 Okay welcome to part three of the book map educational course. Today we're going to look at the practical applications over the last two sessions part one and part two. So we looked at part one the basic mechanics of the market which is essential to understand and then part two was looking at structure and then how those basic mechanics function within a structure a price structure and today we're going to start to apply strategies and and setups within those those structures that that we had studied and understanding the order flow and reading that and putting that together with the setup and strategy. Okay so risk disclaimer trading futures and equities involves substantial risk of loss is not suitable for all investors past performance is not indicative of future results. More information go to bookmap.com become a member there and have access to the free resources and you can reach out to us at support at Veloxpro.com or support at bookmap.com. Okay so let me show you where you can find a book map okay it's under the bookmap.com under pricing and you get a 14-day trial period so the there's two different versions there's the basic and the advanced that you can see here and then this is basic and advanced as well but this is including the DX feed and the DX feed is for equities all right so you can get the DX feed for a basic or advanced one as well however if you're new to book map and you trade equities then maybe you want to go with the package deal here okay you save a little bit of money for all of them you get a 14-day trial period so you get to check it out and see if this is something that works for you. The advanced version has these extra add-ons this is something that we're going to cover in the next series part part four okay looking at different correlations right okay the if you subscribe to our YouTube channel you'll get the most updated information when videos and webinars are uploaded and then the Twitter feed as well and a lot of other news and information you can see so anyway that's our Twitter and where you can find book map today's goals okay we're gonna arrive at the auction and we're gonna go through the the structural content that that we need to do okay we need to look at the macro view we need to look at the microstructure in the order flow and in the order book and we need to understand the context of this this is a really important part okay and then we're gonna look at applying the strategy and the setup within these contextual details okay and then we'll go through some training exercises at the at the very end all right so we arrived to the auction okay the the macro view the higher time frame analysis is what's needed we'll look at the daily a daily structure within that higher time frame and the microstructure drilling down okay giving that context to the structure and then finally to the order flow within that structure okay and then in the order flow we're gonna read the auction we're gonna analyze the participants and the behavior of their or understand the the behavior of these participants in their context and then we're gonna read the tape the transactions okay that's gonna be a complete picture of the order book and order flow and then we're gonna apply a setup and and look for that and then optimize that trading execution within that setup okay because we have all the information we have the order flow in front of us and we're gonna utilize that to our advantage all right macro view the bigger picture analysis use any method you prefer it doesn't matter okay maybe you're looking at fundamentals maybe you're looking at market or volume profile different structure and indicators perhaps it's the open high low close or pivots swings trend lines candlesticks and a host of indicators it just doesn't matter whatever works for you mark up your higher time frame levels though okay and you can use the book map column notes column if you if you need all right and yeah Francisco does it does not matter well what I'm trying to point out here is with your macro view is the way that you trade okay whatever works for you just make sure you have your levels that's what's important here and then then we're gonna you know look at the structure microstructure and the order flow within your macro levels okay and this is the same process that most of the order flow traders use out there okay maybe they won't look at the the real macro picture but they will be looking at structural levels for sure all the price ladder traders and scalpers as well all right you just have a much higher probability of that trade working out okay so we're going to choose a simple method only for this demo okay you will use your own method for your analyzing your higher time frames and we need to choose something so we're just going to choose simple horizontal and diagonal lines acting as support and resistance and look at this in kind of a fractal position here between higher and lower time frames okay okay so macro view here this is a daily chart this is the day we're going to look at here I just picked it out because you know here are our horizontal levels okay and we we've been covering the structure and breakouts and price and acceptance and we got one here and we got another one here now I'm looking for pull backs to where we broke from and you can see there's already in one two and then this day is going to be the third and this is the area we're going to take a look at here okay we also have we're in an uptrend okay I don't want to spend a lot of time on these but just point out to mark up your levels okay so here's within the daily structure here's our day here as you can see I've outlined it with the rectangle and I also have another trend line that I put in here okay and we're coming down and we're testing not only that trend line but we have other confluence here of where we broke from previously and you see a lot of initiated bind to the upside here okay I also put in some other lines here in this 30 minute chart just some swings that I'm looking at here okay and then finally here's that day again right and looking at a little bit more analysis on a five minute chart okay and I just have a swing here that I'm interested in because we see time and acceptance and this is all overnight but then here's our cash open okay and we also have a trend line here okay so the other lines were already on that 30 minute chart okay so these are our levels our higher time frame levels we around this 24 17 24 22 and up to 24 26 okay now let's take a look at the structure in book map okay higher time frame levels mapped out in the book map notes and then that overall structure in book map let's start to mark it up okay what kind of environment are we in trending or ranging okay right so here are our higher time frame notes column here here's our higher time frame low that we're looking at around this 24 17 it's actually 24 7 16 and a half and then our five minute swing that we recognized was 24 22 and then the overnight swing was way up here at the 24 25 okay so those are our areas of interest now let's take a look at the structure here okay here's our 930 open and just getting a feel for what's going on out there we're not reading the order flow yet we're reading the the structure and then we're going to start to piece together the order flow within that structure okay so bashing around back and forth as you can see here we do make a new low here as you can see into higher liquidity that's on the bid and then we come back up and test the swing high where you can see there is some absorption here with higher liquidity that jumped into the book okay higher yet is still this 24 25 where the high liquidity really is okay so now we have another insight to this area okay so we are definitely range bound here but we're bashing back and forth and taking liquidity and stopping people out at some of these areas okay any of the weak shorts here I would probably be placing their their stops up in this area they pull this liquidity and we come up into the higher area at 24 25 and immediately drop right back down into the range okay so identifying some of the structure that we were looking at last couple of sessions we can see the order flow and our order book and balance in some of these areas here look how as we trade back down into the range they stack the book on the offer with very aggressive limit orders pressing price down okay we do get a rebound here and then and we see continuation to the downside and they jump yet in again with very aggressive limit orders here on the offer they're lowering their high liquidity here on the offer okay where do we go we test some of that area down here where they're starting to jump into the book okay but they pull so they don't really have intent to trade here and then we can see a trend line here okay so we have a downward trend within this range that we're looking at so where are we going we're going down to test this high liquidity here at 24 18 okay so not only do we test it we trade through it okay and we can see that they're offering higher liquidity here at at 17 and a quarter some of that trade some of it is pulled and we come down into our higher time frame level and this is what's key okay so now we're start to starting to identify a few of the things in the structure okay so the weak shorts well they're they're already out of the market here okay so the and then we have a trap here we have a swing in the cash session maybe people are selling the breakdown here but we're coming right into a high time frame level here okay so let's continue on here the the microstructure the historical order flow analysis so you might need to adjust the contrast levels up here and to understand the larger players in those previous auctions okay we want to identify that longer term liquidity and the overall behavior and the context okay sj we'll get we'll get to that area here in just a minute and then and then the transactions okay where are they taking place here okay within this microstructure okay and what we have here is it's actually looking pretty good for continuation to the downside in this area okay so and why do I say that well I mean we broke this low here okay this swing low but on this time frame it just looks like it's a pretty pretty weak okay we have the trend continuation to the downside we broke this swing at 2418 and and then we're we have a confluence here we have our trend line as well as the horizontal line okay so it's looking pretty good all right for continuation to the downside but okay we already went through that all right so the and then and then we can see the high high liquidity starts to jump in here on the offer okay we get a pullback to where we broke from here okay so it's actually you know although we do we did knock out some of the stops up here and we and we do have the breakdown here I mean it's kind of you know it's it's kind of both ways but there is it does look like it's it wants to continue to the downside okay but let's let's start to look at this though and break it down all right so our structure broken up here okay and also down here and then our higher time frame level trap all right that's what we're looking at here that in our higher that level we marked out all right and then our longer term liquidity okay we we trade through this these areas here okay now we also note that we get into our level here and we don't see a lot of aggressive selling okay so there's just very little on this little tip right here all right so we're starting to get maybe a little bit different pictures kind of go in both ways here okay the volume analysis you know look at our our profile well we want to see although we see some big dots down here the profile is is also giving us some insight here okay to it there's not a lot of trading down below yet okay all right but on the other hand the technical levels look good and that potential for that book flip all right so we'll continue on here and what happens all right well we actually get a break of the structure we trade right back into the range and and you can see there's some some buying that starts to pop into the book here okay or into the into the volume profile of the range here okay let's zoom into that area and this is what it looks like okay so now we have that structure broken and now it's actually you know due to our higher time frame and higher supply and or our demand and balance at that higher time frame we are still in that uptrend okay we can start to piece together some of this activity here okay and what's going on all right so now the picture looks a lot different okay we have exhaustion in some of these little this little area down here okay they're starting to bid higher okay as we can see here in the book this liquidity is telling us something we still have our volume analysis here okay and then now this structure is is broken here both of them okay we we trade back into the range and the initiated buying sweeps the book okay here's our sweep right here it's actually a micro structural sweep down here as well there'll be a micro structural trend here as you could probably visualize but this is what what is key because we're breaking that the bigger structure here okay and and trading up into this 2419 level okay so what now let's let's take a look at a reversal strategy and the setup in the context okay we're at a higher time frame level okay our micro structure has been broken okay these are our key to understand in that context okay what's our liquidity context well we had exhaustion we have higher bids and they're pulling the offers too okay so let's go back and review here so this liquidity was like a spoof okay they they were showing high liquidity in here and it was looking like it was a pretty good move to the downside all right but they pull that liquidity as price comes up and trades beyond it okay so they had no intent to trade all right what about the volume we we covered the volume profile and then we see we also see steady initiated by volume that above the broken structure in that book sweep okay and that is this volume here okay all right so let's now we're starting to eye this reversal here and starting to think about execution okay so identifying targets of high liquidity consider front running that high liquidity because we can see it right there in book map in the book so maybe front run it by a tick or two and consider taking partial profits at that area of high liquidity okay and then maybe moving your stop up okay on your entry well in the context of the move we're looking for a pullback to where price broke from okay now what also occurs if you get a you know an aggressive move up out of that area then your entry is going to have to be more aggressive as well so maybe consider entering at the bottom of a microstructural range or if it's really aggressive then look at that last flurry of volume in the cluster all right and you can consider for entries here you can consider layering orders in that zone okay and then if you're fast enough as well or if you're trading automated strategies you can sit you can consider pack hunting and joining the initiated buying okay our stop order will go below that initiated buying okay so here we go all right so the zone for entry we're looking for a pullback into this area here all right our targets we're looking for front running that high liquidity up here okay we can this is where we noticed it before and they're still in the book here okay and we also look and look at the this is back into the range and this is our session range volume profile and this is the VWAP for it at this time okay so that is also a potential target all right so now let's continue on here and then we do get a move down and it's it's not much it's we've been looking for that nice pullback into this area but this is turning into more of kind of like a V bottom reversal because we don't we don't get a pullback to where it broke from here and instead we do get a break of this little microstructural range here just by a tick here or into this area here and that is your that would be your aggressive entry okay your potential aggressive entry here okay for testing the below that microstructural range all right and then we actually we go sideways here for a bit and we actually come back down and we do now get that test into the this zone here okay so if you were very aggressive you would have entered some place in here and if you're more conservative waiting for a test back into the where we broke from well we didn't go all the way to the tick we came one tick away but probably this area here would be where you would want to consider your your potential entry okay and let's take a look at the what's the liquidity telling us here okay we already know what the volume is telling us so we can see a lot of the initiated bind and now we made a higher high with volume trading up here into these levels so the volume looks good but the the auction looks pretty good too okay we started to notice them coming into these areas earlier okay with high liquidity and and they're still here and they're starting to add more in okay and we also see them flip the book here potentially or basically it's it's not the most aggressive flip but they were here on the offer and some of that trades and some of it is pulled but then they they jump in on the bid side okay and our first target that that we were front running that high liquidity here at 24 21 that area is hit okay okay all right so let's zoom out a little bit and take a look here how is this how this is unfolding this was our pullback here and potential entry and then here's our target up in this area here and we actually get another potential entry here now you would be scaling in and out of this position because this is a reversal that we're looking at so your potential pullback into this area here and then we can that that that could be one potential entry but then there's also another one here okay and we're going to go over this strategy okay the aggressive entry joining that initiated bind okay because we can see here more initiated bind jumps in and and sweeps the book to the upside here okay so our momentum strategy okay so let's say we've scaled out and we're looking to re-enter and take this reversal higher okay so we're above our higher timeframe level okay that structure is holding the liquidity context exhaustion at the lower at the low of the range okay they what about the where are they bidding they're bidding higher and they're pulling on the offer okay so this is starting to look good for continuation to the upside what about the volume the buying volume cluster at higher higher areas and then we we see large initiated buy volume at the poc of the microstructural range okay so let's go over some of the trade execution here okay here's our time and acceptance in this range okay and then your aggressive entry here going with that momentum to the upside okay looks like you know we covered this yesterday we're looking for a lot of initiated bind to pull price up into a higher level okay the structure is holding as you can see we did not come back down below the swing here and we also note that there's some exhaustion in these areas there was once before and there is still again okay I mean there's some trading but it's not much compared to some of the other areas and we see a lot more green okay and we start to see them starting to pull some of that liquidity in these areas here too okay so an imbalance in the book but they're pulling that and and they're still here on the bid okay in the at these higher areas here okay so all right we initiated buying pulls right up out of the this this range and we're going to start to trend into and trade into a new range and then so our execution for that strategy okay identify the targets of higher liquidity like before you can front run it and then consider that that partial partial profits with the momentum strategy but we're looking for trend continuation okay we're gonna we were looking for that initiated buying to trade up into a new range and then we're looking for that to repeat yet again okay the entry you may have to be really quick on this one or maybe you're trading automated strategies for more advanced traders but if you're looking for an aggressive entry okay so a market buy after after you start to witness the large and it has to be large initiated buying okay where would the stop order go it'll go below that initiated buying and you can be pretty aggressive with that because if they if they bought very aggressively okay they will continue to buy and we're looking for continuation to the upside all right so you can be pretty aggressive with that stop order and this strategy this momentum strategy we're adding already to the reversal that we're looking at okay so this is excellent for that continuation into the current position scaling into it okay and targets well at this point we we we're looking at that target up and maybe that higher liquidity up in these areas here or maybe here but like I said you know we're we're looking for higher areas okay and so you might want to let that run or maybe consider taking a partial at the top of the range okay and all right so great initial move here as you can see and then look at the book flip here okay so this is an important move okay we we go above this the structure here and we see volume time and acceptance up in this area and they flip from the offer to the bid okay and they're bidding higher okay and there's another strategy here we're going to cover this one because we do not see it here we do not get it all right so this is the third one and we're looking for a pullback to where we broke from here okay and this was an aggressive move aggressive enough that we did not get it okay and in fact look at them flip yet again here they were on the offer here and they flip over to the to the bid side up here and and we're looking for that continuation to the upside okay overall how did this day end okay here here's where we were at 20 24 22 just looking at that little that little area here and looking for that pullback to where we broke from here around 24 21 and a quarter and that's what we didn't we didn't get all right and you can see that not only did we trade through the high of the cash session but just with the data that I'm showing here and this is the extent of my data we went up to 24 28 but then for the day we actually went up to 36 and 3 quarters all right okay and let's take a look here since we've got this in front of us we can take a look at some of the fractal natures of these markets okay because if you're trading on the higher time frame okay we went through a lot of a lot of different contextual analysis within the order flow and the order book right but if you take a look back and you're trading on those higher time frames we had our a higher time frame low here okay and we break the structure here but we're still in like a POC or you know at the lower end of the POC of this range here okay this is where that moves shifts okay because that not only that initiated buying that we see here okay and shifts up to the upside and very nice cluster of volume trading up here at a higher area all right and and that that's where the that shift above in volume except accepting above 24 22 and we started to see that there's a flips in the book in this area as well looking for that content okay sorry about that with that connection loss there but all right so what we're going over is this kind of a bigger picture here in the in the structure and this gets into that fractal nature of the markets right within our range bound area here we have the rejection down here and this is at the bottom okay very because this is a very this is a actually more advanced setup to show and I'm going to show you a much easier one right after this but because these are tricky to trade it's hard to get in and out of these well hard to get in a lot of times because price moves away very very quickly okay so that's why you may have to be aggressive with some of those entries okay but understanding the context of that auction and the traded volume and within the higher time frame structure is what's essential all right for the for the setup and for the execution okay and I was just going over this the we just had that five minute swing here that we had recognized in our higher time frame but the POC of that area okay so it's it's let's see I'm not in I'm in a presentation mode Homero so I do not have that to to show you but the chart range volume profile you're going to see you know the kind of like a single distribution here and then there's going to be a POC of that range okay a point of control of this trading range here okay and that's what we're looking for a break above and time and acceptance above and that's where all of this initiated buying does the trick okay it pulls price up into that new level okay this is where we're going back and in reviewing and putting all these pieces together not only of our structure but of the basic market mechanics okay sweeping of the book you can see how powerful this is okay it looks so simple in part one of the of the course but you can see how essential it is to understand very very thoroughly these concepts okay because we break out of this area and we have time price and acceptance and volume up into this new area okay all right and yeah so we break the the highs of that day and then we get that another another pullback here as you can see and then continuation to the upside all right very very strong move here all right like I said hard to get into and more advanced strategy to show in this reversal I'll put together another one for you where we're looking at you know more of a rounded bottom type of trade and you'll see the shift in the order flow not so dramatic as this all right and then in the order book as well okay okay okay so the next strategy then we're going to go for look at this pullback strategy this is very simple and just a great strategy very high probability here okay set up in context we're in a trending environment okay we're looking for a break of the structure and a sweep of the book to a new level okay liquidity context the aggressor trades through an area through the limit orders and and they it's they're they're absorbed but they continue to trade through that area all right the aggressor is overpower the the limit orders okay and in terms of volume you see big volume dots and then you'll see a cluster of new volume trading outside of the previous range okay so we're trading at a new level and what you're looking for in that volume cluster is the correct delta so if it's a break down outside of a level then you're looking for more red than green okay we're looking for aggressive selling okay if you see the opposite well and it didn't auction quite quite properly then we're looking for a return back into the range and I'm going to go over that with another another strategy next time with a reversal I mean a yeah trading back into the range okay fading the the outside edge okay range bound strategy okay so and and then what we're looking here for is on that pullback we're looking for low volume okay into a low volume node in the profile right so let's take a look right so this is very very simple we can see the 930 open here we're moving down into higher liquidity it tests it here and we trade through it okay some of this is pulled and some of it traded but and why do I say that because you know look at look at the big volume dots that we see down here and we don't see a lot right here okay so at that last minute these guys pull and and we see the right color down here in this new range below this 24 44 area here okay so a lot of red there's a little bit of green in here but mostly red so the the volume cluster is you know telling us it's indicating look for that price discovery and continuation to the downside okay all right we do get a low volume node or low volume pullback into an area when it starts to exhaust here okay we can also see that that is matching up with the low volume node here in the profile okay all right okay so for this pullback strategy what about the execution okay identifying targets of higher liquidity and consider front running again all right by a couple ticks you want to get that fill and if it's if it's continuation and price discovery though and you are already up and you know that you're adding into a position then maybe you want to you know even not front run but continue to move that that target further away all right looking for that trend continuation okay so you can take your your partials but you can also look for that trend continuation okay entry on the pullback set limit orders immediately after the break okay we're looking in that low volume node or maybe front running that low volume node area in the profile because this is an area where it's going to exhaust not much volume is going to trade in this area okay so you might have to be aggressive here and I'll show you what what that looks like in just a minute okay your stop order well there's there's some varieties that you can use here or variations you can you can put it slightly back into the range or maybe you know the it's going to come back up and test the poc of that range okay so maybe you want to put it above that all right or you can also consider in a partial entry on that pullback and then at the poc just before it scale in another another few contracts okay so let me let me show you what I mean okay so here's our our break here of the area okay we're targeting the higher areas of liquidity down below here okay we see a little bit of absorption into this area as you can see they stay in the book but then they pull and we trade through all right and now here's here's our pullback to where we broke from but it's exhausting up here okay so that's where you want you want to be realistic with setting that limit order because you want to get filled in the area here where it's going to trade okay chances getting filled up in this area are going to be a lot a lot more difficult okay so you might miss that move okay you can be aggressive with the stop if you like and you can place it just back into the range here okay so the the concept here with that is that this is where they started to hit the bid pretty hard here okay so it's going to we're either looking for maybe a flip of the book in this case we get complete exhaustion and we have no interest in sellers in this area here okay on the limit offer limit orders on the offer okay but we may see that flip and if you do that's even it's even better okay and so that that would be your aggressive stop but you can also put a more conservative stop above the poc of this range okay and here you go homera you can you can see it here okay all right so that would be the poc of the range just just around here okay and and you you can see it in the chart as well I mean you can see that cluster trades here we see a little micro sweep of the book and a cluster and range starts to trade here well you know the poc is probably going to be somewhere right around here all right okay and so you can place your stop up above there and you can consider with a more conservative entry as well to place another order here just below the poc okay it would be right in here homera somewhere around here all right okay you'll you'll see it in your profile all right so there's a variety of entries and management techniques here it's up to you okay right and like I said we'll go over a you know a range bound trade to the you know fade the outer edges and back trade back into the range because we're going to be looking for the auction to be different there okay in this example here this is this is what we want to see okay we want to see a lot of aggressive and we want to see its auction correctly here okay they're they're selling and we don't want to be able to question that they're selling all right and that's that's the the insight here now we're looking for just a lack of buying in this area here okay to pull back to where we broke from recall our our market mechanics okay what happens when they sweep the book aggressively like this okay a lot of times you get that vacuum of price okay now the s and p it fills back in pretty quickly but it's still holding true here all right that then there's we get a pull back to where we broke from and then there's some buying in this area but you know compared to the the nice cluster and color of the delta more aggressive selling at these areas we're starting to anticipate price discovery to the downside all right okay so training exercises for part three mark up your higher time frame levels mark up your microstructures within those higher time frame levels okay it's essential here okay just just by following these some of these diagrams in the in there's in this presentation is is it's going to you know it's not going to help you I mean it will help some but it's it's essential to understand the context of the auction and the volume all right within that higher time frame and microstructure okay that's what really gives us the clues to what's going on right the rest is mechanical you know we're looking for a setup we're already going to know how to apply that strategy and setup and then it's just execution okay so I'm understanding this context is where the variations in these themes of the of the strategy and setup is where you're really going to get the added benefit okay so I'm understanding the behavior in the auction are they adding are they pulling liquidity are they are lowering the offer or raising the bid are they being aggressive or they are they being passive with it okay are they starting to pull it away and add maybe on the on the bid to lower levels all right that's not that's showing kind of bearish behavior all right they don't really want to buy okay so we want to understand the zone of that auction the area and it gives us a lot of insight and that's where this historical limit order book really shines okay being able to use that that information to our advantage all right and then volume we want to look at our clusters and our volume profiles okay and we want to understand the makeup of those clusters the delta the more aggressive buying or more aggressive selling okay all right so study the potential strategies you want to incorporate when you start to understand the context of that auction and the volume and structure okay and then the setups it's just apply it and understand the details all right that you're going to learn by by the context and begin to anticipate the future price movement in some of those areas okay so and for example this one's rather straightforward okay you're going to see it again and again happens all the time right I mean you can make a point that look look at here at the 930 open here it is again here okay here it is again here in a microstructural pullback as well okay all right you can make the case for it here as well here's another break microstructurally okay we see the break here and we get a pullback here okay so if you want to trade like that you can but the the higher probability or the one that stands out is the clearest is this one here all right but start to understand the variations in these and I think you'll really benefit from it okay so and then just execute according to that plan all right and then repeat this again and again using book map book maps replay mode is an excellent way and you can note the the variations and this will this is what's going to allow you to really understand it comprehend it and digest it and then enhance your execution okay all right part four that we're going to go over the advanced applications and let's preview it a little bit context of the advanced auction we're going to start to look at some spoofing flipping accumulation of volume etc there's going to be a lot of different things we're going to look at and the confluences at these areas okay the same strategies the same basic market mechanics and the same analysis of higher timeframes but now we're going to add in these confluences okay we're going to look at cumulative volume delta correlated markets look at our iceberg indicator or hidden orders larger players where they might be lining up and then for your execution you can start to look into some of the api and automated strategies within book map okay all right so let's go over some of the questions here and then we'll wrap it up how do we distinguish between when a higher time frame low will hold or break well we went through that sj i think in detail i mean let me know if you still have questions about that it was actually it was this was a more advanced example it was kind of tricky i and and i recognize that but is when we started to see the that initiated buying and that structure broke break and the structure hold that gave us real nice clues okay and then also the higher time frame analysis was essential as well okay understanding that we had a swing to the upside that took out any of the aggressive sellers who are weak all right so that's starting we're starting to anticipate then potentially the the reversal all right um okay let's see okay okay let's see p o c is the uh yeah that is correct um francisco yeah yeah p o c and high volume node well i mean for that for that um for that range yes uh okay if price goes up in the um to the conservative stop loss uh wouldn't it break the downside trend line and then uh how do we view the market structure okay so are you talking about um sj which one are you talking about uh this one here okay looking at our um right okay yeah so and your question is um well no i mean um um uh this this one's actually really you know this one's very straightforward i mean we we we can piece together this um you know very nicely and we see the exhaustion here uh into our um low volume node uh so so this one's very very clean uh but let's let's suppose that you know you start to see maybe a trend line uh develop here right so what we might get and it depends like a lot of times this is uh this is such a simple example uh see see how liquidity is starting to come in maybe at this area here okay uh it's a little bit of a uh they mean they were here earlier but now they're on the on the offer well you know especially on the in the initial breakdown uh a lot of times you won't it won't break to a new it will break to a new level but it'll come back and will test the uh a poc at that area okay that point of control there'll be a battle there all right and we want to see if there's a still uh initiated uh selling at that area so maybe in this area here okay so you know that's where uh you could get a potential uh pullback right so um uh therefore uh you know the way that uh you know and you can start to anticipate that right but if you start to see the uh uh you know maybe a shallower uh breakdown uh and then maybe a pullback and you don't see still you see some exhaustion uh maybe back up into that area uh and then uh then you're still you're still anticipating that price movement to the downside okay uh and um it's just going to be uh a bit more shallow okay so 955 right here uh let's see um yeah i mean i if if we see um if you see very aggressive um uh buying come in here right well then i would start to look at this differently i mean i would want to see the color of these uh of these dots i want to see more green right and i want to see them charge up into here with really big uh aggressive buys okay if they do that well then uh i would just pull that order all together okay or i might just stop out before my stop losses even hit okay because if that's the case then we're looking for a reversal uh or we're looking for uh you know this is going to be range uh bound area and potentially trade to the other side of that range here okay all right so um uh you know this you're gonna have to study this and you're gonna have to go go through the variations to to understand the context uh and and this context here is pretty clean right so um anyway uh you know you might get a trickle on up here with very little volume though up into some of these areas here and uh you know maybe uh you see it initiated selling yet again okay uh and uh you know that's where uh you can um uh you know maybe enter even even more if you if you're looking for it all right okay yeah i mean it really is calm it's contextual right uh and the more that you see this uh the the more you're gonna know and the and the better your execution is going to be all right uh let's see how do you know if liquidity is going to be absorbed or exhausted um well we we um uh we don't i mean uh in in this case uh they they stayed in the book here and we we can see that very clearly when we know that right and we can see red dots trading into this high liquidity here okay and and it was this was absorbed here at this point it was only absorbed and it only reversed for like about a point four ticks or so uh and then it came back and retested those areas and it was still it was starting to get absorbed and they pulled okay and they pulled and they were they're down here at this lower level it looks like they pulled right the last minute here as well okay and then they're getting filled down in these areas here all right uh i would yeah i would look at the color and of the of the um the aggressor uh and um you know the the size and and the speed uh and and how it auctions uh you know that that's why um we'll go through that um uh fade back into the range strategy but uh here it auctioned properly right and we see aggressive uh red dots from the get go all the way down okay if we don't get that uh then um that we have that potential here for not only returning back to it but um uh we might get the fade back into the middle of the range and potentially the other side here okay uh sedar you're welcome thank you thanks for the compliments uh let's see yeah i mean um uh francisco understanding those those um those very basic that we covered on and part one uh market mechanics uh is uh uh you know it's really it's really important uh you know to get good at those because you're gonna this this is this is how the market works uh and you're gonna see it again and again and again uh and um uh yeah you know look look at this area here look how look how it auctioned here okay we didn't we didn't see um uh really a a charge up here of a aggressive buying right we started to see it here maybe a little bit but it it just didn't uh it's only for a couple ticks and then uh this is right back to the open right and no one wants to take it higher okay so this this i'm looking for a return back to that and it's i'm not the only one right look at the high liquidity here okay so uh someone else had the same idea okay and it looks like they got their they got their wish here uh you know a nice little volume cluster around it uh but um uh that that wasn't enough right sellers still jumped in and took it lower yeah i mean uh well these guys up here are gonna be trapped and where are they gonna cover well you know probably probably down to some of these areas here at the swings all right if they're really aggressive they'll be they'll be stopped out um uh maybe here okay uh and maybe that's that uh flurry here that we see okay but the aggressors really started to come in uh here as we broke through that level all right all right guys uh well let's call it a day um and i'll try to piece together this webinar so uh it's one complete webinar sorry for the uh uh disconnection there uh and uh yeah just you see the risk disclaimer on all of these as well uh you know trading equities and um futures involves substantial risk of loss is not suitable for all investors past performance is not indicative of future results so it's important to uh get that across so that we're in compliance uh and uh there's no wild expectations here okay because we are going over um some pretty high probability uh setups but it is contextual as you guys are are noticing all right uh but we can see we can see it and we can read it uh in the historical limit order book okay all right guys well let's call it a week uh and uh we will uh catch up with you um uh next uh uh next week all right okay all right guys take care thanks a lot bye bye