 Okay good morning just waiting for the YouTube stream to start should be any second now welcome Tom I've got a few people waiting in YouTube so I just want to see that actually running you can see Discord is live and working and come on should be any second now yep okay great we are up and live in Discord and on YouTube and welcome everybody it's Friday the 11th of August at 8am Eastern it's USPPI day so we have a session where we should and we do expect volatility at 8 30 and yeah when that comes up we will be looking at it live anyway let me let me get on with the disclaimers you should know who I am or hopefully you do know who I am by now I am both a discretionary algorithmic trader I've been doing it a fair while and and I have you've been using book maps since 2014 okay let me move on to the disclaimer slide all book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations trading futures equities and digital currencies involves substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of future results okay right let's get the stream up and running okay just waiting for it to appear in YouTube okay before I delve into the presentation there's something right at the end of the presentation that I'm going to be talking about which is unfinished auctions and since we have ES sorry no you can't see that now you can sit okay we've got ES in book map on the left and we've got ES and NQ on the right okay one thing that I will be covering a little bit later when we start looking at ES and NQ side-by-side because I do look at like look at them side-by-side on this particular topic is the topic of unfinished auctions and that is where you have both buyers and sellers at a a swing low or swing high and I'd like them to be considered as significant swings high and low even if you're looking down even on a one-minute chart for example here we are on a three-minute chart if you look over to the right on trading view and so right here is the swing low and you can see you've got 37 sellers and three buyers the three buyers isn't huge but the idea is that you've got both buyers and sellers at that swing low and that is or that fulfills the definition of unfinished auction the idea there is that the probability is greater than not that it will come back and finish that auction I will continue to explore in this direction lower but that could happen much much later in other words it could reverse a very very very long way and then take it out and that probability would still be fulfilled so it's not something that you should rely on for scalping one or two ticks but it is something that we will delve into a little bit later on anyway let's go back to what this presentation is about so I've got a few things on board I know that I spent most of the hour last well the day before yesterday on Wednesday talking about theory about how you prep for an ETH session but I just wanted to go into the practice of actually applying that and talking about a couple of things specifically so one of the things that we're gonna look at and it bears most relevance in Asia and you know in fact more so in Asia than Europe it does have a lot of importance in Europe but I'd say even more in Asia because there are only a couple of equity indices trading so you do need to look at quite a few other products to see what may be influencing the market we're gonna look at ES and NQ side-by-side and so we're gonna go back in replay I'm actually gonna replay as such with a play pause but I'm gonna go back and drag back we're gonna look at ES and NQ side-by-side at London Open and we are going to look at them live at the USPP I release and if I quickly switch over to the calendar so I get rid of that okay so yeah the major release is at the USPP it's it's a bright red flag you've got the core PPI and the normal PPI for our purposes it just means high volatility we are not going to delve into the forecasted level or what may happen if it's a beat or a miss all we are going to do is that we are going to anticipate that the market will be volatile leading up to the release and for a good while afterwards there is a statistic as well that sometimes plays out especially on Fridays when we have one of these major releases and that statistic is that the high or low of the next while which is basically the high and low including the whole RTH session is made within 15 minutes of that release this obviously applies more to trend days for example you may have a tremendous beat on a particular release and then you have a trend day upwards and so the low would then be formed within the 15 minutes sometimes but not always the first move on these releases is is a law so it's basically misleading people so it'll go one way first which will be the wrong way and then it will go the right way whichever way that is whether that's up or down and I'm just using wrong or right in the sense of misleading people okay so I'm just conscious of the clock because we have that 8 30 news release okay so correlations okay I was gonna have a quick look at the next slide okay actually before I get to the next slide let's just have an overview of of something which is significant and does relate to both swing and scalping trading that we do or we talk about in this session yeah I may not talk about it much in my webinars but I always have a daily chart and Q cell 51 stop a daily chart visible let me let me just close that off again and get back to I just want to see for a second yes we've got that unfinished auction in ES that we are sort of watching at the same time so we're expecting that at some point to to be taken out and whilst we have a quick look at the ES green let's note that the heavy heavy bands of liquidity below and if I get the NQ on up I will make this symmetrically wide a little bit later and just you have to zoom out or vertically a long way in NQ to get the same visibility of liquidity but you did have a really really big band a while ago about 40 level which is no longer there but you've got some liquidity at 50 which we tend to ignore nothing much in NQ but the real relevance there is the ES1 and this unfinished auction which they're coming down against they've tagged it once and they're coming to towards another tag anyway that's just to bear in mind what whilst we talk okay yep if I get back to the yep to the overview of where we are whilst the unfinished auction may or may not be taken out the daily I've got two trend lines drawn on the daily ES chart here we've got a longer term trend line which is the lower degree slope and the more steeper the steeper trend line which is the more recent trend line on the daily the yeah the original one is still intact but the steeper one the more recent trend line has been broken so so one thing to note there is that the the strongest little uptrend in this AI bubble has been burst in the sense that we have broken the uptrend line and though we're in a small down move as to whether we're going to break the main trend line remains to be seen and again with NQ it's the same thing but we are now at the the main trend line so it will be more significant if this one is broken the point being of looking at these dailies in my perspective of how I trade is that I do still need to know the overall picture yeah for example it does help even if you are scalping to know that the market is in a very very strong up move or a very very strong down move or it's in balance and talking of balance let us get off that for a second go back to where we were on this and have a quick look at balance on ES okay and where we are in relation to the range so we've got we're here on Friday ETH or Thursday depending on which time you consider the ETH to start at Thursday evening Friday morning New York time so you've got RTH of Thursday Wednesday Tuesday and Monday and if you you know if we were to look at the value that had formed in this region and yeah I do still have my pen so I will remember to draw at this point let me come on Mr. Penn it's not being friendly today okay anyway we'll just do it with a mouse if the if the drawing tablet will not play ball with us so we've got a value here which is in the region of 4508 down to around about here which is 4476 so you've got a large value area in compass and some some earlier value is doing that but essentially that is the value area and we're getting very very close to breaking out of that value area and maybe moving down if you have been on the news sheets for the last few week or watching YouTube's of talking heads etc and I hope I'm not a talking head in the sense that I do not predict what markets will do there's been a lot of talk about ES going getting down to the 44504400 options levels I do not predict I do look at value as it is established and where value will be broken so the point here the daily trend line the steepest daily trend line or the most immediate one has been broken so we are no longer in a steep uptrend but we are still in an overall uptrend and we are at the lower end of value and we're very very close to the bottom of value so there is a potential if we have really significant news in the market release at 830 that we could break down and out of value and then travel downwards to some other value anyway that is just a thought okay all right again I have to have a look at the clock and I do also have to I've been very remiss in not asking for any questions or comments or even looking at the discord carefully to see if there were any we've got a comment from Danny Garcia in YouTube is your bias short today on the two indices well if we look at the ES and we're talking I'm talking about my bias for the very very short term as in the next few minutes my bias looking at the snapshot of ES and checking that you can all see that yes you can scroll up make sure you can yeah I think YouTube's you know YouTube's lagging yeah we've got a lot of liquidity down there which looks like it may well be tagged so if I was scalping which I'm not because I am talking I would be looking more for shorts than I am for longs but whilst we're in value I do not have a bias only after we break out of that value that I just showed on the daily volume market profiles then I may have a strong bias short at that point but it depends what happens when we break out of that value whether we break out cleanly and then cannot get back into value or whether we just have a failed breakout low and then go straight back into value but yeah there is a potential for for a direction in a downward move but we will see and we do not predict so any bias that I say that I have should be completely irrelevant to you in your trading anything that I comment on you know maybe useful in terms of how one can use bookmap or any of the other things the tools that I use but I am completely and utterly incapable of predicting the future any trade should I take now whether it's a long or a short any individual trading I'll say this again every single session has a 50-50 chance however a set up which has been statistically proven or back tested over a series of trades whether it be 20 or higher will have a completely different probability so that's not the individual trade but the series of trades okay so I I'm not sure I answered your question Danny but maybe I went around the houses and answered it in a fashion okay let us get back to the slideshow and I've got a couple of shots that I wanted to show okay let me just move on okay we've looked at the the trend lines or the dailies of ES and NQ okay correlations right I mentioned a few minutes ago that correlations can be very important especially in Asia and also in Europe okay one of the things that I mentioned early on was that I've programmed quite a lot and all of the stuff that I've done on TradingView is all free I'm only a pro member I'm certainly not allowed to sell anything with a pro membership on TradingView but I can provide free tools for the community and please make please do use them if you wish to use them one of those tools is this little table here and I'll explain what it does in the correlation perspective and how I use that to help me when I'm looking at the heat map in book map in Asia this is really relevant to Asia I'm not exactly sure when I took this screenshot it was some time in ETH may have been after Asia it was probably early in the European session okay the just looking across okay we have the first column which is just the symbols that have some convert some correlation where inverse or direct to the indices that I trade which is ES and NQ and you have a percentage up or down on the day that's percentage from previous days close then you've got the current value the shading the color shading that are built into this is that if if we are at if we are near the high it will be green and it will get more and more green the further higher we get and there is actually a change of color as it makes a new high I've often made I've forgotten what color I coded into that but it's all user configurable red obviously is when it's going down and yellow is it's pretty much unchanged yeah and then we have one two three four time frames which are completely configurable again this is a way for me to look at lots and lots of markets and this is just a part of what I look at lots of markets at the same time to see what might be driving ES and NQ so you've got four time frames which is one minute three minutes ten minutes and 30 minutes I've squashed down that row but the idea is that I can quickly see across in this case one two three seven eight eight markets what they are doing on this session and it is just an eyeballs not snapshot so I lean over to my left monitor my left large monitor see this and then I ignore it so it's just it's not something that I stare at all the time whereas that you will find me staring at book map all the time but it is just something that I do find useful and that's why I built it okay right we are going to look at the London Open so to have a look at the London Open first you need to see what really happened in the Asian session of the two main indices before the London Open so the two main indices we have CFDs here which are contracts for difference which is a free quasi quasi identical version of the the futures index for the for the Japan Nikai at 225 and the China or Shanghai a 50 the reason why I've got the CFDs which are of the free equivalent is because the data is free and for my purpose which is that I do not trade these instruments but I instead I'm trading ES and NQ close enough is good enough so the actual values there are not going to be identical to the Nikai they're not allowed to be because they are not the licensed data provider but they are they move virtually or basically they do move in lockstep with the underlying futures indices so that's why I've gotten there and the purpose for looking at this before the London Open is that after the China the China the two China opens at about 9 o'clock to 9 30 the market went down China went down heavily as we saw in the correlation table a second ago and Japan went down a little bit to a smaller extent but not as significant okay and as we moved into the London Open we've got here the the quasi equivalent of the the DAX and we have the equivalent of the stocks so you can see that DE 30 was actually DE 40 they just never changed the name there are now 40 stocks that comprise the DAX index and 50 stocks in the Euro stocks index so you could see that there was a mini reversal and they were heading up into the London Open okay one probability again nothing is predictive something's happened more often than not and one thing that they do like to do and I mentioned this as well is they like to squeeze people so that if the markets are overall in value but they have been going down in the first ETH session being the Asian session there is an opportunity for the larger players all the algos to squeeze the life out of out of retail and small players at the beginning or well into the European session being the the London Open by going long so so that's you know that that is just something to bear in mind that we'd already had a little reversal going into the London Open and there was some strength that was appearing in the stocks and Euro and the other thing that you can't see here is that the actual settlement or the home level for the DAX was above okay so let me get off that and we'll go back to book map okay so this is the fun bit where I always have fun dragging it back a bit okay so three o'clock is the London Open 3 a.m. is the London Open and so if I get that to be at 2.30 I know the NQ is a bit smaller in comparison and actually for this purpose I may as well make them a little bit more symmetrical bear with me while I have to drag back the NQ the NQ is a very volatile beast a very thin beast so it does move up and down so you have to scale out vertically a fair bit four and three okay okay at that time you've got a resting liquidity level up above at four five zero zero which I tend to ignore to really zoom in properly so you can actually see what book map would have looked like at that time might have a quick look at NQ on its own and then we'll have a look at ES on its own and then we'll look at them side by side you can't really get a true perspective until you zoom in because you wouldn't really be looking at them on that zoomed out a basis unless you were having a quick check of particular levels and particular levels of liquidity as well okay so that is two twelve good okay so you've got this reversal of liquidity you've got this resting liquidity so you what one of the things that you are going to do straight away is see where this has come in so if you look at the level that it is at and it does get hit so I apologize for zooming out and so you can see it get hit you can see it is at fifteen two to eight which is obviously not around number so that resting liquidity and I did trade this session but I won't talk about the trades I took that that has interest to me so you'll actually see this a lot as well in NQ especially in ETH where you have a swing high and that resulted in some movement away they'll put in resting liquidity whatever reason they do it and again we cannot read their minds as to exactly why they do it but maybe it's a magnet to try and say that they are still interested to go further in that direction or but maybe it's a magnet to say look come up here and we'll take out the stops of any shorts that are around here but for whatever reason that was there and that was placed at 148 so it's not long-term resting liquidity it's not the kind that I'd really really love which has been there for hours and hours but it is at a fairly unusual price level and it also correlates with a setup of the test of the supply zone that we talked about in the last session so that does hold some interest to me so what I would be looking at let me get this back on to yeah what I would be looking at is longs I would have been looking at longs after that after that reversal into the London Open and the reason why I think I've made clear that there is strong confluence and I use the word confluence rather than correlation here between that and the DAX moves into the London Open and the fact that DAX has a settlement level a home level above where we're at is of interest to us and if we look at where the I'm just looking again where we were going into that yeah we'd also just tagged the purple line of settlement in NQ so we'd tagged the home level there so one of the reasons why it might want to go down as I discussed previously is that they do love to tag these home levels in every single one of these indices but that statistic and it's best to call it a statistic rather than any predictive thing at all had already been fulfilled so so anybody looking for oh it's going to go down and down and down and tag that level that that stats gone out the window so here we have other stats we and we have confluence in correlation with with DAX so we're looking at longs going up so the initial move that I would have looked for was up okay you know I just want to also have a look at this as well I want to have a look at the reversal in ES okay so even though as I said I had various reasons for looking upwards and I did trade a couple of scalps long not huge trades but just small scalps long going into that London Open this is really really important information going into there so if we zoom in and we look at this a little bit more closely it's not an unfinished auction because there's no buyers at this level there is an iceberg there is a level which is considered reasonable in terms of volume of buyers absorbing sellers of 161 which at that time the day is significant if it was all right hold on I will have to stop because we are coming up to 830 and I did not want you to miss it if you're watching this live so I'm just going to turn on financial juice and we are just going to go live but the point there is that we had a significant amount of volume that was likely to be tested later and we can come back to that later but let us move into the live scenario okay so let us look at that as we go into the news and what time is it 8 28 and 45 seconds we have no significant liquidity in ES above that is not at a round number you know we've seen that they've just added a couple of bits of liquidity up here at 90 and 92 we have a heavy amount of liquidity below so that that is interesting one minute remaining I'll lead with the US PPI year over year okay so we're down to one minute and we've got two significant bands so that again I'm not making any predictions but it's just interesting to note where the liquidity is going into a release so yeah so we are going to just watch this and observe what happens and quickly on NQ you have got something which is almost the 30 where I care about and you definitely have a much larger level below that's a round number so I will discount all liquidity in NQ maybe the only one is up is way up above at 15 to 20 would I pay any attention to it are we going 15 seconds so let's just watch what happens so you get the 10 seconds the pre-release burst of energy and bear in mind the first move can often be the wrong move okay zero spot 8 percent zero spot 8 percent higher than forecast zero spot 7 percent month over month zero spot 3 percent zero spot 3 percent score PPI year over year 2 spot 4 percent 2 spot 4 percent higher than forecast 2 spot 3 percent and core PPI month over month zero spot 3 percent zero okay let me shut that off for you okay so the first thing that NQ did was let's get straight down to that liquidity we won't zoom in and find out whether it was actually taken out or not it looks at on this perspective that they did take out or that is interact with that liquidity and they bounced off it and then had a spring a little bit later yes had a little burst upwards but is currently heading maybe grinding downwards towards the liquidity band below yeah I just wanted people to see them together at a news release because it's not something I'm sure that people do that often um I'm often and Q cell 185 stop and Q cell 154 stop I'm often asked various questions one being which leads the other and again I say that I cannot predict the future and that both of them often lead the other and you do not know at any one moment in time which one will be the next to lead um but certainly the NASDAQs being being the the main home of the big techs can often lead in eth and on this particular release it did look like they led at first okay um and in terms of what we could see before that release we're in terms of a first touch of a big band of liquidity it was below and it was touched so that is very very nice if you're willing to stick out your neck and you had somewhere some way of controlling your risk i.e. you had some means of identifying where you're going to put a stop um and that the target was a multiple of the amount that you were risking um yeah one thing I would not do on a news release is try and get a one hour result it is such a risky uh risky time because of the high level of volatility your stops can get smashed through which means that your stop may not be filled at the price that you have set so if you only target one R which is one times a return on your risk that may not be the the wisest thing to do on in such a volatile instance okay as we look at this still we've got a lot of liquidity below and that's staying in place none of the liquidity in NQ is resting so you're just seeing it basically as book pressure um um there was somebody in in the discord today asking about gold gold is very very similar to this in terms of book pressure with non-resting levels which just move around as a high level boundary of a price zone um okay so the rule that we or one of the likelihoods that we often just discuss is that as price approaches a large band of liquidity the first touch will often result in a bounce or rejection away uh and then if it cannot get very far it will head back to that liquidity and may start eating through it okay we will see if it does that uh and we were talking about unfinished auctions this is not an unfinished auction but what is interesting is the size of volume at the low um the opposite of an unfinished auction is something that is called a rollover where you just have a tiny bit of liquidity here we go we're going we're following that particular rule of first social liquidity and then getting into it and eating a bit of it on the second touch um yeah the opposite of what is known as an unfinished auction is a rollover where you have a tiny tiny volume at the swing low or swing high and again and for a swing low it's just sellers and for a swing high it's just buyers and not both um and let's have a look again we haven't got another unfinished auction but what i'd i'd encourage people to do you know you know when you get a chance to get into your book map and you replay sessions and you replay eat replay eth sessions is if you have the opportunity to put in a column where you've got the the volume numbers of sells and buys and then analyze the highs and lows and look at the type of auctioning or exploration at those swing points and see if they can help you at all in determining whether that area you know on this for example this swing low then becomes a target partly based on the unfinished type of exploration or poor low or whatever you want to call it that has taken place there it's something that is um you know worth looking at again no predictive values no promises this is a casino um but that's one of the reasons why i wanted to explain uh why i have these columns these three columns here in my book maps in fact both my book maps for es and nq so i've got my i'm just recapping again i've got my delta column and one thing that i lose every time i restart is this one let me just put that back in um i've got my um delta column my sells and my buys okay um i don't make these very wide and you can see why now because i do not have the space uh and i have that much information um i have enough profiling information from the the profiles that i've shown you in seara that i do not need them i've also got very other ways of looking at profiles um but the for the information that i need to see in book map i do find all three of these columns very very relevant so i want to know are people selling here are people buying um you know i want to be able to zoom into or you know on a reversal where were the large trades were they large cells on the way down do they start buying on the way down do they start buying on the way up i want to know all that kind of information and those columns go hand in hand with that um so effectively we've had um a little spring as well so if we zoom in here says this is um one of the setups that we were talking about the other day which is we see i'm going to try again with my graphics tablet see whether it wants to play ball with me or not oh it does i am good right so we have this level here and they go down and then they go up okay i've got fading in con at the moment i'm not quite sure why let me just turn it off so it doesn't fade on me okay that should not fade now so if we have a look here so it's not a very good straight line so a spring or a breakout failure in the old wyckoff sense is where they retest um the the prior low um they go below it they go exploring below it but there's an immediate rejection and then it goes up much higher and it goes goes the other way and there is a setup there where you have a clear risk point which is the the low of the fail breakout and you have a target or you can have lots of targets one target might be a small swing high up there which it did not achieve okay there is also a statistic about these springs in that they often fail eventually so they may give you one or two good good setups in the opposite direction or in this case a long direction but they will then often fail and they will take out the the spring low as it's named but they can also be a complete reversal you know that's one of the ways that you can get a total reversal on the day one of these springs in fact you'll see that very very often okay i'm just going to stop and just check if there's any more questions again no more questions okay i'll keep i'll keep the markets up for a bit as we can watch might have to zoom out and queue a little bit because it is too small to really look at it when i am in my own windows on my giant monitors i've got a wider representation of nasdaq and a wider representation of es it's just scrunched in to this screen so i can present them to you at the same time in tandem so you can see how they work together and i can't stress enough that the indices do tend to work together in the eth session much more so than they do in the rth session in the rth session you'll often get divergence and that can be really quite an interesting observation or statistic because when you get major major diversion between the four indices and by the four indices i mean es and q y m and rty but if you get major divergence between one or two of the four that can often be a significant turning point for the markets the indices markets as a whole are you for all four of them uh and that's you know i'm talking about a longer term one rather than one for half an hour an hour or two okay um so we go back here we keep analyzing what's happening we've still got a heavy band of liquidity it's still pushing down still grinding down that spring set up that we had there does not look like it will hold but we never predict the future okay i mean just get rid of all the blue lines on the screen as well and also in nq it's quite what we had there was very very nice as well now it's one of those picture perfect things which don't happen all the time obviously we might just zoom in and have a look at this picture perfect action where you have a nice move down let me show you it was a nice move down by actually zooming in vertically a nice move down crashing through liquidity and then bouncing straight off it and when i try to explain um when i on my first webinar maybe it was last week one of the things on nq that you look at in eth where you are going to fade these strong moves down is that you want this delta column if you're thinking about going along you want a long series of reds all the way down to the bottom in other words you want fuel for the buyers to take to get them much much higher okay here we've i mean it's it's not a huge move it's taken it from 1518 up to 15135 about 17 points but they've also got a resting iceberg which they may just about take out now um but but um yeah in terms of how you use book map and how you use book map for nq that is the purpose of the delta column to see the positioning or one of the purposes rather or one of my main purposes in using that delta column in nq is having a an analysis tool a live analysis tool because of the way i can zoom in and out to see how or if any players are likely to be trapped at the swing low or the swing high okay yeah that resting iceberg is now being taken out and it's interesting here on on the reverse side um to watch the the green delta at the top there and then to notice and i've got this in the way so i might have to move that out and then you zoom in vertically to see how many buyers are potentially acting as fuel should we go down again we don't predict that we're going to go down we're just looking to see what level of fuel and this is where basic arithmetic in your head is quite useful as well just to see whether whether that would have been fuel and in this case probably not enough fuel because they bounce straight back up and you've got this liquidity up there which they may target and we did know that on the way down we had significant liquidity on the cell side to give them fuel to go up okay so it's just yeah and now on on this move up high you you're beginning to get a good length of greens um in nq when you start getting reds in the middle of it uh that is the word that is not what you want to see when you're thinking about shorting this this zone here because um the reds are the trap potentially the trap sellers and this could just be a re-accumulation and then a grind higher up towards more liquidity so when you you know as i was saying what you want to see was a long long stretch of greens so if that gets interrupted by a decent stretch of reds not a great sign okay and yeah the reason why i was thinking about about a short it was more of what i could see in es being the liquidity that was sitting right there below but does not mean that they will visit now what can often and anyone that's traded es in in rth will know this very very well is that you might have great liquidity down here but they determine that they have not got enough fuel yet and they will play games up and up and up and go much much higher and then all of a sudden at one of the relevant times of the morning session whether that's 10 or 10 30 11 11 30 whatever i tend to equate them with half hour periods they don't have to be exactly on a half hour period they will then go and do a complete reversal and go straight to that liquidity okay we did it in the end get if we look at this little reversal here on ncube because it's it's easier to see in terms of trap buyers that right at the end we did get a decent block of green and then once we managed to get under the red down we went and that had tremendous confluence with this lovely liquidity we've got below in in in es okay i'm going to stop and just see if there are any more questions no more questions i'm just also going to go back to the presentation outline just trying to remind myself should i have um yeah and i can actually see it here looking more closely at correlations and easier it's viewing yes and q sign by side which we've been doing for the last 20 minutes nq cell 71 stop yes it's getting back towards that liquidity and q is leading it down watching the indices at the live ppi release analyzing resting liquidity which we've done to extend and analyzing unfinished auctions okay right okay we've just seen you know we've seen a beautiful stop in nq there so the si indicator gave us a 96 we could zoom out maybe it consists of two or three individual large trades adding up to 96 but that is a very very significant number um i like to hear more audio alerts than not especially for nq when i'm trading an eth so i have that set i think think that audio alert went through the microphone i'm not since i can't hear it i can't hear what you hear i do not know but there was an audio alert because we were over 50 and we had 96 and if we have a look at that liquidity they're adding some liquidity there i do love this oh yeah this is this is probably my favorite heat map addition since 2014 which is the the notation in text where they're adding or subtracting significant liquidity again you can customize it it may just be me but i'd love seeing the actual number that they've just taken back or not and one of the reasons why i like those numbers is because the liquidity coloring will be relative um and by that i mean that it depends on how thick or thin the actual market is at that time as to what those colors will be you know this this bright red here doesn't necessarily equate with what it may be at the moment which is 55 or 56 it will just be relative to whatever else is in the book but when you say nq sell 65 stop yes is is getting right down to that liquidity you would think that it will not be able to eat it on the first go but again i cannot predict anything so i will try not to predict anything um yeah so going back to this this notation of this liquidity um these are factual objective numbers so i know right there they took off 22 just before it before price got there so i know that it did not interact with that little bit of liquidity there it had a small bounce they tried to get as many as they could with that iceberg and then they went down to further to this liquidity at towards um 01 the closer we get to these random numbers then i begin to take notice of them in nq or or es and in es all of a sudden we have a little iceberg again we're now um since we're past 8 30 we have a significant number of traders in the market the numbers that you would consider a significant for icebergs changes so 85 is not significant it may have some level of significance uh in the asian session but 85 uh at 8 50 a.m eastern after a ppr release has no significance or whatsoever so the fact that they there were 85 bias there you can take with a massive grain of salt when you have a 371 stop from the author in 72 now on the si indicator that is a bit a bit more of interest to me okay and now after we've eaten through the the first liquidity we then zoom out vertically and we see what's below we're not again we're not expecting them to go straight down nothing goes in a straight line in any market unless you have a major war event or something of that nature force majeure as it's often called you have a massive band of liquidity around about that random number of four five four four five zero and one of the things that we can do don't forget um that ym um is an old their old markers so i should have removed them before before this um before this webinar but let's ignore them for this purpose so we're just scrolling down the order book and seeing um you know what is there so you've got this and i will really really zoom in just to make sure that it it does say one seven two two when you get so it's not clustered as one yet sometimes you find when you cluster or zoom out on the vertical scale of um of an instrument this number here will be aggregated with other levels so that when you zoom in you get the exact level but here it is 1722 as you can see if we drag back up and down that is out of context that is in other words significantly larger than anything else that we can see in the the order book that does not mean that it is fake um again you cannot predict quite often um you know we're going back a couple of years you know when we had a much thicker order book that if you had something like a thousand um orders sitting at a price level in an order book it was more likely than not that it would be filled completely and that it wasn't faking or spoofing in any way so um the fact that that is a very large level is of interest to me uh and again not expecting it to go down in any form of straight line but it's something that could be of interest should the market go down later and you're in a short and you have a runner on uh one thing that I do go on and on about is scaling um and for that purpose I recommend retail traders with small accounts to always use the micros rather than the majors to give yourself the chance to scale in and to scale scale out sorry I do not recommend scaling in let me clarify that I do not recommend that at all um scaling in is a way or in its it's simple English terms it's basically adding to the number of orders you placed in a market so you may say you've entered 10 micros here and then you add 10 more micros there the problem with that approach in my opinion is that that can lead to bankruptcy um because uh because if you're wrong and the market keeps going against you you will suddenly find yourself in in major drawdown and you may find your account completely broken or um closed by your broker if you only trade the are you know the the same dollar amount that you've intended to for every single trade or maybe there are certain setups where you trade to or whatever um the the chances of such a drawdown breaking your account are much much slimmer okay and of course it goes down to zero if you have a set stop and you stick to it and you follow the process that you set out in your plan which is something that I do recommend that you do okay looks like we've got something to zoom in on ES to have a quick look at again we're talking about unfinished auction so it's of interest here that you've got a delta of 219 but you've got 231 sellers and 12 buyers again it's not huge but it's a it's a decent number so um the probability again because it's not a small number and because you have both buyers and sellers at that swing point is that it will get taken out more likely than not at some point later and again I do not mean now I mean at some point later in the future during the this eth session or the rth session as to when you completely and utterly disregard any form of unfinished auction or poor swing points poor in the volume profile perspective um I don't tend to look at them after this day so you know if there was some big unfinished auction at a swing point that occurred which have not been taken out yet but it occurred on Friday and I was looking on Monday or Sunday night I would not pay it any attention whatsoever it's just really for this session and I see the rth as a continuation of the eth session it's basically one day broken into sub-sessions in my eyes even though the market or the underlying market is only really open from 930 Eastern until four okay now let's again just talking about that um having zooming out on thank you I'm just checking as well that there are no more slides that I wanted to know I don't think there are any more slides I really uh-huh we've got some more questions thank you Balan I'm just reading your question because it's two comments uh and thanks for that information but Balan's pointing out that that 1700 there has been there for the last four weeks okay again um yeah um that's great to know uh and that's something that you probably put into your journals and we were talking about journaling a couple of sessions ago and what I do recommend is that you journal um every session that you are at your desk watching the markets and you time stamp it um if if we have moved a significant distance from where that 1700 is or in fact we still haven't got anywhere really close to it yet you cannot really factor it into the setups that you are looking at at the moment it is just nice to have information as you point out I do take note of them but I also know that they can be totally and utterly irrelevant they can be false advertising um you know or I do believe that um seeing where the liquidity is can have tremendous value and hopefully I'll be able to show that uh as we go through these um these live webinars uh and and I talk about some of the liquidity live um before it before price gets anywhere near it um but I also acknowledge completely that um that spoofing does take place or false advertising that people place liquidity there the reason and then then it is never filled and we we did actually have a look at a couple of those examples certainly in nq a few minutes ago when we zoomed in but what does interest me about the liquidity regardless of whether it's actually filled is that it I'm interested to know that they're advertising for potential participation around that zone regardless of whether they actually do want to trade there or they have traded before it gets there or they will trade later because they think they can get a cheaper price to buy at or a higher price to sell at I'm interested in that advertising but I accept that it is advertising um a lot of people you know look at some of the the options um information such as you know the price paid and the volume paid at various options levels and I do that as well and they say that that has much more beneficial advantage because a lot of this liquidity um a lot of these liquidity levels in ESNNQ disappear before they're actually traded that is fine but they're all just forms of information um if anybody thinks they can predict the future um I think they may not be able to do so uh and all these informations all these pieces of information are just bits of information that you can put into a plan that you can then use to see if those bits of information help with the edge that you are trying to execute I'm just reading the third point by Bell and what's the motivation of having such a lot of order um I don't know um maybe they're trying to attract people down but um the point I'd make to you Bell is that you don't need to know that's not something that you should be you should be trying to do because I unless you can demonstrate to yourself you get an edge by knowing that they are placed at where however low it was um four weeks in advance um if there's an edge and you back test it and you've shown to yourself that that information is super useful to you or critical to you in in in executing that edge then it's good otherwise it's just nice to know information there's other information that's out there there's millions of bits of information out there um there are people out there that use umpteen indicators that do this out the other I have no idea what they do um um but um I would suggest that you concentrate on testing information that you can believe in and that that then you can prove to yourself does have a statistical advantage to you in executing your setups that return to you more money than you're willing to place on individual trades and that should be your focus um you know we can never know why a lot of the participants do what they do in the market and and we don't need to and that's that's the beauty of training there are so many different ways of doing it and the only thing that you can do is to control your risk and determine when it is that you place a trade in the market uh when it is um if you decide to cut your loss and run those are basically the only things that you can do the rest as whether it takes out your resting target is up to the market anyway I think I'm coming up to gosh I'm coming up to nine o'clock so I have been going on for an hour I hope um again that I have provided some information of of use to people um and it's watching ES take out another small iceberg so yeah um so far the action has been down doesn't mean that when we get to 930 and the RTH open that we won't do something in completely the opposite direction but thank you very very much for um watching the stream and um I hope there was