 Good morning traders and welcome to the all markets webinar with Bruce So we're gonna go through the order flow good morning traders and welcome using book map using Or going through the analysis using book map of the order flow in any market You guys that want to take a look at that we can connect to futures stocks or cryptocurrencies So we have this Webinar every Monday Tuesday and Friday 10 a.m. And it's for you guys to Understand how to better use book map. So ask questions here And we'll show you all sorts of great order flow setups so that you can understand What to look for in book map and how to take advantage of it. All right, so I lead the trader education here We do have many different other Traders within our Education here. So if you go to book map calm Click on the more button here and go to the learning center Okay, you can see courses and and other materials in here. You can see all of our streamers in here You can hover over them. You can see what assets they trade and When they stream, okay, so If you scroll down a little bit further, you'll see the calendar here You can click on the event and you can add it to your calendar. All right. So as you can see We have what 18 different traders here is actually 19. We need to add another one in here So we offer quite a bit of education. It's all live analysis as well. Okay forward-looking If you want you can reach me at Bruce at book map on our discord server or Twitter at flow order And let's go through the disclosures and then jump right in 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 is not suitable for all investors Past performance is not necessarily indicative of future results. All right. So let's jump in here. Wow We've got some nice volatility in here. We had the non-farm Payroll here. You can see just at 830 and interesting Event on multiple fronts in here Just note for those of you new to book map to see how the liquidity dries up before the event Finally enough at here at this kind of 38 or 39 level Liquidity thinned out a little bit, but it stayed in the book. Okay, that gives us some insight that tells us something and Anyway, the numbers were Kind of mixed kind of bad for the economy But like that acts actually good for the economy meaning that the Fed won't raise interest rates that they're through The the raising cycle. So anyway Let's just take a look here. We have our 930 cash open and a real nice bump up into 4550 the figure and then we've sold off since so it almost all the way back down to this non-farm low It down to kind of this previous swing right here at 4520, which has been a Pretty important level and in the higher tying frames. So anyway Let's let's before we jump into all of this here. I mean, this is a very strong and powerful move to the downside We will first take a look at our bigger picture, right? And and we're going to extrapolate from the bigger picture to start to drill down and look at very specific levels and We're going to look at the bigger picture in terms of order flow as well And I can detail that more if you like and then we're going to you know, zero or kind of zoom in to book map and kind of home in on Some potential opportunities or levels of interest here. Alright, so what's going on on the daily chart? Alright, so Let's actually Look back a month here. So we have a little more data. Yeah, as you can see This these were some really, you know, the other day. This was very strong move to the downside and it closed Closed to the downside yesterday as well kind of all over the place but it you know Came down to the lows here and it closed below the previous day today We are within the range right now so far. So we saw that big spike up And it just tested yesterday's high and it's right back down now And you can see that this is just turning a little bit red ish kind of green red right now for the day All right, so we really want to see this here and we're looking at this swing low here for the day Which is that Well, it's 45 No, I'm sorry. It's a 25 points away or so 20 points away at 4505 right now yesterday. I also want to go over this because Yesterday, yeah, just just look at on the hourly here The here's our gap. Here's that move down from the on Wednesday, here's Thursday's God, I'm sorry. What is it here? Yeah today? Here's Thursday's activity and then these last two candles are today's this is the cash session hourly chart Right. Look at the gaps in here huge huge gap, of course on on Wednesday also a Gap here on on Thursday that did fill and Is this gap here that I want to point out because I was looking at this move here And I thought this is a really odd place on the on the daily especially like what are we? Why are we seeing buying pressure come in down here kind of you know in the afternoon? It was kind of odd to me didn't didn't quite understand it and then it all you know made sense here On the hourly. Okay. There's a gap here. Okay, so this was back on I forget what day this is looks like July 10 or so And and you can see that we filled that gap and then we found buying it buyers in there Okay, that was early on in the session in the afternoon. We you know we closed tire We filled the gap it sold back off and then it's just really back and forth now You can see the wicks on both sides here on the in the hourly Okay, move to the upside test these wicks up here move to the downside and test these wicks now when I'm talking about wicks There's two things we're gonna look at in the order flow You can say this is rejection up here In your you know auction market theory Or whatever, you know, you're looking at your trading style It is but what it means though is is a combination of things it might be a some sort of reversal pattern, but Basically it can either exhaust out or it can be absorbed and then retest and exhaust I mean, there's a lot of different different ways of looking at it, but Absorption with lots of limit sell orders on the other side here or exhaustion No interest in buyers to take this higher and then we look for sellers to come back in These are some simple ideas that we'll look at again and again in the order flow when we start getting in into bookmap All right, so that's what we mean when we start to talk about these wicks up in here And what the significance is of that. All right, so let's look at the 15-minute chart here and Yeah, you can see it just came above the the swing here from the other day Totally rejected sellers come in and pound it all the way back down We have not gone below this 17 swing right here 45 17 in the S&P Okay All right, so let's see here any questions at this point So what are we looking for? Well, we're looking for the auction here on this 15-minute chart at some of these critical levels like down here at this 17 or up in here. All right, so right now. We're kind of in the middle So that's on the 15-minute chart. Let's zoom in in bookmap and take a look here Yeah, I mean the 15-minute charts not not not bad because like these are some pretty big swings You can see in here and there are nuances even in you know on very small time frames in here But these are the levels of interest we want to check out And the order flow around these levels number one is this one up here Okay, this is at the cash open at 930 you see the move up into high liquidity up here at 4550 You see it kind of exhaust out here Let's just zoom in here. I want to cover this we'll move forward into it And we'll catch up here into the live market so that We're kind of reviewing here, and then you will we'll go through it quickly unless you have any questions So we can get to the live market, but this is will help you comprehend the order flow at these levels and so Very very strong move here at the open as typically is It doesn't really even trade up into this high liquidity up here at 4550 is just shy of it And this is what we mean by exhaustion Okay So see look at those strong buying volume up in here and then here here in here. We're not seeing much at all In fact, we're starting to see some sellers here back and forth, but you know Here's a big sell dot in here Very thin in here selling starts to pick up sellers are below this swing here And that's when they really start to pick up though so what this means is on this in this kind of level trading level or even you know, maybe a little bit bigger in This trading level in here We're starting to find all the sellers below this swing and then also below in this swing We're looking for the big red dots and we're also looking for that's the aggressor And that pulls the market down. Okay, this is what moves price is the aggressor volume the market buy and market sell orders and then the liquidity is the path these are the passive orders these are Limit sell orders up in these areas here, and we never even tested into this high liquidity in here So that's not a good sign for the bulls. They'd never even tangled with the figure all right, so Anyway, we can see the move down and then it Well, it trades all the way down to see where this these buyers initiated this move Okay, we see this all the time in here right here. They broke out. This is where the retest came And then we did bounce and and finally get up into that figure Okay, and then this is our double top in here. All right. So now in our double top What do we see? Okay, well here we had some exhaustion Okay in general Here is absorption Okay, look at that big Transaction right into forty five fifty. Here's one above it Here's another one into after they got filled they added even more liquidity in here to be sellers at these price levels And they the buyers took them on and traded Okay, so at this point We know that there's some buying interest in here And we know that they're meeting high liquidity into this these passive limit sell orders What happens after that is what we're looking for the clarity it are their buyers back up above it here Do they have more buying pressure in here and clearly they did not They just kind of gave up And then the sellers certainly didn't give up they came in hand over fist now. This is what we want to look for This strong impulsive move driving price away from this range or this value area here All right, and then here it is and that's what it looks like now It's not the strongest, but it's not bad And and then you know we're gonna we have some new content for you guys We'll be covering pretty soon, but here's like a flag pattern in here And this is very very typical I mean god, I might even use this example and here's our strong impulsive move Here's our pullback and look at the pullback. It's shallow That's what we want to see. We don't want to see a lot of buying interest in here And then we see sellers again for the next impulsive move Hey on strong volume and strong price movement. Hey, this is a that's a very good pattern there Right to look at and it moves it away from this area of consolidation up here And it's searching for and establishing a new value area A price is trying to figure that out right now. It continues to the downside until it can figure that out Okay, this was that really strong move that we saw after and then now Let's let's get caught up here so any any questions on this getting caught up with a double top and understanding the relationship between liquidity and the aggressors at this important level, which is the half figure of 45 50 Okay, no no questions Good morning, H.E. and Stan Let me know happy to go through it. Some of you I've reached out on discord and and you had questions So let me know if you if you're in here And ask your question now and and I can answer them. Hey, there was I think a question about High liquidity being a magnet or or not and you know to explain that in a more in more detail here and be happy to do that Okay, so Let me know if you're you're in here. So Anyway, otherwise I want to continue on with the live analysis All right, so Yeah, it is really all over the place here. Look look again. Now. This is like we're understanding these levels here In a very very different way Okay, we're understanding it by the behavior of the players at these levels in here These are how these patterns evolve Sellers come in buyers come back in a little bit of selling a little bit of buying moves it back up But look at above the swing here the buyers start to come in especially in here Hey, they're gonna move it back up and test here Hey, that's the minimum test I would look for Maybe maybe here as well this kind of value area here And then there was just more buying pressure The next one is here the next one after that is the high or here at the high liquidity This is this is a really easy one. It went right up to the high liquidity Hey, but these little areas in here. We never know what's gonna happen, but we do know this Look at the buying here. It is strong Compare it to the relative selling over here relative volume Okay, so and and then we also look at the order book in here So this probably wouldn't be a bad area to take some off here right here because there's liquidity there And we don't know if it might hit this might exhaust out might find Sellers and then then they'll trade back down now. We have another thing in here that makes this You know strong or stronger on our side it is this liquidity that is Bidding up at a higher levels underneath here Okay, we talk about the skew in the auction all the time in here And let me take the volume dots off in fact We're just looking at price action with best bid and offer and then the the liquidity heat map so what we have here is a price movement up and Then the the book here is now skewed because of this liquidity in here. This is what the book looked like before Hi liquidity up here. Hi liquidity down here, right? So like a 25-point move in fact Right from 15 to 40 Here all of a sudden we have a skew in that auction Okay, the bigger skew is this liquidity here at 25 now. We have a 15 point Range in here. Okay, so what would be kind of the middle of the range? Well, it'd be seven and a half points up somewhere around in here, right? So It comes up into that area and now they're still on the bid in here If they're on the bid the question is And you can see the offer is starting to add a little bit higher here. They're kind of shifting But it let's just say it's the same The question is when we start to see the skew in the auction. What is the reaction of price? What are the aggressors think about this? That's what we want to understand Okay, so in this case, this is starting to answer that question. This liquidity down here is repelling price We're not finding sellers interested in trading into it. So it's not a magnet here The magnet is up here and we know that there's buying interest. So we're looking for this to to transact All right, does that make sense? Okay, and and it worked out, you know, obviously this is all hindsight and this is why I don't like going over hindsight But Anyway, we can still learn and then we learn from that and then we're gonna apply that to the live market here Okay, so Now let's just take it. Let's just take that forward here and let's get into the heat map Well, it's looking pretty similar here. Now. There's a difference though. This liquidity transacted in here It looks like right this one for sure as well. This one now it looks like it transacted look at the skew in the book Okay, and it the price we're still finding buyers here and we're still finding buyers in here That's gonna be a bit of a stop run. We want to see if that maybe rejects comes back in and then trades back down however And the reason why would I think why would we look for that? Why would that be more likely in this than this case here? Okay, we just covered it Well, it's because this liquidity is getting filled on the way up All right, so if it's getting filled that means that these are sellers in here absorbing that buying pressure And so this means that maybe we get a stop run up here And if we get a stop run and it rejects and comes back into the range and we see we find sellers Then we're looking for this to be the next area of liquidity down by the swing and down by the liquidity down here All right, so This is how we can start to piece together the even though we had a skew in the order book in here Hey, now interesting thing is we're still we're still finding buyers here And they're still hitting it or lifting that lifting that offer Okay, and there's our big stop run now. Okay, now we got it the red line down here is stops Let me get rid of CVD here. So you just have stops and icebergs Icebergs is the blue line here All right We have a stop run do we have icebergs on the other side? No icebergs are actually Trending along with the direction of the stops Not a whole lot of icebergs though About a hundred or so on this little kind of move up All right, so now you can see high liquidity here and here And let's see if we get a skew on the offer and if we do We see if we get some sellers in here and try to trade back down into maybe 32 and a half or 32 Anyway guys what we're kind of covering in here is understanding the auction and the order flow When you start to understand the order flow in here It makes sense that if we just have these sellers getting filled in here that now we're starting to look for less buyers Okay, we're looking for we might not get it. We've seen trending days that are just incredible There's high liquidity on the offer all the way up doesn't matter buyers take it Okay, now not only did we have non-farm if you want to mix some of the fundamentals in here We had some really good numbers. I think from Amazon And not so good numbers last night from from Apple at least iPhone sales So anyway Here's here's our skews. Here's our skew here. See see how it's shaping up on the on the offer. It's kind of blue ish Hey Right, so now do we get sellers in here due to this kind of this liquidity in here or do we get buyers in here? Trying to feel it out and other traders are trying to feel it out too by providing this liquidity Okay, so here's our move into our 32 and a half and Almost 32 and a and 32 yeah, there's 32 and a half right there Okay, so I just want to We're doing this without looking at the volume okay, we're doing this by reading the order flow Historically hey and current order flow here in the order book Okay, so this would be like reading your dome except this this little window here It's everything to the right of the vertical white line is the current market Okay, so you'll see the heat map change in here. It will be reflected By the change in the liquidity here in the current order book or COB This is the S&P e-mini James I've got the the NASDAQ e-mini as well We have Tesla Apple and Bitcoin open if you want to take a look at one of those as well Or maybe you have something else So you got anyway like it might this is a great Exercise to go through to start to understand liquidity Okay, and then how how to apply this to your trading in here it now We can turn on the volume dots and we can maybe come in here and confirm some of these areas in here And yeah, the high liquidity is transacting in there and Now we're starting to see a bit of selling come in and a bit more here And we do see a high a lower high and another lower high and I don't see buyers in here and so We're let's see if this can continue in the trend here Right, so something like this here, so we're looking for exhaustion up here now. We might not get that Okay, that would be we're gonna go through the scenarios in here What what settings do you want me to to see? Shay You can go over the heat map settings Okay, these are my heat map settings. They're default. I think if they're not they are now I just hit restore and then volume bars and volume dots volume dots here I do not have any of the filters for minimum and Displayed volume or trade size and I have clustering on just a bit here as smart Okay, I just use a little bit of it I think by default it's in the middle here, right? It's a little much for me I want to see more details. Okay, but I don't want to see all the details. All right, so here we go This is this is what we were This was the second scenario we were just going over the first scenario This is our second scenario and it is clearly unfolding. Okay, so What what happened in here right because we're looking for we saw some selling we we know that it was absorption and we saw the selling in here and it kind of broke this little trend line or Even this swing here right right here and we're seeing buying above it pretty strong buying So next levels are this 38 and I I know it's just transacting. I think we can get to 40 though All right, so let's that that was our an important area up here. I Know it's been important over the week here actually Three up here looks pretty good as well Okay on these little areas in here these swings okay, so So what you're talking about or asking Shay is about What time is you know the time frames? There are no time frames in book map I mean we divvy it up here with these vertical gray dotted lines So right now it's five minutes between each one we can zoom in and that'll change though And now you see it's two minutes between each one Okay, so there's a few different ways to look up time frames. It's actually covered in our Our learning center if you go to the getting started here we talk about the Navigating through the chart and time frames right here. It's a minute 47 and We talk about how there are no time frames in here and The what we're showing is pure price action However, we do have this tool up here and the only reason we have this tool is because it was requested Now we're using that this is a time slice tool and Is got this is turning to a really nice move guys, you know, so it continues on up We're still looking for swing up here around this 43 Okay, and then I would be looking to take some off up there. Maybe even front run a little bit You know, so this is a powerful move We have high liquidity here at 42 and a half. Yeah, I don't have a problem front running some of that and Taking some off right now All right, that's how I would manage it but You know, this is pretty pretty strong consistent move that's great, but how much more does it really have in it? I'm looking for a pullback now They around it somewhere around here in this area, right? So Anyway, the time slice tool it works here You click on this and then you let's say suppose you want to look at 15 minutes of data. This is not 15 minute Time bars What it means here if I click on this okay use you actually see it's like two minutes between each Vertical dotted line here what it means though is from this current market line here vertical line to this Left edge here This is pure 15 minutes of sliding data. There's always 15 minutes of data That's what it means. That's what that's how it works Hey, so you can do some studies in here on very specific like your columns in here Maybe you want to look at like what's the last 15 minutes of data look like? Well, here it is. Okay, it's this nice little B-shaped profile that that failed And we see the move to the upside here All right, so anyway, the Yeah, this time slice tool they're sliding data here. We use many times over in book map because You can use this zoom tool as well And zoom in to a very specific area. So let's suppose like Yeah, let's just go from here to here and you can see that only that data is now within my chart Okay, and I can study it then and I know exactly what the profile looks like in balance indicators up here You know CVD or stops and icebergs, etc. All right, so we use this concept over and over again Watch that video. I'll put it in the chat for you and you can can I Should answer your questions there. All right, there you go All right, so let's go back Still still looks good so far now. Let's just take a look going through the same process we did now This is might turn into another a bullish flag here, but I mean so far so good All right, we're we made slightly lower high just a tick or two But I'm starting to see a bit of selling in here. However, like this is pretty bullish here And if we can get up here and a little bit more buying we should see it trade up into Yeah, 44 45, you know 43 44 45 basically So we're still we're looking for that We're getting a little bit of insight here Here's high liquidity that comes into the book and it repelled the the buyers actually All right, so we're learning from this order flowing here Okay, so now the book is between 43 and this 38 and three quarters Here's our here's our skew now look at this buyers seem to be attracted to that liquidity Okay, well then trade into it. We should see the green dot here And they should we want to see if they have enough buying pressure after 42 To trade on up and get the breakout that we're looking for here or are these guys gonna pull That liquidity away and then maybe that we get a flip here from offer to bid I'm still looking for them to trade into them. There they go There there's our green dot. Okay, and that was it though and so We immediately pulled back Right, so we want to see the transaction and then the follow-through like what you know, we're still looking for buying pressure Otherwise, it's absorption And here we go again retest. All right looks pretty good. I like seeing the buyers up here All right buyers should be able to lift it up into 43 44 maybe 45 Okay, there's 43 and they're still buying Hey, these guys did stay in the book. So they are still absorbing in here and we're looking for a bit more and Not getting it Okay. Okay. Now it is auctioning back here again So it's just a pullback and a bit more if we can auction up here at 43 and a quarter We're not Okay, there's a CC exhaustion here and buyers on the other side So that you can look at exhaustion here. It's a higher low and it exhausted here many times over No sellers here Buyers up here. That's when we're looking for the buyers to take it at least up to here And then we can get maybe some follow-through Right. So looking and noticing absorption on pole. I'm sorry Exhaustion on pullbacks is something to You know really look at here because you can Go back and study this many times over and you can put this into a trading plan And you can you can see that you know a lot of times this this works out pretty nicely It's a low volume pullback basically strong volume here very little volume in here looking for Exhaustion buyers back up to the top of the range and try to break the range in Fact you can even look at that and say like this completes a flag pattern. Okay mini flag pattern there Okay up into and why you would target this liquidity And that completes the pattern if you're a pattern trader that you're out up here A easier said and done but it's here. It's visual. We're not making it up. Hey Guys over in discord slowdown sloth HE and Stan anything you guys want me to take a look at here anything kind of on your minds lately You guys have been doing really really great work Rob as well. Sorry Rob Just scrolling up here through it Trader as well. I mean really really great work Jack See Jack in here Deborah good morning. All right. Well, so that was it the the move up into the 44 and then here's our move back down See the exhaustion here and the sellers coming in. Okay. Well, anyway this on the bigger time frame Our time frame we were just looking for the move up into here, right? That was it No, there was certain little areas in here And then I can't recall which ones um But it was at the swing here, maybe and then the swing up here some something like that Triangle pattern. Yeah, you know, that's a continuation pattern Floyd and We're starting to you know cover a lot of the continuation patterns you know wedges and and Triangles pennants flags To me, it's just kind of a different flavor, but it's basically the same thing mean reversion trade is something different and What that means is Basically that the Market is auctioning outside an area and it's not really being accepted So just think about it and you know the auction market theory part of it is very much like, you know, if you have your small business and You know, you you put God, it just reminds me the scene from Hudsucker proxy on hula hoops, I don't know if you guys know the scene In the movie is the is really really well done But they start off with price at like, you know, five dollars or three ninety nine or some something like this And it's just too high And no one's interested in buying it. So what do they do? There's basically what that means is There is no demand for the product If there is no demand well, then they're not willing just to pay that and now this is a one-way auction It's not two ways in this example. Just just note that the markets are different in that sense However So no one's no one's just interested in buying. Well, you're gonna reduce the price Okay, you continue to reduce the price until you find that demand and that goes into your one-on-one economics Like where supply meets demand you you know those two those two crossing lines If you recall the very very simple economic economic Fundamentals so The mean reversion would be that well, you know if price is kind of searching for its value And it can't find it outside of its range. It will revert back into the average of that range okay, so That's the concept and there's many variations of it within the order flow and book map Okay, one of them is exhaustion. Hey, we'll exhaust outside of a range. There's no interest especially maybe after a stop run comes back down into an area and Trades back to the mean okay So this one here is Not not the exhaustion Hey, this is this is a this is that this is an impulsive move here. I'm just getting outside the range here Or maybe it's a smaller range in here And then it you know you look you can divvy it up many different ways. There's a smaller range here The bigger range is here. Okay, so Anyway, like it kind of trades outside of it now the move initiated here I can already see this is getting too complex. All right, so anyway What we would like to see is a little different variation here So we get this move and and we can double this move here And then we can see that it measured out pretty well here from one move with its impulse power And then the pullback and then the next move now this kind of magical Measured move in here Have to be very I want to be very careful in covering what this means it just it Basically it means that there's so much buying pressure That is it's kind of equal to a previous amount of buying pressure And now there's also stops that are being trick triggered along the way etc but You know that that's kind of what we're Starting to understand in terms of these moves and and measured moves Don't buy the story on measured moves and fibs and all this kind of stuff we want to understand the measured moves and buy the the The price action and the volume Okay, if you get our strong volume, we're looking for You know something similar to this move here. All right Okay, so anyway Now that that's some you know, there's so many different variations on what I just had talked about Because you might get the strong kind of impulse move here very shallow pullback And then you might get some strong a strong move back up here And you guys you might start to get people interested on a higher time frame to get involved in this market at that time And you get like a double or triple the move in here on the next leg here, right? so or Maybe you get a strong move and then it kind of peaks its head above this little range in here And there's no interest and it it does half the move Okay, and you can see it in the in the volume maybe that is not quite as strong and Therefore, you know, it doesn't have the same power behind the move. All right in this case regarding the mean reversion Well, we have absorption here Okay, so it traded into high liquidity here at 43 and we knew that Earlier we saw 43 44 and also 45 and we were looking for those areas as a target Okay, so it traded into that liquidity here at 43 it traded into that liquidity up here at 44 and Then there was no no interest in taking it higher. Hey, what does that mean? This was totally absorbed here And they absorbed all that buying pressure Hey into that high liquidity here All right, so after that absorption no more buyers and Sellers start to come back in They are they're able to bring it back down to where it initiated here Some back and forth in here. Here's where you can see exhaustion again Okay, so now let's just take a look at where might this go In your mean reversion. So let's just look at use the CVP column here And you can see that kind of another another B-shaped profile here even with all this buying up in here so anyway What you're looking at in here or we're looking at for a mean reversion on this time frame would be here 41 50 And that's the average or the this is the the mean here Hey within this range in here Is this price level the most traded level now this was traded quite a bit here in this one too, but this is the most Okay, you can also look for to the other side of the range in here and for it to exhaust out and come back again in here to the mean Right now. I have a question for you Let's see a Floyd on what does it take to move because we haven't we haven't seen the current price action We don't know what happened here Hey, but what we're up at pretty lofty levels after a pretty strong move. I'm looking for a pullback and I See the sellers coming in and they've traded into and through that mean So I'm looking for them to kind of explore the other side And if we get the sellers I can see them starting to come in here a bit and I know that there's some sellers in here Hey, so where might they go? to explore Okay, and what are you looking for for them to do that? Hey, we're looking for the aggressors again They're the ones that are going to explore outside of the the mean or outside of the value area here and Usually or typically that happens on very strong volume Okay, so what do we get here? Okay, so we got this pretty strong volume down here That was it and it kind of came down into This little level here Right. This is kind of a flag pattern on the way up as well This is where this move initiated here and so let's just take a look at that That's why we take profits or look to take profits or suggest to take profits in these areas here because Either where they initiate or some of the swings in here like that's not bad or that's not bad And then next one would be down here Right, but this is zone. All right, and then we're going to read the order flow within it Now what what happened here? Well, we just kind of tap the Tap the bottom of it here This one here Okay, and then we see the move back up and we're back into this level So this this again, this is high volume in here But we didn't get the price action And we need both And we get buyers instead it back to the top of the range now We have the potential now as we're back in here and we're actually above the mean and We're above the mean on some volume and it's back and forth in here But my my point is like if we can get back above that mean on some pretty strong volume We can come back up and explore not only the highs here, but up above Okay, so this would be your trade from the inside to the outside and price Exploration instead of a mean reversion trade All right, so And and you can look for that all the time now this one, you know it it It kind of did it and then it failed So, you know, this is really back and forth in here So now that that brings up a bigger picture issue in here on all of this back and forth in here Let's take this and parlay it into something more slowdown had talked about Some of the Wyckoff distribution accumulation areas, that's what's happening up here All right, so it's back and forth in here now who's winning the battle and we're looking at in here now Okay, and you can it can still be on, you know your volume or market profile but we're also talking about a distribution area and a compression area as well and we're looking to see If we can trade outside of that area And get price discovery. Okay, you can see that right now. We got another mean reversion trade right here They're right back to it Okay, now let's go through a few scenarios in here first scenario is like this fails And we go back down to the downside and the reason I would look at that as the first scenario is look at this offer in here And it's one player here. We know this Very likely here look at all of the same level now see you just pulled at the same time as well And here here it is though our little That little white line in here is showing the large lot tracker It's one player who's just layering in here Hey, I don't know how many of maybe 50 contracts or so something like that And That's one individual actor And and that's kind of holding price down. However, what did he do? He pulled it? He pulled it away. He skewed the order book now all of that supply is gone. And what's the reaction? Wow Okay, we found buyers. Well buyers are likely now to trade right up to 45 then You know and we're above the mean as well So we're looking for buying pressure above the mean here Here they are on the on the bid at the mean Okay, so do we find sellers interested in this Liquidity here and trading it back to the mean or we find buyers that want to trade it outside and explore Outside of the mean or the the value area Okay, and we're gonna read the order flow here to get our answer Hey, so here's our little kind of double test double top up here And I didn't find any buyers now their guys are pulling here Okay, well, I'm not interested in this unless we can get down below here This kind of 41 3 quarters and we can see some selling come in And then I'm looking for a bottom of the range and maybe outside Inside to the outside here Hey So yeah, now we're back up here and now it's looking pretty inevitable for 45 and maybe more Alright, so that was the read in here. We never even broke to we never even retested the mean in this little example here Okay, so and you can see it. Here's another skew in the auction here looking for 45 Hey, these guys want to trade here at 45. It looks like to me Okay, so they want to be sellers there and they're not pulling and they're getting filled now Okay, great. All right, and they're still in here. They're still it ate some of their liquidity, but They're still in here. Do we see more buyers still interested? Yeah, there they go. Okay now There's more buying back up above it. Let's see if we can get expansion Maybe up to 48 now Okay, now, you know, this is it's being this this today is kind of tricky in this sense that like this is being Gamed many times over and I I think that's clear to see Right, I mean this this larger player is gaming this this level here All right, so it makes the read a little bit harder in here But we did look for the move to 45 and then we're we did see buyers back up above it here But now we're back below it All right, and he came in here another another trader came in here at 46 Hold that liquidity here and then added it higher here And we don't know who it is, but it's likely the same player because the moment he pulled here He added it up here. Okay a point higher All right, so anyway, it makes the the reading a lot harder here Just around 11 a.m. East Coast time Okay, we're covering a lot of stuff in here, and I'm going through it pretty quickly Anyway If we step back and take a look at it here, this still looks good for a continuation to the upside And the bigger picture here Okay, this is pretty strong volume pretty consistent looking for another impulse move on up into like 48 maybe We can get to 50 here All right, so that's now that's a different time frame than what we were just looking at Okay, and that would be kind of from the inside out Not the outside in Okay, and the moment I say that is the heavy selling comes in so like I like I said, this is kind of tricky here today and We're looking for our buyers up here, and we even had fuel in here We have these sellers in here, but buyers just didn't show up now I like seeing I like seeing actually some selling in here And for them to be squeezed to the upside here Yeah on the on the scope of things I agree with you there You know, let's maybe we can find a better example on a higher time frame It's a it's a lower time frame, you know look here. Well, here's here's your mean right here, right? Hey right here 41 25 And that's your high volume node care or Point of control And we're above it though and that's a good thing for the bulls is the red line Yeah, those are stop transactions Going through time and sales Don't quite understand what you mean. Oh, okay Tom first off like what we're talking about in terms of Buyers or sellers moving it outside of the range. Yeah, I mean you always need a buyer for a seller. Okay, that's just how You know it works. However, if you take all the buyers at or the sellers at one price level Then the next level all of that liquidity is taken so price will go to the next level to trade there That's what that's how the price moves So what we're looking for then is more buyers than their aggressive buyers hitting the market buy order Then there is liquidity limit sell orders. I hope that answers your question there and Is the red line stops going through time and sales, I'm sorry, I don't understand still The red line down here. These are stop transactions that work the way. I've got the settings in here is cumulative volume Delta basically of the stops, so it's just taking a if it's a Bystop to the ups, you know that that's triggered it'll be a positive value And then if it's a sell stop, then it's a negative value and that's just plotted over time Same with the icebergs and you can see the axes are not the same in here. This is very different than how Scott looks at it Okay, I like this view for me. It just works better Okay, you're welcome Mike It's the next stop buys compared to is the net stop by Is compared to the net stop sells Well, it it it just it it's just continues to add them together Right and then that's the that would be the current here's our current view here of stops is negative 750 now This is Most very most likely going to be different than what you show because it If I zoom all the way out, this is when I started collecting data I don't know it's around six six o'clock this morning or so and And I started to get some data here Okay, so if you had to open you'd have to open exactly at the same moment that I opened up my book map To get the same number Okay, because it's cumulative All right. Well the market is struggling up here All right, and look at here. Here's that liquidity coming in. Hi liquidity coming in followed by sellers Okay, that's enough. That's enough for buyers though to come back in and trade into these guys, you know at the discount here All right, so it tested the outside of the right or bottom of the range here and Now we have buyers very interested in this liquidity here Okay, so there they go. Hey now Watch let's see. I'm looking to see them trade into and through this here and then come up to 47 And now it's kind of a it's kind of asking a lot. I mean these guys are certainly staying in the book So we continue this kind of back and forth in here What would be nicer is if these guys it would be more insightful if these guys pull that liquidity and maybe flip to the to the bid And then we found those buyers and they they haven't they won't be absorbed Therefore they can take liquidity at these price levels and move price up into 47. So here we got a skew on the book here Hey, but we're in the middle of kind of a balance. It's balanced between 43 and 47. We're right at 45 Hey, so that helps, but let's see now see This is we're just getting is We're seeing this kind of being gamed in here again and again Higher liquidity now here Back where these guys were earlier It just a tick higher. Hey, do we find buying pressure? Yeah, they're trading right into them there they go. Okay, so the transaction took place there and He's pulling at 45 and a quarter a lot of it was Okay, so we're just going to read this kind of one-point range auction in here looking for our buyers up in here exhaustion See how we can see exhaustion and the sellers will take it back back down to the bottom of the range and They're auctioning here actually There's transactions here. Okay, so maybe we can get back down here again and see more selling Maybe if we can then I'm looking for 43 Instead it we're back up here and now it's auctioning here and we're getting buyers up here. There they go. Okay, so now we're breaking it All right, let's see if we can get a bit more buying pressure in here not sellers No, just a range bound and I'm looking again for this move from the kind of inside to the out And let's watch again We're right at the point of control There's some exhaustion. There's some selling Selling all right, let's see if a little more selling here. I think we can probably get down to 43 Again, just same process here, right? and trying trying to understand like do they have enough selling pressure to Reach outside of the range and then maybe get price discovery and you know clearly they didn't Right now now now it's the opposite side It's like a slingshot here from one side to the other and now we've got the move into 47 Intact here Right, and there's no liquidity in the way now at here 45 this guy's kind of out of the market Right, it yeah, I understand it's tricky in here This this becomes kind of food for the move down here all of this in here becomes food It's certainly like once the buyers get in back up above here And then there's lack of liquidity here and we can get that that move. It should be a stop run as well It is and you can start to Anticipate the stop runs here because you know that these these people in here these traders in here They have it wrong and that's what you're looking for And now the question is can we continue? Right did it did it? Even regardless if it's a stop run or not does it accept Okay, that's what we're looking for now is acceptance And so in fact, it's even done as mean reversion kind of here and we're still seeing buyers here All right, so then I'm I am I'm looking for buyers to trade back up Because it looks like it's accepting between 45 and 47 and we're finding buyers in here Let's see if they can trade into and through 46 and a quarter on up into 48 Etc. Okay, maybe to maybe to 50 that we were looking for earlier They could be some trader pushing us into liquidity Yeah, I mean This is a pretty good example of some of the you know gaming going on at some of these price levels. I mean You know, I think I can make a pretty objective argument with that by seeing this high liquidity like this in here Right and then as soon as it starts to look pretty good these guys throw more liquidity in But we see that there's buying pressure And then we see looking for sellers to maybe take it down to these guys and said they cannot they become the food here or the fuel for this move higher Right and then now we've got our direction Right and we know it's a stop run, but it's we know it's still accepting here. So that's what matters And we're the top of the range and I'm not seeing buyers now though Right. So, you know, look out there That's why like a you might want to like I know these are micro ranges in here But it's the same on all time frames. So up here You know, we can consider like, you know taking some profit because I don't see any support here in the book Sellers can take it right back down here really quickly and that when we see exhaustion up here All right, so that's what happened at the top of the range here remember how we started off with the bigger picture double top and We saw exhaustion actually on the first one and absorption on the second one. This is the opposite Here's kind of absorption here. Here's exhaustion here That's typically what we see in in the in the second, you know leg or move up All right, just to refresh Our memories here, let's just Cancel all and then look at this this move here. Here's our double top on the higher time frame Okay, so we saw kind of an exhausting out here and Especially here on this little leg here and the sellers brought it down Hey, and we come back up here and then we get absorption and even more absorption here And and just no more buyers and that and the sellers just come in hand over fist and move it away quickly It is in their interest to you know, the sellers to to move it away pretty quickly so that you know, it you know creates panic and fear that to you know, look I Hate I hate to say so many things and speculate on them, but like The quicker they can move away from here any trap buyers in here are gonna have to Make a quick decision to what to do So I would imagine that's what fuels these moves like this Okay, so I oh boy, I'm getting out. I'm getting out, you know I'm looking for the move higher looking for the move. I believe in it I believe in it. I believe in it and then they're gonna be put to the test here All right, but we can read it in the behavior here. That's the key. So we saw the absorption on the second leg up here and then Well, even you even have high liquidity tested and they're on the back side here And then they pull in here in fact a little bit of a flip of the book almost almost Okay, so yeah, so this this move this stop run and we were looking for a move back up to 47 48 Etc and then we noted like okay Exhaustion look for the seller and no one underneath here. In fact, look look where they are They're on the opposite side. We want to see them Right, they're on the offer not on the bid not supporting this breakout And that's where you can see the reaction in the sellers bringing it back down Hey Back down to this swing. I still think we can get down to this 43 on this move here Again the quick move here and we should see some stops being being hit down in here, too Let's see here Beck You're just able to get into the comments totally miss the explanation on orders acting as magnets, okay Yeah, I guess you were asking earlier We can cover it again Yeah, it's about the context here that really matters. Okay about supply and demand and Do people want want it, you know We're going through the hudsucker proxy example of the hula hoop You know, it's a Cohen brothers film And kind of spoof on all of that product development Which is brilliant but you know it basically If there's a demand for the product then and and it's kind of scarce well, then price should go up Hey, this is just basic supply and demand type stuff If there is no demand And the product is plentiful price should likely go down No one's willing to pay it Everyone you can get it anywhere. Why you know, I already have one or two or whatever. Why do I need another? I'm not going to pay more for it and We can see it here in the in the liquidity and the aggressors and the aggressors reacting to that these areas of liquidity Okay, so did does it act like a magnet in general? Yes especially on higher time frame liquidity That stays in the order book That is where the market knows it can trade. Okay, so I can probably best illustrate it by looking at Apple or a stock And the larger players they come into the market here and they provide liquidity at these price levels So usually the figure Hey, the brown numbers And they're basically saying to the market We will be a buyer down here at these price levels. If you want to trade with me. I'm down here Hey, so it's up to the aggressors now. Do they want to trade down there? And transact with them. So what we want to nest the mag the magnet part Okay And then the repelling part is if we've been covering that Like if we zoom in a little bit here and you see high liquidity come in And it skew the auction at a certain point All of a sudden like there's a big new Surgeoned supplier demand in here and then then the question is how does the aggressor react to it? Do they want it so it looks like the buyers want this or I'm sorry the sellers want this here They're trading down into this high liquidity here Actually, well, they never they never actually did yet. I'm sorry. They did they did here. Okay, but there's still more Okay, but look at look at the offer now here. This is it right here. See how this repels price See how that repelled price Okay, more supply No more demand by the buyers, right? So they trade it into that liquidity now they you know and and This this looks to me like a like a really, you know potential spoof here Because a high liquidity came in but we know that this guy here what is trying to get filled basically and We get a skew in the auction here and we get any transactions into that liquidity in here No, I don't see any Right. I don't see any transactions into this liquidity here. So this is acting like a spoof Hey, excuse the auction. It shows more Supply and the aggressors come in and hit the bid and hit into this liquidity Right. So here it repelled. We saw it in real time. I hope that helps back Repelled it and then it here It was it wasn't magnetic to it earlier But it is now and then look with the reaction after this. This is really interesting about is this a potential spoof well, it makes sense to me because this traded and Now below it look look where the buyers came in back up above it here It will where were these buyers earlier? They they weren't they weren't here, but after this that we found them Okay, so that's pretty interesting. All right, so that's how you can get these kind of this would be likely be a stop run as well And then did it accept or reject? Well, it totally rejected It was back in the range and back to the other side of the range here in fact Okay, so now this might be We get enough buyers in here to lift it up into eighty five and three quarters or You know this eighty eighty five eighty five area up in here It's possible Okay. Well, we didn't it's back in the range here Okay, but you know, this is how you can get even you know Usually I mean you usually would go with the continue to go with the move here But you can get the how you can get reversals is After this would be your head. This would be your shoulder. This would be another shoulder in here Okay, or maybe it's a double double bottom pattern here Anyway That that's a little I don't think we're quite ready for a reversal pattern in here on this to be honest, but This is strong strong Impulsive move. This is just kind of some back and forth looking for another strong impulsive move down to eighty five Okay, and then a bigger a little bit bigger picture All right, so I hope that answers your question back Lot of good theories. What kind of criteria you look for to establish stop for a trade any examples Yeah, this is a great question because like yeah all these great theories and whatnot, but and Mike these are like the The concepts to then take and to study All right, so you're welcome back because the What is really important is that a trader Develops their trading plan something they studied Something that they know has an edge So these are concepts to go back into study now. We've gone through multiple Ways of looking at the market here. We talked about mean reversions breakouts flag patterns continuations reversals so Now take, you know, one or two of these ideas and then you know Go back in and you can you can develop a trading plan over the weekend If you go back and take one of these examples Like a breakout and a flag continuation pattern And you can go back and retest it you can use book maps replay mode if you have data And go back and look for these examples Look for where would you place your stop look for the swings to begin with? Hey, understand the order flow within the these areas here And then where would you place your profit? Okay, does it does it make sense in a move a more measured move like a You know, does the market have that much buying pressure or selling pressure to do a move? And if you come up with like maybe, you know 30 examples over the weekend you've got a trading plan and Yeah, it's the initial stab at it and it's something though that you can go back and you know forward start to forward test and And You know look in and replay mode test forward and then you get really good at it Okay, we have traders all day long doing this in here. Doug is You know, he does it with options. He has a very unique way of looking at it. Which is excellent Tom be will he'll be up in about seven minutes or so. He's a volume profile guy okay, so he'll be looking at mean reversion trades and The price discovery trades that we've gone through in here And and then we have the the algo boys later in the day Okay from 230 to 4 We usually a Frank Marrero in Spanish Spanglish trades He is off this Friday. So Back next Friday This has this has been a pretty choppy market Today I think The during this webinar here at 10 a.m. Started here at 10 10-05 I was a little bit late, so we did see this kind of move back up into this swing here So and we had our reasons for this. Oh Yeah, this is that we missed this to the downside because I was covering this double top and then carrying it forward here Okay, and then we got into the live market and then we saw this buying pressure start to come in here We're looking for you know this swing and then this one up here We knew that there was a lot of buying pressure coming in here, so You know we have our reasons to this is you know, this is gonna be a low volume node as well Because look how much volume traded here here in here compared to all of this compared to all of this Right and it is Yeah, so in terms of choppy markets like I don't know it's it's kind of up to you I look for the move to kind of the price discovery and I'm looking for volume I'm looking for the order book skew and You know I guess in a more choppy environment like you know I look for this liquidity up here Maybe 48 to trade get these buyers and then maybe take some off and then stop to break even right that that would be Something that you know, I would be looking at looking I'm I position myself looking for that potential move here But a lot of times you just get stopped out at break even or you take basically a scratch trade on that maybe you made a little bit and and then You know and then you got the scratch Okay, so I think that we've gone through many of those in here today How do I find a reversal in stocks? Okay, again, like we're looking at order flow and We're looking at the you know the the Quiddity on the offer and the clean on the bid and When we start to see a shift in a direction and a shift in the order flow All right, so Yeah, I mean Well, let's let's I don't have much more time So let's maybe we'll have to find one in hindsight in here And we're not really seeing much But here here's a potential reversal here. I mean you look at your head and shoulder here, right? Now it it's it's possible Okay, because all of this liquidity got filled on the way down And now we're starting to find a little bit of buying pressure right, so You know and this might be your shoulder Okay, we did not make a lower low here. We made a higher low here Okay, so then then you can look at even this little you can even see a microstructural head and shoulders in here Look at the buyers coming in. Okay, great Right, so then you can this is where you can start to look for it first. You can look for exhaustion in here You can look for getting in here and carrying it on up into maybe the top here At 259 the figure Right, so there you go. Here's your flag pattern that maybe start to unfold right now Let's see if we get enough buyers now to trade right up into 59 or 59 20 And that would be your this would be kind of a mini reversal right here at which also fits into This fractal it fits into a bigger move up into This 60 level here or even bigger than that, right? So let's take a look at I'm covering measured moves in here because it's something that Everyone kind of is aware of but We want to align it with liquidity Okay, another price structure, so this looks pretty good up here, you know, maybe 63 If we can get the buyers Right, so that's what we'd be looking for All right, so here's a micro or fractal move of that up into here And then maybe we can even see more buyers in here to trade up into 60 and above Hi Hunter that Jackson Nvidia I don't have up right now Sorry How many trading patterns Neville? This is a good question. How many traders trading patterns should one half? You just have as many as you can that you know Gives an edge. You have to know it though back and forth Okay, you might want to come to some of the other other webinars like Scott J trader Doug a movie was on earlier and You know, they they have very specific ways of trading The positions and options market all that volume matter. Yeah, it does Yeah, the options have have a big impact So you I would highly suggest that you come to Doug's Webinar today at 1 30 p.m Okay, just come to YouTube or or our discord channel at 1 30 It's really great stuff Okay, so this this little kind of flag pattern after head and shoulders is working out pretty well And there's our move into 259 Right So and then we said 259 20 top of the range here. So it still looks good to me Yeah, I think Doug will provide you an excellent foundation there All right, so I guess I guess I'm kind of answering your your question About reversal patterns in here. Oh Okay, great Kevin. Yeah, or Kevin Keith Yeah, well, you know then once you have like a kind of a studied pattern you start to understand the order flow the order I would say this what's really important in here and guys hit the like button here We're gonna end here pretty soon. So please hit the like button and let let's You know if you if you like this education Hey, if you don't, you know, don't hit the like button but the reason being is like Yeah, we'll cover more of this and You know, I know that it's working is what you guys want to see and that that's what's helpful for us It's like, okay. Yeah, this was this was a good webinar and You know, this is what people want to see so the The one thing I was just about to mention before we get going here is what Maybe we can make analogy in here remember how we were looking at the S&P and how it's just being Gamed at this area in here and look at the choppiness in here Right and what did it end up doing like, you know, it ended up doing we're up at 48 still looking for 50 here Right, but this is not easy trading in here You know, there is like all of this coming in here in the order flow and you know the gaming in here back and forth in here in here again and But you know, we kind of read, you know, we're reading it and you know, we're understanding the the supply and the demand in here and You know now we're up at the liquidity here at 48 and you know looks like It's still grinding up into it here, but Anyway, the What I wanted to cover Which I think is very important and for you poker players chess players Any kind of sport or game basically it's not just one thing you're looking at Okay, so there's one maybe one thing is more important than the other But make sure you have two or three You're gonna increase your probabilities a lot if it stops in icebergs great If it's a correlated market great if it's another time frame great But look for these things Together and that will really increase your odds So what we're doing here in these webinars is going into the order flow to give you that edge So I'm kind of assuming that you already Are looking at something like it might be candlestick patterns Okay, great. So we can even show that in here show your candlestick patterns in here And then start to understand. Okay, so is this a buy? Well, we came up to this here and it failed up here Right now in your candlestick patterns in here. I don't even know what Looking at three-minute candlestick here in your candlestick pattern though You know this is this is failing up here actually now So where's your buy signal will probably be down here or your cell signal? Sorry Below 46 if that is the case and you you can make a reason for it here There's high liquidity here the reaction to it is sellers or we're down here now. Do we get sellers down here if you do? Hey, then then you're looking for this to break this range here and come back down to I don't know Maybe one of this swing here, or maybe the bottom of the range here at 43 50 Okay, so now you've got maybe you got your candlestick Pattern in here that you look at and you're all you you've studied them you like candlestick patterns And you know how to trade them, but you also have high liquidity here on the offer And you can look for targets of other liquidity in other areas like maybe down on the bid Down down here someplace and it matches with the swing Okay Right and also really important element here What if you're wrong Okay, if you're looking for this to unfold now, so how do you you want to manage your risk in here in fact? I would say going through the The the scenario of it being wrong is more important because we know how to Well, you have to know how to manage your winners too, but You know you're looking to Stay in the game here you want to stay in the ring and Managing your risk in and knowing how to take a loss many times a small loss Is really important. All right. So anyway, you know Come up with your criteria in here, right? So, you know your candlestick pattern you would have sold in here Right, and you had your reasons you had high liquidity here. You even still have high liquidity here That's at a lower level And you would still I would still be in this basically, right? I think my stock would probably be up here And and if I see large buying coming in and starting to break it then I just get out anyway But it has not broken this structure here And there's even more liquidity here. So now I'm just looking for sellers here again And then I'm looking for the move back down into I don't know The candle maybe swing here at 44 and 44 even or maybe here at 43 and a quarter You know something like that All right. So here again, I got more insight. I have my candlestick pattern, but I got a more insight by The volume dots here in book map and the heat map in book map Right. So this will make your trading better Right, really like look like a poker player, you know, or a chess player You know, everyone's going to react to the one one directional move Everyone's it's transparent as can be Right, you got to get some people off off their game You kind of have to dupe them a little bit Right, that's why the these these levels are gained all the time by professionals. So we want more things on our side in here Right. So yeah, consider that when you're making your plan and doing your study Okay, so now it'd be scratched out And that's it Okay, I'm done with with this setup here. Okay So that's fine look for the next one All right guys, so so thanks everyone have a great weekend and we'll catch up with you on Monday then, okay yeah, thanks everybody hit the like button and we'll see you on Monday and Continue on with the other educators the rest of the day here. Okay. Okay. Have a good weekend. Bye. Bye. Oh Guys over in discord here Let's see here