 Good morning traders and welcome to the all markets live order flow webinar. This is Bruce at book map I'll be your host today As I am on Monday Tuesdays and Fridays at 10 a.m. East Coast time And so yeah, I lead the trading education here at book map I've been trading for about 15 years in a variety of markets and the order flow specialists here. I Just want to mention that we have many order flow traders If you go to book map calm You click on the more button here and you go to our learning center You will find here. Well, the getting started here to get connected getting started videos courses But go to our joint free live events and you'll see many events here every day That we have many different order flow traders variety of markets different languages, etc stocks option Yeah stocks options cryptocurrencies as well as futures, right? So All day long. We have quite a nice educational approach here Training training you on order flow You can reach out to me on our book map discord Bruce at book map And then my Twitter is at flow order general disclosure all book map limited materials information and Presentations are for educational purposes only and should not be considered specific investment advice nor recommendations Risk disclosure trading futures equities and digital currencies involves substantial risk of loss And it's not suitable for all investors past performance is not necessarily indicative of future results Let's jump in. Let's take a look what's going on in these markets here Look at the S&P e-mini here As you guys know we can look at any market book map It doesn't matter and let me know if we if we can connect to it. We'll put it up here the was just looking at the Couple of different indicators here in book map So anyway, we can see that Quite an odd day already just a you know some back and forth in here on the overnight And then we see the move to the upside move to the downside. We're right back in the middle here So nothing's really changed here for this S&P However, before I jump in here and start looking at the order flow Let's take a look at the bigger picture. All right, and we're gonna let me just Let me preface it this way in fact in our education And what we're looking at you can see an iceberg here 69 That this is just a best bid and offer going back and forth We have liquidity in the heat map here showing sell orders up here and buy orders down below and That's it but This is the volume dots here are the aggressors market sell Are the red dots market buy or the green dots? Hey, this is what moves the market. See these guys moving the market here Likely they'll trade up to here now Okay Now there's some liquidity. They need to trade through it But do they have appetite for trading and tangling with and making the transaction with this liquidity here? And that's what we're gonna read in here. Okay, so you can see that they didn't right? So we pulled back and then this is where that buying interest came in see it right here see the dots That's it. So do we see still see buying interest? Yeah, we do Okay, all right. So we're gonna read the auction here. This is the process. We're going through on The higher time frame it is the same It is exactly the same Okay, so let's look at our higher time frame We have the daily here on the left the hourly in the middle and the 15 minute here on the on the right, let me go 930 cash open only and you can see what happened see see how we It opened here. There's a big gap here. It looks like we want to maybe fill the gap actually on this time frame, right? We came up and spiked above here. This is classic Rejection right back down into the range here And now let's see if sellers can take it to the other side of the range down here around 45 6563 or 64 somewhere around there Okay, it's just bashing around back and forth between a big value area in here Which you can see on the hourly here Which you can also see in the daily here if we zoom in on the daily chart we can look at a Lot less bars in here. We are within the price action of of Friday Okay, so And and it has not broken well It actually did break a little bit below here, but it it rejected Okay, so and you can see that rejection here now This is on the overnight here and not on the cash session the cash session has not broken on that level All right, so we are in the middle of yes Friday's price action We are in a range. You can see it on all time frames here Okay, so we're just looking for chop and back and forth within this range that Concept is no different than what we're looking at in here. Okay on just smaller time frames Hey, so we're going to take it's not going to be a top-down approach here Well, it's going to be a little bit of both It's more like a bottom-up approach if we understand that this is what moves the market here on the lowest time frame possible Okay Then we're going to extrapolate that knowledge and understanding of how the markets move to This time frame All right the daily the weekly the monthly the hourly the 15 minute it does not matter All right, does that make sense? Do you guys have questions on that? All right, and everyone can hear me and see my screen over here, so yeah, okay All right, well So anyway Yeah, basically if we just think about those dots in here Let's just actually mark this up on that very very small time frame. Let's look at it on the 15 minute chart here okay, well those dots were taking place in here and We just see kind of dots going back and forth all all over the place here back down back up You know, it's just kind of chopping around in this zone in here Okay, that's the same here, right? So and we can see actually we did break to the downside, but it rejected right? So now we're going to look at this bottom edge here also this top edge here to get insight Are we going to chop within this range or are we going to break it? Okay, now on that 15 minute chart. We're actually looking for the potential For the move back down to fill the gap What do that look like on this chart here? Well, we're going to look for this bottom range down here To have red dots in it That's what we're going to look for. Hey, we're going to look for our red dots down in here All right, and That's it Okay, well, that's not it actually we're going to look for the order book to skew as well We're going to look for exhaustion up here, which is it is exhausting right now. Okay, so now We're going to look for there's exhaustion again. Let's see if we do we get our red dots here if we do Then we're looking for sellers to break this range and trade back down to here and Maybe through it. Okay down to 68 is 68 and a half here this liquidity This is where the buyers are here Hey, you can see that that that scenario that we're looking for simply did not unfold We had the exhaustion, but we never got the sellers here All right now these these the buyers came in instead and broke the top of the range here up into this liquidity All right, and we're going to see a stop run in here, which you can see down here Hey, and maybe you can still squeeze a little bit higher here There it goes now Can this reject now we've we've hit a lot of stops Do we see sellers come in on the other side and try to trade it right back down to the bottom of this range here? This would reject then okay. This trading range here would reject Hey, right now. We're not seeing that whatsoever. We still see more buyers more buyers, etc Hey, but we would look for Rejection here, and we're not getting it. Okay, so Let's just let's see if we can see continue to see these buyers lift it to this 79 and three-quarters level or maybe we finally get our rejection now Okay, now we can zoom in and look at a smaller range So bottom of this range in here exhaustion up here or lack of buying look for sellers here 77 and a half. That's the bottom of this range here There's liquidity already supporting now. There's some sellers. Okay. Do we get more sellers here? a little bit more and nothing yet In fact more buyers still All right sellers. Let's see it. Let's see it. There they are. All right sellers. Let's see now. Can you drop it? Can you drop it back down to the bottom? Maybe down to here 74 and a half Nothing yet. Let's go back to our bigger picture here. I'm still looking for those sellers in here This is continuing to grind higher. All right Let's see it sellers right in here the order books starting to kind of shift and change We have more liquidity up here on the offer and the buyers want it So it's not not quite ready yet All right, here we go. Let's see if we can get some some interest here on that sell side No, not at all not at all. All right. So let's go back to our bigger picture here Hey, so we got kind of this half a gap film. They're just back up into this range here We're just in the middle of the range here Here we go. All right, so finally finally these sellers coming in now This is the bottom of the range that we were looking at earlier. It was actually down here I'm actually looking for the sellers to trade it down to that range and then break it Okay, that would be the scenario here and let's see it looking for sell dot here and Then a move down here to the bottom of this range at 77 and Three-quarters Hey, the order book is looking good here on the offer. They're down at 80 instead of up here at 81 And we're still finding some interest in the buy side still finding interest Okay, and they traded they traded into it here Sorry guys, I'm really kind of focused in on this one. It is an uptrend in here Breaking but let's just take a look at some of these levels in here You know the swing up here sellers up in here, and I'm looking for rejection and a move back down Now I'm just focusing on one side at the moment here And it is just not the sellers are just not showing up buyers continue to move it higher up in 82 And this is this is a bullish structure and a bullish move here All right. Well, yeah, that's the wrong assumption in here I was looking for this continuation in here Due to this this Structure on the higher time frames in here. Okay that we had broken here Right. Okay. We do have a big green bar for the day so far But we're back and forth within these ranges and it rejected here Right bit of a pullback makes sense and then a continuation. It was what I was looking for Okay on these time frames in here, and then I'm looking for that scenario to play out in the order flow And it just didn't it never it never materialized here Okay, so now we can see some sellers come in and just dumped here So we might get it now. Let's let's let's take a take a watch or take a look here. Oh, yeah It's fine not to trade it. We're just watching and looking for that When we see something a captain price, you know it basically we look for the we go through the different scenarios and You can see like a this is there's an error that I'm actually kind of making here and You know what your your comment is it's fine not to trade it absolutely no not until we see something that really Tells us the behave from the behavior of other traders which direction price wants to go Hey, that that's what We're looking for right and we we looked for that scenario in here and we just didn't get it Right. In fact, this is really quite quite a bullish move here Nice iceberg move here Well, that's a couple thousand icebergs actually But yeah here it is 1797 Okay, so what you know, maybe the larger players up here starting to kind of tune us into the behavior from these larger players I May kind of shift the the market and the flow here. All right. That's where this stops and icebergs can really come in handy you know we It's just an influence or a confluence here That the larger players maybe maybe this tips others off to reverse their Behavior here. Okay, so now we're starting to get the flow change. See like this did reverse that behavior Okay, so look at the sellers in here. Look at the buyers here very little Sellers come right back in And so and drop it here. All right, so now Yeah, let's see if we can get to a A bit more selling in here and not nothing so far But anyway, like you can see this is where a captain price like as we go through scenarios. How important that is Okay, and how important it is to be objective. Okay, I was looking for I Had a bias Right. I was looking for only one scenario to play out Okay, and I was I was waiting and watching for that scenario to play out Okay, and it just simply didn't it left me unprepared for this move to the upside Okay, because I wasn't looking for it and that's an error Okay, so I'm you know if I objectively go through this the more objective that I am reading the order flow The better this works. There's just no question about it be humble Be aware of the behavior in here go through your scenarios wait for the cards to be shown Within these scenarios and then you can look for a higher probability Decision at that point right So let's let's let's take a step back and What do we see right now, okay, well, what about this range in here Okay, and what's going on within the order flow within this range here Hey, well, we know that larger player came in and move the price lower And then now look at buyers taking it right back up again. Hey now we've seen this a million times Is we have the potential here for this larger player to come in again now Okay, because it's at the price level where he he came in and a lot of a lot of icebergs got filled And we see this price move to the downside will they do that again? We can look for it And Okay, let's look at the order book skew here as well Let's look at the volume within this range in here this back and forth In fact, there is more buy volume in here than there is sell volume and that buy volume is right here And that's that looks like it's that iceberg Yeah Here's that 1,700 see see how this this iceberg here although we have more buy volume There's someone on the other side absorbing a lot of that volume that aggressive buy volume Hey, so See if there this there are they still involved in here. Yeah, exactly Abby. This is the way to go Just what is what is the auction behavior telling us? Okay, and you can avoid your bias Okay, so now now we're getting our sellers coming in bottom bottom range here bottom of the range And I'm still looking for them to trade down to here Okay, this liquidity this looks so much better Right now there's something that we still don't have here and see see how the order book is The skew in the order book in here We can see that the liquidity is up here and more in these areas here and it's kind of dark in here Okay, just before we had mentioned that where we were talking about that see how it's kind of dark in here We'd like to see that skew in the order book that there's more supply at a lower level in here and the reaction be that Well sellers or buyers are not interested and sellers are interested more and taking price down into the bid down and down in these areas here Okay, we don't have that yet. Hey, what we're looking for it, right? So maybe they'll start to kind of clue us in here Okay, that's when we have something that just the auction is giving us so much more Okay, see see how they're actually bidding up here still It down here 79 78 and a half. So where does that leave us? Well, it leaves us with The context here in the analysis And so let's take the heat map off just for a minute here and we'll just look at the aggressor And we know that this big buy volume here was totally absorbed or a lot of it was absorbed by an iceberg But there was still more buying pressure Then we see sellers come in Hey, we're looking at the volume dots. We're looking at the the volume bars here Okay, and you can see that. Yes, I'm buying able to climb back up here, but there's still more selling coming in Okay, so within this range in here and we can look at CBD as well There's more sellers now here is our exhaustion on the buy side Now we're looking for our aggressors and we're looking for them to drop it through this level here Okay, just by the aggressor and the price structure. We know there's more sellers in here We know that they exhausted here the buyers exhausted here And we know that we sold back down to the bottom of the range So we're looking for our sellers in here and then to break the range at this point And that's just the price structure in this price here this price range here Let me try to simplify it this price range here Okay, now so that much we know now. What is the order book telling us? Well, the order book is not telling us too much Buyers can lift it right back up into here. Okay pretty quickly Okay, because we don't see that supply, you know at a lower level here Right, so it really doesn't take much for buyers to lift it back up into here because there's not a whole lot of limit sell orders So the order book is kind of keeping us away from This idea at the moment and now here we go back down again and let's see we might get a little more insight from the order book and And the aggressors at this bottom edge here at 79 and a half okay, so Looking for that order book to be stacked on the offer a bit and it's not they're more Well, they're starting to pull here. See how they're starting to pull Hey, I mean they're pulling and adding a little bit higher is what it looks like actually But it was orange and now it's kind of bluish All right, now there's now it's becoming a little more There's a little more liquidity at a higher level here. Now. How do the aggressors react to it? That's the question And this is the order book skew and it's just demand here. What what is? What does the market think of this demand here and that's what we're reading in here But we're just kind of right back in the middle of the range Okay, so nothing nothing shaking here Tesla opened red and is now up to six percent my god really Wow Yeah, yeah, I mean here now. This is this is a hard read in here There we didn't the buyers just start to kind of climb back in here. There's nothing in the order book Hey, and this liquidity is stayed in the order book here and then the aggressors took these guys on it a three and traded into them and These sellers here got what they wanted they sold hey these transactions took place 173 At this price level here, and so we know there's still demand in here. That's what is telling us And there's still demand in here Hey, this is this is how to be more objective about it Hey, why if they're if there is still demand in here and they're bidding up underneath here looking for 85 Hey 80 86 To transact and that would be our scenario here Okay, more sellers coming in But right back down to where that demand came in and and move price higher up into the 83 liquidity It's getting interesting now. Okay. It's a lot more selling a lot more Then then before in the range at least well still there's still more demand look at the bars size of the dots Yeah, still seeing more demand on the bid here and and followed by aggressors Okay, so yeah, we're there buyers still remain in control from this point here at 82 onward And so now we're looking for our 85 and our 86 Okay, or at least top of the range put it that way Okay, which would be about 84 and a quarter now. Let's go in and we'll look maybe look at Tesla Take a break and then and then come back You know From from our bigger picture approach that I was looking for that gap fill here was Had that had that potential here, but the buyers came came in there They're going right for the top again here. This is our 86 and a half up here and then we have 88 up here and 90 as well Okay on our hourly so that would be 86 up here. It's a pretty strong candle here on that hourly. So yeah more likely than not we're going to trade up to these Wicks up in here All right, just due to the the strength of the move in here Okay, and then and the order flow confirms that too. This is some pretty strong bind in here All right, let's jump over to the Tesla and then we're going to start to look at some microstructural stuff I think Because it's gonna be one of those days. I can see All right, so let's take a look take off the candlesticks here Well, yeah, you can see this is kind of odd behavior in here captain price like You know look at the the back and forth in here at the 930 cash open. This is where the buyers came in moved it Supporting it a higher at the same level higher level here where the buyers were earlier They traded no sellers and not enough sellers to drop it Into these levels here and then we can see our buyers come back into the top of the ranges and then this is where it really picked up here Hey, and this is what it takes to break a range Typically is we see volume like this and it rediscovers another another area And although this is a low volume node. It is typically high volume that moves price like this and then establishes a new trading range or Continued exploration to the upside here, right? So Yeah, that's what I see in Tesla at the moment now Interestingly enough up here though on on these highs. This is this is nice powerful strong move with strong buy volume That's what we want up here. You we're not really seeing that Right at all This is not strong volume. Hey, so sellers can drive it down to these areas here We'd love to see it back down into 260. Maybe even retest back down here at 259 okay, and That fits also pretty nicely with that. So you know it seal of the volume Profile in here single prints in here and Or at least in market profile be single prints and look for a retest of that area Okay, because we're not getting the volume up here. We're not seeing that price exploration on stronger volume Okay, so now let's take this understanding of Tesla, which is bullish here And we see it starting to sell off a little bit Let's look at the S&P And now S&P Traded back down to the bottom of this range here this rejected actually the strong move to the upside rejected. We're back down again All right now see see how there this see how different this is in the order book here High liquidity here pulling liquidity here. So 77 Looks better here and we see the strong move by sell side here Okay, so let's just go through the setup It's moved it away from this range here right See the sellers come in And now we have high liquidity here which just traded I mean interestingly enough it just traded it did not skew the book So these guys got what they wanted they sold they wanted to sell date and they sold that transaction took place there These limit sell orders Filled And there's still more buying pressure after that transaction Crazy day Just not making too much sense in the order flow here. It's just trading right back up to where those sellers came in Okay, now this is where I would look for This to reject here on the buy side and to come back down and at least retest back down to 81 at least maybe back down to 79 and a quarter and why because this is this is where the sellers came in Okay, right here And now I Marked it up here as a range One range and another range, but this is where the sellers really came in and drove it lower Okay, so that's where we're looking that it's being retested now and now look at the order book here And now that's one player with the majority of the liquidity here on two different levels price levels here Hey, but they're skewing the order book and at the moment I was about to say at the moment we're not finding buyers, but they're starting to kind of curl back in here Alright, let's see that seller Come in with more. Let's see them drop on the bid here Let's look for these gred dots again and come back down to 79 and a half 79 and a quarter Okay, so that we were looking for the move back up to this kind of 82 and then rejection Well, it came all the way back up to here to this move now is starting to reject So we're looking for the bottom of the range here 79 and a quarter or a half All right now let's zoom out and let's look at the bigger picture here It's pretty back and forth within this range here Okay, we're just looking for the test down here. Let's mark that up It's on a line. Oh Okay, and now we have the potential now since these since we're looking at these sellers in here We have the potential now to break the 79 and a half and this is how you can set yourself up for capturing that move Hey, so We talked about the retest back up here then looking for the sellers Okay, and then Looking for the test down here. So if you're at this point in here With your trade management, you could consider taking some off Okay, because you're just looking for the test down to the 79 and a half Okay, and again, this is due to a confluence of events in here Sellers coming in dropping it through this range You do see the buyers come back, but the order book is telling us something here and we found sellers Okay, so where where would you get in? We'll cover the the entry in just a second here But now we're what we're doing or what we're looking for in this order flow read and setup is to trade down to here Take some off to limit the risk Because we might come back up. I mean the order book is we don't see more sellers at a lower level here We're not we're not seeing it So buyers can shift it back up here again. Hey, but we're set up for the bigger move Hey, that sellers may come in and then drop it back down to Maybe our 75 level down here. Let's mark it up 75 and three quarters. Hey and now let's let's Let's go back and take a look at the analysis in here All right, so the order book still is not really showing us much in here It's still pretty dark here, right and There's more still on the bid at these these higher levels here, or you know around 78 and a half 78 We want to see this kind of liquidity in here skew that order book And then the reaction to be more sellers here that gives us a higher Probability read And we're not we're not seeing it right now See how bullish every dip is I don't know I mean, this is a shift here. No, no doubt. No doubt. I mean look at the volume Right, we're looking for shifts. In fact, maybe we'll focus on shifts Yeah, let's let's do that actually I mean, this is such an important part to understand in Order flow or just a price action analysis Understanding the shift because the rest is just back and forth in here Right, this is the shift here. This is the important part that we wanted to see Rob, I think you had you had said them. I don't know if Rob's in here or not had shown that there was a In your volume profile all the back and forth building out that profile right However, it the profile in we don't really care about what's going on in there We know it's going to be a you know, maybe a skew in one because it's trading at a level more than another level. That's true But we want to understand these these moves in here in these shifts, right? So here's a small shift right now on the buy side Okay, but sellers still have control of this move so far The shift has taken place here And we have not seen anyone Well, we saw the retest back up here, but there was more supply up here in the order book and there and they are still here, right? so Now this little shift here is rejecting And you're gonna look for a stop run on the other side of that You can talk about that here's the here's the shift and you can see how it totally rejected and This is really important to understand here's your shift and here's your shift on the other side actually from the cell side Okay, and it moved that market lower here All right, so sellers still remain in control here Right, and we're actually we don't see much of a stop run yet So I am looking for a retest back down to this bottom edge here And then I'm looking for the seller. I'm looking for for this scenario here It is for the the stop run below the 79 level here 79 50 All right, and so what do we do in the meantime? There's nothing to do Okay, our shift is here. This shift rejected It's actually being retested here right now, and we're still finding some buying buying interest in here Fascinating and let's see if it rejects again. Now if it rejects again, we know what it looks like Right, we're looking for our sellers in here And then all of these buyers in here are upside down Okay, that that would be our scenario There could be another scenario That the selling in this area gets we see the squeeze to the upside in here on the buy side On up into our 83 and a in a quarter Okay, so we're looking for that shift now one of the one of the nice things actually yet We can we can talk about this like looking for an order book shift What we can look for is a pullback after the shift and that can be a very high probability a Trading plan to look for a as a pullback strategy and we'll cover it in hindsight here But let's look for it in real time as well I'm just it's amazing like just above our little swing here that we're still seeing buyers up here Okay, a lot more buyers in fact This was actually more likely to trade back up to here right now 83 and a quarter And let's take a look at this Take that across So we look at our level here. All right, let's see if those sellers can shift it here Okay, now now we were I mean just due to the volume up in here There was still more buying Then we're looking for back up to 83 and a quarter Now we're below our level here So we have the potential for all of these guys here to be stopped out in the squeeze lower here So this would be a long squeeze. How's the order book looking boy? The order book is just has not Given us much in here. It's pretty dark in here. There's just there's the the sellers are up here at 80 83 and a quarter The buyers were here at 79 and a half now. They're not We're gonna see the buyers trying to shift it away again here Hey, if they get it if we get enough buyers in here Right here at 82 We should see it They should be able to they should be able to shift it back up into this 83 and a quarter They cannot yeah, we're just gonna we're gonna see this kind of action. It looks like all day long Kind of trap some some traders up in an area have it shift back down get them to get stopped out at the bottom of the range in here Do the same thing on the other side again? Okay, even this this shift here Hey, which you know from the inside out Basically, okay, and then again we can get the the opposite side just above this 81 and a quarter here Okay, from the inside out again Yeah, that's starting starting to unfold Yeah, what are these numbers in here? These are iceberg transactions on the on the on the bid side And these are iceberg transactions on the on the offer side Okay, we can look at stops as well I just have icebergs on chart, but I have stops and icebergs in the sub chart here As well as our cumulative volume Delta. So I'll take off Go well, this is gonna wind up for a pretty nice move. I think See to see the buying here look now watch for the shift here. This is a breakout right and Looking for it. There's a lot of buy volume here Okay, if They should be able to the buyers should be and there's not a whole lot of selling here compared to this buying here So it has the potential To break out into a new range. So from this range here On up into a new range up here And so we're starting to read a lot more Again a little a lot more clarity here with the with the volume order book is still not really helping us yet Okay, continue to watch and look for that insight from the order book here You can see it's just dark all the way through here basically, okay, until down here at 78 or up here at 83 Order and and again at top of the top of the range here. This looks really good for a breakout here And they just they just couldn't do it Still not enough buying Okay, so our sellers have come back in They are trying to shift it away here. Let's jump over to our Tesla and see if our Tesla fell fell back down here Yeah, I did Back down to 260. Oh, this is what we're reading in here in Tesla was the order flow up at this level here Well, we saw this strong move, right? And then it's just not as strong And it's continued to go up here on on less by volume Cumulative volume Delta is capturing that as you can see Here's a higher high But a lower high here in cumulative volume Delta it means there's more selling in here than there is buying even though price went up Okay, so that that led to the move back down to 260 and then still looking for 59 here Okay, we're seeing a bit of buy volume interest come in right now All right, see look at these look at these attempts here This is reminding me of the crypto markets in fact, and maybe we'll even jump over to crypto See the sellers down here buyers back up above it Look for the stop runs look for the and Then rejections in these areas here again, I we're still trying to look for the bigger move here And the shift This has the potential Many of these had the potential this had the potential here This one actually looks even better for that potential Right because we tested down here Rejected and we see massive buying up in these areas here. So now our 83 and a quarter has transacted still Looking for more buyers here I want to see we want to see that this be a shift in the market here And we want to see it come back up into like 85 Maybe 86 After rejected down here. The volume looks good. So the top of the range is broken the range. What about the order book? Well, they stayed in here, and we don't see too much on the on the on the bid Hey, so sellers can move it right back down And pull back to 81 Without very without much effort There is a little change. Okay, look at that 81 and a half here So there's our skew in the order book Okay, and this is above our 81 level here That we had marked up now this guy just pulled that liquidity But you can see how they test how traders will test this market liquidity will test it and seeds supply and demand here And what's the reaction? And that's where we can gain insight to From from their liquidity. All right. So now if we see another shift here Maybe this liquidity here at a higher level and then more pulling here on the offer a Few green dots and we look for it to slip up into 80 and 85 All right. Let's so let's zoom in here and let's see if we get that okay order book is Unchanged basically Just they're up here at 84 and 85 That's where the sellers are All right I'd love to see a skew right now because we got a little bit of buying in here and would love to see an order book skew now Okay, we it's very slight in here And you can see it a little bit bluer here and they're starting to pull up here We're still finding buyers and I'll watch We'll likely get a pretty big skew here and then we can push into 84 and 85 Okay, that would be one of the scenarios here. And let's see. Let's see would love to see that Now instead we're trading into we do see so you can see a very slight skew down here We did that happen after we traded into this liquidity here at 84 though and not much of a skew But we got the move here a 85 now Yeah, and look at see how the sellers take it right back down This is why we look for that skew and that support to come up at a higher level here and let's look at our bigger picture here It's just trading up into these wicks here. I Like the hourly I like the daily here There's some strength behind it the 15 minute doesn't give me that much of a feeling here And it was up. It was down And then we we saw that kind of shifting it was around in here where we saw that shift Where I was saying I had a bias to the Short side and and there was no reason to have that really You can see the nothing but buying pressure come in All right, so we're looking again here. There's still more buying within this whole little range in here. There's still more buying skew would be Think of an auction and just more traders Wanting to bid up at a lower at a higher level or maybe you know offer out of at a lower level This is I'll show you what I mean here Joe this is a really good question. In fact, you know what we're gonna we're gonna do here. I'm Looking for these kind of shifts here and identifying them and then price action within that shift, right? And then as a pullback and then continuation and that's what we're looking for like this. So this was that shift here And it was on pretty strong volume and it traded into that liquidity and we just didn't like that The order book wasn't supporting it underneath And We had we had this trade here and we we had a little bit of a like skew or just this kind of bluish area in here It's this read all started with this guy down here, or I'm sorry this guy here Right who skew skew the order book. That's the skew. Hey, so think about that here Here's someone that comes into the order book here at 81 50 and they they want to they're bidding more in here Joe think of this like it's a potential spoof Because they pulled that liquidity here, but they were able to get price to kind of go higher Without taking much risk right essentially none Because they they put it in the order book and maybe sellers could have hit the bid into it really quickly and not There is some risk here, but you know, basically they put their orders in and then pulled it So they never traded they never committed Right, and it had this effect on price and now we don't know if it's just this But this definitely helped us gain a little bit of insight here Okay, and we were hoping that this guy added more up in this area here and we saw well You know started to trade up into here and then we started to see this getting a little more bluer But and and now you can see they're pulling here, right? So now the sellers want to go for the this liquidity down here at our 81 level where this all broke out from Anyway, we'll go through this skew here in the auction. It's a very important part in the auction process And I can show you that from the learning center here in book map if you go to book map calm And you go to more and then learning center And then go to our market mechanics course here. This is free and open to all And our market mechanics course start with part one and then what I want to show you here Is the order book skew and how that affects price? Okay, it's here Right. It's the same concepts in here. You'll see that the order book will there'll be a skew here And then when that when the skew occurs How does price react to it? There's a skew right there, right? Okay, so all of a sudden like more contracts come in here on the offer and what happens with price is the question Hey, so all of this supply up here Now think about think about the supply and what it what it entails It's just that the if there's more supply usually demand is curbed Okay, or at least met And not always In fact, we can go through Another exercise in here. I wanted to really kind of focus on these shift Moves in here and how important they are to understand But instead let's look at some order book and balances now. This is an old exercise that I Think is very worthy and valid here if we go to our volume dots here and we're just going to turn them off Okay, even our volume bar, so we're not going to cheat We're just going to look at two elements on the chart. Let's even take our stops and icebergs off and Just focus on this We're going to vote we're going to focus on just Price action and order book All right, so actually the not bad that we're starting to see a little action in the order book now That we did that we didn't see earlier. All right. We'll see them bidding here and See them offering here Okay, how is where is price within this balance in here? Well, it's actually it wants to trade into this liquidity here There's a little bit of a skew see the skew here see that that bluish area in here Okay, so let's see the sellers trade into this and maybe through it into 80 here Okay, so I'm looking for because of this skew here. I'm looking for the aggressors They start to fade away from that area So I'm looking for them to trade into this liquidity and this one down here as well Why because there's an order book skew in the auction It means there's more traders offering at this lower level and you can see them trading here as well as pulling here Okay, and then adding even more here at 81 and a quarter Okay, at a lower level. So there's more supply now. It's not a whole lot, but it's some Okay at this 81 and a quarter level. That's the order book skew here This is such a vital Element here to read in the order flow, okay It is from you can you guys can I really highly recommend you review We can put this I'll put this into the chat for you and review This order book skew here in the in some of those illustrations And then how you can understand that order book skew and understand where price might go next Which it it has gone down to that 80 level right now. Okay. Now look look again. There's still a skew in here Okay, now they're starting to add a little bit more in here Right, and it's kind of making it more complex, but they're there the demand is down at these lower levels here Okay, and there's supply here at these higher at these lower levels as well Other not before when we saw that back and forth. They just remained up here, right now We're seeing a skew in the order book Okay, so what is the reaction from traders? Okay, where do they want to trade where do they want to deal? We're gonna see a little bit in here at the 79 and a quarter. There we go. So you see the skew here All right sellers hit into 78 and a half and 78 Right, so we're starting to see that read that skew in here So we're looking for those the aggressors to deal with the buyers down here See again the skew coming in again great Let's see it now. Just need a few sellers to hit the bid into this liquidity here. Okay. Now we now this is Very dynamic And changes and shifts Rather quickly see how it's shifting and changing right now. Here's it and a new a new information in the skew Right this guy is pulling here adding they're adding here on the bid So now and now we're trading back up to here Okay, but we we're being consistent with the skew and reading that It's dynamic. It changes right so How do you how do you use that if let's suppose you're in a short position on the way down here? Hey, well There's a kind of a confluence of events in here to read. Okay, but you want the order book to be on your side So there's many different ways like it maybe maybe your your stops are just kind of above the swing Up in here and maybe this is the pullback Maybe if you're scalping on a very short time frame You can you can look at your market structure and now if you see big green dots like up in here starting to move this higher Which there probably are We don't know because we're not looking at the at the volume here We took it we took it all off. We don't even have the bars But then why not why why take the risk for this to unfold here? Okay, and trade back up here Now that's a scenario though and and let's be honest with this. We don't know what's gonna happen here Suppose we saw some of that And then all of a sudden that instead of this price going higher we saw Massive liquidity come in like this okay at three or four different price levels It would be basically like layering or a spoof Then likely what would happen is we'd get our move back down here, and you'd see big red dots here You know trading back down into this liquidity here And we don't know The like I said the the order flow is very dynamic the markets are dynamic Shifts and change happen all the time And we just want to be in tune to the behavior of the traders in here to give us insight And now this is on a low time frame in here. Okay, so I hope this Helps Joe And you will see that I mean it really the auction process is the same on all time frames It really is Hey, I mean if we just zoom out here, it's like well, here's the liquidity. They're they're really down here in the S&P You know at 70 and 68 And then here they are way up here At kind of 86 to 88 on the higher time frame and what have we done in here? Nothing really on the higher time frame. We've just chopped up in this area here within today's price action All we've done is chopped Okay, we did see the shift here. This is a nice little shift And I'm upset. I missed that one We can also see a see a shift below here back down into here Okay, and then even down to the lows Right. We're not seeing that right now Okay, in fact, what are we what are we seeing in terms of order book shifts now? Well There's there's not a whole lot there up here at 85 and you're down here around 79 And I'll watch though, there'll be another kind of shift in here and and we'll see the the price action here In regards to these changes in the order book here Okay, now what what are we reading in here? We can't we can read this there. They're pulling here Okay So if they're pulling here, what if they what if we get traders wanting to bid up in here? Okay, we we saw that kind of shift earlier Let's look for it again Because right now what can happen these guys are not here So we can have price come back down here pretty pretty quickly See how the shift is a subtle shift in here So you can see it in in the order book here a little bit right and they're pulling here So we would look for this to kind of continue to explore higher Right. See see the shift here. We're only reading two elements here price action and order book and balance or shifts All right, so and yeah, you know that we we can read the behavior here that they came up after this 85 here It's a great great exercise To understand and put the put the pieces together here now this here Is a let's let's let's zoom out and let's look at the volume now To okay, let's put that into perspective Now let me just take a look here volume dots volume bars. Okay All right, and let's take a look at these areas here All right, so we're looking for a probably probably pretty pretty big volume dots here on the on the buy side, right? We saw we can we can look at the speed of the move We can also and the and the By looking at the angle here And also the how many ticks it's moved, you know the the size of the move And typically that will be with pretty strong volume that would be our kind of shift away right here Which played out pretty nicely and it even pulled back to where that volume came in here And now that that volume up here at 85 has transacted or that liquidity at 85 has transacted As it as it was a previous area as well All right. Well, let's take a look here. Okay. We're getting now. We're going to add that extra context in here Here come our buyers We have a little bit of a skew here. God. I hate it when it moves like this before I can get to the analysis Um the we have a little bit of a shift underneath here. Not much. It's a little bit bluer underneath here It's not much But we're finding our buyers here. All right, so again now watch there should be probably a pretty big shift in here Watch the the liquidity on the bid Because they need to we need to see an imbalance in here that is able to push the market up into this high liquidity here So showing an order book imbalance would be a good way to do that A showing massive demand here at that higher level around 84 and a half Okay, and it wasn't massive. It was a little bit here. Okay a little bit It well, let's see if there's more now Right because now we trade it up into these guys These limit sell orders Okay, and now let's see So we're looking for demand here in the order book around in a skew around 85 to 84 and that will support price More buyers come in and then we can trade up into 88 89 on maybe 90 Now see this is what we want to read here is like and other traders are doing this They'll show liquidity and see what the reaction is How does that how does and we would do the same thing? You know, it's kind of like, uh, you know Suppose you're walking around with your umbrella. Uh, is it still raining out? Well, how would you know? You'd stick your hand out and kind of test it It's kind of kind of the same thing in here Uh, and uh, you know see what the how? How the market's reacting uh, or see if it's uh, you know, is it still drizzling raining? Now, well, you can see a little bit of liquidity here on the bid and we're still we're still finding some buyers here Now it's still see how dark it is here though right in here Right, you know, it's just we're oh, there's our skew. Okay. So let's see what happens here. There's our skew, right? That's what we're looking for Uh, and then how do how do traders react to that? Okay, now it's a larger player. He's got about 200 contracts. There are more Okay, he's showing he wants to buy at this 86 and three quarters Are sellers interested in trading with him? Does this guy mean business or is it a spoof? Okay to get to get his uh, maybe to spoof and get the market to trade up into 88 liquidity or higher Okay, but see the order book skew here Hey, it's uh from 86 30 um and three quarters to to 88 It's not much of a skew And now we got our answer. Okay, so he tested it and he actually took risk here several times Some of it actually even transacted right here Okay, and nothing transacted in here nor here Okay, uh, and then he pulled pulled it away from here from the market now He's back in it looks like now. We don't know but it's likely the same player and he got filled. Okay sellers took him on Okay sellers traded into that liquidity here Okay, interesting. All right. So what does that mean? Hey, do we still do we still find buyers back up above here? Hey, this this is the volume event now Is to watch this little area right here 86 50 above or below aggressors Hey, they're below it. There's still more selling pressure right now. All right. So now we're at that level We're finding some buyers. We have a little bit of a skew in the book here not much But they're also adding more here at 07 or 87 50 And so we're just kind of muted here right the order book isn't giving us too much information here And I mean there this is good to see on the bid. That's that's good Okay, I would like to see this guy or these traders up here pull some of that liquidity though Okay, that would allow the aggressors to easily trade up to here And there they go Just a few ticks And I'll watch again We want to see these guys pull that liquidity here and we want to see that This larger player come in again on the on the bid Yeah, I don't like it. I mean This is just kind of just staying in this range right now I mean still has a little bit of a bias to the upside here But I want to see these guys pull here and I want to see We'd love to see them pull and add on the bid basically Then I think that would be enough of a auction skew to get price to come back up Okay, there's a little skew here. Okay, let's let's make this heat map I'm just going to add a bunch more here Skew skew the book to get a little more color in here a little more insight for us here because we're not getting much today Um, all right. So, uh, let's see here. Well No, not not much. They're still pretty pretty solid solidly staying in here In the order book very small range in here, but they are you do see this liquidity at 86 and a quarter here Okay, it's a one-point range and we're at the european close here, but So likely we're going to get some volatility here There we go. There's a skew. All right see the skew now Do we see aggressors at 87 and a quarter? If so, I think we can trade into this liquidity here Okay, because we're finding aggressors some Not a whole lot not a whole lot And that just makes it less likely it can trade up there And now they're now he's pulling at 86 50 If the scenario would have been up here if we had these big green dots up here Okay, then we'd look for the the move higher. Okay into that liquidity And let's see if we get it though. We had a we pulled back and they he pulled at 86 50 This is pretty horrible price action, um and order flow right now You can still read it though. All right, so let's see here Looking for looking for the skew. Don't see it Don't see anything happening. Okay. I see liquidity at 86 Quity at 87 50 Okay, we found some sellers A little a little now this now we're getting some insight here a little skew here on the offer And we found some sellers Okay, so we might be seeing kind of a shift now Okay, let's see. Does this guy pull here at 86? Do they add more here on the offer? Do we find more sellers in here? At the bottom of this range, then we have the possibility to trade down to 85 and a half Okay, which we just did and we have the possibility to trade even down here 84 All right, let's go back now and let's get back to reality here And restore our heat map to the default settings Okay, now there's a shift Okay There's our shift This is a new Area for price to trade for right now All right, so we look for a pullback It's already pulled back to this little area right here. This is this is your pullback Okay, great. We're getting a bigger pullback here All right now now we're looking for on a pullback We don't want to see buyers up here. We are seeing buyers right now. All right, so maybe this isn't what we're looking for Okay for our Pullback we want to see exhaustion here a little bit of exhaustion up here and now sellers coming in. All right So a little bit more here at 85 and a quarter and let's see them drop it now to 84 Okay, this was our shift away from the market sellers taking control and this is our price exploration By the sellers taking it lower. Okay, so now From this point onward now, let's just be precise about it. Let's take a look at it Really the shift kind of happened here. I guess maybe 86 and a quarter I would love for it. I should probably say 86 That volume dot came in here, but there was volume in here that was pretty important that dropped it I was able to get more sellers to to hit the bid Okay, so this is our new our new range in here Um joe price seeks liquidity. Well, let's let's put it this way Yeah, a lot of most of the time it does. Okay Um, but I have to define it very clearly here It it really depends but obviously the market needs liquidity to transact And that's what market makers or you know, whatever it is you you need to have an auction Otherwise, there's there's no action at all Nothing would happen. Someone has to bid someone has to take the Take the trade someone has to offer someone has to take take that that trade This is how it works So now what we've been talking about in the skews here. Okay now larger larger time frame You know that longer term high liquidity like on these areas here the price is attracted to it As long as you get aggressors that are interested in it Hey, otherwise it'll look like this Hey, you'll see there's sellers down here. They're here liquidity is down here But there's no interest in trading down there Okay, so well, why isn't it searching for this liquidity down here? Well, because there's there's no Sellers in here. There's nothing but buyers in here now. We we started to note it in here that This is an interesting move up into 65 because there's more selling in here So look at the selling in here. Look at your cvd. This is maybe the potential Beginning for a move back down into not only 63 Maybe back down to 60. This could be like a four or five dollar move here Potentially right well, it could be a ten dollar move down here To that liquidity Hey, we don't know But you can see that the buyers were attracted to this higher term longer term liquidity in here Okay, and they traded up into it Okay, all the way through Right, so that's longer term liquidity and the and the aggressors were interested in trading to it Okay, we do see that the selling delta dots in here Uh, but uh price continued to go higher And that that's possible and and you see it a lot in stocks um, but Anyway, uh That would be your answer for that longer term liquidity depends on the aggressor's attraction to it Now what about the spoof? What about that skew in the order book that we've been covering? That's where we're looking for that liquidity to repel Potentially repel the market or just to test it and see like it Do the buyers or sellers are they interested in it? Okay, so that's when we looked at here in the s and p And we're looking for that Like this potential spoof in here right Or that other one down here that we saw And and what was the reaction? Hey that did uh did it repel the buyers or Did it or were the sellers Uh interested in trading into it and that's what we want to read Okay, I hope that makes sense. Uh, it is essential to understand that that concept though It's it's it's not a straightforward answer Uh, it it depends it depends on the auction. I mean just just I could make an analogy of uh of an auction at the farmer's market Uh, you know, there's like um All of a sudden let's suppose that there's a a lot more potatoes that come in truckloads of potatoes And so a lot more supply all of a sudden well, you you would think that that should uh Um, basically you would have less less buyers or equal amount of buyers Uh, maybe price would go down Right because uh now there's so much supply and then you know demand hasn't really changed Okay, maybe even demand people are getting sick of potatoes Uh and demand is curbed. However, let's suppose a tour bus comes in and and uh to that farmer's market and uh, There's more supply, but there's more demand depends on how attractive they are to it And that and that's what you want to read is is that context and that's what we've been doing in this process today It's it's really important to understand that Uh, and uh, and that's what we want to read in in these areas in here and you'll see it again and again I mean look look how we just traded back down into this and look how this again that dynamic We're looking for to trade into 84 here Okay, looking great looking for 84 Look look what happened here. So when front ran it With 362 contracts Hey with and it's a larger player with our large lot tracker here Uh, and then we also see at 84 And now it did trade to 84 here and not much Uh, but some And there it is. Okay. So now now it has transacted. So what does this tell us in here? Okay, so the sellers are attracted to this liquidity here and there's still more selling pressure And looking them pulling in here and we're still finding sellers Okay, so now we're looking for price discovery now. We're looking at a shift bar again So we're looking for 82 and a half and 82 now Right. So now again, it's dynamic and see that that play of liquidity in here And then what how does price react to it? There's lower liquidity here on the offer at 84 and in three quarters and 85 now it's starting to show at 84 Now they're pulling at 82 and a half. Okay, great a few sellers here We should hit the bid we should be able to hit into 82 and a half and 82 Okay One there's one the one caveat was that there was a little bit of a dark space in here and look how much Look how much buying it took to be able to reach back up here Very very little Very little. Okay. Now we're getting our move Okay, so it had to pull back here Uh, and then now we're getting our move Okay, just understanding this context in here. We'll go through it again, uh, joe These are these are great questions. It's essential to understand this in the auction process Okay Okay, now it's traded 82 Right, and now we have another shift in the market here. Here it is Okay, now we're looking for price action within that shifted area here Or Maybe we start trending Let me get to some questions guys and then tom b is back. So, uh, enjoy that Uh, we're back to our full schedule. Uh, and then we have, um options with dug And after that we have the algo boys. Um, so we have a full lineup here of of traders Uh, and um Yeah algo boys is on discord only So look for that the, um Let me ask answer some of these questions for you guys, uh, but uh, you know We kind of started off the the webinar with a bias and you could see you can see how wrong It is to have a bias Okay, my error my fault, uh Learn from it though Uh, and then don't have a bias just read it objectively read it. Uh, and then you can capture these moves in here Okay, so, uh, uh, and and this is all fractal and scalable So look where the buyers came in on this move and shift away right right here This is where they shifted away from this range in here Well, we just retested it Okay, and did we find some buying? Yeah, we did Okay, not much sellers still remain in control up here to 84 Okay, so that much that much we know This this is driving the market right now these sellers Hey, but this was a previous move and let's look at the the context here Look at the the volume bars and the volume dots Okay, look at the volume bars and the volume dots. There's actually more selling down here Okay, so now I'm I really like it for these sellers to drive it away from even this area here back down to 80 Okay, and then you can see there was a kind of a shift here as well Uh by that by the buyers at the at the bottom of this little range in here on up to the top of the range Hey, now the liquidity is down here Great questions, Joe, and I'm I'm happy. I hope I answered them for you Okay, uh, Daniel Danilo that answered your question right about, um What scenarios could bring it back down We went through it and in in in detail Big sparks in the c o b the numbers Lots or contracts. Yeah, it doesn't matter. I mean they Yeah, it's a lot or a contract. You know They're kind of interchangeable. They're not shares though of a company Okay, so it futures are very different in that regard Shares there's a float A certain amount of shares out there for trade Uh, it's very different Whereas, uh, it's open interest when the futures if if there are no Buyers and sellers are equal You can create a new contract by showing more demand or something or if you want to sell Hey, so, uh, it's not like you go and borrow shares from somebody to short sell Uh for stocks It's a very different thing Okay, options are the same way you can write contracts Right and that's captured in the open interest Uh, I would I would recommend that you go to the cme Uh website And here we can just look at the es for example Uh and look at the contract specs Okay, and this can give you a lot of information here volume and open interest. Okay. I oh oh I All right, and then look at the day here All right, and this is how you can also see when it shifts from one contract to the next Okay, the next contract is going to be in december, but look how many people are trading december Okay, and the globe x and uh in the total volume here Look at the open interest Here's your open interest Okay, so actually, um, uh some of the open interest there's more a little more selling in here. They they actually have, uh Some of the contracts are um, have they've they've added A little bit of open interest in some of the, um Um, uh future months here Okay Anyway guys, all right. Well, we finally got our read on on some of this stuff in here, uh and Yeah, let's just kind of zoom out look at the bigger picture Well, all we've done is trade it back down to this 80 level here Uh, and that's what we were we're looking for the potential Uh to break that level uh and come back down into not only the lows but fill the gap here So let's go through let's lead off leave off with a couple scenarios in here. Let me clear the drawings Uh, and we'll just go through a few scenarios in here All right, so this is our critical level here at 80 All right. Now what we're looking for here, uh is, uh, a few different scenarios And then we'll take the dots off and we'll just paint them in Okay, so a few different scenarios would be that uh, the that high liquidity that was up here It starts to come in down here Not only here maybe even here Uh, it is followed by big red dots The any liquidity down here at 79 is polled oops And then we just see the continuation here of the sellers on through Okay, that would be one scenario here Okay, and the uh The other scenario would be, uh Well, it could come back down into this area and reject and come back into the range Okay, I won't cover that one right now. I'm going to cover the opposite Is that accepts here So we do see a lot of selling in here, uh From here onward, right Okay, and we saw that unfold the shift here take place Shift here and the shift here Okay, however, um Let's look at Horizontal line here. Okay, that's our line, uh at at 79 and a half Uh, and then what happens down here Is we start to see a lot of demand Okay, so we would look for high liquidity Even higher uh liquidity here Okay, and then basically to see very little in here except for what was up here not filled And still remaining in the order book Which it is you can see it in the order current order book Up here from 87 to 90 Uh, and uh, maybe they even did up a little bit more here And we got our aggressors Okay, and then trade up into uh where this shift took place here Okay, maybe it bounces around in there. Maybe it just continues on up Okay, and trades up into that high liquidity The order book is dynamic. We'll see it unfold here. You'll see these different scenarios Uh, and uh, who's winning the uh the battle Okay, uh, and then go with the flow At that point All right, thanks everybody. Thanks for coming. Uh, hit the like button if you like this We'll be back tomorrow and we'll go through, uh, anything that you're interested in covering. Uh, happy to do it and Yep, uh, don't forget our rest of our streamers all day long different styles different markets, etc Okay, Doug is with options Tom is with volume profile I'll go boys Do their own kind of proprietary trading And some interesting stuff over there as well. All right. Thank you everybody. Have a good day and we'll see you tomorrow