancing mode where anything could happen On top of that just personally for me something I've learned about my behavior as a trader is that when I take on a loss It affects my psychology moving forward. I start to get more frustrated I start to get more emotional my trading. I start to make more mistakes do more stupid things I know I shouldn't do in particular if That's first thing in the morning with the very first trade I take if it's a losing trade I will just start doing stupid shit the rest of the day. So that adds a layer of Caution to the idea of jumping into trades first thing in the morning during that initial balance Now that being said there are people that trade just trade the initial balance. That's it Every morning they get up they trade for an hour and they're done for the day So if that sort of unknown choppy Tug of war type of environment fits your personality and you like to trade that we'll then go for it It's it's to each their own Good morning to Mike. Who thinks we got 98 people hanging out 47 likes If you're feeling the love this Monday morning, please smash that thumbs up. I sure would appreciate it We got four minutes to mark it open good morning to Caesar and Busta move says what's the difference between window trader and window trader lights window trader blue or window trader light? There are some subtle differences. I would just say you can use window trader light That's totally fine. It has all the gizmos and gadgets that one needs but the added conveniences of The window trader blue include the composite volume so the orange volume that you see over on the left It's kind of blocked right now, but that's where I can combine however much time from the past. I won Right now. I have like 400 days All kind of smushed together there. That also depends on the quality of your data feed and Then you've got intraday objects. So once the market starts to trade You know how I have to a split profile I have one profile that where it's all collapsed together and one where each 30 minute TPO is split out The way that that is set up is actually called an intraday object where each 30 minute TPO is kind of set up as its own thing that is only available with with the blue version and then the market replay so you can go in with the blue version and You can put in any time or date and you can just click to start playing and you can watch the market trade At any speed you want you can choose what speed you want it to play through and that is an Incredibly potent tool for learning If at the end of every day you go back and replay that day over like say a five minute period You play it out at a speed where it takes about five minutes to scroll through the whole day And you just sit and watch the profile move throughout the day Man, that is it's just it really helps your brain to understand the levels and how the market reacts at them And then where it goes and how it comes back up and it goes back down That replay function is also only available with blue, but everything else you can do with the light All right one minute to market open for those of you just joining us We are opening for the ES right in the middle of a balance area for the NQ right at a balance area high So for both markets, we are using the overnight high overnight low as levels to to watch for An idea of what comes next so support above 4326 would be bullish Anything else would be chop and resistance below 4,300 would be bearish Anything else would be chop So for now the market is in a chop zone We're looking for more information Let's zoom out here a little bit and see what's happening with the liquidity. Okay. It's about even a little bit more above than below But that also indicates chop this morning For the NQ we are calling the overnight high 15044 and the overnight low 14 974 and So that's your range. It's a chop zone inside and it changes with a break of that range and For the ES the overnight high is 4324 and the overnight low is 4,300 We got a weak high as the chop begins Shawshank says I have completed 70% of your market profile e-course and I love it Thank you, brother. Appreciate you. All right, so we're testing that overnight high So this is the important level from here either the market can bring in the buyers to Keep this momentum going Or it will become a look above and fail and we'll be looking for more chop inside the overnight range So literally right now can they hold it? Can the buyers bring in support? All right, that's a look above and fail. No buyers at the overnight high So that increases the odds of more chop So if they push back up here again back above 25 will play the game again We'll say can they come back down and turn it into support But for now it looks like we need to push back down into the overnight range looking for support in there First potential support is 43 18 and then 43 12 Rui says What about trading a more calm trending market like momentum between 4 and 5 a.m? Yeah, I just don't get up that early in the morning, you know So if I lived in a different place in the world Where the over what I call the overnight market, you know The the European or the Asian markets You know if I was awake during those hours, I'd trade those hours But because I'm here in America. I live in New York City. I'd trade the New York hours As far as certain times of day Presenting like easier than others. I disagree with that. I think there are times when it seems like the overnight is easier to trade And then there are times when it seems like the regular trading hours are I just think you got to pick one pick one and become an expert at it Niko says add-ons on book map. Yeah, I did add two things to my book map setup. One is this Thing right here, which just shows us the liquidity above and below the market So the number here is the amount of you know buy orders below the number of sell orders above and then this is the delta between the two and Then also these little black boxes those just show the number of liquidity if there's more than a hundred contracts at a level It shows us more than a hundred and any time it pops up. That's like new liquidity so if for example where it says 213 if all the sudden that box were to be over here and it were to say 244 It would mean somebody just added more more contracts. Alright, so this still looks choppy to me This does not feel like good support So I think we need to test 4330 we've got this little pocket of liquidity up here. I Think the market needs to test that just kind of poke up there and see if it'll fill Once it does then we'll know whether the support after that is trustworthy for continuation Tape reader five says how did you come up with those numbers for support? Liquidity zones volume question mark. Yeah, it is volume and time from the overnight So essentially the idea is simply this When the regular trading hours came up here to the overnight high we are making the decision It's what's happening right now. We are making the decision or do we want to take the market higher or not? Right. It's a yes or a no a binary if we can find the support up here Then we're trying to take the market higher If not, we're going back to doing what they did in the overnight, which was in the overnight They just chopped they just went back and forth on this range over and over and over again, right? So if that's what I'm thinking if that's the conceptual idea that I'm playing in my mind That either we hold the support at the overnight high or we do more of what they did in the overnight What levels should I think about as important levels? Well, the the levels that were important in the overnight obviously, right? So this first one is where we spent a lot of time in here You could see these two right here this one is where we spent a lot of time and brought in a lot of volume and This one is the base of the single prints up from Friday, which often acts as support as well So first support level base of single prints second one overnight volume and time Third one overnight time and of course those arrows are just to see what happens when we get there 77 hi Hi Why there? It's Monday. Okay, so we did technically just turn the overnight high into support But again, I want to see the reaction after 43 30 before I really trust it All right, well, I'm officially bullish now with this new buying above the overnight high I do still think they need to pull back down. I wouldn't suggest FOMOing into a long at the high. I do think we still need to pull back down and test this area around 25 once again for support However, I do think there will be buyers waiting Once we do Bullish Sahil just refresh you should be able to refresh and get pretty close to real time Tape reader says I love how you simply explain your analysis of what's going on live in the market That's what I try to do. I try to just do stream of consciousness Just whatever thought pops in my head of how I'm reading the market. I explain it to you guys What am I looking for? When does it happen? What comes next? Speaking of which testing overnight high for support here we go. Good morning, nor auto trading Let's take a look at the queue. Oh, same exact thing as the ES. Oh, no Ooh, not the same thing as the ES. Okay, and Q very interesting this morning. So they poked below their overnight low Didn't get resistance. So then they were looking for more chop They got it. They chopped all the way back above the overnight high now. They're looking for support So if when they pull back down they can turn I would call it 15035 if they can turn this area right here into support that would be extremely bullish Because they already tried to take the market lower and they failed right like the sellers tried to take control They couldn't do it So that really increases the odds the buyers will be able to so you were looking for that support at the overnight high Got some bot shenanigans up here. We really need them to let it break lower and test that overnight high That's where the buyers are waiting But for now the shenanigans continue 131 people hanging out Welcome To the bookmap page. My name is Charles and we're watching the ES I know you're thinking you're like Charles. Isn't this support though? Isn't this the moment the buyers are stepping in? I don't trust them. I Don't trust them Why because of the book map because of these icebergs? This feels like support stepping in It feels like buyers building up momentum for that next leg up But I got to see us break out of this little Bot zone All right, waiting to print the B period here and then see if they can hold 4331 as support If so that will be bullish for continuation higher So far I would describe most of the buying today as short covering and not new buying Because they haven't had a decent pullback Except for the very beginning of the day So I have to leave you here and switch on over to the private stream for brigade members only if you've been enjoying the stream thus far If you've been appreciating what you've been seeing and you want to hang out with us every day for the first hour You should join the brigade. It's only 10 bucks a month But what I will leave you with is this I'm gonna give you kind of two contradictory ideas at the same time So the first is a bigger picture idea of like what's happening. Let's call it on a daytime frame to me the market this morning pushing above the overnight high and Continuing to bring in new buyers even though they are FOMO buyers that are chasing right the fact that it Continues to bring in more buyers again and again is bullish to see Okay, the fact that we now have the value area Above the overnight range is bullish to see so as long as they can hold this overnight high around 4325 as long as they can hold that I will remain bullish the rest of the day And my thought is that we're heading back up to test Friday's highs and monitor for continuation higher from there however Right, there's a caveat in that And the caveat is all the buying today that has happened above the overnight high has been FOMO buying It's shorts that have been getting squeezed Okay, shorts getting squeezed in here shorts getting squeezed in here And they haven't had any good buyers We haven't had a good pullback to give those strong hands support buyers a chance to get in So we have not actually confirmed the support yet So if the market does pull back down through the opening price now pull back down through 4322 I would be bearish to go sideways inside the overnight range once again Okay, so what I mean by that is bigger picture the bulls have taken control But they're not they haven't quite convinced us yet so they could lose control very quickly if they cannot hold that overnight high but If if the overnight high holds then that is very very bullish for continuation to the upside Okay, so we're now testing this potential support around 4330 can they hold that if not well there you go They can't so if not the next support is what we just tested 4328 the one below that 4325 This well there you go before I even switch streams. This is the moment of truth here Can they really hold it? Can they really bring in new buyers? They got the FOMO. They got the short covering Can they bring in the strong hands? Here we go can They hold it Man holding it up by the skin of their teeth. All right. They're holding it for now So that's it folks that support right there 4323 must hold For the rest of the day for the market to remain bullish But for now it's holding so if that breaks and the market passes back through the opening price, you know You're gonna just start going sideways inside that overnight range And then you know if they break that overnight low, they're looking to take the market lower Okay, and probably the targets to the downside would be 4289 and 277 but as long as they hold what is now that B period low we just made They can keep it going up Man, what a moment to have to switch streams Sorry guys, Sayonara, I will see you next week if you are not a member of the brigade head on over and check out Bruce's stream also on the book map YouTube page if you are a member of the brigade I'll see you there. Thanks a lot. Bye. Bye