 All right. Good morning everybody and welcome to the all markets webinar. This is Bruce at book map. We'll go through the order flow In any market you guys want to take a look at just let me know. We'll start off with the S&P and go through Understanding what's going on in the current market. Let me know. We'll start off with the S&P and and to read the order flow and gain insight to What's going on with price and where it might go that is one of the benefits of understanding order flow is you can do that And so we'll jump right in here After the disclosure 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 the substantial risk of loss and is not suitable for all investors pass performance is not necessarily indicative of future results All right, so let's jump in and take a look and you can see that we had some data here this morning right at 10 o'clock and We can see that a little bit of volatility in there and then move to the upside here so good stuff there and This is the ISM manufacturing PMI numbers that were down a bit so market seems to think that that's a kind of bullish here So that's what we got and that's what we're working with So let me see if there's any questions right off the bat Good morning Rob Aloise and Mr.. Banana Welcome, so Let's see here any other questions over in discord. Let me double-check right Lots of coffee today. I hear you Steven me too as well so anyway Yeah, the What was I gonna mention in here oh Rob, yeah, there's something I want to go over with you a little bit In your video, which was a nicely done but Anyway, oh for the first principles we talked about first principles, right? This was on Friday's webinar a Week ago You know that was a slow day in the market. So we decided to go over Something that more kind of a more formal presentation. We you know reading the live order flow As usual but went over in in more detail about First principles and understanding the markets what makes the market move how to how do markets operate if? We can get into the details there and understand these first principles We we can develop all sorts of studies and Strategies from that All right, so and we we just kind of covered it and I'll just recap very quickly which is a part of our education All right, so let me show you that here if you go to book map calm click on the more button And you go to the learning center here the market mechanics course here Goes through exactly what we're talking about here in terms of first principles. Okay, it's a you can see it right here Best bit best offer best bid transaction takes place takes liquidity off of the best offer This is how the market works market mechanics and See my mic is I'm sorry my too loud here guys Sounds good. Okay. All right. Thanks, Dan So anyway, that is exactly this here. This is what makes the market move Okay, so these are the here's the best offer the red line best bid is the green line These are transactions that take place on the best bid or offer the Transactions here are market buy orders green dots that take liquidity off of the best offer Red dots are market sell orders that take liquidity off of the best bid the transactions taking place with the passive orders Which is here in the in the book map heat map? Here in the COB column our current order book or your your depth of market There are 54 contracts here on the best bid. There are 73 here on the best offer Hey, the last transaction was this one here for two. I'm sorry this one here for two Okay, so and if there if someone comes in here and transacts with 74 They're going to move the market up to the next level here Okay, so or if someone pulls, you know this liquidity or whatever happens in here then If the next transaction If it takes all the liquidity off of one level it's going to move price to the next level Okay, just like it did here. Okay. This was the last price here 45 78 50 Transactions took place Someone hit the bid here hit market sell and they they move price down one tick That's how the market works that these are the Market mechanics here now that seems so simple But going back to first principles in understanding this we're going to extrapolate it into something more Okay, so if that is the case here This is what makes the market move Then why aren't we looking for? Lots of buyers here in that market. Look at this. Look at the buyers coming in here They look at the relationship in here between buyers and sellers There's more buyers Hey, where are the sellers? Well, they're here here and here and they're kind of pulling that liquidity So if this is the case then we're looking for this to continue it is as simple as that Okay And it does okay up into where high liquidity up into these areas here. Okay, so We covered in here in our Learning center We we covered a just one strategy. Okay, it's here under strategies and setups And it's just a continuation pattern in this case. It's a flag pattern. I This is where I get back into what Rob had been Covering in his video and you know, he he's he's part of the bookmap Academy and he's creating content for The bookmap Academy so that I you know, he can become a better trader and there's the whole Kind of Stratification of the bookmap Academy where you work your way up and you can get bookmap for free You can also become a coach. You can also become a streamer Tom B. Doug Moby those were all streamers in our Academy. So he's he's working on that as well. So Or in that Academy process and what I wanted to cover here About the momentum move that we're just looking at And starting to understand here in the market by first principles Is that this flag pattern in here don't get hung up on the flag pattern naming here It's about this here this impulse move a shallow pullback meaning that This strong move is is kind of just temporary Temporarily halted here by the high liquidity on the offer up here And you don't really get sellers that come in and hit the bid hard. They're not interested in selling So you just get kind of a maybe some some selling some back and forth selling and buying and Or maybe some profit taking and then you're looking for buyers to come back in again After the market has taken a bit of a pause or a rest That's what's important not to calling it a flag pattern But understanding this momentum and continuation And we can go over this again and again and again because this is what we want to glean from the markets Okay, so this is a strong move Okay, and now some back and forth in here And this was after data release and we see that there are more buyers Interested in taking this market higher Okay, so they're taking the liquidity and they're able to move the market to the next level in the next level, etc All right, we still see some more buyers coming in here All right now what we're we're still looking for buyers Buyers are in control in this move now Here's where we have a dilemma Look at this block of liquidity in here at a lower level So buyers meeting sellers and understanding this context in here Look how this block of liquidity. We don't find enough buyers any longer Right this affected the market again. This is first principles in here. We're still looking for more buyers in here It's a stronger move, right? so Maybe we had to you know sell off a little bit to find more buyers at a lower level or maybe the sellers are starting to take control of this market After this big block of liquidity Okay, so now we're starting to see sellers come in momentum here on on the sell side Okay, right back down to where this event just about where this event began And that's pretty heavy selling now Okay, now it was One of the major effects From that selling Was this liquidity here and we didn't have buyers tangle with it here And this was larger player activity in fact And how do we know that well our large lot tracker here see this one two three this little white line in here is our large lot tracker that can Identify larger player activity in here. Hey, this is the Them coming in you can see that look how they came in the market All at the same moment here and they sold it looks like as well now. We don't know that Well, we certainly know that a larger player came in here now It was staggered maybe a little bit But not by much and look look how their order size is about the same across these three price levels as well Hey, so it's likely one individual actor Uh, there's that is doing that Okay, and they had an effect on the market Okay, the market has dropped Okay, so It's not just about the aggressor the aggressor is technically the one that can move the market But this liquidity in here can Influence or affect price the that context in here. This is just showing massive supply And if we don't find buyers That want to trade with them We're likely going to find sellers or maybe it just bounces back and forth in here in this case. We found sellers Okay, and I'll look again here that high liquidity coming in again and we're still finding sellers All right, this is what we want to understand in the order flow here Uh, and this is what gives us a tremendous insight in bookmap Is understanding the context here now the first principle is about this in here Buyers could trade into and through this if they have enough Uh, if there is enough buying interest they'll trade into all of this liquidity I'm be able to and and they'll be able to trade through it as simple as that It's like this example right here Okay, there's high liquidity in here now. They're pulling it But if doesn't doesn't really matter Just you know stick with the idea here high liquidity on the offer And if there's enough buyers to trade into it and through it we're going higher All right, so in this case here The context was that we didn't even trade into it. We don't even find enough buyers to even tangle with it here Okay, and then we start to find sellers at the bottom edge here that are willing to take this market lower And so a nice move actually all the way back down to the bottom of This swing here from the Manufacturing numbers Okay, so still looking actually for sellers to hit the bid into this liquidity down here And offer is very strong here Uh, and uh now this is getting a little more dicey down here though We are at the bottom of some of these swings And that's where we're going to find some profit taking and we might find buyers scoop it up down here At these levels here. I try to get everyone stopped out that might have Thought wow is you know, it's been bullish these days markets go into the moon. Whatever it might be Stop them out. Uh, and then uh have uh buyers scoop it up at a lower price level here All right, so Anyway, this is these are very very simple market mechanics But we're understanding the context in here now if you don't have that context You kind of kind of wonder why why did the market uh drop here? You know, you don't you don't see the um, uh high liquidity coming in you don't have that context Okay, so it's well all of a sudden you found some sellers why? All right, and that that's not very helpful. Uh, it doesn't it is less transparent Uh, that doesn't give you the insight of what's going on All right, so uh, what about down here? Did we trade into high liquidity? Uh in these areas in these areas here Uh, this is going to help answer a lot of questions. Hey, we didn't Right, so there might be more selling pressure still Okay, this is what we need to determine all right, so um, and uh What I wanted to get into is momentum moves, uh because This flag pattern that we were talking about here Uh instead of like thinking of it of a flag pattern think it over as momentum moves right and uh just looking for um the Momentum to continue Okay, so for example, here's a little bit of momentum Okay, and then what about this in here and let's take a look at the volume in here And let's look at the also the order book and how it might affect that momentum Hey, well we the we see the buyers come in and look where it went to It went and traded into high liquidity here Now we have more momentum. I'm looking for buyers now to take it up Okay, and you can't even say it fast enough Uh, it's it's because we're finding these buyers in here Okay, now they're above that high liquidity in here too right here at 72 50 All right, so there's still more buying pressure above that great No, looking forward to come to the next swing or the high liquidity on the offer Okay, so now we had another strong move here Looking again for this continuation move in here looking for buyers Looking for them to trade up into this high liquidity here Okay We're we are looking for buyers. We're looking for a continuation move here Uh and momentum now this does happen to also look like a flag Hey, and it it is You know, here's our chop our back and forth Uh, here's our impulse move Here's our kind of a slow down in here Okay, and then looking for buyers to come back in Okay, now we're leaning on and this is the important factor in here about these momentum moves We found buyers in here Uh, and uh, they were able to lift this market And so we're looking for them to come in again Uh and to continue And we're leaning on all of this previous price action here to see that they are in control moving this market Okay, now we we don't see them yet. Uh the sellers just came in and slammed it here on the on the bid All right, so uh, but we're looking for it now. We're not we didn't we didn't see it. So we didn't get caught up in this Hey, but this this totally failed in here and it was it failed in here By this large larger player activity. This here is a book sweep And it is it is a larger player hitting the bid hard And uh, we do see some stops in here that were triggered. Uh, just just here at the very very end. So there are people in here that were Uh, had a stop loss Uh, that was triggered within here could have been this price level all the way down to this price level Whatever it is, uh, they were filled down here and we can verify that our Um stops in icebergs on chart Okay, so where is it? Oh, maybe I don't have stops showing On See here should be showing Yeah, hold on a minute here What did I do? Hey, there are stops here. We just had a small stop run in here Or rather rather good one Showing Yeah, it was like 50, uh that that that transacted in on a minute here Oh, yeah, it is it's showing something in there. This is i'm sorry. That's what it is. I couldn't I couldn't quite see it in here Uh, this is this is grayed out um a bit. Um So the transparency here, uh, so there's 40. Uh, there it is So, yeah, I didn't I didn't see that there. Uh, you you can um, you know, uh, filter out, uh, the the Stops and icebergs that don't meet a certain threshold So, uh, in this case now we're showing them all where you can see actually it's a little grayed out here on the icebergs up here You can see so it just that way you don't have to see everything in here Um, and uh, you can you can look at, uh, um, you know The ones that show the most are the ones that that really stand out Right the the bigger The bigger moves in here All right, so, uh anyway, um Yeah, so this one failed in here, uh, we were looking for it We saw buyers were leaning on these buyers here and someone came in and and uh and moved it away very very quickly Uh and and sold hard now. Let's take a look at this though and like why you know, we were looking for This move up into here and we had our reasons uh for it Uh, and uh didn't didn't unfold Uh, so um But we did stay away from it. Uh, we're looking for our buyers to curl in up in here And we did not get that So, uh, uh, if we don't get it, uh, that's not a part of the uh the plan and we're not looking for it All right, so more sellers are coming in uh and uh moving the market lower And uh, yeah looking pretty good actually on the on the sell side Let's see if they can continue. We just had a big stop run here But looking for them to continue here the momentum now has totally shifted Look at the bars down here. Look at the dots and uh Looking for more sellers to hit the bid into This liquidity down here and whereas This is what we're leaning on previously Maybe some stopped or trapped traders in here buyers coming in a pullback and then continuation move It failed and we're getting a continuation move to the downside here in fact This is what we were competing against In fact, you could look at like this is being consolidation. This is your impulse move This is a pullback and this is continuation of this move And that's why we always try to look at it depends on the time frame Uh, and this is the uh, uh higher time frame move Hey, uh, or at least Um from this point onward actually right up here. So right after right before 1015 Uh, we are still actually bullish Uh Maybe I shouldn't say that We are bullish from this point here at 930. Hey, there's still more buyers than there are sellers Right. So uh buyers are still in control of this of this price action for today Okay, sellers are coming in though to test that control All right, let's see if we can get our our sellers come in again and hit it into 66 um And potentially below it here 66 would be the first stop Uh, second stop would be down here around 64 or or maybe low of the day here Uh 62 and a half or so Yeah, caddy. I mean it's it's choppy and we're kind of going back and forth between bearish and bullish But it depends on the time frame you're trading and and you're looking at Uh, like in this small time frame right now, we're we're bearish Uh, until we see something different Right when and if we're looking at this zoomed in time frame in here Uh, we were we were bullish Right, just just because of this move in here being kind of an impulse move Some pull back in here and then looking for a continuation move up into the high liquidity And we we didn't get it. Uh, this this fundamentally Like it just changed changed everything basically in fact look at the all that not only after this move and this Sweep to the to the downside look at this high liquidity. It comes in and and kind of caps it off here at 72 and the reaction to that was not enough buyers into it sellers start to come in And and then we see the the strong move into 67 Okay, and the high liquidity here we're still looking for the sellers though, uh to hit the bid here okay now Again, that's what we're looking for because of this momentum Right and we'll read the order flow in here. So this looks pretty good right now For it to continue to the downside Okay, so we're not looking for buyers to tangle with this here Right. We're we're leaning on this here For continuation Right now we we got our move. Okay reduce some risk on that our 66 was our first stop Okay, we're still looking for the continuation move here, but uh Reduce some risk. We don't know Let's suppose the same thing that happened up here All right here. Okay this book sweep right in here All right, what if that happens on the buy side? All right, this is how to protect ourselves from the risk Okay, so we don't know so take some risk off at the high liquidity. This was our first target And now that was you know back in back in here someplace. Uh, we're looking for that continuation Okay, uh, and like I said, we're still looking for it, but we don't know Uh, if something let's say let's suppose some buyer comes in and sweeps this away and you see it all the time They would sweep it Probably up above here and we'd look for a big green dot in here for them to pull that market up That would be the scenario Okay, but the more likely scenario here is we'll continue to the downside and we're looking for that right now here Here's this kind of a Potential move here. We're still we're still bearish until we see something else Hey, see see the buyers come in now Okay, so this is now now it's looking like you know, we'll get this uh kind of sweep move to the upside now It's not out of the woods yet. We're still bearish here Okay, but look at the relative volume in here If this is rather equal to this this is not a low volume pullback So we're looking to see if we can get buyers up here We can get a move right back up into these areas here Okay, where these sellers came in this would be the first stop it would be up here at at this 45 70 level Okay, is this making sense caddy do you understand? Okay, we're going through these different scenarios Reading the order flow and then a potential scenario in here Uh, and if we see it unfold the way that we like it then we look for it to continue Uh, what are these stops mean in here? This these these are uh as an order type. Okay Uh Yeah, so yeah here here here come our buyers now. Let's see them lift it here Okay, now like I said, this isn't a whole lot to lean on Hey, but this is not a low volume pullback. So, you know, we have the potential here for this move up into 70 And now look at that flip of the order book as well Hey, they were on the offer here. They transacted now they flipped to the bid And we're finding buyers and they're pulling at 70 Okay, so we're still looking for it to go higher all right Okay, again understanding these market mechanics From the first principle moving forward Can be very very helpful. It allows us to see these potential scenarios unfold Okay, so this would be our first target uh caddy And we're still we'd still be in this still looking for it to come maybe back up into 72 Okay, we have a high volume node in here meaning all of this back and forth in here Maybe it comes to here instead 71 and a half Okay, so just looking for that now. This is this is a nice little move here Okay, and look at the order flow again See how they're pulling on the offer See how they're adding on the bid in here now There's a little bit of space in here now so sellers can hit the bid to 69 and a half or or so But I don't see them yet. So we're still looking for this to float up higher Now, you know the randomness of the market Um This is how the order flow can be really helpful is you start to understand this possible scenario in here and shift and change Because before this happened here Uh, and we went through the scenario that this might happen that it happened over here before Right here and it shifted everything and it might happen again and shift everything and it did Okay, so we're we're aware of that possibility and we'll see it in the order flow When we see it in the order flow, we can partake in it So we look for these scenarios to start to unfold okay, and uh Yeah, let's let's take a look again now that kind of in let's zoom out a little bit and dig your picture in here Well, this is pretty good buying in here Okay relative to uh, let's take a look here And we'll take this Blind out of the picture. So all of this price action in here. How does this volume here Relate to all of this selling in here Okay, it's not a whole lot right now But it's starting to build Okay, so therefore we'll maybe take some profit you know, I mean that Just take some off Hey, because we're looking for something that is higher probability More likely to unfold And we're looking at all of this activity in here to give us some insight All right. Now that it sounds kind of uh, you know, it's It's not like an indicator. Uh, it sounds kind of fuzzy Uh, but that's that's order flow Uh, that's understanding this behavior in the auction and it it's not some linear You know, uh equation Uh, it is a it is an ever-changing process in here and we want to look for it and capitalize off of it Okay, so again look at the behavior in here Compared to all the behavior in here And look at the Uh relationship between the transactions the market structure and the liquidity It's these three things over and over again. In fact, that's what makes up all the indicators If we take a look at cumulative volume delta It is only showing you the transactions. That's it There's a lot you can extrapolate from it, but it's only showing you transactions accumulated over time Right, so this is only one element of the market Uh, and that's not enough to lean on All right, we want to look at all three elements in here There's no price structure here Hey, there's no relationship to that you have to look at it up here. You have to look at the cumulative volume delta down here Okay, you have the composite view here in book map right you you see the Uh, uh the price structure first Okay, and then you see the transactions in that price structure And then you have also the other side of the trade in the auction process The the order flow where are they in the order book? How long have they been in? Do they still stay in here? Do they add in here? These are the questions to answer It's not not an indicator in that sense. It's understanding the auction process Uh question here about stops. Um, I mean look Stop run or stop order transaction is only a stop order. That's it Hey, it it what we want to understand or We can look for stop runs like this is a stop run. This is a stop run We also saw this one over here being a stop run, right the one that we thought was a flag and it failed Uh, but um It just means that many stop orders transacted And that's all it means It usually if it's a stop many stops in a in a run like that it means people are getting stopped out They are exiting the markets Hey, because they don't have the account size like larger players to be able to um Leg into uh position Right, so we just get stopped out look for the next opportunity. That's high probability and get in Always getting in and getting out They don't have that opportunity If they have to get in and get out Over time it takes them a while To the bigger ship turning basically Whereas like we're we're like a a really small uh a speed boat Able to accelerate decelerate turn on a dime All right. Well, let's take a look at this now Um strong move top of the range in here Pull back Low volume pull back Okay, so far now it's now it's getting a little different Uh, now what we if this was turned into another continuation move Hey, so uh, uh, let's let's go through the uh the checklist in here. We have this checklist, um Um Add on here that uh, they put together for us setups checklist and this is for the flag pattern by default Uh, and we can go through the checklist Okay, one at a time in here identified trap volume Down here Hey, that means all these sellers down in here are getting the squeeze on the way up And we can verify that by stop runs as well Not so many some Uh, and uh, uh, so we have it right so we can enable it here now. We need to grade it one through 10 How good is it? It's okay. It's not bad. Maybe like a four or five Um, I give it a five. It's pretty mediocre Uh, now what about this strong move in here? Is it steep? Uh, is it a large price movement? Is it strong relative volume? It is Right. It looks pretty pretty dang good actually give that one a nine Okay The relative volume of this compared to all of this in here It's it's it's not as strong as some of that selling here. That would be better So yeah, actually, let's maybe give it an eight then All right So you'll get better and better at grading these along the way when the more and more you look at here Right, so we're going to go through looking for a flag pattern here Uh, a measured move now what what we mean by a measured move in here Is this move here? Is there another potential move in here now again What we're doing in here by reading the order flow and going through this checklist here is by Is understand the previous behavior in here that we can Uh lean on for This move to unfold to the upside Okay, now we're missing it here the buyers are starting to curl in right now So, uh, yeah, I'm looking for Um Well, I I would feel a little bit better if it came up a little bit more, but it's starting to look pretty good You know, we're finding buyers in here Right now. Are they on the bid at a higher level? It's not so great Let's see here if we get enough buyers in here we'd look for this to continue All right buyers, you got it here. Let's see it Okay, maybe look for a pullback. Well, we already had a pullback here actually Uh, anyway, let me go continue on with a measure move in here And and why what we're looking for uh in trying to understand This move here Can it be equal to that and is there a target does it target something up here? Absolutely High liquidity up here at 75 and a half 75 and three quarters. Okay, here come our buyers Right, so uh, we've got the measured move and do we have absorption? Um by high liquidity. Yeah, we have that up in here And we're looking for it to come up into here All right, so we've got that looks pretty good Give that like an eight Okay, what about a minor move now? I'm going through the process and we're missing it here But you know, we're looking for getting in maybe around in here or in here And now that that's kind of high in the process here in this in this move in here But we're we want to lean on this behavior in here Then we're not looking for um, uh, you know a pullback We're looking for a continuation move Right and a lot of times you might get in and think oh, there's a horrible place to get in But it doesn't even go against you a tick Okay, you can have a pretty tight stop sometimes On that if it doesn't work out you can always get back in on another Hey, what about a minor pullback? on low volume And on bidding liquidity up in here. There's a little bit of bidding liquidity in here. It's not a whole lot Okay, now what about it being a minor pullback? Okay, that's not the case here And this is more than 50 of the move Okay So what does that mean then? Well, you know, maybe uh, we're just looking for a move then and and you can um, consider Taking some profit up here at 74 Right, and then maybe holding for for a bigger move up in this in the 75 or 76 level here Okay, why is that because this is not this is a strong move But the pullback also was pretty strong It it was more than 50 of the uh impulse move here And and that's not good If if it stopped here and we saw the buyers start to curl back in over here, it'd be a lot better Hey, but it came back down another full point, you know point and a half or so Okay, so therefore, maybe we're not looking for the measured move Uh, it is less likely here therefore You know consider Taking profit at the top of the range here All right, this is the way to look at this and understand the order flow in here For a more probable event to unfold for you So we do have a pullback. It's not really minor uh, we're gonna grade it um and uh Uh in the low volume. I don't know. It's not so good. Um, maybe a three Uh And uh, okay entry after absorption or exhaustion. Well, we don't really have any of that In here. We don't we really didn't get that uh in here. Uh, so we'll give that like a zero, uh, basically right What about the the um, and that's for looking to enter in here? We don't we see some bidding liquidity up in here, but that's it Hey, we don't see uh any transaction take place. We don't see exhaustion. We're trying to understand the Uh players at this level in here Right and it is better if we can see that they're on the bid in here and they get absorbed Uh, or they absorb that selling pressure and we see buy then we see buyers come in All right So we're looking for something very specific Uh, and we we really don't have that here, but we're gonna give it a zero Uh, what about the next move? Okay, is it strong? Uh strong price move. Is it steep? Is it have strong relative volume in here? Let's grade it It's not so strong This isn't so strong in here. Okay. This is starting to pick up. It's looking better here But this isn't what we're looking for. We're looking for the strong move consistently all the way through this move here Okay, uh, that's after entry though, right? We don't know That that we're looking for that to unfold. It has not unfolded yet. Okay. Where are we targeting? Well, we know our target. Uh, it's up here in our measured move. Okay Uh, we do have that Hey, but we also talked about because of this strong pull back here. Maybe it doesn't make it Maybe it just makes it to the top of the range here All right, so we do have our target, but uh, I don't know. Let's give it maybe a two or three in here Uh, and then exit. Um, well, we we don't see any exit yet If we were in this Okay, this is not a trade recommendation guys. We're going through the process and looking for something that will give you an edge This is looking pretty good in here Right this high volume the strong move here Therefore we're looking for the small pullback and then the continuation and you can see what's unfolding in here Right, it didn't it's chopping around in here because it's not a strong move in here. It was a stronger pullback here This makes sense Okay, why it's unfolding the way it is here. It's still doing it But it and it makes good sense though why it's taking its time why it's chopping Because there's sellers in here too And if we want to justify a high probability trade, uh, we would we would actually look at this here We had a 4.8 here We want an eight or better And we don't have it So we don't take the trade All right It would have been this pullback here that really uh And also the liquidity down in here or exhaustion down in here Uh, it that gives you the insight right, so now I don't care About it being a flag pattern I care about what's in it This is what's important And this is what we want to understand Okay, it is a strong move Hey, it's also a pretty pretty steep or pretty large pullback. So that's not what we're looking for All right, so uh, uh, anyway guys, uh, this is a lot different a lot different Then looking at a flag pattern here in your candlestick chart Okay, so we're really understanding The behavior in the auction here And looking for this to unfold or not All right, and then go through it again and again and again now we can take this little tool in here Uh, and we can uh go into um We can modify it. We can duplicate it here. Uh, we can add another um, let's just uh, we'll modify it here Okay, so it comes up. It's just a csv file that you can make uh, and let's uh Do a save as here Okay, and I'm going to save it as a um Momentum move Okay, we're just going to we're going to simplify it in here. We're going to look for something else All right, and we're just going to look and identify um a few of these items in here Okay, we can still look for trap traders, uh, but we're just going to look for um the um The strong move and continuation basically Hey, we can look at a we can look at also at the uh, maybe the uh measured move Uh, and let's let's save it Okay, and then let's import it. All right, there we go Now we're going to look at this one Okay, identify maybe some trap traders and develop a scenario on a this would be more like a breakout move or momentum move Okay, so we have some momentum in here and we do have it here. So I'm looking forward to continue Okay, I can look at this this selling in here. There's not a whole lot. I see more buyers Hey, uh, one thing I didn't add in here, which I probably should Is uh, are they bidding up underneath here? Where's that liquidity underneath here? Hey, so it's pretty dark in here. So if we do get some sellers, they can hit the bid hard Come right back down here Okay, so anyway, uh, you can look for just simpler things in here. Use this tool here to look for your setup They make your own setups uh import them Okay, the default is a flag pattern. Uh, well Continuation pattern. This is more of momentum here. Okay. Now. What about how is this working out? Momentum wise look at the momentum here steep. Look at it here It's pretty shallow high liquidity in here We're looking for it. We're finding buyers Uh, but uh, we we can read this in here and it's not really the momentum move we're looking for then Okay, we want the strong steep move in here Hey Here we have now we have potential trap traders in here on the sell side But do we get buyers here? No, we don't Nice liquidity move here. Look at that Okay, we're still getting buyers in here. Yeah, I'm I'm I'm still looking I don't see them bidding here But I still see buyers in here So I'm still looking for buyers to try to lift this Uh into here Hey, I don't like it though. It's not very high. It's not very high probability Because of this the way it's doing it in here Okay, so now We're looking for our buyers up in here and what happened. We made a lower high And look at the buyers up here mediocre Watch this sellers Come down to the swing here Uh, or or maybe this swing down here Okay, exhaustion High liquidity reaction to it. We found some sellers A bit of a pullback again lower high No, no no buyers looking for sellers again looking for continuation now All right, so let me get to some questions here Well, yeah, I mean, we don't know if they're getting stopped out facts of life Um, uh, or or um, we just know that it is a stop transaction Okay, and typically a stop run is many of those cobbled together Uh, and that's what a stop run is is sweep sweep of the order book might occur by a larger player selling Or it could be stop runs cascading Or stop orders cascading Um caddy count counter trend trading sure you you can you can look at that like, um But and let's go through an example. Hey, how would you do that? right, um Now the reason that I covered the momentum move is because this is one of the easiest Okay, it's easy to identify and it's easy to trade and you can and you can make good money from it Right, so we were reading the momentum in here and thinking. Yeah, it's looking pretty good and then We we saw this little strong move and this little strong move in here And then it really starts to kind of taper off a little bit in here, right? It went it went from for example um from this To this and then you can see it starting to chop Okay, and then we we can see the sellers we're looking for buyers here. This was potentially potentially trap traders, right? Potentially if we got our buyers here, we didn't so we're at that point. We got our exhaustion This is why looking for exhaustion is important or absorption Okay, therefore we're looking for the move down to this swing or potentially this swing down here And that has unfolded Now it's you know, it doesn't matter. I I'm not trying to call the market because Ultimately it it really it just it doesn't matter Like anything can happen, but if we can Understand the behavior that comes before And put the pieces together it is more likely Uh that a move will unfold in the in the scenario that we outline And that's what we're trying to do Not trying to call the market Not trying to Say anything About oh, we'll look at it did this and look at it that no understand this To understand what might unfold And that that will give you an edge Okay, and that that will give you an edge Uh, and that's what order flow can do Okay, so now look at this here Hey, do we get some some buyers coming in now? We have some trap volume here Came down below the swing Hey, do we make a higher high and let's look at a microstructure Higher high higher high Equal lows here a little no higher low compared to here Okay, well, let's see. There's some exhaustion. Do we get buyers here? Yeah, okay buyers. Let's lift it up into 75 50 And the liquidity's up here Okay, looking for buying transactions here And looking for them to move it up to here Okay, well here's our here's our buying transactions And that's hindsight now of course But it was looking pretty good for this And then sellers came in Okay, we might rotate back up though and we're again looking for our buyers again Okay So now if we get that scenario in here we get our buyers up in here 74 50 i'm looking forward to go to 75 50 Now it's only one point but understand the concepts A bit of volatility there Okay, so something something's going on in here. This is uh, this is news guys So in fact, we should have we should have noticed I was a little too zoomed in you can see the liquidity being pulled here across the board Yeah, we got we got a Powell speaking Also at 2 p.m. Today All right. Well, you can see the liquidity pulled, you know, right around here a little bit subtler We're zoomed in here. I didn't really notice that too much Yeah Yeah, this was a little hard to notice here at this zoom level Wow, look at the icebergs a lot of buying. Oh, not that many actually. I'm sorry. It's only a few hundred Not that many Okay, so again, let's let's take a look at now everything has shifted and changed due to this this event Strong move to the downside pull back strong move to the downside now. It's already traded to this high liquidity Okay, now we're we're not looking for buyers here. We're looking for sellers. We're looking for exhaustion in here not looking for That's just moving too fast Well, yeah, I'm I'm I'm not looking for selling down here right now Hey, look at the look at the move into this level here Hey, and we're not seeing sellers Hey, so, uh This this here is our like a triple bottom with sellers pullback Some sellers but some buyers back and forth in here and then here No sellers We're not looking for it to go lower We get buyers here instead. Look at the buying build here Move one pull back two back up into the Well, I would look for it just up into here to be honest It looks like we got more momentum than that So we're looking for now up in here 75 76 this liquidity That's been in this book waiting to sell here. And I think we've got enough buying pressure now to do it Let's see No, they look at that look at that 73 50 liquidity there Okay, back to here where they bought all right now they pulled buyers have it here if they want to buy They can hit they can lift the offer up into here Let's see if we get it Looking for exhaustion down here looking for The the bid now see you see the buying coming in looking for this to continue Okay strong move a bit of a pullback looking for another strong move Okay, high liquidity in here enough buying pressure though due to this event Right buyers versus sellers here. It's a it's this event that is unfolding Can understand that there's going to be more buyers now The markets are volatile in here Powell said something or you know something has been determined. This is the reaction of the behavior and the behavior of the players Take some off up in these areas in here Right now. Let's see. Let's see if we get more buyers in here or not They have to come in right here at 75 75 and a quarter Okay, this is a this is a low volume pullback here, but it's really steep Okay, it's come all the way back. It was retraced all the way back here Okay, so we need to see a lot of buying coming in here. It's not bad Not enough though And I don't see a strong bid I would look for it still to come up here, but I don't think it's worth putting risk on And again, these are none of these are trade recommendations again We're just reading the behavior in here and because of we're not seeing all the pieces that we want And we're not looking for it so Rob, I wanted to get back into your your kind of analysis through your Through your video that you talked about um Well, you do many of these and it was really good. It was really good rob. I really commend you and You know, you you're listening you you um Identified these elements in here uh My only um Uh feedback was that the Not to look for in naming the pattern so much Forget about the name. Just look for the behavior And that that's what really what what what matters in here. That's what counts It really really looking into that. It's like, uh um You know instead of like looking, you know, I got I can't come over with a good analogy Fast here or quickly. Um, but maybe like a painting um a piece of art Uh titling it has tremendous impact on the painting And uh, but you're not looking at the title You're looking at the paint work Uh, you're you're looking at the colors. You're looking at uh the texture Uh the thickness of the paint um the You know, uh, maybe it's thinner in some areas. It's thicker in other areas. You're looking at the brush stroke Okay, it's these things uh that you want to understand and and that's not worry so much about the the title Right and that that will lead to understanding where this this price might go by understanding behavior because this is This is not artwork by a single artist. This is the behavior of players in an auction And they're telling us something Right. Look at this another here's a strong move down pull back If we get our sellers in here now that we don't have much liquidity to go on here So we you know, we don't have a whole lot to look at in here Uh, but uh, uh, let's see if we get some sellers right here and we're not right Stay away from it. Look at the buying coming in here. Look at this We're not we're looking for actually now continuation here And that's a little late But uh, uh, this is why again, it would it would kept us out though from here Because here's here's the here's the strong move coming in And especially here So we're looking for the pull back to here. We're looking for exhaustion. We're not looking for buyers The buyers were able to punch through that area and and hit this liquidity up here at 77 uh, that's not it could be um Uh, Roba like a niction algo in here that you're talking about It's not it's doesn't have that kind of look to it though to me It just looks like high liquidity pulled and added at a lower level It's definitely, you know, I I would imagine that this is Uh part of the game though, uh of this algo to try to show more supply in here Not not really necessarily looking for getting filled Okay, now look at this buyers. Where's that liquidity buyers can take this now Now it's it it's a thin market up here And there's there's not a whole lot transacting up here Strong move pull back. Do we get buyers in here? Let's let's look at our bigger picture. Yeah, all right buyers now We have buying buying buying looking for more and looking for 80 83 looking at a measured move in here as well So pull back Let's duplicate this move What we're talking about is understanding momentum here Okay, let's see if they curl in here. Yep, there they are All right buyers. Let's see And for a 80 82 area more or less 80 liquidity looks pretty good there We don't have a whole lot in the order book here. Just looking at structure and and volume within the structure. Basically So catty you you were talking about, um Countertrend trades, etc. Um, yeah, I Maybe we'll cover that another time um, but uh, you know, we're We're looking for these continuation moves and here's what we've been covering. So we'll just stay on that Uh, but just you can think about it the opposite way if you're not getting any information in here Or a continuation move then that's telling you something too All right, so there's here's our 80 move and now it had to do another pull back in here Didn't happen here or here Kind of pulled back a few times, but it did it And look at higher lows in here And it did it and we're still looking for it to continue Okay, again, and then we didn't even have much in the order book in here We we did have the best thing we had in the order book was this 80 liquidity level here Uh, and then you can also see some up here at 82 ish 82 to 83 there's some up here at 85 as well all right, so, uh You know, maybe we'll see price go and visit that area That'll be highs of the day here for the cash session But is there enough buying pressure to break the high? Yeah, there is So let's see if they do it We're looking for it And we're gonna get probably a lot of profit taking up here Uh, and then we'll probably get a pull back here But I mean there's there's lots of buying pressure in here and this is after you know a news event But you know a lot of traders taking profit at high of the day And you're getting your breakout traders coming in and interested in seeing this higher here Yeah, Louise Powell is speaking. Yeah. Yeah, so I did not see that 11 o'clock too like uh Usually there's nothing going on at 11 Except for maybe speakers. Um, so didn't didn't uh didn't see that pulled liquidity um Pullback target like uh, just you know better than halfway. I'm not a fib trader whatsoever Uh, I really don't like them I think they're misleading uh, but um Yeah, I know and then in three hours, uh, Louise. Yeah, exactly at two. So We're gonna have kind of a wild wild day. I imagine. Um, but um Um The question here about pullbacks is a whole nother topic Uh on these strong moves you can look at these little pockets in here of where the market kind of paused paused here it paused in here it broke out right you can look for the moves to pull back Into these little areas It just it's how the market works and it makes sense These are where the buyers came in and moved it. This is where it retested Didn't find sellers to take it lower finding buyers to take it higher Going off of this foundation of strong move in here Hey, the the pullback could have been deeper. It could have come here and it still would have been good Still would have been good. It would have been like half the the the pullback here Hey back into this little pocket right here this little jag lower Hey, you'll see it again and again and again a guy here. Look at bounce off of here first one Hey, look at the move down into here bounce off of there Now now it finally did pull back to here Right that little area Now, you know look at those areas though and and But look at the order book We want to see liquidity in those areas. Uh, that that really helps And that that matches that okay. We know that there are buyers interested at those little areas Okay, so we're trading up into that 85 level now and we finally got there After some back and forth here at highs of the day at that time So, I mean now let's read this here. See how it it's still bullish here, but see how it's kind of waning Look at look at the price action. Remember strong move Okay, you know, well, is this pullback and then strong move? Yeah This is kind of pullback. But is this really steep? Is it strong? now Now we might see it break out and you know come up in here. We'll look for it I'll look for those buyers to come in But it's starting to you know slow down here Where is slow down slow down's been away? I know So uh miss him Slow down if you're out there Yeah, so now see, I mean We don't know what's going to happen here could be all of a sudden we get massive buying and it streams right up into Not only 45 90 but like 4600 But we'd recognize the slow down in here. We recognize also high liquidity here filled here filled here A bit of a breakout here, but it You know We see here's some more supply coming in the order book here and the reaction was sellers Here again more coming in looking for sellers hit hit into this uh 81 and a quarter level here All right. Look at this supply coming in And now what's the reaction? Buyers or sellers There's some selling all right sellers. Let's see you take it down to this 81 and a quarter See the exhaustion high liquidity exhaustion Oh, okay Well, we had a bit of a pullback again, but it kind of exhausted out and then someone This player came in and we don't know with the when or if this is going to happen But they just swept the order book here And they went right through that 81 and a quarter Cut through like a hot knife through butter here. Look at that move Here's our stop run anyone now the this is um What do you call this an atomic event basically? That uh What happened here was the book sweep A seller either dumping Well, the seller is is dumping they're they're selling someone big is selling When we know that because only 40 were stops in here But there's a lot more that traded in here than than 40 So it has to be a larger player that's coming in here and just hitting the market sell button They swept the order book After this event unfolded The best bid and offer updated Okay, so this is correct Data it's you know, it's just the way that things update And we're looking at you know some uh millisecond levels in here But we can go down into you know nanosecond resolution if you want It doesn't matter what we on there understand is that there's a larger player dumping like that in here All right, and this time we weren't we weren't fooled by it We we noted that this is a You know more kind of shallow move here It's not the steep move We noted that is high liquidity getting filled on the way up And we noted that Some selling started to come in here And then it was this in here that really helped it was like this liquidity here Finding sellers this liquidity here And then we noted the exhaustion a few times here here and here Comes back up one more time And then someone just dumped and and uh hit market sell All right, so but that moved the market away Right, and I look at the effect that that move has had on the market so far We're not making this stuff up Hey, we have not found buyers that want to um Uh trade above that area Not enough buying pressure now we might get it You just don't see it. All right, so Anyway guys, we started off talking about first principles and what moves the market And then looking for extrapolating that into um bigger moves understanding the Momentum moves uh in here Here uh caddy. This is we can go through this in here. I mean this was our move to the downside But look at look at all of this back and forth in here And let's let's try to zoom into it precisely so we can just look at the chop in here All right, so Uh now do we see One in control? Yeah, actually there's a little bit more buying in here, but it's pretty choppy in here Right, so now if that's the case and we do see a pretty big spike in here on the buy side um, but it it traded into some liquidity and it's a bit of a Not much but a bit of a um iceberg But what we can do is we can start to understand if you're looking for range bound activity Well, then this below here And you start to find some buyers come back in you can look for it to come back into either the um Well, yeah, this is not a good good trade then Um, but the high volume node which you hope is maybe here middle of this range or To the top of the range here back to 82 because this is chopping Here we don't have someone in control in here So look for a little bit of a move below a bit of a stop run Uh, like this buyers come in and they'll move it back in right In this case, yeah, that didn't unfold Right, so uh sellers came in instead and and continue to move it lower But this is one one we don't know who's in control Uh, you can look for these things Okay, so the back and forth in here And yeah, I that's I mean this kind of exemplifies it in here. Um That it's just less probable. We don't have as as high probability on that. We know who's in control Uh, that's why momentum moves are easier Make sense Okay sellers Not too many buyers in here. All right. Well, and then high liquidity here. So You know the move would be then sellers should be able to drop drive it right back down into 77 77 and a half right And this is the volatility though. This is what I It just makes it less clear. Look at this. This is a little battle in this little area right here So we don't know who's in control there Right and that's that's what makes it less probable because if we look at high liquidity and do we find some sellers? Yeah but uh It's just not as uh Not as likely A chop it really is a little more chaotic And the order flow is telling us that Okay sellers starting to take control in this in this market now in this time frame at least Okay sellers sellers back and forth sellers So We get enough in here again. We should we should get a we'd look for the drop into 76 75 Um, I don't like it though. Yeah, we might just get a pull back here to 79 Yeah, here we go and then but but sellers remaining control from this this point on right Oh, that's where we can go through and look for the opposite scenario though What if get our buyers up here? Okay, then doesn't matter these sellers will not be in control anymore Here we go. Let's see. Let's see a buyers yep First stop here at 80. Let's see if they can get up into 81 and a half Okay, try to try to upend these sellers Uh and take control back of the market If bid looks good, we're getting our buyers looking for it to go higher To 81 and a half And now they pulled Hey that liquidity was looking pretty good propping up the market in here We still got the move All right. Well cathy was that helpful for you now look at this move up into here you know, I I see large lot tracker, you know, I see high liquidity up here Uh, it's at the top of this range in here You know, this is where I'd be taking a profit And I don't know what's gonna happen like uh, maybe uh, uh, all of a sudden someone comes in I mean, they're still they're still buying here Oh, maybe we'll get our move into 85 86 No, but uh in this Um in this time frame when we're zoomed in here, we have high liquidity. We're in the top of our range in here Um, and look at the relative volume in here in this move in here. It's not very strong Right. So this is a good area for me to take profit Hey, just reasoning through this using these first principles and understanding the markets and the moves instead of having to uh Learn by analogy and learn by a pattern in a name Rob, I'm not picking on you. I'm not I really like your analysis. You've you've really, uh, Did a good job really good job there Right, you're talking you're doing the same thing you're talking your way through this market Looking for these specific things Just uh, my own there was my only comment is Instead of like looking for a name and saying well, it's doing it's looking like a flag pattern here Stay away from that and it's like it's looking like there's strong volume in here in this steep move To the downside. That's what that's the way to call it Hey, and then in the pullback move, it's the retracement is not much and it's on low volume And there's high liquidity On the offer that that keeps it from going higher Hey, or seller or exhaust out by the by the sellers Our buyers so sellers do sellers start to curl in Yeah, you're looking then for a continuation of that impulse of the second impulse move See here. Uh, what else do we want to take a look at? Um Opportunities It's looking better and better. I mean look see look at the it building here, but like um, you know, uh A retest back up here again I'm not looking for for much guys, I wanted to mention, um So, uh, uh crash f16, uh Congratulations. You won the blue jacket, uh for the month, uh, and We're gonna do a an event, uh with uh with crash Uh next thursday Hey, so he as you guys know, he's been, uh Uh using market pulse a lot Uh, and I want to dive into that and we have a few extra minutes actually, uh, tom is uh off today So I think um, uh, maybe I'll I'll stick with it here, uh for for a few more minutes at least and and start to go through um some of the, uh Market pulse tools in here It is there's a lot to glean from these market pulse tools Now the reason that we we we just covered momentum in here today. That's what we wanted. I wanted to go through and I wanted to Start with first principles and understanding what makes the market move and then what makes it move more Uh, you're looking for more of the same thing. That's what's going to do it That's why it's an easier setup and easier trade an easier thing to do Uh is uh Look for that instead of the chop, uh back and forth uh and So the um Yeah, these these market pulse, uh That tools in here guys are pretty incredible now It's it it's a different you want to still use this the any tool that that, uh, uh is Looks at the uh the market in a different way. Um The way that we've covered it always has been order flow rules first Uh, this this is what moves the market, uh, or affects the market the most Is the order flow uh and the transactions the order flow the price structure Okay, but uh getting insight additional insight from other computations other in indicators um Can can add so much more, uh to it. So it's a confluence Right, this is the important thing even stops in icebergs. This is a confluence now. This is not an indicator though This is a market condition. These are stop orders. We're knowing Not only the order flow we're or we're knowing the order types that are transacting that is a deeper level of insight But the specific order types iceberg orders hidden from us in the order book that are transacting Stop orders that are transacting And that's a that's a subset of all of the order flow though. It's important to bear that in mind Okay, so, uh, let's take a look at Uh, some of the market pulls tools. Okay, so we've covered a lot of them Um already So, uh, I know what uh crash is Mostly looking at and a lot of you guys are probably mostly looking at is the volume pressure and volume pressure and balance tool Well, let's let's take a look at that Yeah, rob. You're on your way, uh, man. Like just keep going Make it more and more objective Explain what you're seeing And then once you start to do that like because we get the question like our last, um Bookmap academy meeting we got the question about well, how do you know? You know, if this is uh A strong momentum move like how do I grade it in here? Well, you'll get good at grading it You'll get good good at understanding what what you're looking for exactly Uh, if you go through a bunch of these in here, you'll be able to understand Yeah, you know, it's more like a seven or an eight that i'm looking for whatever it is Uh, and and that's that's how Uh, and uh now you you're becoming an expert So that that's why um, I I wanted to to just go through strong moves Understand the strong moves like this has a potential here for a strong move. Where would it go likely to hear? Likely why because this is where they sold this is where there's high liquidity here So you can just ride it up to it, right and we just talked about it and it was here Right, so no, okay. I know it's like a you know point and a half or two or whatever um That doesn't matter You start to understand these moves in here Uh, and uh, uh, it opens up everything Everything if you zoom out on a higher time frame And understand that this might be these sellers might be trapped in here if you get enough buyers in here look out, you know Looking forward to trade to another whole range up in here Anyway guys, uh, let me uh, uh jump back in here to uh, the market pulse tool Okay, so volume pressure uh in balance such an easy one um To look at in here. Okay, so for example Uh, just starting to hear it on on the buy side now The way that this is we've seen this work and and what's so great about this tool Uh is the um the volume pressure And let's get rid of stops and icebergs for a moment The volume pressure when you start to see uh, it go above this threshold of 70 percent Right, so the setting in here 70 percent is the threshold Um, and then we have a half life in a training period. You play around with these. I just use the default I know other guys are using, you know, three minutes or or so Uh as the uh training period look back period But uh five seems to work pretty well for me Uh crash will go through it in in detail on on thursday on his setups but uh just understanding Where these thresholds are are you know being met and this is what's important Is to match it with some of the price action So five minutes is looking pretty good to me like it It hit it here Let's just zoom in a little bit It hit it here Okay, so that's not a bad place to you know take some profit then uh in our move Okay, now we just heard it again up here We have high liquidity and it was just hitting it now. Maybe that's not enough You know, it just it just hit it here You can see it's just a little bit of green and we heard it actually it was right on this one And we didn't even hear it here on the big move up Okay, but we just heard it now on the sell side Okay, so Well, it's below the swing in here. This is a pretty strong move here But we're we're looking it's equally strong here buy side sell side All right, so then why wouldn't you look for maybe chop here caddy? This is another way to use your chop uh if this is a um Not the strongest move relative to this one here Well, we should find buyers take it right back up to maybe here or to here this liquidity Or this little pocket in here that we talked about earlier or maybe it'll take it all the way back up into like a 87. Let's call it Okay, but we had our capitulation here and our sell volume. It's also a stop run You know, you can't make this stuff up Here it is stop run below a swing Uh volume pressure and balance extreme Here another pullback in here. Let's see Okay, so what now would be looking looking for maybe um We should we should hear we hopefully we'll hear another like uh Came very close to it almost sounded off here Uh right in here Okay, so now we're looking for our buyers and now I want to hear market pulls on the buy side Up into here or here Okay, let's let's let's look for it No, look look for it here Let's hear for it. Uh and uh looking for 80 86 in here 86 liquidity, but I like 87 better all right, so anyway, uh this is One way to go through and look at your setups in volume pressure and balance And now you didn't hear anything in here. So you still be in this basically Again, this is not a strategy This is understanding again order flow and then Using this tool together, but you can so easily back test this. Uh, it's fantastic And then match it up if you don't see it play around with the settings try to match it up Look for that capitulation your stop run Uh into high liquidity at the end end of a range or uh at a structural area And then look for the sellers to come back in and take it the other way All right, so I'm I'm losing some patience here. I want to go through the other other ones in here The other another one we looked at was it's been renamed in here Uh, and it is now called. Um, I'm not trader map pro It is now called uh order book pressure So volume pressure order book pressure Uh, and let's look at imbalance here And and we'll click play uh, and actually the we're going to add volume pressure and balance for um The es in here Uh as well, we're going to look at two of them uh together And let's bring down this volume And these two to play off of each other in here Right, so what are we looking at in order flow? Well, we're looking at the strong moves and we're also looking at pulled liquidity On the offer in the move up or the or uh, you know more on the bid To support it Hey, these are really simple ideas, but we're going to use uh the um volume pressure and order book pressure or imbalance Okay, basically the same things in here, but just uh using this um Indicator So hold on a minute. Let me go to the settings I want to look at the I want to look at the delta percentage Now guys, there there's uh, I didn't know about this uh until last week Um, uh, there are you can change the colors in here. We have both lines in here All right, so the way to if you want to change the color of the lines Let's suppose we want to look at order book pressure It will hover over it and and note that it says like um, which which one you hover over Uh, it'll tell you uh with this little um tool tip over here Okay, so this is the order book pressure. Let's right click on it. Then we'll go to colors here This is where you can change the colors. This is the only way you can change the colors Okay, you can't change it any other way. You got to right click on the line down here Uh, and then let's look for Um the line here to be yellow Uh, let's say okay, uh, then let's look at the The green color in here, uh on the bid side, uh, let's change it Uh, let's make it blue Uh, and then on the uh extreme on the um on the red side Okay, let's change it and we'll look at uh Let's look at pink Dark pink or something like that magenta Okay, so now we can see Well, we had order book in balance Down in here Uh, and we also had uh volume pressure in balance That was low Okay, that's kind of an odd one actually you you we're looking for Boy, okay. There's there's our our buyers coming in right We didn't get any other reading in here just now We got the volume pressure and balance on the buy side and that is to well to our move now Okay, and if that's what you're looking for then you would take profit Okay, very simply Okay now that's just by looking at these things in here with order book and pressure now The it would be better to ask yourself a question up here Take some off sure Absolutely because it's it's starting to chop back and forth, but look at this volume in here It's pretty strong Okay, so we might get a continuation move then And this is that like an impulse move in here now Okay, and a breakout Okay, so we we know that there's high volume coming in We're waiting and to hear the market pulse And we get we we get that uh output Uh it hit our target take some off, but this is so strong in here stick with it This is why don't you just don't reactionarily Make decisions in here Base it off of this relative volume in here. This is strong It's going to overpower this at 87 It did it's still going higher. You could still be in it Okay, where 95 potentially it's still strong here Okay, now read it up here now This is strong, but look how it waned up here Okay, now we're still looking for it to go higher, but We don't want to we want to see these kinds of dots up here all the way through strong consistent move Okay, now we what happened here is we had a book sweep above that level and strong volume Okay, that's what happened here Okay, instead of like uh it had it had a sweep back up above it and then we got a strong move All right, but we didn't have strong volume up here the auction wasn't so strong Therefore we would look for some sellers to take it back into kind of a mean reversion And that would likely be somewhere around in here Okay, which kind of did that Where it kind of broke out Now the or the pullback into test that strong move And then someone just swept the order book above that that level it's at a new price level now completely right, so This is has been broken now the level is this Okay, so looking for pullbacks into there All right, so anyway, you can use these two together very very effectively and Is the same thing we're looking at and we have been looking at for years in here regarding order flow It's all about the order book And the volume and the structure Okay, so let's add in Well, and then we're we can compare them in here as well And we changed the color. I wanted to demo that for you guys All right, so let's close these and let's add in also the Other ones in here. I want to I want to show this to you because you guys you guys have free access to it so go for it play around with them And we have absorption and some of you guys didn't have access to absorption and the sweeps Pressure as well Well, we can we can add that in here if you want to add these but you first need to add the indicator okay, so Let's let's look at the sweeps one. I need to add it here first In uh into the the s and p e many Okay, so this is going to be an indicator upon an indicator Which is a great thing in here because it's like uh, we're able to really um Uh Look at something very very specific Okay, so, uh, yeah, I've added it. Let's go into automatic mode in here Uh, it's gone down to 219 Uh, and let's uh, let's see the uh Here are our sweeps in here. Let's get rid of stops and icebergs on chart All right So we have sweeps. Okay to the upside here book sweeps Uh, and this indicator can can show that um Now, uh, what we want to look at is the uh um Not just where these sweeps are occurring which is giving us really good information here Uh, to be honest, uh now we can also add this to market pulse This is fantastic. Um, so, uh, let's look at sweeps pressure and balance And we'll click play So what's going to happen here? Once this loads Uh, you're having an issue with it, um Steven Yeah, I mean this this is going to take a little longer to load in here Because we got, you know multiple computations on sweeps And then it's parlaying all of that taking that data from sweeps into a new indicator in here Look at the sweeps. This is great Um, so and this makes total sense. This is how this indicator works. Uh, it which is really interesting um And and it's giving us good information it is actually telling us when these sweeps are occurring Uh market pulse is sounding off as well Uh, pretty pretty much right on target Okay, so if a sweep unfolded we're going to hear it now in market pulse So how can we use that? Well again strong moves and looking for capitulation at a certain point or Uh, there's only so much volume pressure the market can handle at once and it's not it's got to take a break a pullback Uh, and that's that's it. Um Stephen try try, um Uh downloading it again remove it. So go go up here go to um market pulse remove it Um, and then download it again. I go into you're you're part of the academy. So you can go into the, um Uh discord room Uh here, let me show you They go into the discord room uh, and then, uh We have a the special room up here Okay book map academy and under, uh, education library here go here, uh, and then Uh, it's right here All right, so you can see that that checklist uh setups checklist is here and then also the market pulse add on is here All right, so you can download them both in here. So download it here Uh, and then that's that uh, it's the beta version. It'll work And this is exactly what I did you you may you may need to restart your book map Okay, you will lose your mbo data, but but uh, uh, you may need to start restart it Okay, see if you get it or not Uh, and see if it works for you Okay, the new beta version will work. You also need to update Uh, all you need to do is is is come in into your add-ons manager here Uh, and make sure that you install any updated available for install here You know to update for your sweeps and absorption indicators. Make sure you do that Okay, but you can do that through this um add-ons manager. It's all in here All right. Anyway guys, we're not getting any readings or outputs on it right now Uh, but uh, you know pretty nicely nailed it and then we look for like pullbacks There there where you go again there now we're hearing it. Okay huge huge book sweep huge Okay, and another one All right, so now exhaustion. Let's see if we get sellers And we're not looking for much. This is this is your counter trend trade basically um Or you know what you can look for is a pullback and then the continuation move Uh, but after after this kind of big sweep you can look for your pullback your retracement Okay, maybe up to 50 percent maybe more maybe to the other side of the range Okay, this is some pretty strong moves in here though. So I I would not be shorting this I would not be looking for pullbacks in here All right, they just swept it above all of this price action yet again Buyers in control above all these areas in here. It puts the pressure on everybody behind here behind it right, so They become the buyers up in here anyway for you guys that um want to um Kind of understand this uh indicator in here a little bit better What exactly it is doing Uh, let's let's it's loading here There we go. See see how this kind of curved and pulled back on all of these in here and also this one here It curves it comes back to really close to the zero line That's how the indicator works if there are no other inputs in here It will the this half life period At 10 seconds every 10 seconds it continues to pull back to zero And that's what is you can see it here visually Hey these nice curved uh pullbacks in here Okay, because we're not getting too many outputs So, you know 10 seconds goes by it comes back halfway another 10 seconds goes by it goes back another halfway It never will reach zero It's always going halfway to zero All right, so that's the half life period and it's just it's just nicely visualized there So play around with that one, uh that we had to sweep here actually to the downside it just Should have shown up in here. Maybe it just just touched it in here Well, I'm sorry. No, it doesn't have to it doesn't have to um We got a sweep in here, but we don't have uh Something even close to 70 percent Yeah Absorption does the same thing. Let's let's add the absorption indicator in here Play around with these things guys. Um, have some fun with it. You know, you have free access uh Someone like crash he he uh Yeah, he totally integrated it, uh within his uh his way of trading. Oh, let's see here absorption And market pulse Take the sweeps off Now see see uh, steven. This is probably what it is too. See how it says here that this algorithm is connected to the sweeps indicator however, um You have either Not selected an instrument or the sweeps indicator switched off on this instrument Okay, that's why you get the warning here. So you have to have it and you know applied to the uh the es in this example Or whatever market you're looking at Now note, you know, you can click on here you can add it to multiple in here as well Not just the es you can add it to all but you need to add the sweeps indicator to all as well Right, that's how it works Uh, so uh now we don't have sweeps but we have absorption. So let's look at absorption Uh, and see now I don't have that warning I can press play All right, and now now I'm looking at where these absorption uh Areas of absorption f taking place or where a lot has transacted very very quickly is what it's showing me Okay, it actually kind of looks like the sweeps but it it's only for one price level Where a tremendous amount has traded very very quickly Only at one price level though Okay, so clearly um, you know here we see downside Well, we don't even need the in in this case the absorption indicator We know that there's high liquidity in here Okay, so a lot's going to transact very quickly in there Boy, I mean this is actually looking just like the sweeps indicator, but uh, uh, this is this is the way it works. Um It's only one price level and there's just many that traded in here at one price level Okay, so it we're getting a reading here on um The absorption pressure imbalance as well right so uh anyway, so we we we got a ton in here Uh, and uh, let's see. Let's see if we can get um Well, this is we know that who's in control of this move right buyers are Okay, so we had tons of absorption up here. We had a huge pullback though. It came back almost a hundred percent The swing it where the buyers came in it came all the way back Okay, so let's see if we uh What we can look for in here with the absorption uh pressure indicator or imbalance Is we'd love to see some absorption on the on the bid so have it be green in here not not getting that right now um, but uh, if we see buyers come in A lot of buyers come in they're pulling on the uh on the offer in here Which we do not see in fact we have an algo working it in here You guys can see uh if we get that and then uh We'd look for absorption up in these areas up in here this 99 level or at this at this point maybe 4600 See, look at this algo is working it like kind of pulling away here kind of skewing the auction here um You know trying to show that hey, you know by me i'm pulling away from it It's trying to it's kind of doing an opposite skew showing more supply, but then it pulls it away here Trying to trying to tempt people to buy basically is what it looks like to me All right, so uh, yeah, I'm not seeing much right now. It's uh And we've been going almost almost two hours now But I did want to we had some extra time and I didn't want to uh since tom usually goes at 1130 I didn't want to eat into his time and we always try to stop at 1130 He's off today, so I thought I'd go a little bit further so I can show you these other add-ons And you guys should have access to them if you're part of the academy If you're if you're not part of the academy you can go to book map.com and click on the more button You'll see academy in there and you'll apply All right, let's see if there's any other questions Yeah, it's a little late Jay, I think I'm going to hold off on the Aussie dollar Yeah, we don't connect to to futures as alouise is Pointing out here. I mean, we don't we don't connect to spot 4x or 4x we connect to the the 6a which is the CME futures of the Aussie dollar Okay, and and the reason being is that the CME is a fantastic exchange They will show you The Total depth of market full depth They'll show you all the transactions everything spot 4x like Everything's shady You don't know if it's the volume is real is it from just like you know One bank or many banks or Is it just locally at that exchange? That or broker that you're trading with Okay, so it's it's over the counter. It's not it's not really an exchange Okay, so you and they and talk about depth. Yeah, it's very limited as well And same for crypto. I mean these crypto exchanges are very similar. However, they're a lot better. They do show depth full depth in fact Okay, we actually have a product that can overcome that with a multi multi book product Uh, this indicator down here is is the uh sweeps I'm sorry absorption indicator and you can see lots of absorption and pulls back to zero basically All right, so now look at this move here Okay to this this this is where the buyers came in okay, so seeing a bounce in here and Looking for these buyers to come in and maybe they can trade it back up to top of this range here Which is very close already Uh, but maybe they can break out. Maybe they can get up into the 4600 here Okay, so now again to watch this. We may see this behavior in here. We've seen it now a bunch of times Is uh someone a larger player coming in up here and sweeping the order book above here on large volume And if they do that Then we'll get something like that Okay, because this move is not a whole lot to shout out about here On that buy side It pull back is great, but the volume is not so great Yeah, there's more sellers in here than there are buyers Anyway guys wanted to show you this uh, um The sweeps and absorption pressure and balances It's an indicator working within an indicator. It's uh, what we call broadcast api we're able to broadcast the And you can write algos based upon other indicators. It's really really powerful And so Okay, that's uh something I wanted to show you Uh, yeah, let's wrap it up. Thanks everybody for coming. Have a great weekend Uh, it's a good good session good to go through a lot of different things in here But the focus was on momentum Uh and understanding from first principles. What moves the market understanding to bigger moves that move the market and just understanding uh From the from the very binary Elements on up into much much bigger Higher time frames. So thanks for coming. Have a great weekend and we'll catch up with you on Monday Yep, take care. Bye. Bye