 Good morning traders and welcome to the book map pro trade pro trader webinar series for December 15th This is part two of Enrico Stuckey's presentation that was Part one was on Friday. I'll show you the recording for that if you're interested If you have not seen that it was excellent and it really sets it up very nicely for today's presentation Where you're gonna get the practical uses of what he presented on on Friday the presentation was just just excellent Let me show you here What Enrico I sort of went through here just to recap very briefly here if you go to our YouTube channel and you scroll down here The pro trader webinar series right here. You can click on the text here and you can get all of the Protro webinars over several months here and Enrico is right here at the top click on that And this is this is part part one right here. Okay part one of two And yeah, he just goes through the commitment of traders and understanding the larger players in the market and You know the smart money institutional players, etc. And now he's going to get into more practical uses here The let me go through some of the risk disclaimers here. Okay? 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 live trading is in simulation demo paper trading mode and strictly for educational purposes live trading Executed in simulation cannot accurately represent realistic trading performance risk disclosure trading futures equities and digital currencies Involves a substantial risk of loss and it's not suitable for all investors and investor could potentially lose all or more than the initial investment Risk capital is money that cannot that can be lost without jeopardizing one's financial security nor lifestyle Only risk capital should be used for trading and only those with sufficient sufficient risk capital should consider trading Past performance is not necessarily indicative of future results You can also read the hypothetical disclosure performance here if you like it's more for automated trading and a Bit about Enrico started His career as a part-time trader back in 2002 while working for a large telco company in 2009 he decided to leave his job and become a professional trader He uses a quantitative approach to determine specific edges in the market. He's currently managing a prop trading firm with diversified strategic approaches automated trading systems and quantitative investing and Enrico combines his quantitative methods together with order flow and liquidity analysis from book map to support his trading decisions He is classified as a large trader by the CFTC and if you watch the Presentation on on Friday, you would understand what that means. He is a big fish So I have I have Enrico's Contact information here if you want to reach out to him Specifically, you have his email Facebook and special offers from book map here from Enrico I will paste these into the chat so you have the link and you can just click on it from there other than that Really looking forward to this Enrico and let me give you the presentation Okay, okay The good morning everybody. Can you can use? Okay, do you see the presentation mode? Yes point. Okay. Yes Okay, let me start with my Apologize for my macaroni English, so please be patient forgive me for that and I want to just Before starting I Added all links of the previous Presentation here in the comments Below the YouTube video in the protrader protrader webinar series in book map website if you want, okay Excellent. Thank you very much for doing that. Maybe you have to accept I don't know if you have a moderation for for those comments or not I don't know if they are available available now or not, but anyway, I've put here Okay We Today we are facing something more practical and I Want to show you I I use the information on Apple and Microsoft Microsoft charts to trade on NQ futures, but before starting I would like to answer a question asked in the chat room last Friday Where someone I think was called Thomas Asked how to use the information of the court report for trading Actually, I didn't speak about court report in order to show how to use it for trading. I Just wanted to point out that retailer traders were irrelevant in the market and Were the needs of the big money that dominates the market. However, it's possible to use cut figures for building Different trading strategy Let me show what I'm doing with cut report very simple First I run a back test for every single future that I'm trade. There are a lot of future and For seeing Which category of trader is the best to follow? I'm using a Kiss principle kiss stands for keep it simple stupid. I know that I'm stupid So I want to do very simple things So I try to evaluate Simultaneously the price and the position of large speculators small speculators or Commercials small speculator and commercial. I so I try to understand which is better to follow I do did I do this job did this task Using a back test because back tests are better than my eyes. So eyes can be sometimes tricky but the The the strategy is very simple for instance here You can see that large speculator are increasing their net position and the price rise Here the same the price is rising and the large speculator are increasing their position Here the price is Falling down and the net position are decreasing. So that's a very really simple stupid strategies. So I Back test every single future for understanding, which is the best Trader category to follow So Sometime I'm also watching the small speculators because most speculator are considered Dumb money. So I can maybe follow those position Or I can use it as a Contralian contrarian retail strategy So I'm doing exactly the opposite that they are doing However Small speculator as we have seen last Friday are just a subset of small speculators So this is not a truly controlling retail strategy, but anyway sometime it works So after I did every back test there are two possible way to use Those cut this cut information The first one is I can use as a trend filter so for instance if the smartest guy are speculators, for example, if if they are increasing Netlocked positions. I only try long trades using my Classic trading setup. So for instance simple breakout of daily or weekly eye and lows May I can also use Those information as simple signal So if the speculators for instance are the smartest guy and that their net position are increasing I go long That's very simple. If they are decreasing I go short. I can just add some Simple stop losses and take profit exit and that's all Does it work? Yes, that's simple but effective. Okay, this is the result with three years out of sample of the What I'm calling follow the smartest money portfolio. This is an equal weight portfolio with a lot of future inside Okay If I am looking at this individual equity lines, they are not so beautiful to see but if you Look at the portfolio equity line You can see that it's quite smooth Because diversification is the key for having A diversification of strategies that is the key for having a quite smooth to trade equity line So it's that's very Relaxing way of trading because you have no more than one to the signal signal per week per instrument But Obviously you have To be capitalized Enough because there are a lot of future together so margins can be Large, okay If you are a day trader If you don't want to keep positions overnight for Days and weeks this kind of trading strategies is maybe not suitable for you Okay That's the answer to the thomas question Let's go on Today we are speaking about my strategies of of trading nasdaq future looking at apple and mice of charts I I will explain reason why basic strategies using book map a some tips and tricks reason why This is the first one look at the nasdaq 100 components and their weights apple weights for 12 percent of nasdaq and mice of 10 percent amazon 10 percent so the first Two shares or three shares accounts for 32 22 percent of the nasdaq 100 index Okay This is for instance sp 500 Market cap You can see that the main six Six shares accounts for About 50 percent of the market cap of s and p 500. Okay tesla is not in the s and p now Start to be in s and p next friday Next friday will be a very volatile day because we have quite quite you say four witches and tesla Is coming in s and p 500 um apple As you can see 58 percent of Of apple shares are owned by institutional Okay What's this guy? Rock Berkshire The biggest one The same for microsoft microsoft has got even 70 percent of the their shares owned by institutional all and the same The same owner, uh, you can find those figure here in nasdaq website very easy Very interesting because you can have also change in their position This is beta. So the volatility Related to the index This is apple in the last Years apple has been more volatile than nasdaq on point 30 is the The beta And uh microsoft just a little bit less 0.8 This variable. Okay, but and now you can see for instance the last five month five Months is 136 135 for apple and 0.87 for microsoft Okay, so Why I'm looking to apple and microsoft chart for trading nasdaq simple because apple and microsoft are strongly correlated to nasdaq and vice versa Because apple and microsoft have sharper liquidity levels than in q Apple and microsoft have more predictable. Let me say that levels than in q So this is for instance long term correlation apple versus nasdaq. This is correlation coefficient. That mean If you know one is the Best correlation minus one is the anti correlation as zero is not correlation So 0.73 was very high for apple and 0.79 for microsoft. This is long correlation. Okay, so Long period, but this is the intraday correlation nasdaq against apple. Okay dots Is apple and the yellow line is nasdaq. Okay um Okay, the correlation is not perfect every day every single day but Let me show for instance here. Can you see My book map now On the screen bruce. Can you see my book map? I don't know. Well Um, this is for instance correlation between microsoft and apple today It's quite good While for instance apple today Has rise very very fast um at the at the starting and So while nasdaq didn't At anyway, it depends this varies day by day This for instance is uh the correlation between microsoft nasdaq and apple Okay, um you I put for every day for every screenshot dates I have used european Notation, I mean day month year Instead of the us month day year and I Usually, um, I'm using local time. So my local time is central european time. That means gmt plus one Please remember this because uh, for instance here are my local time. So you have to Subtract six hours from here to new york city, so east coast And seven Six hours and seven hours If you are in Chicago, for instance, so the exchange time is this one minus seven. Okay So, um, for instance here in italy, uh, the cash sessions start at 15 30 p.m While in Chicago a 30 a new york city 9 30 Yeah Uh 3 p.m 3 3 3 point, um, yeah, okay, um Now, uh, let me show For instance, this is es this is es during european session Okay, you can see here that the liquidity levels during the european session as quite clear. They are sharp but when they um Cash sessions start at a 30 a.m in chicago. So 3 30 p.m here in italy the situation becomes More difficult for me to understand because the liquidity are increasing just On bdo. So the levels here are not so clear for me okay, this is the same for instance here in es before The starting session here the session starts here. So here is quite sharp and we call here become more We can more tricky Okay That's again. Yes during the european session quite clear And here is nasdaq for instance during cash sessions. So during rth regular time hours As you can see here lever are quite similar So I cannot see really Okay, here we have more liquidity And maybe here but the difference are not so strong Okay That's it. That's nasdaq during european morning session. It's quite clean and then it became Confusing for me. Okay Same this is nasdaq before and during cash session This nasdaq before and during cash session Okay, now let's compare apple and nasdaq Okay, this is apple and this is nasdaq as you can see liquidity levels in apple are really really really Sharper than on nq That's why I prefer to look at apple levels instead of nasdaq Okay, the same this is in cash session apple And nasdaq this is the correlation between apple nasdaq say nasdaq is the yellow line and apple dots okay another important Point to add Okay, look at those level You as you can see you can see so peaks and valley are are sharp and peaks are concentrated on around numbers so 122 21 20 and so on, okay If you compare for instance here you can okay Here in nasdaq you don't have so uh a so clear distinction between peak and valley While on nasdaq It's quite sharp Okay, as I said You have more predictable levels in nasdaq in apple than in on nq because you have round numbers and 50 cents number so the unit and The point 50 Okay, so 20 or 19.50 19 18 50 and so on So as you can see levels are really really really concentrated on those numbers. So As I say as I said that this those level are predictable Is because you have those levels. That's quite clear on every chart Why Why liquidity is so concentrated around around round numbers? Because at round at round numbers you have strike price for options So, uh, for instance, if you are an option seller And the price go against your position. You have to hedge your position With the underline or just adjusting the position on options But also buying or selling the underline So this the very important levels are protected with liquidity. So that's the reason for that One of the reason I don't know if there is there is the only reason but I think the most important one Okay, uh but if apple levels are sharper and Why don't you trade directly on apple stock? instead of using nasdaq I do both But sometimes I prefer to trade nasdaq because um, for instance for commissions One nasdaq contract approximately Has $250,000 market value and they pay around four dollar round term Commissions so one one buy one sells four dollars Why if um, if I'm using apple instead, uh, for instance, I want to Market value. So one two hundred and fifty ks That's mean approximately One thousand and one and one hundred and thirty six shares So using I b k i r interactive broker then I pay 0 0.5 dollars per share. So it means 12 dollar round term. So nasdaq is cheaper Also considered a spread bid ask so this leverage if I'm Use if I'm using market orders With nasdaq you have one or two ticks of spread so it Uh, it means five ten dollars While with apple you have just one tick well one tick one cents uh multiplied by uh, one thousand shares means about 11 36 dollars per trade Per trade per uh, per opening and close so The difference is quite evident and leveraging also That's for instance, so is nasdaq a CME of official current margin is Eight thousand dollars the living in so is 250,000 divided by 11,000 18,000 means 14 So this is the leveraging written q while with apple you have four leveraging clicks Into a day and two overnight So I can move more and q money with the same amount of money in margin If you consider beta Apple is better than and q because it's more polarized about 1.35 times But that's the reason that For preferring Nasdaq instead of apple when I am trading Why don't looking at qqq qqq's the ETF on nasdaq the the main one Because it's not so clear Okay, here for instance bad beast best be the best offer Are very concentrated so the liquidity is not so sharp here if you compare with apple the differences enormous Okay, here you can you can compare directly apple and qqq You can see the difference Okay trading tips first one when you are trading I suggest to prefer financial instrument that show A prevalent behavior So every instrument can have Let me say trend follower A behavior or have a prevalent reversal So for instance in trend follower You can have some instrument that prefer breakout strategies Some other with momentum strategy and some other that accelerate so they are Following a volatility breakout strategies While some other instruments for instance prefer mean reverting strategy. So you prefer to trade a reversal pattern and some Instrument have a long or short bias for instance US index have a strong long bias. So they are rising While for instance natural gas as a very Strong short bias. So Short position are Generally better than long especially on Wednesday Tuesday, sorry during the inventories So What I'm looking for is to understand forever instrument the prevalent behavior And then I can add the edge of volumes order flow and liquidity levels If I am a discretionary trader Okay What I mean, this is for instance a simple long term breakout strategy Long only so it goes only long or apple on a daily basis This is the equity line. So very stupid strategy Okay, buying breakout Okay, it's a breakout strategy very very stupid. I mean when I say very stupid I I don't use a lot of filters or too many parameters in order to Avoid overfitting. This is the main problem with trading systems So this is very easy. So I know that in long term A breakout strategies on apple works While for instance with nq on long term as simple buy the dip Interd with implied volatility. So vix for instance Goes very well, especially during last 10 years Okay, so on a daily basis and as the Uh, I prefer to buy the dip instead of buy breakout But if I'm going to a short term, so I'm using for instance five minute charts The simple short term breakout strategy works very well And also for apple the simple short term breakout strategy Long only works very well So what I'm doing is to Uh Engrave on my screen those figures in order to Put more edge Trading using order flow But knowing that figure. So I know that Breakout strategies works very well. So I prefer to do breakout strategies and long position to take long position on apple and on nasdaq If I'm using A discretionary strategy using order flow. I have to remember The constant war so trading is a constant war between aggressive buyers So they buy market they lift the offer They are against passive seller. So they are selling limit. They stay on the book They are hitting the book And passive buyer They are by limit against aggressive seller Sell market. They hit the bid So they are Aggressive are market taker While passive are market market makers. They provide liquidity to the market Okay Engraved it on your screen When you are trading using book map or using other tools you have to assess and you assess constantly Who is in control? Remember that who is in control is the question that I Have to answer at it at every second when I am trading I don't find people That is in control Okay, now let's see some basic behaviors on Using book map so Uh, the two the basic behavior are that liquidity attracts Is a magnet but also liquidity can reject and the You you have to put a lot of attention when price meets liquidity because they When price meet liquidity Can be a turning point in the market. So you can have Exhaustion That is a reversal pattern absorption. That is a reversal pattern generally Or the liquidity can be it So you have a continuation pattern I'm calling this the pacman pattern Uh, let me show What doesn't what? What is exhaustion for instance, okay if you have watched Bruce Videos, you know very well what exhaustion absorption or continuation Are but just a a brief recap Okay, uh, what happens during an exhaustion you have that buyers that are running With the aim to destroy The resistance the resistance is the liquidity wall They are many but When they are approaching the price the level they are losing their bravery they are Scared looking at the wall. So is the price is rising approaching the resistance Um, you can see less and less buyers And buying volume. So just before the resistance There are no more buyers willing to buy They are taking profit or they are stopping their loss if they were from far from far above Or the end they are starting to sell. So the price Goes down As you can see they are exhausted two times here. They tried once Then they tried again And here no more buyers. This is an exhaustion The usually the price doesn't touch the liquidity wall This is for instance an absorption to absorption that rejects absorption in front of Resistance or it's a reversal pattern. Okay, look at this for instance Buyers are more than willing to destroy the resistance They are buying and they are not scared when they are facing the resistance the liquidity level They believe they are strong enough and that wall is just built with simple Plaster board. It's a light dry wall But when they hit Where they're ammers They instead of plastic board they They find reinforced concrete Instead so the liquidity resists And passive sellers Are adding more and more liquidity Usually they do it native or synthetic iceberg orders and they absorb every buy market order Sometime prices rise just few ticks above the liquidity level but buyers Understand that the buying strength has decreased So traders that have both the liquidity level So at the eye are the dumbest and Because they have both the relative eye And so they are called trapped. They are trapped and they have to sell They need to close their position They close their position with sell market owners And the trend reverts. Okay. Here's not so clear Here's so very very clear. This is an exhaustion. Okay, you can see also the The square here. This is the their absorption indicator. Okay, there's sorry. This is an absorption is absorption indicator So the price goes down Find the liquidity. They try to destroy the They are not able to destroy in the price price Okay And this is Enrico, I'm sorry. Can I just interrupt for just a second? Just to avoid any confusion with some of the users out there with the new absorption indicator And Enrico has reversed the colors And on purpose. He is looking more He's using the absorption indicator in a little bit different way of looking at the aggressors And the activity of the aggressors here. So The blue square I mean By default with the absorption indicator, we show it as being red or pink He likes it being the opposite as being blue to show like, aha, I know that these are buyers up here Exactly. I I keep the same Color scheme than that dots. So for instance, if I see a Light blue Me is the same that green. So buyers. This is the buyers that have been absorbed here sellers as we have been absorbed. Okay And this is the Pacman so they they they are absorbed, but the price continues to enter rising. So they The same approach than the first one, but buyers are strong enough for destroying every kind of wall Made in plasterboard or concrete we When they meet the liquidity level, they are Partially absorbed you can see here. They are absorbed You see a big green dot usually the the liquidity Indicator is tells you that are absorbed But despite the absorption the aggressive buyer have more bullets and many other cars to play So the price resumes The rise and generally to the next level Okay, that's a very very easy pattern to understand and look at the level round number Round number Round number this is 120 Okay so the importance of liquidity levels absorption exhausting and continuation pattern with round numbers Okay, this is the for instance a pacman pattern on facebook Look at this Absorption a little bit of more of insertitude and the price rises New liquidity level Just a little bit of insertitude and price goes up Another insertitude price goes up there Here we have a stop run. We'll see in a moment And the new liquidity level and here a new fresh liquidity has been added And so the price goes down Okay But this is the pattern the continuation pattern. So if you see something like this Don't try to go short Because buyers are in control In gravid buyers are in control Okay, not all liquidity are the same. So you have got long-term liquidity and short-term liquidity If you have followed bruce webinars, you know very well the difference And you also to be to consider liquidity add Or increased before price on liquidity add or increase after price I'll show you in a few moment Okay Here for instance, you have got liquidity add after the price As crossed as crossed above this level. So the price is rising You don't have liquidity before But you have liquidity after the price crossed above this level so this liquidity In the book Is a support the rise. Okay Here the same price goes up here. You don't have any liquidity The price goes down and you have the liquidity added after What do you do here if you see something like this? Maybe here you can see that liquidity After you go short Because you are protected by this liquidity So you have you you can use a Very little stop loss But you can be not not be sure but you have a lot a lot of probability that the price Is going down This is nasdaq. Okay So this is liquidity after the price not before Okay, the most important pattern is the low of the attraction Remember that the purpose of a marketplace is to facilitate trades So big players need to find liquidity if they are aggressors They are takers Or they need to be hit By market orders if they are passive they are makers More in general they like exchanging contracts in balance at market We spoke on friday briefly on auction market theory Big players prefer RTH so regular trading hours and a specific timing where volumes are higher for instance During our cash session at the open at the close and at a settlement If the for instance some some future you have got settlement the settlement is very important for instance for oil is 20 20 30 European time central European time Okay, another important pattern is the opening price retest is the open Price goes up And retest The open price Some figures opening price retest during last five years so on Many filling days if apple price moved away from the opening price more than 25 ticks The opening price was retested 440 times 35 percent during the first 30 minutes 694 times 52 point 55.2 percent during first 60 minutes or 1003 times 79.7 percent during first 120 minutes Okay It's an edge So this is for instance our opening price retest price moves away and retest Goes down and retest Okay, look at volume concentration on apple The biggest dot is always at the close And the second biggest volume at the open, okay here we can see for instance on Session volume profile that the highest volume are here So this dot this volume is the highest So the point of control You can also see that Usually the closure occur frequently on a round and liquid level or in any case very close Okay, so it occurs Very often that you can close at 121 round number Or open on 120 round number, okay Important you can predict And use this information for trading them on the last minutes for instance Okay, all together we have more information here for instance apple Open on a round price were 117 Opening price retest Here we have liquidity added This is fresh liquidity that increases before the price meets This level so for instance, this is the uh Long-term liquidity that stay in the book Since the opening The same for this level This liquidity disappear when the price Touch the level and then Appears again And look at this increase in liquidity. What happens? The price respond to this liquidity going down, okay Now there is a little bit movement here and then the price rise again And the pathman, okay pathman pattern. Look at how many ticks? 50 ticks Per movement Because liquidity levels are 50 ticks away one from each other Okay, so This is very useful because you You know how many Ticks you can Move the price in the next movement Okay, if you trade nasdaq using apple you have to understand the difference in prices for instance here this is apple and The movement from the low to the high is 296 so 2.9 2.9 90 points and the second movement 130 ticks while in nasdaq this movement is 94 points and the second 75 so you have to understand the correlation Can can arise between 1.73 To 3.08 so this is This divided by this and so so 50 ticks on apple can mean Can represent 17 to 29 and q points, okay Approximately $40 to 500 per contract. So if you have a movement of 50 ticks on apple you can earn from 3040 to 580 dollars per contract, okay If you're able to understand and to catch this movement Okay, you have to do this on a daily basis because it changes. Okay Because the correlation is not the same every day. Okay, look at this. This is the nq average volume per minute Now I have used exchange time exchange time. So this is chicago So here the volumes you can see at 830 at the opening the volume is very high and at the close at Pm the volume are higher This is the average volume per minute only considering Regular 30 hours because here we have got also asian and european session. Okay Sorry Okay, so you can see volume for nasdaq But More interesting than volumes is the volatility So you have got average range per minute. So this is the average range for per minutes Of the nasdaq on the last five years exchange time. So The opening is the more Is the minute with the highest range About 12 points per minute You can see some other peaks here, for instance 10 minutes before the close and at close Okay Those are very very important pattern for me. I'll explain later if there are there is time enough This nq average range per minute only during the cast session. This is the opening This is the close and this is 10 minutes before the close This is also more interesting The frequency frequency distribution of daily eye and low. So if you have you have to count Every single minutes for the last 10 years In which minute Uh, you have the eye for the low of the day So the most frequent eye and low of the day Is the opening of the session So 17 Um Chicago time so central time Okay, this is the chart. This is the table 5 p.m. Chicago, you have got The maximum probability to have an eye or daily low In my opinion, this is very useful information. The second is This time is this this okay a 30 so the opening And so I mean this is quite useful for me to understand the probability of having for having the eye or the daily low Okay, this is swing distribution. For instance, if I take only swings Larger than $1,000 I can see that the median swing Is one hundred and one thousand seven one hundred and fifteen Dollars and the mean Mean median Are different constantly if you don't know use google Uh, 2000 and 32 Dollars swings. So this is I'm using a zigzag zigzag is a repaint indicator ban You cannot use during in real time, but you can use for measuring the swing Range, okay Very important very useful to understand this. So for instance, if you have a swing larger than $1,000 So, you know that you have a strong probability to go Until to the median or the mean, okay here The probability to have a larger swing without any retracement Larger than $1,000 is very low. Okay, uh examples Uh, okay, we are at the end. So very very quick. Look at this for instance Uh, okay, this is an absorption Rejection, but they are in control sellers are in control. They are having it here The round number, okay One and look at this is uh, uh resistance 15 Points so 50 ticks 100 ticks. Okay this movement. So If you are here and you say that the level has been crossed You can go short Because you you have a lot of probability to go Till here or maybe here Okay, because the low of the attraction The those levels are attracting the price That's the main information that I can give you use The attraction low Okay Sorry, okay. This is a zoom. Okay. What happened here? You can see the absorption the price goes some ticks below and then is rejected More zoom You can understand very easily here. Okay absorption Insertitude and the liquidity freshly add here You can buy here because you have a huge probability that the price continues rising Okay, look at this. Okay, how many this is one A minute and a half so not a long period. Okay Absorption insertitude liquidity freshly added and the price goes up Now for instance, this is the absorption before here It's here price is going up In your opinion the price is going up or down now up or down Look at the liquidity here. So the probability to arrive here is very high So if you are here, for instance, you can go long this is view up This is around number the price goes crosses above this level You can buy here because you have a lot of probability to arrive here This is um and cube meanwhile Okay, look here What happened after? The price here Okay, this liquidity level attracts and now look at this You have another liquidity level The price here the liquidity disappear Which is the Best thing to do Going long Okay This level is here A little bit of insertitude and then here And then here Okay Okay, here is easy The reality is not so easy, but there are some these are Example how to understand the market Approaching to 120 what happened here? You have to wait and understand and you have to understand what is happening exactly here zooming This is the zoom what happens here First test absorption They try again absorption Here are a lot of Algorithmic activity on this level Okay here more zoom And now look at this buy buy buy buy sell sell sell sell but the bit and offer Are rising the liquidity disappear here and the prices goes is going up Okay, if you are here for instance, and you see that this liquidity has been crossed you can go long In my opinion, you have got a big probability to Have to reach another liquidity level Okay This is what bruce said before i'm using seller grasslands color on purple and buyer grasslands color i'm using light blue and the In the absorption indicator Stands for 15 000 shares By Or sell in 100 of second. Okay Okay You are here. Sorry. You are here You are here 120 Here here here price goes up And arrives here 150 120 and point 50 and then the price continues rising Okay 120 point 50 eaten like a small sandwich. Okay. This is a continuation pattern Oh, what happened here fresh liquidity added at 100 point 75 here Rejection The price Go back to 120 point 50 Okay And now We are in let me say i i call the rush hour the last hour of trading Is usually very very fast Very difficult to trade you have to practice if you want to trade the last hour Okay here We have an interesting Divergence on this is apple apple highest While, uh, for instance here microsoft and nazak are decreasing. Okay, so The correlation sometime disappear and you have to pay attention to that Okay Here during the rush hour Look at this. This is an exhaustion And look at this. This is a order Very big order so More than 15 000 shares sell Within 100 of second what happens The price goes down. So the seller are eating we using market orders after the exhaustion But for me, this is a Like a penalty Football, okay You have to you have to sell here A few minutes later the price goes down 10 minutes before the close You have a very very high Volatility as we have seen before This is the palin pattern because the is the Marco palin is the one of my friends that discovered this Algorithmic activity exactly at this hour this time 2150 european time Okay, um This is That niche Okay, let's see another example this sorry, um Bruce It's 5 p.m. Do you have time enough? Do we have another again? I'm sorry. Do we have uh some time again? Sure. Sure. Sure. Uh continue on. Uh, no no problem. Uh, We'll get to some questions as well at the end here. Uh, please put your questions and everybody for Enrico Okay, uh, this is real time Let's let's analyze just a little bit the real time what happened here very very strong volume here This is the I'm calling the barbecue because it's agreed of volume they by by by the price continues is a continuation pattern that they absorb they absorb but the buyers are in control and Here you have an exhaustion. Okay Look at this They start to sell Very easy Okay, okay. Now our example december the first What do you think up or down? Look at this liquidity level Up or down down So the equity is 120 150 Okay here now Now Look at this liquidity level liquidity level is this 120 Okay 120 What happened at 120 look at this This is um the Let me uh the indicator called I don't remember the name exactly the name of this indicator, but uh the Liquidity tracker liquidity tracker indicator. Okay So, uh, for instance here you can see If they are adding or pulling liquidity on bid and ask so look at this the price is um coming here and the green indicates that buyers are adding liquidity In the first 10 level of the bid Okay So the liquidity on the bid increases you can see here. Okay So they are pushing they are adding liquidity here What do you think? That this action can Um Can have um on on price Price is rising Okay, look here liquidity here They are skewing the action This is uh long term liquidity But here you can see that they are adding the more liquidity here So the price is rising Okay Now look at this Fresh liquidity appears On the offer here Here look at this this is fresh liquidity liquidity increases when the price comes at this level but But they are strong enough. They are in control. So liquidity is eaten And then the book is flipped because here we have the liquidity before the price. So is uh Hypothetical resistance here is a support Because the price has crossed above this level Okay, and the liquidity here Support the uptrend. Okay for a while not for a long time, but anyway The price goes down reject and goes to the next important liquidity level Okay 50 And 22 round number Okay, you can see the importance of those number here Very important you have you can trade In 50 ticks blocks. Okay Okay 50 ticks retracement here and the price goes up again This is liquidity before price And this is liquidity after price. So this is a book flipping And then again the price goes to 123 22 20 250 and 23 Okay, exhaustion here another exhaustion example Okay, and the price goes down 50 100 ticks Look at this fresh liquidity appears at 122.80 Okay, what do you think? The price is going up or down here with the fresh liquidity that is skewing the auction The price goes down. This is the fresh liquidity added. Okay, the price goes down And I they try to go up again and the liquidity disappear So the price continue rising The this level is Is eaten Then the price goes up to the next liquidity important level 23 When 50 Then goes down how many points 50 50 ticks 50 ticks blocks very useful Okay, this is the polling pattern. So 1550 Europe Is time Okay, look at the close Usually at the close apple is very very difficult to trade because New liquidity added just a lot of ticks Under and above the price Very very difficult to understand Uh, that's the final overview of the entire cash section of the first December So you you have seen this movement during the day divergences That's an open case open price free test Okay, let me say Okay This is interesting activity. This is the second of december the price goes up Looking for the first liquidity level and then price retest goes down reach absorption the price goes up And then here with at the biggest liquidity level they Uh absorb the price goes up, but there is a new center of gravity This has been created here It's very difficult to trade for me because I don't understand very well Look at this The a lot of volume are created here A lot of big players are trading here Because the price doesn't move And they like to trade when the price doesn't move they can accumulate or distribute a lot of volumes here Look at this the importance of the close Uh, look at this also. This is another day. This is the second of december right here There's an exhaustion the price goes up. They try again The price is rising and here the liquidity appears You can buy all in and you can put all your money here in a long position Because you have a lot of probability that the price continues to rise Hmm. Okay Let me search for another important example if I can find Okay, maybe here It's an important absorption continuation Oh, oh, this is interesting. This is the barbecue pattern. This is the greed Look at this. This is the price is going Nowhere But the liquidity has added here Very strange pattern of liquidity here Look at this They are Adding liquidity on the bead They are buying Here because the volume Here indicates that Um, the commodity volume delta is positive What happened? Three minutes later the price goes up To the first liquidity level and then Still goes up They eat every single level. So I'm calling this the barbecue because this is the greed Okay, look at this. This is the grid before Okay here Here the price a little bit of insertitude few minutes And this liquidity level attracts And the price goes up The price goes up Okay, the stomach is not full here. So they are buying buying buying They Good liquidity to be eaten here Look at this. This is the zoom Okay, after the launch of this liquidity, they try they try they try and the price Is going up. So the liquidity disappear here They are strong enough. They can go up Okay And they go to one one one hundred twenty twenty five point fifth twenty four point fifty. Okay so initial greed insertitude one hundred twenty four Insertitude one hundred twenty four fifty. Okay, fifty ticks Okay, now the stomach feels full for a while and They Have done their money And the center of gravity is created here. So these are those are swings Very difficult to train because you don't have And a lot of liquidity. Okay, you can also trading because here we have responsive Buying Responsing sell you can see it using volumes. Okay, usually if you have a responsive buyer In a in a support you have got a an eye volume here. Okay the same here But I prefer this kind of moment. I'm a more breakout trader than a swing small swing trader. So There's the day continues with this boring swing till the elder session What else Oh, I've got I prepared the hundred hundred of examples, but Mainly you understand that that liquidity attracts So the liquidity level are are magnet And if the price is rising then you have got a strong liquidity level You can challenge you you have to buy in order to follow People because they are in control Until they reach they chase this liquidity level. They are chasing this liquidity level here another example of Exhaustion. Okay here one two Exhaustion. Okay, this is December 9th the same continuation pattern the price goes up 50 50 100 ticks 50 ticks in the opposite direction up up until around number Okay And now here. Oh, this is interesting because you have got uh Here for instance, this is an important level Look, they eat the price goes down and they eat this level also eaten eaten The price goes down Okay, this is you can sell here because they are they this is continuation pattern I look what happened after one two three four Level, okay well, um Okay, this is not an interesting example look at this price goes up new freshly liquidity added here And the price goes down This is the zoom. Okay If you zoom you can see That before just before this is important level 124 so round number here fresh liquidity is added at 80 90 probably And the price goes down Okay, how much it's enough. Okay. This is a stop run Uh, look at this start. This is a stop run on nasdaq. This is happens very very often before the the opening of the cash session. So this is 2.15 p.m In europe in europe. So uh one hour and 15 minutes before the opening Look at this Okay, this is a stop run. So the liquidity completely disappears or market maker are disappearing here and with a very uh small Volume they can move the price Very very easily This is a zoom. Okay. Okay. This is look at here This is the zoom just before the stop run What happened here? So we have a very um thin liquidity very poor liquidity here You have to consider that this is uh Today, you know yesterday maybe yesterday. So uh many contracts have been rolled from December to march Okay, this is nasdaq So what happened here the liquidity completely disappear with the few Uh selling orders the price goes down So low effort and big reward Here the price continue falling out of points 25 points in a few minutes Price goes down This is the stop run low effort Big reward with low liquidity levels. This is market meter that Disappear from the market and algorithmic activity can do that. Why? Because the same pattern At the same time on yes, so this is This is uh simultaneously, so That's clear algorithmic activity So when they say that market maker disappear, they can hit They can hit the beat with strong With stronger orders and move the price With few effort Okay, um I've finished Here you have got uh discount for bookmark subscription and my Link if you want and here if you want to know What iceberg and stop order are In italy Fortunately italyan you have got a lot of Information in my youtube channel It's called trading coley pallet trading with the dots with the bubbles and For instance the those three webinars are dedicated to market mechanic iceberg and stop order and market by order in cme so Uh quite interesting very specific Topic, okay Uh no i'm finished so i'm in here for questions All right, thank you very much and riko. Um really excellent stuff very very clear and and very simple Uh from friday's webinar A lot of complex data Well, I mean it's been out for a long time But you can solidate it in a very very nice way And then looking at the strategies, uh just uh so so straightforward, uh, you know wonderful wonderful stuff Um not too many questions. I've been answering them along the way John is asking though about on some of these Charts you also have I believe the correlation tracker with the blue and the yellow lines Yes, blue is microsoft And yellow is nasdaq while i'm using um apple charts so For instance Okay Okay here very okay. This is apple You can see here underline. This is so dots are apple yellow nasdaq and blue is microsoft I okay today. I just show Just shown um apple, but I use both. I am using apple microsoft microsoft and also amazon Stock in order to trade uh directly them obviously but also nasdaq Okay, excellent. Um, so um Let's see there there's one thing I wanted to also mention if you can go back to december 8th for a second This one on the yeah on apple Okay Um One more One more there we go, uh Yeah, go go a little bit further. There's some there's something on a higher a little bit higher time frame. I saw here Higher time there there's this one this one this one. Okay. Yeah Like a really nice, um reversal pattern here would look at this skew in the the order book down around uh 1800 Uh, although it's a you know a little bit fainter. Uh, it's the reaction to that liquidity That that bookmark can show that That started to push it back up into 124 Uh, so um, no a little bit lower Around 1800 1800 your time on the chart 1800 here. Okay. Yeah the blue the blue below on the bid Yeah, okay Okay, this is uh, I'm calling the martinelli ladder. There's some liquidity Put it after the price there. They are skewing the action. They are pushing the price high Yeah, yeah, it's a it's a nice example. It's a little bit fainter liquidity, but uh very consistent though and the reaction to it was buyers Yeah, and um, uh, just uh wanted wanted to point that out to everybody. There was some questions about um, you know, how to how to read the the context of this uh in bookmark The um, oh uh, Enrico, uh, we have a new feature coming out soon That you're really gonna like. I think this is going to really make this a lot simpler uh for you It's kind of similar to the correlation tracker But what you're going to be able to do Is to be able to consolidate an instrument uh or the order book into one instrument. So for example Uh, if you want to look at the fang stocks or your s and p 500 pie chart that you showed that the majority of the Players are just five or 50 of them are just five stocks You're going to be able to create a single um symbol Of those five instruments Okay, I saw this on crypto. I'm I'm a beta cluster for for this Yeah, really really useful. It can be very useful. Yes Yeah, so it's it's willing to try it Excellent, excellent. Well, we'll we'll definitely use you as a beta tester. Uh, and the the um It's it's gonna it's some months out, uh in in terms of development But uh, we are first offering this feature for crypto crypto markets that consolidate But I wanted to mention it too because I'm it's pretty exciting to be able to look at I mean, what a great correlation. Uh, what what a great thing to look at like just put in those five stocks for the s and p 500 and then put in the S and p or maybe one or two or three of them Maybe the you know the bigger leaders for that day And make make a symbol for it so Anyway, yes, it's very very useful for me for my trading Looks here This is Microsoft So look here the The liquidity added just after Okay, and the price goes up This is the first target And this is the second Okay Okay, this is the real time You can see also qq q q As you can see qq q is not so clear than Apple Yeah, you have got oh, this is important. Okay Those levels are very important Because are not concentrated on best bid and best offer. Okay. So these those are Long-term liquidity levels Very important as support or attractors. Okay, but The liquidity of Apple Is sharper Okay I can say here Until tonight if you want No, I I think I think we've we've covered just about everything In terms of the questions. I've been furiously typing away here And I think we're good and you've gone for now an hour and a half Thank you very much Enrico If there's any last minute comments you would like to make then we'll we'll wrap it up No, okay So, yeah, thank thanks everybody and thanks again Enrico excellent presentation I will have the recording for you up Soon give it give it a few hours here also note That Enrico those those links, um, please send email them to me because I believe that youtube did not allow them Because uh, they don't want to promote outside of youtube. I guess I you know, so Yeah, so I did not I do not see them But I might be able to slip them into the description of the webinar for everybody Or or we'll just email them out to in a mass email in one of our our digests It's something like that Yeah, uh Excellent. Thank you very much Enrico and maybe we'll do another one in in italian for you Yeah, okay, I'm ready from italian. It's it's really easier for me Okay, thank you. Thank you everybody. Bye. Bye Okay, bye