 Good morning traders. This is Bruce at the locks pro. Can you hear me and see my screen? Let me know and we'll get started John, can you hear me? I can okay? Okay. I don't know if I'm actually broadcasting here Hmm, okay. No, no, okay. All right. Thanks guys. Okay. Excellent. All right. We're all set Okay, well today we have we're continuing on with our professional Trader webinar series and today we have John slaws us. I'll get into the introduction in just a moment First I want to read the risk disclaimer trading futures involves substantial risk of loss is not suitable for all investors past performance is not indicative of future results And I also want to show We're still we are continuing on with our promotion here We have a 33% discount on book map and it's for the advanced version only And it's a for the yearly or the quarterly so you can now Purchase book map for for a discount for the first three months You will get a discount and then for the for the quarterly And then for the first year you'll get the discount here a 33% discount on the advanced version For the yearly version, all right Okay, and these webinars are all recorded you can go to the YouTube channel Or you can also click here on under the portal become a member here Under this education tab and you will see all the recorded webinars are under this link right here book map recorded webinars okay, and Well, let's get into it. So John Is Chicago native as it says here I grew up on the floor of the CME and has been trading for for quite a while now over 30 years of experience and trading alongside a lot of the most influential traders and leaders in the marketplace And he's a CTA. He started his research firm J. S. Services in 1984 and he looks at specializing in professional trading tools and analytics So let me also show his website and I'll put this into the chat for you and his email and Twitter as well so the Website is here. It's a JS services dot trade throw that in the chat and Let's see. You have his email in there already, but let me throw it in again here. Okay, and We can put the the Twitter handle as well. Okay, there you go All right without further ado then John Glad to have you back. Let me turn it right over to you. Thanks Bruce. Hello everyone. Let me just get my screen set up and John do you want me to Ask questions as they come in or do you want to hold until later? You know if questions are on topic Definitely what I'm going to do is Can you see my screen now? Yes The PowerPoint. Yes. Okay, great Yeah, what I'm going to do initially is just go over Kind of the basis of what I do and how I look at the market and then go over the specific Order book dynamics that I look for and then and then you know get into some Some examples, so you know anything that's on topic, you know, definitely You can interject. I don't have a problem with that. Okay, so now I'll take us. I'll take a pause At the end and if we've got time we can go look at some live markets You know there's some stuff going on in crude oil right now. We could take a look at that Okay, sounds great. All right, great Yeah, as Bruce mentioned, you know, I've been in the business a while, you know, I've Had a JS services as a resource for traders and you know, even when I was on the floor And things were done more by hand which now everything's done by a machine You know the goal was always the same to provide a trader with some objective truth, you know More everything needed, you know need giving traders facts, you know, you don't need to traders don't need opinions Or you know to skew their bias what they need is some truth so they can make good informed intuitive decisions And that's that's really what we strive for and everything I do and I really enjoy working with book map because They do the same thing as you know, JS services You know really provides the you know the macro strategy foundation, you know using quantitative analytics You know book map shows this, you know the historical View of the micro dynamics in the order book and you know and these are real-time facts So you have this you know this long-term basis or this you know macro strategy foundation And that's that provides, you know, really the context for the session, you know When you get trade signals in the moment, you know, what do they really mean? Be behind what the moment is and you need some context and that's that's really what JS services does is we provide that macro strategy Foundation and then from that foundation you're going into, you know, what's happening at the moment real-time with the real-time facts of the moment and You know when I go over what I do and I show you these analytics, you know What they're you know, what they provide for you is a basis to really standardize your trading and make your trading more Systematic because you have you know if you understand the context, you know, then you have a benchmark to start to You really optimize your trading Because you know you know these these conditions He knows how these conditions work and you can you know really optimize your all your signals in line with the context of the state and and You know JS services analytics, you know, really, you know provide that foundation by identifying the What the market state is what the structure of that state is and then what are the inherent strategy themes of that state and structure So, you know, what is market state? You know, it's you know, basically, you know, most people look at state as either trending or non-trending But there's there's more nuances than that, you know, sometimes the trend is accelerating sometimes it's digesting Sometimes it's correcting and so JS services identifies that state condition and so you have this expectation And so it's you know, literally when you know when you go outside for the day You take a look what's the weather going to be like, you know, this is kind of this is the basis for the day that all trading is gonna that you know happen on so understanding what that foundation is key, you know and markets don't always, you know, you know they're always in transition from one market state to the next and And that's when and things change and when things change they change at structure points And so every market state has structure, you know, we call that market structure And so, you know, if you are in a bull trend, you know You've there's a price point that tells us that this bull trend is no longer true And the definition of a bull trend is market makes higher move highs higher move lows If it stops doing that, it's no longer a bull trend. It's in transition So that's that's a tell that this market that was in a positive training situation is now in a transitional situation And you need to change your tactics, you know, and and that's what the structure points do and and that's what we have integrated with book map our structure so our structure is in what we call it JS notes column and You know, it pops up right on the on the heat map But it but and it gives you context to these dynamic order book events that are happening You have more clarity and another thing that's you know interesting about, you know The this analysis is you know, we're kind of building a picture. So we have this state foundation And then we identified the structure of that foundation. So now we know, you know Where, you know, if the market holds structure, then we anticipate that this this state will persist And if the market breaks structure, you know, that tells us that things are going to transition So if we're in this state knowing the structure, you know, then there's certain inherent strategy themes that are that are prevalent That we should anticipate to dominate trading if you're in a bull trend Then and you have you know this specific structure. Well, you know, what's the optimal thing to do? Well, bye breaks off the lower trough, you know, bye breaks off that point that's going to change that trend That's going to be the optimal, you know kind of strategy theme And if the market breaks structure, you know, there's going to be some Some themes as well. We call those hedge themes. So as a trader, you're always looking at, you know, okay What's the state? What's the structure of that state and you know And what are the optimal and hedge strategy themes and then looking at, you know, real-time price action to identify, you know What what theme is happening? What is the condition? And so we wrap it all up in what we call our playbook, you know, providing you these this this macro structure foundation And so, you know, you have this this context behind, you know What's happening at the moment? And here's an example of a markets in a bull trend We call, you know, we identify and define a market state with really three price points One range that UP stands for upside pivot DP downside pivot So that's what we call our critical range and then we have what we have our our level, which is a sentiment bias So it's literally an over-under number for the period and With this state and structure, we've got the market sentiment is balanced in the middle And it identifies that structure point that says if long as long as the Crude oil is trading above 53.71 This bull trend is engaged If not, then The bull trend is going to be broken and we shouldn't anticipate this market to perform like a bull trend And so once we've identified this this strategy theme, you know, then we want to take a look and see what's happening at the moment So we have we have this awareness. We have this foundation contextual awareness of what's going on in the back backdrop And we know that this market is in a positive trend And we know that this if this trend is going to continue then this market's going to maintain a trade above fit the R level or this 53.71 area and we can see that here in the on the heat map You know really, you know, and this is the strategy that we're looking at right now What's called a buy our breakout where the market starts out below? This sentiment bias level breaks out above it and gives us a buy signal And that's what's happening in this example. The market was trading lower Traded up through it and now we're above it. And so the market is telling us we're in this theme And so now we want to optimize our Trading, you know, so we want to make our, you know, our our tactics as perfect as possible And one thing I want to mention before I go into the example is, you know, part of what the Analytics offers some risk parameters and those are displayed on the heat map as well and we have two key metrics That we use one is called a variance and this is really the zone that should be considered at the level So it's it's a you know, that's kind of the optimal entry area anywhere within that zone And then the alert distance and this this is that's really the signal acceptance zone surrounding a price map level and so anywhere within that zone we're going to look for events to To trade and outside that zone we're going to avoid entering the market because The real liquidity is going to come at these structure points And so how do we use the you know, how do we optimize our trading tactics by incorporating these micro dynamics of the order book to make them more effective and You know, these are some of the things that I like to look for that help give me clarity in the moment of you know What's what's happening helps with timing? You know position adjustment stop placement, you know, so I'm looking for liquidity shifts. I'm looking at resting paper I'm looking at order imbalances intensity of trade and large lot orders And so liquidity shifts, you know really improve timing by identifying the conditions in the order book are changing And so in our example here, you know, we know that we're in this Bull trend market state We know that the market is at a structure point and we know that the market is in a buy our breakout strategy theme Do we want to participate in this opportunity? And so we're just looking for tells that tell us, you know, is it time for this thing to go and I like looking for liquidity shifts and during breakouts and so You know, you have a market, you know, the market's trading here. It's kind of dark under here and And then then all of a sudden It starts to light up and it starts to light up at a market structure point So this is on the top of the alert distance, you know This is the the very edge of where I want to participate in this breakout but it the order book is telling me that that's where the buyers are and The market already came back and tested kind of the variance area and now I'm getting this liquidity shift and this is kind of a Tell that the market might be ready to go. You know when you see the order book start to shift up and then liquidity shift like that and You know, it's important to understand the you know, you were I'm always looking for confluence So I know this is my entry acceptance zone that I can buy I'm allowed to you know Kind of participate by this market and I also like to look at price structure And how is price structure aligning and I can see it, you know, I've got mark You know price structure here is aligning with market structure variance here and I see it's aligning here And now I'm getting a liquidity shift So, you know, I have real good clarity now. Okay, this market is breaking out It's pulled back and it's and it's getting ready to to ramp up You know the other the other you know another major thing is the resting paper, you know And you know one thing about you know the world we live in now with the electronic trading is, you know I'll resting paper it can be fleeting, you know You know, but there are towels, you know at the length of time that it persists at a level that can impact its reliability You know, that's really that paper is going to be there and Along with you know when this paper aligns with the price and market structure And so in our example here, I know that this 5371 level this sentiment bias R level This is really where the buying energy is and what I like about the order, you know The book map is that I'm able to see that there's resting paper below the market So you can't see the alert distance below here, but it's it's just under the variance of this R level So it gives me some clarity about where there, you know, where's the big support? Well, we've had this resting paper here for a long time And it's it's coming into alignment at this variance And so, you know, and then for targets and for position management, what's going on the upside? Well, I've got some resting paper you know at the you know just above the The variance of this what we call a validation level This is kind of this is a minor level and this is a major level and the major levels are going to have an alert Alert distance and a variance and the minor levels are just going to have the variance But you know and these are more levels to use for position management But that's something that's for a number another webinar to get into those details But I just want to you know focus on the Order book events at the moment and you know, so here's another example of a You know resting paper with some liquidity shift and so we have a market You know, this is the downside pivot the bottom of our critical range and you know as the markets Approaching this level. We see that you know the order book starts to build up and we get and we get this resting paper here You know whenever it you start to see it, you know kind of build a you know a wall here You know it gives you confidence especially when that is happening at market structure, you know at a price map level You know, you know is this break in the stabilized maybe okay now all of a sudden it's here You're seeing a lot of the order book build up and then and then the market makes a move Trades back above this minor validation level and then all of a sudden we get a liquidity shift And so this is you know this and that's what you're looking for, you know, is this market really gonna stabilize We're gonna have a transition back higher. Well, we have the order book supporting us below the market off structure And now we're getting a little quiddity shift You know part of the resting paper is Is to really identify, you know, what makes up that level and if and large lots can skew the order book Yeah, and this would be fleeting liquidity, you know, so it's it's always good to recognize, you know You if you have, you know this liquidity Here above the market and you're saying okay Well, I'm using that as a target. I'm probably gonna get a rejection there But then when you notice that it's a there's a you know on the book map it, you know with the white hashes it identifies You know a large lot so we know that you know half of this Size at this level is actually one trader And so if the market approaches that level that that trader might leave it could be fleeting And so it's always good to really recognize, you know, what, you know, what's happening there Just as you know on the downside, we do have some large lots here, but we'd also have some thick bars, you know And so this is this is good liquidity and it's just telling us the other, you know real support is below the market We know that You know, that's our major Inflection point that we're looking at and here's another example of a large lot where it really just skews it, you know so if you're looking at this and and You're giving this some credence you have to understand that hey This this trader could immediately leave and and that could be fleeting size So it's always good to take a look at what's you know, what's happening. What's that size made up of? You know another good tool That comes up that provides opportunity is order imbalance and especially when it's aligned with the you know the price map framework You know it identifies and confirms opportunities. So trading tactics can be applied to capture these dynamic occurrences In this example that we have a small order imbalance But you can see it gets all dark and so we have this liquidity shift and we know we're a buyer here and we know we're looking for this market to move much higher and We have this dark space here so that that you know Gives us more confidence that yes if this market does go on the bed It's just it should just rip through that area and so I'm you know always looking for those those types of situations And so here you know we have You know how would we construct a trade here with you know the structure You know one thing about the having this macro strategy is you have trade vision You know where can this this trade go to you're not caught up in the in too much of the micro You're using the micro to optimize your entry and to optimize your your order placement You know we know we want to you know buy you know where can we buy this market? Well, you know we can only buy it at the very edge of this Signal acceptance zones and we have resting and we have some paper coming in here this liquidity shift So we're going to put an order you know right on top of that And then we have some additional resting paper coming in around the variance Which is in line with our metric and also in line with price structure So I always like to look for price structure The order book and market structure alignment and then on the stop placement We you know we can put our stop, you know here's we have our variance And so putting one stop below the variance and their stop below the alert distance to the downside and then using the You know kind of resting paper You know putting it below that paper there Here's a good example of imbalance that happens which is kind of nice and you'll see this in the order book We're obviously to get this big dark areas and so here this upside pivot That's the top of our critical range area that was that's our big resistance point You can see that you know the order books been stacked up there for some time And then you have this dark area here and the resting papers below the market at the midpoint of the critical range What we call our directional and so you know if if you have a strategy You know if there's the macro strategy foundation is telling you hey, you know, this is a sell opportunity in this zone It's kind of nice because you have you know the water books just showing you your target and a lot of times when this happens These moves can be quick as they move through those areas of imbalance Intensity of trade is is is a good confirmation event for both, you know fade and reversal momentum shifts as well as momentum breakout trades and this can improve the timing and optimize your tactics with that and so you know here is a Example of a fade where you know we had a market that you know kind of exhausted at the top of this Validation number and then it comes down into our our big support And you can see that you know market had some paper here. You get it some liquidity shifts It's going away as the market comes down here It comes back they fill it and immediately this resting this this liquidity fills back in and it's filling back in at a major Structure point and then we get in an event we get this intensity of trade event You know, but when you have this context behind You know what's going on the backdrop and we know this is our big support level. It gives us a lot of clarity and then also one thing that the Analyze do as well as they they identify the price segment moves at the markets trading in Which we call an average price map distance Which is you know one major level to the next major level basically so we have this clarity that if the market does stabilize around this area Where can it go? It can at least come up to this area and Then when you and then when you see and then when the market's coming in here and giving this event You know we can see this liquidity coming in here and it's staying there And it's coming in at that lot that lower alert distance off this structure point Now here's another intensity of trade event of a kind of a turn in momentum So you have this market, you know pressing it to the downside and then it breaks structure, you know When I'm talking about price structure, so lower move lows lower move highs all of a sudden the market You know is starting to break structure and it's doing it with some intensity And then that intense and then as the market continues to break structure. You're getting more and what's interesting Here is you can also see this liquidity shift. So this is another tell that You know, this is real so you're getting this event and Then all of a sudden the order these orders are backing off. They're out. Look at there. They just all pull and they all put they all started pulling here and so this is this is a little bit of a tell and Then if we're getting this order event at what we call our downside target one Where can it go and go up to the downside pivot and it gives you that clarity of what can happen? here's an example of Intensity of trade for a potential reversal signal. So you you have we've identified this big Resistance area with our upside pivot top of the critical range and we get this intensity of trade coming into that level We are also you can see we had this resting paper here for a while And it's just it's staying there and it actually you know as the market comes in here it even starts to build up Above the market and you have this intensity of trade in it Backs off and then you're coming into a retest into this zone, but there's less intensity of trade You know this you'll see this happen on reversals and again, you know You're you're looking for these types of events at structure. So if we're getting those events at a different spot It's not as interesting as if you're getting it at a structure point So the key with you know optimizing your trading tactics, you know is observing the price action within the market structure in the context of the market state and the underlying strategy themes You know and this is going to give you clarity and a competitive edge to anticipate opportunity You know using those the market metrics thresholds, you know during dynamic order book events so you have that complete clarity of You know what is price action doing within the macro structure and then using the micro structure to You know really optimize your trading and our our desktop application Helps you to normalize, you know this macro structure into your workflow What you're looking at here is a tile grid and when you click on a tile It's going to change the market state and so you can you can find market states that are that you like to trade you know instead of just oh, you know, I'm always just focused on trading this one market where you can come in and identify a market state conditions and and strategy market structure bias and strategies that you like to trade and then Gravitate towards those types of markets so I can I Can go through another example here Or we can go just I can take some questions and then you can go do a live example or I can do this one Can't one that I have Wanted yeah, why don't you keep keep going through and then get People can start to put in their their questions As as you're going through it as well. All right, I'm gonna go through Another example, then I'll flip to a live market. And so, you know, here we have a By our fade strategy, we're gonna fade moment, you know, we're looking for the market to we're in a bull trend Situation we're looking for the market to stabilize off the our level and we want to execute a fade momentum into that level and so Here we have the market is broken down to the support. It's pretty you know, pretty aggressive You know, it's a little bit of catching a falling knife But we we have some clarity because we've got we know this is the lower low point if this bull trend is going to stabilize It's gonna do it here. And so as the markets coming down, you know Right now, we don't have a lot of liquidity and then all of a sudden we start to get a liquidity shift And we're getting the liquidity shift at structure and then then all of a sudden that liquidity shift starts to turn into some Resting paper and we're getting that resting paper starting to build up here And so this has given us some confidence that you know, if you know any dips into this area We've got this support and we know what you know structurally, you know, we know where we're at You know on the bigger picture, you know instead of just being running through the trees You know, we've got the helicopter view over the forest as well So we can you know really see clearly what's happening here and then we're using the dynamic order book events to really optimize this and Then here we get a intensity of trade and so, you know, we're looking for these events and We get this intensity of trade and we get it as the market clears this threshold. So this is a positive signal now structurally this is interesting because we have a The sentiment is below the critical range this downside pivot is going to be a good validation point the market really needs to clear It's alert distance on the upside here to really validate that yes This market is is faded into momentum and the bull trend is going to resume and so And then here we get a you know So we have this liquidity resting here and one of the tells is going to be that a liquidity shift up You know, so when this liquidity starts to shift up, that's going to that's a tell it tells us that hey these buyers are more aggressive And we're we're looking at potentially now a reversal signal another strategy We is off the downside pivot Okay, let's see a few questions here. Let's see Francisco is asking would you please explain yesterday's Dow correction? I don't know if you have the Dow or if you want to jump into live markets yet John Yeah, I'll go I could go into a live market. I don't have I'd have I don't have the The book map data to go into that But we can take a look at you know some live markets now if you want S&P is fine as well That's what Francisco is asking Or whatever whatever you have up, I would imagine Maybe just point out some of some of the things you're looking for Sure. Let's take a look at Seven some problems with my S&P earlier Let me let me pull up the crude oil here But the stock market did definitely broke structure. So the market You had a break in structure. So it you what we're in is a transition right now and Let's see what the market state is for that. Yeah, so so what happened? This is the desktop application I'm going to pull up yesterday's information So yesterday actually the S&P was in a Bull trend correction So we already our systems already shifted in you know the word the market already shifted into more of a corrective posture and Then you know yesterday it rolled over and today we came in and we are in a more of a neutral digestion So, you know the markets just kind of making a decision right now what it wants to do on the equity side and Let's take a look at crude oil is a kind of a live example right now I've got that loaded up on the book map. We'll take a look at that. So we were at crude oil is in a bear trend market state and Sentiment is above the market at 49 33 So this this identifies that the kind of the high point of really where the selling energy is it's way above the market and You know our optimal strategy themes are to fade momentum into that peak and On a head strategy if this is this bear trend is going to continue to make lower lows lower highs If we get a failure from 47 47, we should see a new extension lower And otherwise if we If the market can't hold that negative structure We may get a break in structure that would shift us into a hedge strategy theme and generate a by DP reversal Which is what is going on right now in crude oil pull up the chart here, too So we you know, we're looking at this theme here the market, you know downside pivot Pull this over here So this is the 47 47 level it's our downside pivot and we've had this event So the market is broken structure. So we're getting you know, it's just always again You're we're monitoring price action within market structure in the context of the state to determine what theme we're in and Markets tell us we're in this hedge theme. We've broken the bear trend structure You know the seller there's still going to be sellers way above the market, but we might get a play for that area That's what we're we're seeing right now So here's that our level way above the market. We had this negative bear trend working We're watching monitoring price action within market structure lower move lows lower move highs We have an event here and now we're starting to break structure This 47 89 is a validation point So to confirm this reversal the market will need to go above that level And so we can look at the order book to see what's happening. We had this, you know, big event Let me see where my dots are at here. Let me just change this. I look at the market a little longer term. I'm more Interested in you know, kind of bigger bigger moves There's no real magic number on your volume settings really comes down to you know, what you like to look for but we had you know, this is a good number for us we call this a Critical range X X negative extreme this 47.09 area and that's a kind of a validation point for the breakout So it's always you know, is this market gonna break out what's gonna need to take out 47.09 and It you know, we get our reversal here off of that area and as soon as we The market hat, you know does that all of a sudden liquidity builds up at that point You know, this is the confirmation point So if the bear trend is if crude oil is gonna head lower it needs to go below 47.09 in the order book supporting that so I'm always looking for clarity of Okay, what you know, what's the order of telling me in real time and so we've had we have this resting here And I know that's my my validation point, you know, what else do I know? Well here the market came up and You know, you know came to the very top of this My alert distance and broke structure and so that that told me that okay, this negative aggressive negative momentum is done So we're either gonna go sideways or we might get a positive reversal And so now I'm looking at the order book and I can see, you know here here. We have one of those liquidity shifts And that's and we already had the positive event and up and you know and and now and now and then the market gives us this play into this area here and let's get a little more micro now and so this 47.89 area is a Is going to you know confirm this this reversal strategy. So this by DP reversal Here just pull something up real quick So we have this structure and this this minor this CR minus is going to be that the point where the market has to Really violate to say okay, we've reversed off the DP and now we're going to kind of transition through this critical range to our upside pivot area And so we can see that the order book is is taking a stand at that level And it's it's kind of all built up here at 47.97 so that's our really our confirmation point to the upside and crude oil and If this market's good anytime the market reverses there, you know It's typically pretty clear where the market will start to build, you know higher move lows higher move highs So if we're taking we kind of take the today's session low and if this market's good one We know it needs to validate above 47.97 to be true Otherwise we're going to look for this market to as long as it's holding these higher lows and building positive price structure it markets in that that hedge theme event and If we validate above this level that would give us confirmation that we're going to the market's going to want to try to make a play for this 4933 area And so we can see that the order book did shift up here and it shifted up with you know within our metrics So we have our variance and our alert distance Okay, so let me get to a few of the questions here Let's see Carl is asking if we break 47.09 Are we lower or do we need to break 47.01 to really break? To really break it or Or do you just short it? So So that's a good question What I'm sorry Carl. Yes, okay, so What we're doing is we're trying to do you know the first thing we want to do is set What's the context that the markets in right and we want to understand you know You to get you know give us clarity do we want to sell this thing? Well first just based off the structure alone, you know that you really are interested in selling it here 4933 That's your that's your sell strategy You know sell our you know sell our fade. That's the optimal. That's the optimal strategy to see if you're a seller That's your optimal thing to do The next thing to do is if the market can't make it all the way up there and then it but trades above 48 96 But then fails that would be a sell up reversal and that's another good strategy So all the real in all the interesting sell opportunities in Crudo are higher okay The reason there's no sell opportunity down here is because of the structure and This structure tells us that the selling energy is up here So these cells below the downside pivot even though it's a negative signal are not as valuable So this is also a size management tool. You don't want it You know sell big below here because it's not that interesting the real selling opportunities are higher What what's interesting at this level is potentially a buy And and we're looking and looking for this reversal which we had So we're in this hedge theme If the market does trade lower and goes below 47.09. It's more likely a head fake Because what happens is the markets either gonna hold structure and perform optimally It's gonna break structure and transition And if this strategy doesn't fall through and both of these are not true Then that that's when you see those like linear sideways non-event days So it's either optimal theme it's a hedge theme or it's a non-event theme and As a trader you're just looking to recognize what theme is the market in and again all this work that I'm showing you is all Quantitative and it's all factual there's the Everything that is built into this math is to define to Is used to identify what the truth is it's not it's not meant to be predictive at all It's just it's meant to be clarity of what what's happening and and this structure is set for the session the reason It's set for the session. It's based on you know how the markets work Which are driven by massive funds the massive funds care about you know assets under management and performance metrics And they base their performance meant to they mark the you know Even though their outlook is three to six months. That's their short-term. I look they're marked a market every day And so you know that what they really care about is you know the clothes Are we gonna hold structure or break structure? Do I need a hedge or do or can I add and so what happens is you have this? that's how this structure forms for the session and the market either is gonna hold structure and Persist the state's gonna persist or we're gonna break structure and we're gonna transition and people need to make decisions when that happens And so and that's and that's also when markets are in transition. They're more difficult So so here in the crude. Oh, no, you're not you're not interested in selling if they're if you let's say if you are getting a Sell signal if you're gonna sell anything you're selling it right here And why would you why would you why would that be an opportunity because we're at the validation point? it's not a Very valuable opportunity, but if you've got a system that your tactics are coming in and saying I'm a seller Well, you could use you're selling it here and your risk at 4803 You know, so you your risk is very small if they can't validate above this point Where can they go? Well, we can see we've got an order in balance here and they could drop them back down to 58 Real there you know the we know that this is the you know the real long-term resting paper is way down here And we also know that that's our validation point So if they exhaust here more likely you're gonna see a break down to you can see a break back down to the lows And then you wouldn't expect any fall through you expect kind of a the market to kind of go linear the rest of the session You know or with the market validates and it trades back up through here, and it gives you a fresh buy signal Okay Francisco is asking about So how did the system handle yesterday's Action in the in this in the stock indexes Okay, I could show you the bigger structure what we did You want to have to load let me pull up a Something with some historical data on it for you guys So we so yesterday we came in the market state was bull trend correction so, you know Marko is you know S&P's have been in a bull trend and They all of a sudden they shifted out of a bull trend into a corrective posture And so structurally what we were looking at is 2370 and a quarter So as long as the market, you know if the market was below 2370 in a quarter, then it's vulnerable to a break And so that was really our our key turning point. Let me Pull up a chart here. Just give me a second But you know that but that that was the kind of the line in the sand that determined is this market going to Correct or you know is the rally over and then I'll show you the structure points in the second Things taking a lot of load up. I've got my other charts on a different machine I don't like to use all the up all the resources. We'll see if this thing comes up here But yeah basic here we go. It's great how you have a historical There in your your desktop. Yeah, no, it's it's a nice feature oops so We're coming in pre-market here and the market is not it's Trading above our sentiment level and so it's trading, you know up here And it's coming up to the top of our critical range. So, you know, this is our natural resistance This is our support and this is our, you know, the the sentiment bias for the session and so the market comes, you know challenges resistance and You know we're rejecting off our upside pivot and we break structure here and then the market produces a a Negative signal here. So we get the negative signal and this is kind of a classic breakout Where the market, you know, takes it out and then pulls back into the zone But won't pull back all the way to the figure or just come into that alert distance variance area here and then we get a Some negative follow-through here's where the trade vision comes into play So we have a couple different signals here. We've got a trade off the R level and so any kind of breakout trade we're always looking for two segments to a PMDs and then we're going to get another downside pivot breakout here And that's going to give us a to a PMD Target as well. And so, you know, this this was fast But you're lead you the market gave an opportunity to enter here Here's your you're getting confirmation and you're getting another cell signal by breaking below here More importantly, you're before you started the session your context was bull trend correction So your whole foundation for the day was bull trend correction and when the market was trading here This is your validation point if the market's gonna hold, you know, if it's you can just look at this expectation if it's going to Fall back on its heels Where is it gonna do it from it's gonna do it from the upside pivot and if it's gonna really transition and fall through You know, and this is, you know, literally the picture and the expectation of what happened and the market comes down And it attains our target so you had a you know a 2 a PMD move from here and You know the market Stabilizes and now we we're coming into the end of the day You know, typically when the market breaks out of the critical range, we get a 2 a PMD move a 3 a PMD move is more of an event And so they came close to that and then here we're coming into a What happened today in the S&P is the market shifted from a Bull trend correction into a neutral digestion. So it didn't commit to the bear trend This indicator, this is our indicator. It's a 10-day plot of the indicator. So we were in a bull trend we shifted into a Bull trend correction and now we're kind of staying in neutral and we're kind of hugged on this area Again, I'm always looking for clarity. This is a we call it market color and Yellow is an extreme signal for us and so this is if you want to know why we're in neutral digestion Well, the market got overdone to the downside and it generated an extreme signal here and typically when that happens the market needs to Digest a little bit and it that's why it shifted in into a neutral digestion And so we have You know as the mark is the S&P they're trading off this critical range support You know, you know, we're basically here. Is this, you know, where's the selling energy? It's above the market here at 2362 and a half and What's happened is the market bounced off this downside pivot and we're here So this is a this is a real this is we'll take a look. This is a key time to look at the book map Because if we're getting the order book stacked up here, then, you know If the market's gonna transition lower, it's gonna transition lower right now right here right now from 2346 75 This is the validation point that this market stabilizing going nowhere. We're gonna, you know, we're just gonna have a sideways digest if this Negative momentum that we had yesterday. Is this enough of a digest to take us off that over, you know Like a little bit ahead of itself. Absolutely. That's enough Half a session more than that, you know, half a session of digestion may not it may not be enough But the order book will help us. Let's let me see if I'm having some issues on this machine with my S&P. Let me see if it kicked back in. I'm still not having Let me just put a fresh one up here Yes, if the order book is supporting the market, you know You know here that's you know, if we if we're dark above this area Or if we have an imbalance and I don't have a picture right now for the S&P. I'm not watching stocks at the moment Because it's neutral digestions typically is can be kind of a messy trade. So a Lot of times I avoid those situations When I'm looking at them and you know, but that would that's what you're looking for right now in the S&P You're looking for liquidity shifts, you know, is this market gonna it's kind of like make or break here If the order book does shift up and pushes and we don't have anything above here and more likely we're gonna transition it and Try to make a play for 62 and a half You know, they may even think you know, they may not be able to get up there They'll stalled here, but if if If things start to stack up around the directional that can be a tell if you're getting indicator signals Now if your tactics are coming in and giving you a sell signal, you've got Your risk is defined So, you know, really the market shouldn't really trade above 43 49 and a half Typically this signal is better If the market had traded below the downside pivot So if the market had gone below the downside pivot and given us this reversal signal that would be about better exhaustive signal They they've stabilized in what we call a fade And so that would if they had if they had broken out to the downside already and traded below here Then this would be a definite sell The fact that they didn't do that is makes it questionable. It's not as it's not as strong It's definitely valid and if you start to see things play out in the order book that tells you that you're in this theme Then that would be a tell that you could see some Follow-through to the downside, maybe a play for 23 and 19 and a quarter But the fact that they didn't break out here Takes away, you know, this this strategy is not true yet You know to have a we call it a sell DIR critical range breakout The market has to break out to the downside first and then that makes this trade more valid But if the order book stacking up You're getting a tactic signal Your risk is defined you're looking for a playback down to you know 23 34 at least You know, so that's money I'm typically looking for you know multi-session moves but Yeah, it's great that the stock market broke, you know, hopefully now we get you know Let's see some volatility, but this is kind of normal got overdone to the downside Stabilized and now we're you know kind of going sideways for a little bit But I think you know this will be this would provide some good clarity if the market can't trade above 49 and a half Then You know that that would be kind of a tell that you know we might be going lower and even if we go sideways today That might be you know, you know tonight or or tomorrow. We've got yelling speaking coming up So that's that's gonna keep things a little digestive. I think Okay, let's see. We'll take one more question here and we got a we got to wrap it up Let's see Does the trade have to dip below the DP? And then you can short the directional Yeah, that's so all of these Strategies are you know You know, they're they're self-evident if you if you took the time you really broke it down Hey, if I'm in a neutral digestion and sentiments above the market and And What what would be the best things to do, you know, and you can go through these and they're all logical You know, yeah, we want to sell it close to sentiment and we want to buy it if that and the reason we're using the reversal here And not catching a falling knife and fading it is because sentiments above the market So there's there's we're in neutral, but there's a natural negative tone to this neutral nest So we'd rather see the market exhaust here a little bit before we step in front of it And then what do what what else do we know? Well, we know that yesterday, you know We know the market is moving out of a a bull trend situation We were in a bull trend correction yesterday. We followed through to the downside, you know Now the market got a little overdone to the downside and You know, so what kind of you know, do we want to sell it in the hole? No, we probably don't because we know the markets overextended. So what would we rather do? We'd rather sell you know pullbacks and so if we're gonna sell a pullback You know, the direction was a good place and what it becomes even more valuable when the market goes outside the critical range Because it goes outside the critical range. What's that mean? That means the market broke out to the downside It's overextended. We're not expecting to follow through so it breaks out sucks people in and then you get that that you know dead cat Squeeze and where where should it exhaust? It should exhaust at the midpoint of the critical range Not just kind of normal if you're gonna have a negative tone from a confirmed breakout It shouldn't go back through the midway point and so it just you know, it becomes a natural place to sell the market But we didn't you know, we didn't have that exhaustive signal You know, this is kind of normal breaking action bear trend and we break structure of the bear trend here You know, this tells us we're going sideways You know, if this would have been a lower move lower move low here that would have been a Good negative signal. It's not it's higher. So I'm just you know Just looking for tells in the market this integrity of this supports held So that's all positive and where's the real sellers the real sellers are up here So it's you know, it's absolutely a decision point, but it would be a better Sell if the market had traded it given us a sell signal and it hasn't But you're still you're in the middle of a neutral digestive range, it's it's a dangerous trait Okay Okay, let's see See Justin is asking how do I get notes in my book map? Yeah, so you just go to your members area into the Add-on section and you can request it there and you need to be a advanced book map user It's included if you're it's an it's included if you're an advanced book map user It's included and that's the integration, but you need to you need to have the desktop To get the notes. So for book map you can demo it by going to your members area and then you need to come to Js services That trade and and sign up for a demo Okay Okay, well, I think I think we're out of time here. It's been about an hour. So Let's let's wrap it up a great great stuff John I mean on all sorts of fronts as as usual, you know, just breaking it down from that macro To the structural to the market state Looking at a strategy looking at your technicals finally you're looking at your technicals and then you look to the book to optimize and That that bigger picture view is just always always Great to see because most people aren't looking at such a nice macro view like that No, and then you you know, it's important. You know the way I use the order book is At the moment and what you don't want to do is let the order book shake you out of a good opportunity And so after the market has produced your event, you know, you really want to you know It comes back to you know, that's your story. You're sticking to it And you really take a step back and you know, let the market pay you, you know Don't don't get caught up in you know small shifts in the order book when it's outside structure You know kind of trading in the middle. It just doesn't matter You know, you know, that's really where the algos live the algos live in these middle zones That's what they play. That's where they play the games They can't play as many games at structure points and the bigger the structure points means there's bigger fun Participation at those levels and the algos can't compete there But they can they can eat you up in the middle for sure And you don't want to get caught up and shaken out of a good opportunity You always want to go back to what's that theme? What theme I am is it holding structure? It is well then it's holding structure and You know, you can use the order book then to help with your position management But you don't you don't want to get too caught up in the trees. You want to take you know, view it from above and And then it's going to help extend your trade durations It's going to get you know, you're going to have the better clarity when you have that context You know underneath, you know what everything that's going on You know it gives you that clarity and then you're going to see these events happen in a whole different way You know and things that instead of looking at a chart at the end of the day in hindsight and saying oh that was obvious You're going to be able to have those that clarity in real time because you're you know like yesterday It might you came into the session in the S&P with expectation that this market could correct and Then they exhausted the upside pivot Which is the high point where they really needed to overcome if it was going to continue that bull trend And then it breaks structure below the directional and that told you that confirmed that this markets in a corrective theme And then then you then it's just what if what if the S&P is finally correct? What could it where could it go? Well, it could go down to the DT2 It could happen and it did and that's that's really just it's it's just all fact-based It's just you know what if it's going to correct where can it correct to what's what's the structure of the market? Tell me what's you know, what are the what are the facts? What's that fact foundation and that that gives you real clarity? All right now good good stuff. I think that's a great note to end on Let's see Jim. I've And George I put answered your questions there You can reach out to John at JS services dot trade or info at JS services calm And they're also in the chat as well for everybody if you want to take a look Other than that, you know really nice presentation John Just just great slice looks slice look really really good, too and Yeah, let's let's wrap it up. We will catch up with everyone that tomorrow All right. Thanks everyone. Yeah, any questions feel free to email me and coming for a demo of the desktop Okay, great. Thanks John. Thanks guys. Okay. Bye