 Good morning to the bookmap community. Welcome one welcome all my name is Charles I run a community called Pirate Traders where we are focused on the ESDNQ and how they move through the two-way auction process. I am here today to talk to you about what might happen today and this week in the markets. So let's dive right in. We got 35 people hanging out so far this morning five thumbs up if you could. Please give us the thumbs up we sure would appreciate that. Alright well first things first let's just take a little look-see in the rear view mirror and figure out what the market has been doing that got us to where we are now so that we can then look for what to expect to come next. We're gonna do what Jim Dalton calls the top-down approach. We're gonna start zoomed out on the monthly candles then we're gonna zoom in on the weeklies then we're gonna zoom in on the dailies. Okay it's important to understand where the market is not only right now today but in a larger context if we want to have an idea of what could come next. Okay so if you've been watching these live streams you've been hearing me for months and months and months talk about how we have momentum on the monthly time frame and as long as that momentum remains the market can continue to make new higher highs. Well we officially have run out of momentum on the monthly time frame. We now have lower lows on this month's candle than the previous month's candle so what does that mean? It means the momentum on the monthly time frame has come to an end. What do we have to do once we run out of momentum once the momentum runs out? Well there's two ways that we can balance it off. We can either just go sideways at higher prices spending enough time to turn around and continue higher once again or we can get a pullback with price sort of a dip on this longer time frame which gives stronger hand buyers on the longer time frame an opportunity to get in on the market. So in my mind which of those two is happening is what this week will tell us obviously it kind of goes without saying but if the market is going to continue lower with price the target in my mind is getting back to these previous all-time highs around 4,800 okay that would be where the market would be wanting to go so how will we know if that's what's going to happen? We will look at last week's lows. If we start to break last week's lows that will increase the odds that we're heading lower on a monthly time frame to come back and test with price instead of time. If we don't though if the market turns around this week and starts to head back up that will increase the odds on the monthly time frame that the market is going sideways and balancing with time. Okay so let's zoom in and take a look at the weekly time frame. Once again on the weekly time frame the market is now trending lower. It actually has momentum to the downside. So we're keeping a very close look on last week's lows. Okay if the market stays above last week's lows the momentum down on the weekly might be over and we might be looking to turn back around. Here we can see three weeks of downward momentum that reversed and backtraced quite a bit. Here we can see another three weeks of downward momentum that for a week backtraced another two weeks of downward momentum that turned around and came back up once again. Okay so we've now had three weeks of momentum to the downside. It would not be unreasonable at all for the market to turn around this week and try to poke up towards the highs. If that happens we know we are getting balanced both on the weekly and on the monthly using time but then on the weekly time frame we'll be using price to back test the momentum down. Okay so this is important to recognize on the monthly time frame we had momentum up it is just now coming to an end on a monthly time frame but on a weekly time frame we've now spent weeks creating momentum down so we need to balance off that momentum to the downside. One way to do that would be to pull back up with price. Okay now let's zoom in and let's take a look at the daily time frame so the daily time frame we can see we have had a lot of momentum to the downside day after day after day after day after day after day of continuing lower highs and lower lows for the market. So the the market on the daily time frame same as the market on the weekly time frame needs to balance off the momentum down. Same as we talked about there's two ways for it to do that it can either go sideways at lower prices. Okay in which case it could break lower or higher or it needs to pull back up with price on the daily time frame to back test all these lower highs. Okay so today if we're trying to figure out what is happening in the market this week and over the months to come are we going to turn around and head back up to test the the move lower with price are we just going to go sideways in a lower range or are we going to continue lower is the momentum to the downside not over and we need that larger pull back to those previous all-time highs on the monthly. Well let's dive into the market profile chart to get some levels to give us some insights to carry forward. Yeah actually this is quite beautiful so there's going to be two different ways to look at it. The market made this big move in the overnight this was because of the news about the bombings in the middle east okay the market got very emotional but the next day it basically just balanced inside that overnight range it got one tiny little look above in the morning that was nothing and then it just spent the rest of the night in the overnight range so even though it may have felt very bearish on Friday the market was really just balancing off the move from the overnight that night what did it do over the weekend more balance it just rotated inside yesterday's range so you yesterday was inside the overnight range from the previous night and you had this overnight inside of the previous day so what does that tell us it tells us this market is in balance short term intraday first thing this morning this market is in balance what should we expect if the market is in balance first thing in the morning a lot of chop right we should expect the market to go up and down and all around because it's got to break out of this new balance area in one way or the other so the first levels we'll be watching they're going to make it super easy here today we've got the overnight high and the overnight low those are the first levels we're going to be watching as long as we're between them we should assume the market can just go sideways if we get below the overnight low that will be the first bearish signal and we'll increase the odds that we're testing Friday's low okay if we get below Friday's low that is very bearish to see because that will tell us zooming back out it'll tell us we have more momentum on the daily time frame to the downside it'll tell us that will get us you know heading down towards the weekly low telling us we still have momentum on the weekly time frame and it will tell us we have a much higher probability that we need to pull back to those previous all-time highs at 4800 on the monthly time frame so getting below yesterday's low getting below Friday's low is bearish to see there's no two ways about it it is a confirmation that the market is pulling back with price and it can just keep going it will shock you how far that thing can pull back okay however if it just gets to yesterday's low pokes below it and comes back in range we want to be a lot more cautious we are still bearish that is still a sign the momentum is going to continue to the downside but we might assume we need to pull back up one or two more times before we get that move lower so any test of Friday's low is bearish to see but if they don't immediately sell off they may need to pull back up in the range and get smacked down at resistance okay so that's the overnight low increasing the odds of the test of the previous days low so now let's say instead the market works its way up to the overnight high which is currently at 50.37 okay let's say the market works its way up there looks above that that increases the odds we're going to test yesterday's high okay so if we can turn it into support that's where we're heading to yesterday's high at 50.57 if we get above yesterday's high it sends us exactly the opposite signal that getting below the low would send us getting above the high would tell us on that longer time frame we need to balance off the momentum down does that make sense so getting below Friday's low means we're getting more momentum down the momentum is not over but getting above Friday's high means the momentum down is over at least for the time being the momentum down is over that would increase the odds that we're going to go either sideways at lower prices or that we might need a pullback with price we might need to start back filling some of these weak references that we left behind on the way down so if we can get above the overnight high that will be bullish to see to test the previous day's high if we get to the previous day's high we must watch what happens when we get there do we just look above and fail pulling back into the range if we get that it means we're going sideways with time or do we look above and bring in new buyers up there bringing in new buyers means we need to start pulling back and repairing some of this weakness that we left behind from last week if we do that we monitor for continuation to the upside there is always potential above yesterday's high that we could get quite a bit of short covering everyone that's been shorting the last few days they all get squeezed at the same time and the market can make a very big move very quickly so it is not often the market makes it this easy but it is making it very easy for us this morning above overnight high look to see if we can test the previous day's high above the previous day's high if there's buyers it's very bullish for continuation if not we're going sideways if we get below the overnight low and we get resistance we look to test the previous day's low if we get below they're very bearish pretty much no matter what it's that simple folks so a look below of the previous day's range is bearish for continuation lower in the days and weeks ahead a look above and fail of the previous day's high is neutral for sideways chop inside the previous day's range and support above previous days high is bullish for a push back up to backfill some of the weakness we left behind i mean they are making it so simple one bearish two neutral three bullish what do you know and all we need to pay attention to is the previous day's high and the previous day's low very nice i like very much how much any questions from the chat i'm talking about chop zone baby they'll chop it we got nap in the house cool beans is here our mateys will is here michael are good morning to you cool bean says happy belated 420 everyone yeah missed it it was a weekend it was a weekend missed it trevor good morning to you persie is here bust a move in the house jay let's do it and good morning victor hello to you debbie be in the house uh victor says can i dm you on discord you absolutely can go for it you can also email me anytime at a hoy at pirate traders dot i o or dm me in the discord or dm me on the twitter or wait outside my apartment i'm just kidding don't do that um persie in the house nq same bitcoin question mark okay yeah let's take a look at the nq and then we'll look at the corn dumb dumb dumb dumb man nq just looks so nasty with these giant ranges reap reap reap reap all right let's zoom out and take a look at daily on the nq get some context here okay so yes both markets are in exactly the same situation which is they've got momentum down on the daily and the weekly time frame they likely need to balance that off it's been a lot of days in a row of continued momentum lower so they will likely need to go sideways looking at the size of last week's weekly candle to the downside to me is begging to uh to spend some time going sideways in last week's range so it's it's literally the exact same thing as the es if they get below last week's weekly low look for a larger pullback on a monthly time frame if they can stay inside last week's range you're looking for are they just going sideways so that's the excess lower are they just going to go sideways at lower prices or are they going to pull back up with price okay i'm going to go ahead and draw a trend line from the highs of those first few days that the market was um building up momentum yeah i'd say something like that so if the nq is going to come back up and and you know test the uh the resistance once again that trend line would be a good area to me to start looking for shorts so what are you going to be watching for intraday today man yesterday was a big range so very similar to the es but not exactly because the range is so much larger you've got your overnight high and your overnight low if they get below the overnight low you're almost certainly going to test the previous days low fridays low if you get below fridays low you are going to get continuation so that's the same scenario as the es if they look below fridays low and they pull back up in the range that is not bullish they are just coming back up to smack the market right back down so any test of fridays low on the q should be bearish for further downside continuation again not necessarily instantly but later in the day if they can get above the overnight high i would look to head up and test the resistance around this cumulative node right here so support above 17 317 could look for continuation up towards the 460 area okay and then i would look for a lot of resistance there you got the overnight from two nights ago spent a lot of time and brought in a lot of volume right here uh around 17 425 you've got a little bit of time and volume from the previous day around 17 460s and you got that cumulative node so as we know with nq a lot of times it just kind of touches these these larger nodes and then turns around and heads the other way so if you got above the overnight high whatever that will be at market open right now it's 17 317 you should look for a move higher but not fall in love with that trade okay because it doesn't necessarily have to get to fridays high it's got a lot of resistance between those two that could smack that market right back down if they can get through that then yes you look to test the previous days high and the same exact thing with the es if you get a look above and fail of the previous days high it's just neutral we're going to keep going sideways and side fridays range and if you get above fridays high and you get new buying it is bullish to pull back with price okay and i would say a pullback with price could head up as far as uh 17 718 okay so one step at a time both markets both markets did one thing all weekend long which is they went nowhere they just rotated sideways inside of tight range look how prominent that point of control is for the overnight in the nq so that is telling us that that is a strong magnet right now and the market it won't be easy for the market to get away from that so both markets are set up for chop first thing in the morning and we'll just have to take in one ticket at a time and see which way it breaks out all right let's click on over we'll take a look at the bit corn see if there's anything interesting happening there bit corn yeah i mean that actually looks i was saying the same thing last week um like right here we were like right here and i was saying if they can hold this support in here they should be able to turn around and head back up to test the 7200s they took a couple more stabs at it they took two more stabs at breaking lower last week both failed so that tells us there are buyers stepping in in here those buyers are strong hands if there was ever a reason to be scared in crypto this is the the reason to panic and to get squeezed and they did not they held those support levels so that tells us they will likely stay in their trades until we get up towards that 7200 number so i'm actually bullish this week on the corn and you say to me you say but charles last week you said the same thing and we were like right there and then we went lower twice you said that yeah well so what it's still trying to balance it's still trying to turn this into one giant balance area where it just goes from one end to the other again and again we just tried to break out of that balance twice last week i'm telling you that increases the odds they're heading up to the opposite end what you want to look for here is obviously continuation with price we've now got three days of higher highs and higher lows you want that to continue you don't want to get below yesterday's low and you want to see the volume pick up because volume is getting less and less and less up here and that of course is not bullish to see on a longer time frame but all in all i don't hate the bitcoin i think it could make a move this week good morning to t craig willy t in the house wickter says i have a few questions well hit me up i'm happy to answer them ships is here ola to you he says i have a twitter yes sir pirate traders on twitter um rp says i use the high low starting from the new session and not after the regular trading hours close i take it from your chart you recommend starting from the prior regular trading hours close yes sir so i differentiate between regular trading hours and overnight regular trading hours you can see the profiles here they are the ones that have the sort of purplish colors and the ones with the blue colors that's the overnight so the the regular trading hours is nine a.m. to four p.m. or sorry nine thirty a.m. to four p.m. east coast time and the overnight is everything else and i do absolutely use those as the important levels for highs and lows those regular trading hours levels four things like look above and fails they're the best so like i talked about if the market gets above yesterday's high and it just barely pokes up there and comes right back down that is a look above and fail that's very important to see because that tells us there were sellers just waiting just those sharks just swimming around in these waters just waiting to get short if they were waiting earlier they'll be waiting on the next poke and the next poke and the next poke right so look above and fail the previous day's high tells us the market's not ready to go higher not yet same thing with a low whereas if the market gets up to that previous day's high and it just keeps going well then you know there's no sellers waiting and now you're going to start to squeeze any sellers there were that that created that high yesterday and that causes short covering and you know what short covering does brings infomal buying uh and then lastly it's worth mentioning these two big nodes of liquidity that we've got below price we've got a giant node of liquidity down at 4960 and then another one at 50 but 5005 we can see those on the book map software it is always important to make notes when there's those giant pools of liquidity when they are below price like this and not above it that increases the odds that if the market tries to reverse and go higher today it won't make it that far so that will increase the odds that any test of yesterday's high will fail and pull back in unless that liquidity disappears now if the market gets below yesterday's low those become targets for price to head down to but um one step at a time old boy one step at a time two minutes to market open any questions for the pirate rk says the tricky part about day trading is lately that good entries are overnight i mean this is like the endless debate we have in the the brigade all the time sometimes it'll seem like the best trades are in the overnight sometimes it'll seem like all the best trades are in the regular trading hours and um who cares right who cares because you can't trade at all you can't trade 24 hours a day you'll go nuts um so pick your market do you trade the regular trading hours or do you trade the overnight and when it's one of those weeks where all the great entries are in the regular trading hours well then you'll be glad your regular trading hour trader and if it's one of those weeks where all the good entries are in the overnight oh well next week will be your week that's the way i think about it jad's in the house good morning to you all right the market is open we are opening inside the previous day's range almost exactly on the previous day's point of control that is the fairest price to do business as of last week so by close of business on friday last week the market's fairest price the price where neither the bulls nor the bears have an edge was right here at 50 30 and that is exactly where we open today so that further increases the odds that the market is in balance and will want to continue to balance that is more sideways trade like we got in the overnight so it's a chop zone expect that they will chop it up i'm talking about a chop zone chop it up baby i'm talking about a chop zone chop it up baby talking about a chop zone chop it up now i'm sorry i'm so sorry i'll stop i promise uh sheena says those three days look like a triangle formation i'm not sure what you're referring to we're talking about the bitcoin or the regular trading or the uh es to me that looks like a channel all right so we are pushing into the first potential support which is this area right here around 50 24 in a chop zone we don't know where the market's going to flip in reverse but we're always watching so now that we did get support there we're now watching the halfback which is touching two seconds later to see if that's resistance resistance here at the halfback means another poke down passing right back through means more chop more sideways more grind what's it going to be market book map is warning us of some bot shenanigans taking place here in the market whenever i start to see a lot of icebergs above and below price i assume we're going to chop around to chop it real good real good boop lusk says does anyone use iron beam i do not but i'd love to hear people's opinions t craig says yes i have iron beam and rhythmic any questions for the pirate while we watch the market chop sideways and is anyone i mean even just one of you we're going to smash that thumbs up button show some support for the channel we got 150 people hanging out but only 40 likes okay that first support is breaking remember we are just expecting sideways as long as we are inside the overnight range the highest probability is that we're coming right back up through the opening price once we find support oh you know what now would be a good time to do now would be a time to plug my stream on friday so i'll be back here this friday at 10 am mark this down in your calendars folks especially if you're new and you haven't been following me for a long time you will for sure want to come hang out at 10 am on friday here on the book map channel as i'll be doing a live stream to talk about trade management all right so i'm going to talk about choosing trades you know how to handle your stops and your take profit orders once you're in trades and most importantly of all i'm going to talk about risk management using position sizing to make it impossible for you to blow up your account i'm going to show you mathematically how there is a way to have a strategy that guarantees you won't blow up your account as long as you can have some discipline and follow your rules so i would highly encourage everyone to come check that out friday at 10 am right here on the book map channel with me charlie g talking about managing trades janny says i need that now gotta wait till friday they're doing them all week though so if you guys want to check it out there's lots of other traders that can be talking about their trade management every day this week at 10 am which is by the way right when this stream ends so i'm just putting it out there rp says what's discipline the key my friend it is the key to success in trading all the strategy in the world won't help you if you can't follow your rules um lax says do you care about the gap up to me it is not a gap up okay to me we opened inside yesterday's range that's not a gap some people measure gaps from the closing price of the previous day which was down here around 50-03 so you might be saying to yourself is the market going to get down to 50-03 to me i'm not even thinking about that right now it's not even on my radar i'm assuming we're going sideways as long as we are above 50-09 and we are below 50-36 i just assume we're going sideways now if we get below 50-09 then we'll start to talk about that as a target to the downside but for now i think it's just chop sideways i think they're going to take it up and they're going to convince everyone to get along and then they're going to reverse it out of nowhere and take it right down and sweep the order books and chew up all the stops and then they're going to start to get everyone bearish they're going to make you think you should short right at the low ooh they'll use tempo they'll do it very quickly they'll make you convinced it's going to break lower and then i don't know where it's going to come right back up and it'll do that until we can get outside of this overnight range this conceptual idea is further confirmed by the large node of liquidity at 505 and 5040 and the iceberg up here at 5032 signs the market wants to go sideways it's looking to chew up some short-term traders first thing in the morning make a few bucks before it picks its direction cool bean says the woman that teaches me discipline wears leather and has a whip well she better get to work she better earn her money this week she's like do you move your stop you're like yes mistress and then i told you not to move your stop sammy says can i see bit bitcoins heat map on book map i don't have it set up so i can't show to you but yes you absolutely can and beyond just being able to see bitcoin you can combine multiple different bitcoin charts together so you could take all the big exchanges and get all their charts and smash them together on one chart and see the full liquidity uh yeah just search around in book maps um education section you'll see videos on how to do that okay so the market found a little support as always in a chop zone the next question is what happens at the halfback which is currently at 5026 does the market get smacked down at the halfback or does it pass right through it if the market passes right through it we know we're going to get more chop more sideways more grind if they can turn it into resistance we're looking for a move back down to test support let's see what happens right about now test that halfback check it out now test that halfback ain't no doubt now test that halfback here we go testing the halfback for resistance can the sellers hold it no sir pass right back through you know what that means more chop and chopping broccoli and so you say to me you say to me charles what's so special about the halfback why are you so focused on that halfback when the market is in chop what's the big deal isn't it just 50 percent between the high and the low the day what's the special about that well put yourself in the mindset of a trader taking trades this morning right if you got short earlier on in the morning up here and you watch the market push all the way down to here and it starts to come back up and then it keeps going what are you going to do as the seller from higher prices you're going to lock in your profits real quick you're going to say fuck it move my stop below my entry get stopped out i don't want to lose money i don't want this to come back through okay so that's if the halfback doesn't hold you get squeezed the seller from above gets squeezed all right well now let's say that it does hold let's say that you get short up in here the market pushes down it comes back up boy you're getting nervous but then the sellers step in and they keep it going are you going to get squeezed out of your trade absolutely not you're going to stay in it looking for another push lower right maybe even add to it maybe you'll even add to it because you're crazy all right well now let's pretend you were a buyer at the low let's say you were looking at the overnight range you were seeing this as a potential support you layered in some orders the market came down it filled and it gets up halfway well now what are you thinking well holy shit if we get smacked back down again i'm going to be in a losing trade so what are you going to be doing moving your stop above your entry you're going to be thinking i'm only going to stay long if this thing can keep going so if you get resistance at the halfback guess what you're going to do get stopped right out and suddenly the buyers that were there before disappear and we go down to that next support right well now let's say you were that buyer and the halfback doesn't hold his resistance let's say you go long in here and the market pushes back up and it's able to push through well then you've got no reason to fear you want to wait to get up to the next resistance before you think about taking profit you might even add to it you might even buy the dip to add to the position if you're crazy only if you're crazy okay so now let's say whoopsies now let's say you are a seller who sold the lows you watch the market come down you were like oh my god it's gonna go it's gonna fall so far and you started shorting down here well where are you gonna put your stop right you probably don't have a stop all the way up at the high so it's probably somewhere up above that halfway level so if the market comes back up and it gets resistance you're still in your trade but if it gets above that halfback your fixin two gets squeezed turning a seller into a buyer and so on and so forth so everybody's mind changes when they get to that halfway point don't ask me why don't ask me what mathematically is so special about 50 why is it that if the store puts up a sale 50 off suddenly people that weren't willing to buy that mattress last week because it's labor day weekend and they're 50 off they'll walk right in that store and make that purchase what is so special about 50 I don't know but it's something worth watching because it will often tell you if you're going to get more chop or you're going to get more buying or you're going to get more selling very important concept to understand when the market is in a chop zone where they're just chopping it up who's in charge it's an auction process there's always somebody creating momentum is it the buyers or is it the sellers how long will last how much volume are they bringing in rp says the queue is trying to consolidate above the overnight high let's take a look yes sir so you're above the overnight high right now in the end queue that is a little bit bullish to see step two they've got to turn the overnight high and we won't be too specific about it we'll say somewhere above 17 300 they need to turn that into support so they got the look above but now can they bring in those new buyers to keep it going if they look above and fail and they pull back down through the opening price well then you're just going to keep going sideways inside that overnight range but if they can bring in new buyers up here if they can keep those ticks pumping if they can bring in some volume and turn a candle pink well then it's bullish let's see what happens if they can hold the overnight high next resistance above is around 17 3 we'll call it 48 then 17 390 if they can hold the support there's your pink candle let's look at the ticks yeah they could hold it hello a says miss that charles energy that big charles energy oh yeah i got it right here for you i'm sorry was that weird did i just make it weird for everybody i apologize oh yeah all right so the es passed back through the opening price and we are now getting some new business above so i would pretty much say if they can turn this opening price right now uh 50 30 into support they can test the overnight high if not more chop come on market what you got for us more sideways or can we make a move okay we got some icebergs working hard to try to hold the market down here what happens when that red iceberg disappears there it goes oh and another one and another one yeah boy they're working hard to try to prevent the market from testing this overnight high because they know above that overnight high there's gonna be short covering they're trying to smack that market down naps says someone's caffeinated up this am i am drinking coffee but it's not even that i don't know what it is i woke up at 6 a.m today like eyes open it's not going back to sleep out of nowhere ready to climb a mountain ready to to fight with a lion with my fists cool beans laugh out loud 6 a.m west coast we up here at 4 a.m okay so they couldn't get that support above the opening price so now guess where we're coming back to the half back once again so i'm gonna say the same thing here that i said before when the market came up to it and i said can they turn it into resistance now i'm asking the opposite question can they turn it into support support here would increase the odds of another poke to the high a failure more sideways what's it gonna be the half back is at 26 we got 172 people hanging out please smash that thumbs up button i appreciate you all i unfortunately cannot run over today because if you're not a member of the brigade you can go on over and watch the uh the live stream that's starting now with jay trader who will be talking about risk management and trade management and it is probably worthwhile to check out so if you're a member of the brigade you know where you want to go which is to the private stream where all the cool kids will be and we will keep looking at today's price action uh as far as a guess for what to expect for the rest of the day today i would say i am leaning a little more bullish than bearish now when i say a little more bullish i'm not saying i think we're going to the moon today right but i just don't think the market is going to make another lower low today at least that's not the way it feels to me now okay so what will be the really important deal or no deal level as we've been discussing the first will be the overnight high which is at 50 36 if the market can get above there and stay above there i need you to understand the importance of that and stay above if they can get above and turn it into support bring in new buyers up there we could target a move to test um friday's high around 50 60 okay or around 50 58 okay so that is if we can get above and stay above the overnight high if we look above that overnight high and then come back down through the opening price it will mean they're likely heading down to test the overnight lows and we're going to spend more time going sideways okay so it will be a very critical area right there around 36 to see if we bring in those new buyers for that bigger move or we're just going to keep going sideways if at any point today they get below the overnight lows look for continuation lower but as of now it feels like it wants to be a sideways to update so with that i will wish you all the best of luck let's take one last look at nq oh see nq just got to look above and fail right so they did not bring in enough new buyers to keep that momentum going so now they're likely to get another pullback into i would say 17 to 50s and then look for support in there to try to take another stab at it both markets are choppy but slightly less bearish in my in my opinion at least for now with that i will say goodbye au revoir farewell to you and you and you and i look forward to seeing you all this friday 10 a.m right here on the bookmap channel thank you very much