 Good morning traders. Welcome to the Traders Lab. I'm Tom B Streaming live Monday through Friday 11 30 A.m. To 1 p.m.. Standard Time and please remember Monday is Labor Day holiday in the US and we will not be streaming The purpose of the stream is to help you Understand market behavior in other words market mechanics. Why does the market do what it does? How does the market do what it does? There is order and what appears to be randomness? And if you understand how the market tends to work You might have a better opportunity to integrate a trade plan with it and potentially align Indicators if you are so inclined The key element in all of this is to know what the condition of the market is and the thing about the condition of the market is it Changes inner-day As well as in higher time frames. So the goal is if we can look at the pieces in multiple time frames We may be able to use more Microstructures or time frames in order to align with higher time frames and that potentially can give you the range That may fit your risk reward parameters Understanding the different contexts can help you align and adjust and on the other side of that also know when it might Might not be in alignment with your current trading approach So the program is about integrating auction market theory in the words in the theory of the auction is the purpose of the market how it behaves volume profile is a physical optical Presentation of this behavior and it's really price and volume versus price alone or price based Oscillators moving average and things of this nature which are all derivative of price This is price plus volume and where there is volume tells us something and when there is not Volume at price that also gives us other input and that's the basis of the auction We'll be looking at that and then the whole thing is about how do you layer these tools or this insight or potential behavior together into a potential either Trade plan or just really the purpose of the stream is to give you understanding of how this works And then potentially for you to build something on top of it. That is the purpose of this stream General disclosure all book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice or 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 trading futures equities and digital currencies Involves substantial risk of loss and is not suitable for all investors and investor could potentially lose all or more than the initial investment Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle Only risk capital should be used for trading and only those with sufficient risk capital should consider trading past performance is not necessarily indicative of future results and please remember This is not a trade calling room if you're looking for trade calling then this is not the place to be this is for education Now we will look back at what is transpired today and what is developing and we will also come into real time But none of these are to be considered recommendations to interact with the market This is more for you to learn how the market works And then potentially with a better understanding of market mechanics how the behavior manifests itself potentially be able to get into alignment with the market or Create a trade plan to take advantage of these things when they show up Again, you have to vet your own trade plan And I recommend that if you don't have a trade plan that you get one. I'm still having a little technical issues here not Not on YouTube by the way, if you want to post questions you can post them in YouTube Chat of course and of course the discord Trader lab chat And I will look at them of course and review them it takes me some time They're in multiple windows. Also you guys in YouTube check the cog wheel make sure you're in 1080p Also, there's a 15 second delay in YouTube So I think we've covered that okay general understanding here auction market theory I need to review this because there's always new folks and traders coming to the stream So I want to make sure that we have this basis of understanding Auction market theory is very simple That's a buy on sale Don't buy when the price is too high Retail is where we're most comfortable you go to the store Basically, there's a retail price. That's a dollar a can for tuna today. We're gonna do tuna It goes down to 75 cents if you're a tuna lover and you perceive it's below Retail or a fair price and you would see that as advantageous as a buyer You might buy more that's called a sale The ought that's the auction if there's demand down on that sale The sellers are gonna see the demand and they're gonna start raising their price back up maybe they'll bring it back up to retail and Since retail is perceived by the seller and the buyer to be a fair price It's gonna generate volume think about it in the supermarket. There's a price if everybody thinks it's fair The sellers and the buyers that interaction creates high volume and that's your retail price. Okay logical, right? If the price goes up to a dollar and a quarter can of tuna you may go, you know This time I'll buy it But I'm only gonna buy one because I need that one can you know But I'm not gonna buy more than one then it goes up to a dollar 35 and a dollar 50. They I'm just not paying it I'm gonna go to a different product or a different store And then the sellers if they want to get that volume and those transactions They're gonna have to start lowering the price to entice the buyer and at some point We get back to what is considered a retail price and that's where the maximum volume Transacts that's retail. That's the auction now. You got it Now here's the other little element about this this auction takes place all over the in the developing time frame in All fractals or time frames. The process is generic. So it's not necessarily one big auction It is in some ways in the developing time frame, but inside of that time frame There's other auctions taking place as the market Consolidates and think of a auction as a consolidation because that's really what it is two sides interact Right and it where in that little fractal is too high and too low too high and too low And then there's a retail price and if that retail price is either too high or too low Relative to where the rest of the volume is taking place. We're gonna leave it I think of those more micro fractals and I want you to think of it this way since we're using a grocery store or the supermarket as an example as a convenience store a Convenience store also has pricing. It has a low price. It has a fair price It has a high price and it's going to be priced differently than a supermarket because it's quote convenient However, they're still volume in that convenience store even though it's less, but we can still see Using the volume profile where a fair price is where an unfair prices And if we leave the retail price that means that store the business is done in that convenience store And we're gonna potentially move to another area So this takes place all through the day all through The daily developing time frame and in micro structure, so we're gonna look at that time frame simple What's your time frame? What's your fractal? Are you trading a short-term time frame or you're using the short-term? time frame to attempt to get in alignment with Higher time frames so you can take advantage of the larger rotations That's what you're going to see here today. All right, and then the context this as always the thing that gets traders Into trouble is because the market goes through phases it gets directional All right, which is one kind of behavior Contextually and then it gets rotational where now it auctions back and forth back and forth And you need in my opinion and I'm going to say past performance not necessarily a decade of future results a different trade plan for Different behaviors because one size doesn't fit all in the market. Otherwise the market would just do one thing But it's not and that's why many traders who are indicator based don't understand that when the context changes What might work in one context based on an indicator? It's going to get you upside down Because you'll just be selling or buying little rotations as opposed to getting aligned for higher Range moves if you can't tell the difference in the context you're going to have very inconsistent results in my Opinion now book map is the order-flow tool that I use Because I needed a way to figure out how to understand what was going on in the book and I found at being a dome reader just watching the bids and the offers moving around I couldn't remember where anything was I didn't and it's just I can't remember it and do everything else so book map became a tool for me to Watch and understand the behavior of the order book to learn about what it might mean how to use it at times when potentially there's Alignment with other auction based structure, and then it allows us to see stops icebergs stop sweeps of absorption many other tools Are part of that package and it's helped me get into the micro structure So for me book map allows me to see all of this in minutia in micro and for me if I can cut down And this is just my personal approach if I can narrow the range of these micro structures It gives me the opportunity for potentially better entries better risk management because I can execute better than I can with a higher time frame Regular chart, you know, so it's it's helpful for that, but it also you know, there's so much more to it. So But we're gonna look at all that okay, but now I want to take you to the higher time frame because we have to always in my opinion Look at what's going on because the higher time frame is where in my opinion we want to be aligning So let's take a look at where we are and this is as of the close yesterday now if you remember Looking at this. These are what I call These are micro composites and all these are this is our th candles and Their consolidations right and if you think about how the auction works remember. Oh, it's on sale. I like it I'm not paying that Yeah, but this is still a great price down here. I'm not paying that and this right here this Gold-ish color wine is retail. So that means as we were criss-crossing this consolidation This was where the highest volume Transacted because we of all of this we spent the most time in the most transactions here. So too high to low Retail so look what happens This retail price is too high This is a previous retail price here. We break below it That's saying so up here too high Break below too high Come down right here test this one practically to the tick 4122 too low Back up to check here Too high missed it didn't tag it Break below it too high watch the process and this big outside day Nasty where the stops under this consolidation here fuel You guys following me then what look at what happens here? Down-day, where do we go? 3969 that was yesterday's key number remember it was our over under Because if we got below it that put the next target 3900 ish 3907 right there is our next target and if you happen to look 3907 3904 ish remember horseshoes and hand grenades is the next target Once we came under here yesterday and this target as you know has been sitting here And then we have another one below. So what is the low of the day? Hmm You guys can 3903 half. What was our next target? 3905 quarter. I think that's pretty close. What do you guys think? No precision in trading by the way Are you guys tracking so far as far as the? Higher time frame Okay, this is The point of the auction and you can see it here now This is all going to happen in her day also in Microstructures the same thing, but I want to get aligned for me the higher time frame So if I see this Which was a key retail price remember day before yesterday. We checked it bum Close back inside yesterday We were trading in balance if you guys remember it was two-sided trade And then when we the stream ended it was like there might be change You know watch this and then once we got below it and we had an unfinished auction Yesterday the volume point of control closed at the low of the day which says not so good For the longs we gap lower Then what we expect on a gap is what's called responsive buying in other words these guys these shorts Open go lower. Let's take some profit. That's what's responsive and then puts this Back on track. So that's where we are. So the market is doing this is auction behavior now It doesn't mean that we're here that we're done We can react we might be done or We continue lower and come down to here not a trade recommendation because I have no idea But what you're seeing is retail Check Bounce break Too high just like here too high Too high This one too high broke away from it, you know, so Does that make sense? I want to make sure we're aligned here to understand auction Why this is the mechanics of the market in my opinion and I have to say anything can happen in the market You know that that is trading, right? But if you can kind of get your brain wrapped around what the market tends to do What is the purpose of the market? Let's remember what the auction is Find a buyer too low find the seller too high Retail price we like it break away. Whoop too high. Let's go back and check what was too low Break under it. Uh-oh warning will Robinson check it from below too high. What's next? This was too low. That's too high now. We break below it. See a later alligator back here 69 bounce off it retail check too low check it. Oh Break below it too high next on the hip parade 3900 that's it. You got it any questions on this. Is it logical? You know Yeah, other brother is asking are the higher time frame targets prior points of control. Yes, they are V pox in the higher time frame the auction is generic So it is doing the same process in all time frames Now you guys in the trader lab, you know, we have a number of set ups I don't like using the term but that have gone off this morning and I would like to think that nobody was on the long side But again, it's subject to your trade plan. This is actually a trade right here, but it's just already happened But but let's go back if you want we can go take a look or if you like I can kind of stay in Real time. I know you guys like that, but let me show you I'm gonna show you This is the RTH open and I'll zip through this Right here is the volume point of control remember retail, right in the volume point of control All it is is where the high volume is remember retail Too high Too low Right now we anticipate on a gap remember Responsive buying write that down and you're gonna ask me why why Profit-taking if you were short and you know, we have NFP tomorrow morning, right? You might think to yourself. Well, let's take some off the table Remember multiple time frames are in here and let's take a look right here These are buy stops sell stops buy stops buy stops So what happens? Retail traders see the gap a lot of them will just sell it I don't know why but that's what they do and then others are gonna when they have the lower open They're just gonna put stops, you know above the open which is here That's that's you know retail trader behavior write this down if it's new to you and even if it's not new to you write it down anyway Think like a retail trader don't act like one Write that down and it should be in your trade plan at least it's in mine And the reason is it have to remember their behavior and not step in front of their behavior if I can help it so Responsive buying now. I'm looking for a short why Here right here Watch we open Move up move down shorts are gonna get in here This it has the potential to get taken out watch it gets taken out now I have these step what I call stop pick now. This is just the way I kind of roll with understanding gaps right Think of it yourself Where would the stops be if the market opens lower and it goes down you think we might get some sellers well I think we might get some sellers now. It could also open and never look back. That's trading However, if you take the time to do some research you will see that Often I can't say most of the time. I'm gonna use the term often You're gonna see this get taken out Because it's taken out the weak hands then and here here they are. Thanks for playing And then it's what happens now so far you with me Other brother. It's not weekly composite. The composites are Consolidations the week the month whatever Doesn't have anything to do with it. It's a consolidation is two-sided trade. It's an auction and What happens is it's the buyers and the sellers on both outside edges trying to end it That's the auction one side is gonna be wrong in a consolidation and when you come out of it Then you get an acceleration also inside a consolidation is the high volume So here's what here's how this works Now again, nobody knows right, but here's how I use this I'm gonna cut this is called V pock migration and track with me The V pock this the volume point of control and remember on the open to make a note of this It is extremely sensitive because this resets at our th open, which is a 30 my time So this is like zero So the first volume that comes in It's showing your volume right here and then as the market moves down you see the volume Transacting this is moving down with it. So that it all it's doing is measuring volume Now I understand the possibility Of this responsive buying and sellers who sold the gap with their stops here. I cannot get short I need to have this And then I have to look for structure. So let's take a look I just want to make sure you're tracking. So the volume point of control moves down here This is suggesting this is too high So now but because I have this I cannot do anything So we come down and I'm going I don't know Come up take them out now. I'm on alert Because this is the weak hands coming out the volume point of control shifts up And it's representing this volume. Remember volume point of control is retail in this structure So just watch We break down The volume point of control shifts down. This is I call this v pock migration. Please take notes What is important? What does it say? This is the last auction in the micro structure. This chop chop chop is a consolidation The volume is here The volume breaks down What does that say? This is your convenience store. If you were here from the beginning of the stream, you know what I'm talking about This was the retail price in this auction. The market breaks away from it Where does it come back for a price check in aisle three here? This is my first short off you go Everybody see and I'm the reason I'm spending time This is micro structure integrated in a higher time frame with anticipated behavior of responsive buying and a stop pick And then the behavior of the volume is giving me an indication that once and again This shifts up here. I don't know But when it comes down Remember it's saying is there's more volume here Than there was up here That's saying is that was unfair. That's your convenience store for your pine of ice cream saturday night 10 p.m right here short Any questions on micro structure and the auction in these fractals? Uh geo capital it is a big consolidation, but what I'm doing is looking at the micro structure because Now when you say big which consolidation are you referring to? geo, are you talking about the higher time frame ones? um Are you referring to the interday? that he's in youtube 15 second delay in youtube so Oh geo you're in two places at once geo. You're really you're like in stereo Anyway, I don't I'm not getting a response. So I will move on So we still good guys. You still got audio. Just want to make sure Yeah, okay, great. Thanks. Okay. So this is your first short price check in aisle three in the uh, micro structure Too high short and to put it in perspective for you too high too high See the price checks. So we just did something like that from below. That's all we did here Price check target Price check same thing. Okay. That's the generic aspect of the auction If you can understand what's going on out there You understand what's going on in here and what this is representing is the auction and the behavior of the participants This is about as close in my opinion as you can get as they say to the action Because I don't want a indicator that finally rolls over And I'm getting involved here, which is not where I want to be involved. I want to get involved here So I can get scaled and where's my target by the way. It was here right In the overnight low, so let's uh This has the statistical probability of over 90 percent either the overnight higher low That's my scale This is the target so short scale helmet Okay, then it's trade management whatever that is for you. So let's move on This let's look at the same process too high Break trigger pull back short Off you go pull back to where price check in aisle three return What's it saying? See you got to listen to it. It's speaking. This was too high This has shifted down retail That was too high now what pull back Is this still too high or are we gonna now come through again? I don't know except I know the trend is down, right? price check potential short Still going to target now we get the target. There's more watch Moves down Where do we come? here here price check a liquidity in the book potential short where to back here price check anyway I'm not going to spend more time on this But I think you can see the symmetry and the behavior if anyone doesn't understand what's going on and why By the way, what's right above here? 39 30. Let's take a look So stops are above here Retail price is here Okay Let me just zoom a little bit more for you. This is Outside edge. There's your open See the book Right here This means there's a seller sitting up here So I'm looking at that it comes into the book. I have you see this here. Now. I don't normally go into this There was somebody who was who sold here They had more this comes back in it's telling you there's potentially Underlined potential more business to be done. It's another short where to Back to vpok And then wherever, you know This is the initial balance low on a trade like this This is the first hour low now. We hit my primary target, which doesn't mean anything So I'm not looking at the moment for more extension if it gets below here I I turn the boat around so at the moment. This is rotational trading. This is becoming something called mean reversion So this is context guys. This is what I talk about where you can get scrambled. We are directional Now we're rotational This is the target coming down. This is the first hour low I don't know if we got there didn't we close And now back and forth So you guys wanted to see real time. This is as close as I can get now There's other opportunities if you have a trade plan for it if you don't these were the primary opportunities that we discussed in the trader lab If you are building a trading plan and you can understand auction as far as why see we never understand why we Typically start out looking for an indicator And it's like a plug-and-play. Is that logical? Does an indicator tell you the condition to the market and maybe when an indicator might be appropriate? And then when that indicator is not you see Now that's just a question and the reason I ask the question is when I develop trading systems Which are really Call it a process and mathematically oriented, which is price-based, right? I'm ran into all kinds of problems with them and that's why you tend to be optimizing in system design, right? Well, you guys are probably doing the same thing. You're just tweaking. That's optimization If you're running multiple timeframes, you're attempting Optimization you may not realize it. You may just think well, you know, it's like getting in there with the memory You used to get a screwdriver and tweak your carburetor. Those of you who remember before fuel injection, you know It's tuning right well tuning is optimization and all you're doing is looking backwards to somehow think it's going to tell you What's going forward? Well, what's telling us what's going forward? It's what's happening right now right here Right here And that's how we use order flow. That's how we use the auction and the auction happens in multiple dimensions In other words, this is an auction too low Too high see too right here outside edge Low volume. This is a consolidation Inside of that consolidation are more micro consolidations. So we can see the same process happening And these give you the opportunity to participate, but you have to know where you are This is an outside edge. We pulled back to the mid. What do we anticipate at the mid? Sellers, what else is at the mid stops? What's at the VWAP stops now? This would be a place that retail traders get engaged, right? And it may be just a wonderful spot However, what is sitting here? Stops, so for me, it's a very cautious location. It is a short But there's stops up here. So these are vulnerable So whether or not you would get short here is subject to your trade plan the trend is down, right? So you would be outside in But This is your obstacle below and you have stops sitting right here So you have to ask yourself is this a trade use and this is not a recommendation It's this is about the context and remember the first thing I asked you to write down was think like a retail trader Don't act like one. So they sell this And their stops are sitting here This might be a wonderful place to be short for me. It isn't Because I don't care about the trades that go away, you know, oh gee look it went 20 points My trade plan wants to see stops taken out because retail traders as you guys know Don't have a very high success rate If you don't know that In percentage you're not paying attention And then I want you to ask yourself. This is just sort of a sidebar. Why? And I think you can come up with the answer if you think about it So do we want to do what they do or do we want to use what they do as a potential asset? So let's watch the behavior here. So you guys know and it's not a recommendation to either for action or inaction Is I can't sell this and watch And in the meantime ask some questions rare the Well rare that's a tough question As far as Key levels When you refer to context you mean reaction to key levels and where we open Yeah, well where you open in relation to the previous auction think about what goes on What's the purpose of the market? Here's the stops by the way, right? This is why I cannot Get involved Now This is an outside edge of a consolidation Now I want to be watching not a recommendation. We just want to see behavior Right here is a micro high volume node Right here. Let's watch Not a recommendation for tourists remember that because anything can happen in the market, right? Let me pull this Now this here Notice the book What's what let's watch There's micro high volume right there that is reflected in the volume that took place over here If you consider this your convenience store at the time This was too expensive and we broke away. What is the market's propensity come back and check Price check in aisle three. We got the stops out. So these guys are out now We have to see you see there's more stops coming out. So we're going to look over here Which is an alignment with this outside edge Watch Not a recommendation remember In trading it's maybe Let's see what it does Are you guys tracking so This is micro structure And it's only an air. Here's how I use these remember. I'm talking fractals, right? The way I think about it and I don't know what other folks think who do what I do, you know, I've kind of been off You know Doing my own thing for quite a while So I really am not and I don't go out on the internet and look at what other people do I'm kind of allergic to that So, um, I've just kind of developed this kind of look the way to look at it. Uh, it's got to be I don't know over Let's just say a long time I Maybe 15 I started trading market profile in 1985 or 86 somewhere in there Original market profile and I couldn't do anything with it First year or so I was Because it was rule-based, you know, this is that and I came from system So I'm just mentioning to you I came from system So everything to me was somewhat structured, you know Percentages and probabilities and you do this, you know rule rule rule rules, right? Well over time I I I couldn't operate in that What I because the market is not a rigid structure It's fluid and it's continually changing because it's an interaction of buyers and sellers That's what's going on right here buyer and seller buyer and seller for every buyer. There's a seller So then it was well, why? And what is it trying to accomplish? What's the purpose of the market? It's the interaction of the buyers and sellers in all fractals and timeframes So the guys that interacted up in here and found this too expensive at the time And then they came back here and created volume and broke away Then we have the potential right here To come back and check and then the book is up here. This sets up the short not a recommendation I'm not saying it's anything more than behavior See the alignment See the book See the rotation and this is outside in so this is mean reversion. It needs to get below here Outside in in other words, I'm not paying that Retail Now let me I'm showing you behavior. These are not trades. I'm showing you that For example, let's let's assume you have a trade plan. Hopefully And you decide that this is a short for some reason Uh This is your obstacle price check in aisle three. This is retail. This at the moment is too high This was too high. So you have alignment This is your obstacle So you have to scale here Not much room, right? So when I look at these things, I'm just telling you me And it's not a recommendation. You have to come up with your own thing, you know I what is the range from my entry to my obstacle? I have to get a scale if I don't have enough range to get risk neutral I cannot put the trade on again. That's just my thing, you know, because there's so many buses coming by Why not wait for a better bus? So That's why I can't do this, but I want you to see the structure So let's watch and see how it behaves Because I can't enter here, you know, if any of you guys can you got a you got a direct message me will talk But so for me if I'm getting in and I'm going to be getting in down here I got a scale here. How can I make that make some, you know Because my risk is going to be from entry to this So I have to cover that Before here. That's pretty tough. Don't you think so? That's why this trade doesn't fit my trade plan But it fits the auction structure So even if it's not doable because of range The auction doesn't care about the range We care about the range for risk reward the auction behavior though You will see it all over the place now And that's why this is important level. So let's go back Retail in the microstructure right here Right where that note is right there The book pressure target Not a recommendation for scale and then down here If it works if it doesn't work, it's just one of those things But I want you to observe it. Do you have a questions about structure and auction and the potential mechanics of this thing? Rare is asking me if the poc is more important than an hvm. They're really the same Uh, the thing is that this is for the the whole day Developing time frame the micros which is what this is up here is just this Auction that took place over here. That's why this is the area to lean on you see So it's the same behavior in in micro That's why when I talk about auction, I'm talking about fractals. So this is right right here Which we talked about now. That's not about me being right or wrong or anything. I have no clue I mean, I don't right or wrong is not part of trading In my opinion because we don't have any choice because if we wanted to be right, we just skip the ones that don't work, right? So our job is It's random in the sense of what might happen here. So this is our area to observe. This is our obstacle So, you know, that's what's going on here And that's about it. You see we're at this outside edge So in theory what we're looking at is what's called mean reversion Which is a return here. I might have done it already. You know, I don't know. So we'll see. Let's watch this Look where we are. So this is what you have to always look left Here's the volume. Here's the book. We got alignment Watch This is where we're trying to go Not a trade recommendation. Let's just see and here's how I think of the auction guides and I and I I want you to think about it if I mean if you find this at all useful to you is Can I mentally stay aligned? Can I understand what creates price movement? Can I understand what volume represents? Remember volume profile? Why is volume important? Because of what it says So we'll see now. This is just like any other thing, you know, can do anything, right? This layer here. This is an important price point This I mark it called a variable high volume node All it is is I track the position of the v poc as it's developing So we have the potential to still come back here Or whatever. So let's see what happens here So now this is the next area Now what you'll notice is happening is we're coming outside of this distribution Now we want the outside edge, but of course we wanted to come back. That's why this is your obstacle Because if it was lower, it would have the potential, you know from here to come back lower But because it's in your face, which is why the trade doesn't qualify is because it's too close That's why a trade plan you got to have now when we come out here This is another location to observe, but you got to remember there stops it in here Here's another piece to remember This was our target in a higher time frame So you see We can rotate now. That's why this is mean reversion. It has changed To rotation balance. So let's look at the little bit of a higher time frame here. Let's look at this thing RTH open there. So what's it doing? See down Down back down back chop, right big consolidation now So the thing to be aware of We may be done for the moment So we know that here's the other thing the other short we had from here went this was the target Got down there didn't take it out What are we doing rotating? This is mean reversion. Do you guys know the difference between a directional Context and now rotational. This is when I talk about context and look where we are VHVM Another location Just watch Too high Too high Potential back here or not You see This is auction and what let's listen to it Too high Too high Right here Too high Too high right there Potential back here or not Is this making sense? This is how you dance You know, there's that was a tv program dancing with the stars to me. This is dancing with the market And all we're doing is Interpreting what the participants are saying. It's not complicated If you don't think this way See, this is why the stream is about mechanics Auction market theory. Why is the market doing this? You need to understand the why If you understand why Then you might be able to Dance with it Now we don't know what it will do Haven't gotten that figured out yet But we know what it might do. That's all trading is it's maybe So here look what's happening here We just the v pock just shifted up That is suggesting this might be too low at the moment. So this is my next check Potentially I have to be on guard right now. This is called v pock migration. Write that down What that is saying is let's look at what it says. Okay too high Too high Shifts up too low Trend is down So now this This is something I have to observe right here. I this is potentially where I'm going to go So if short there is enough range, right? Not a wreck. I don't give trade calls, but I'm kind of giving you this the shall we say the lay of the land, right? You can see it Right there So just trying to give you a little sense. This is your scale Ahead of this now you hold where are we looking here? Why? We didn't take it out last time down and there stops Let's observe not a recommendation. Anybody have a question Um rare the biggest trades. I I don't know where the biggest trades are going to happen, you know I I'll all because to me it's all random What I know is I have to wait for location I have to have enough range to get to an obstacle. You see the behavior here This is at the moment saying potentially if we don't get below here. See where we came. It's too low This is a kind of an area of caution for me And not a recommendation because it has to get below here If I can't get below here, then I can rotate up again. So, you know But if I got short up here Which is an alignment, right? Uh, I'd be scaled. So I'd have no risk And this is in the trader lab things we discuss in developing trade plans and and we keep it simple Because in trading, I think you got to build the foundation of understanding if you are in a hurry and you don't understand how the market works Then I think you're short changing your opportunity To be in the business of trading as a long-term participant. There's should be no rush. In fact You should kind of approach it and again, this is just how I think of it from my experience And what I've observed over a few years of trading of other retail traders and what's happened to them is don't be in a hurry Go slow Because if you need the foundation and an understanding of how the market works and then you can overlay other things You can add setups, you know locations to interact Um, and we go over all that in the trader lab, you know, there's 60 pdf's that are available You know That you can download that show you all these behaviors Like this one right here See So if you understand what created this Then you understand why we're coming back to it See as opposed to You know and now this is nonsense. This is algorithmic behavior But it's useful if you understand how to use out, you know, uh the book And um, if you're interested in order flow and how to use, you know, uh order flow tools, you know book map whatever Um Monday tuesday and friday not next monday, but monday tuesday and friday, uh, we have excellent Free webinars and streams on strictly order flow and it's not restricted shall we say the futures like what I do It stocks options Futures crypto because the the behavior of the auction is generic, you know So you're going to see this behavior in all financial products In fact, if you go to ebay, you won't see it, but that's what is ebay. Isn't it an auction? Between a buyer and a seller It's all the same notice how this trade is working If you know and again, I don't call trades Notice the alignment horseshoes and hand grains notice This We get below here. Where's our target again? Not a recommendation this That makes it worthwhile to me Because now I had enough range to get risk neutral and put it up a few pints of ice cream in the freezer now It has to come back here to take me out and then I just sit for this We'll see how it plays out Not a recommendation. I'm just giving you an idea of structure What it means now we checked here If I can't clear this Then this may this trade may fail But it won't fail completely because I have no risk and I have a few hamburgers and pint of ice cream in here So that's it. Here's my high volume right here So this is my area right here in alignment with this Is where the trade would fail So we'll see what it does and all that would happen And this is at least my plan and I'm not recommending anybody do what I do Is the worst that can the worst that can happen to me unless something, you know Strange goes on, you know, like somebody trick trips over the quarter to see on me as I scratch Or I take a few dollars and put them away So that's how my trade plan works risk management first Risk is the job number one attempt to get risk neutral. Basically. I'm buying the trade And like everybody else if my location is off, I pay the price to discover that But I understand the auction and I understand why this was the potential you do too if you understand auction Then it's now what well if this is too low Then We'll squeeze That's all there is So it's do is this too high still this auction right here. You see the high volume Or is this too low Right now it appears this is too low and this is potentially going to get squeezed That's all I need to know Because after that I don't know Does that make sense? Order flow education. Yeah, I do I monitor the spoofing? Not really I see it, but I have a priority of inputs, you know, I kind of have a sequential process And what it is is how do you when you think of all the things we're looking at, you know, you know rotations Whatever the auction hype micro high volume structures things like this Where is the priority and this for me? Early on was the conflict and that was indicators, you know One is saying go along the other saying is not ripe yet The higher time frame is over here this shorter one's doing that This didn't cross over or this one is, you know, the shorter time frame, of course, you know crosses quicker Oh, is the five minute today or do I use the 15 and five or do I use the two minute or the one minute or tick chart or What am I doing? because it was a constant The thing is you look at you look at your chart and you see this great rotation And you're saying, how do I get my indicator? To get me in that trade it because and I think for many of us we somehow think the indicator is going to solve the issue Um At least I thought because that's all I knew when I started out. In fact, when I started out, we didn't have them When I started trading we didn't really have indicators. Um, we it the technology hadn't quite was just developing Um welds wilder if you guys are familiar with him, he published stuff Um, you know adx dmi parabolic stuff all that and then classical bar charting So when I started out it was really bar charts by hand You know, so, uh, you know get your pencil and your ruler out Um, so that's you know classical stuff. So I kind of started with that so and then as indicators involved We thought oh the holy grail is finally here Well Not so much So the confusion that indicators create if they're in a vacuum is they're not in alignment Um, if you can get a handle on context and how the market changes, you know, like this This is different behavior, isn't it? Then when we just were coming down Say continuation now we had all those remember. This is our target, so now I'm in what different behavior I'm in rotation. I can trade rotations, but you know I have to have location. That's what the auction is doing for me. It's giving me levels where the market had behavior here here alignment Here alignment, you see and there's no precision in trading guys, you know That's why remember, you know, we draw a trend line and somehow we think a pencil is going to do something really Or we have a Fibonacci extension, you know, what is that? It's a line It's nothing to me because the market is made up of the participants. It's not made up of a Fibonacci level or anything It's the auction. So it's kind of how what is the basis of all this behavior? It's the auction because what's the purpose of the market go back to what's the purpose of the market? It's to discover a fair price and the what is the market doing? It's auctioning. It's going. Yeah, that's too high I'm not paying that. Yeah, but it's a great deal down here Yeah, but that's still too expensive up here. I'm not paying that retail, right? We left it behind It's like the shoppers left the store Where are the stops? Let's think like a retail trader but not act like one here Will it get there? Clueless. Can you guys see a process? That's the first thing if you can interpret a process Can't you build something around it? Maybe PSC the order book I'm always suspect of the order book, but if you look Where behavior took place? You know, you're asking me priorities and for me the chassis is this What because this represents the interaction between the buyer and the seller that's all this is okay? And we also have to think about retail trader behavior Does anyone think it's an accident that we got a rotation from the mid in the v-wob? Does anyone remember why I said I can't get involved here? Why retail trader behavior very consistent stops above here then I'm looking to the auction Right here We got offers in here right here. I have this level Right here is backup and I have the auction that took place in here Here's the high volume right here is a micro v-pock. So it's the same as this Except it's in a micro Structure. So that's why I'm seeing the same behavior right here So that is the same as this Which is the same as this in the higher time frame. Can you see why this is fractal? If you can think of it that way Then when it comes to areas and it's aligned with the context, don't forget in your trade plan Don't forget then and you understand retail trader behavior. What down here You know, we may never get there by the way, we could come back up and just you know Slam everybody around because we're in balance. But what is mean reversion? Oh, it's on sale I'm not paying that Yeah, but it's on sale. I'm not paying that it's on sale I'm not paying that Say back to retail Now we're going to look for too low potentially unless we continue higher and squeeze these stops that are above here You got to remember that so currently what do we have downtrend? Mean reversion outside in no clue stops under here But the caveat is we already checked Higher time frame retail and we're above it. So this might be done For now or all together and now the shorts that are sitting in here might be on the chopping block It's always maybe So that's what you got. So if you're getting short You got to scale get risk neutral If you're getting short You got to scale right to here. You see it risk neutral Now you're you're hanging out and you're betting and that's what this is this If we don't get there then squeeze the terrier and then all these guys who are short Will get taken out That's as complicated as this is. So let's hang out and see what this does. Okay. Is it logical? Does it make sense? uh, the small dots And the dots are showing Delta and What is more important to me Is what's going on In the micro structures Here's an interesting thing here. Let me show you what i'm referring to Uh, this is our stop and iceberg indicator and i'm only and i shouldn't use the term indicator because it's not an indicator It's just reading the orders, you know, uh, the cme Marks tags the orders with the type, you know, is it an iceberg? Is it a stop stops become Uh market orders right by stop. So here you'll see 14 stops go off Over here coming up 33 stops That's divergence, right? So that is saying to me potentially exhaustion Because who are the buyers stops So these guys initiating or getting squeezed in my opinion squeezed that gives that gives me more reinforcement at the short Because remember who are the buyers the book if you'll notice Is moving down that's pressure So, you know, we have a short right in theory not a trade recommendation and you know where we're going Theoretically not a trade recommendation So liquidity is sitting in the book. We want to see their behavior. This is an area to observe And anybody Not see the rationale Yeah, right or a location of interest engage. It's almost like star trek, you know engage I at least for me, it's all about Location What creates the location? Why did it happen? And I'm not somebody who picks a higher or low. I'm still working on that I've only been doing this for 42 years. I think maybe a little longer now, but um I have never in fact, you know early on in my trading. It was like, you know, oh, it's ego I can pick the high. It's going to be here. It's going to be there if you're still doing that I suggest you try something else What I do is I want somebody else to be the brave soul Or the exhaustion. I want to see this I want to see the high volume in this structure. I want to see the pullback And I want them you see what I'm saying this happens everywhere Here high volume Break, where's the pullback? here Break High volume Where's a pullback here with divergence? You see these are all potential triggering structures Not recommendations triggering structures Can you see it here? Divergence Break pullback didn't get there Tough nothing to do. Sorry if I sound a little I didn't sleep well last night I was too excited about getting short this morning Sorry Target why retail trader behavior? What's below here stops? What didn't happen last time we were down here? We didn't get it. So what does that mean ripe? Is everybody tracking? Dom I didn't I was never on the floor. I started out as a screen trader when we didn't have screens Uh, sorenson, what are you asking me? um Yeah sorenson. Yeah the the reason I this is a target is it hasn't been checked and Retail trader behavior. It's going to be under here. So You know for me, this is a target area. I don't care if it goes through I don't care if it makes a new low This is a trade For me in my trade plan. See I don't care about You know now you could do this with now Here's the other element and the reason I I kind of stick to this Uh in a trader lab we talk about two lot One to secure the risk You know so you can scratch if it comes back and and it's structural the structure has to fail And then targets retail trader behavior and where everybody now the fact that this liquidity is sitting here And they're back in the book and we're starting to thicken up um You know this is my area and the trade is done, but I'm okay with this I don't know about you guys, but I can live with that What do you think? So when I started out them, um All the guys I I basically hung out with were all floor traders And when I started out, there was really no technical analysis. It was really charts mostly and technical analysis was just kind of Starting to evolve. We didn't have You know like the trading platforms my first good trading platform was A cqg tq 2020 it was like I think it was their first one and it had you know different time You could have a 60 minute 35, you know five and it was bars. There were no candles at the time And then I worked with George Lane. I shared an office with him. He created stochastics on an apple one Some give me an idea, you know where we were and he created that oscillator and then So when that came out and was available and you know, I was sharing that office with George It was like, oh my goodness. We now have the holy grail And it kind of was for a little while Until every you know until oscillators and then derivatives of oscillators became popular So but that was kind of how I got tiptoed into tech the actual technical, you know mathematical stuff and then started writing code for trading systems everything evolved out of that, but I always thought it was mathematical I mean it was mathematical because we didn't have volume profile Peter Stottelmeyer created the market profile in 1985. I think it was and I learned it from him He had a thing called the market logic school and even back then it cost a couple thousand dollars You know, which was real money back in the day, you know So so that was the only way you could learn is either buy a book or go to a seminar But when I saw this And I mean market profile plus I knew guys on the floor You know who knew about you know at the cbot in the grain pit I think that's where he was. I can't remember anymore. You know, they said, yeah, you know Interesting, you know statistical so I got interested in that Anyway, that's just a you know a deviation from our target Area now you see this in the book you see this in the book Uh, what is going on here? Here's something to think about and I'm not the order flow guy. All right, I don't consider myself Very good at it because my thing is the auction So this is not a primary input. It is important to me when I'm in an area Because now here's the thing with this Here's the question for you guys who are thinking order flow Is this a buy and is this a sell how about These guys are putting their orders in the book to push the market up and to get guys like us long So they can sell Use this rotation to get short and then they pull this or or They're gonna pull this and open the door to go up and I don't know the answer by the way But this can be spoofing and all kinds of crazy stuff and it might just be So they because they can be operating in here and you guys which means me Am I gonna get long? Am I gonna cover? What should I do? So we're gonna let's just watch what happens here because I have no clue So when I talk about my inputs and my priorities, it's not this But I am aware of this here and this is my level So now we got to see what happens. Should I be covering here? I could be very happy being out of the trade Because They came up They pulled We can come back here or not or could just come back to this. I mean it could do whatever So it's mean reversion This is the target. We didn't get to it Would I be okay being out and the answer is yes Not over trade recommendation because the short was from where up here or up here something That's still a decent trade guys. What do you think if if you know and again, I don't call trades, but does that work? Uh stock lounge. I was never on the floor. Um, I was an off-floor trader when there weren't any I mean the guys on the floor would look at me and they you know They just shake their head and walk away because they're in a different business Um, I knew I mean we used to have all hanging out, but when I started Um Technical analysis was really in its infancy other than charts Uh, so it was really a fundamentally driven business, you know reports And uh, when I started out, I think early on I was trading grains you know Because the guys I knew were grain traders. In fact, some of them were one of the I worked with one of the largest wheat traders in the world Which was kind of interesting He'd get a good chuckle out of what I was doing So, um Anyway, let's see what this thing does No idea doesn't matter. See for me if I cover here It just doesn't matter This is the target though. This is where the priority of inputs comes in, you know Um, I typically don't In other words, I see this and I don't know what to make of it I have and that's just the way You know, there are others I'm sure Who really understand I find it too Nebulous and random This is more important to me Than this But I do notice the alignment and the behavior. You see this So that happened this guy's back in the book That's important This is here. That's important This is the outside edge of this distribution. In other words, consolidation All right, so outside edge up into here get the stops out Thanks for playing mid v-woppers, right? We got them done That was the key now and we don't know how far out it goes, right? There's momentum. That's what stops create Momentum. That's why I can carry beyond So I have to get them out. That's why now I could get short and if you're following, you know, right Then it's once these guys are out wherever that is and look at the alignment, right? Then potentially down to this That's all this is Too low too high. Where's too high? I don't know up here. Where's too low somewhere down here. That's it That's as far in my mind that I need to go I don't know where the high is. I don't know where the low is. I don't know where shorts will cover I don't know what impact this will have. I know nothing All I know is auction Which is my primary input the chassis Retail trader behavior, which is stops under here And the book is lining up again here Which might mean they want to be buyers. I don't know so we'll see okay Is this logical guys is it making some sense? Oh, no, I used to trade everything dean back back in the day. I mean I traded everything Not no not early on, you know But I was let's just trade. I had 32 I'm trying to think I mean I traded most of the you know the different products, you know financials meat grain matter T bills before bonds Before the 30-year bond and then when the s&p came out we called them pinstripe pork bellies Which I think was 82 81 I don't remember so I started trading then those were the big s&p's $250 a point And that that's what I was swing trading Two to three days swings in the big s&p's And then currencies I was doing trend following because you know currencies trend So they were better And then currency spreads Things of that nature before there were pairs. I mean I trade a lot of different stuff metals complex energy doesn't matter I mean see the thing about it is it doesn't matter what the product is I mean the process of trading is generic If you're trading options or cues or spies Crypto No matter, you know, whatever your thing is It's all the same So this process takes place in because this is just is how a market works. This is very fundamental to market So this is the market Now all this that happens in between with this and the algos and all this stuff, you know, that's noise Except if you can recognize Why Notice here Liquidity reaction notice we come back the liquidity comes back in the book reaction There's a buyer here. Why is this back in the book? There's a buyer here, right? Let's observe and we'll hang out together. I'm almost done, but I'm gonna hang with you guys So we can observe the behavior I really, you know, I'm hopeful that you guys can see a concern what I do every day here Is the same thing I hope you don't find it boring, but the point I'm trying to make is In a trade plan, it's a process And for me, I don't change it Been there done that My job is to wait And wait for things that make sense Try to get aligned Understanding of market mechanics. Why think about it for yourselves if you're watching the stream whether you're new here Or you've been watching it, you know for a while Am I doing the same thing every day? I think the answer would be yes And if I do the same thing, what's the reason for that? It's because I need consistency to be able to measure what I'm doing If I have random inputs and today I'm trading off this But not my auction structure or I'm just throwing the dart at the board, you know to get short Wherever It's inconsistent. So my job is to be consistent. Otherwise I have chaos. I can't measure it Remember here is the target Here is the buyer Let's see. So what might happen here? Why is this buyer here? What's below here stops? Let's watch auction So now we're integrating the book with the auction What might happen here? What are we anticipating stops, right? What is this buyer anticipating? Maybe stops Let's see. Are you guys tracking? By the way, if this is of any interest to you if you're getting any value I invite you to come to the trader lab. It's in the bookmap discord chat There's a lot of free education in the trader lab. There's a bunch of pdfs On these behaviors and structures that would I think save you time You know, it's taken me a long time to come up with a lot of these ideas Not to mention all the ones that get jettisoned. There's certainly a lot more If I I can't remember the things I've thrown away, you know what I mean And you've been doing this for a while. You've gone down so many dead ends dark alleys You know that at least I can't remember them Except I know the years I've spent I've distilled a lot of this understanding down So I think it might save you some time plus in the trader lab. It's a collective of Traders with very diverse experience And approaches. It isn't just this but I think an understanding of market mechanics and behavior is an asset And especially understanding retail trader behavior, which is why I couldn't get short at that myth even though we saw it, right? Remember Why did I wait retail trader behavior? Why is this our target retail trader behavior? Why is this buyer still here? Good question. What's he going to be doing? Taking advantage of the other side of these stops that are going off right here So let's see what happens. Now the market can do anything. It can keep going. It doesn't matter to me Watch So this being the short Not too shabby right short short no comment Target trades done unless you have a runner and you could do this with the two I think that's pretty good What do you guys think? If you're starting out remember if you're starting out Can you go on sim? gain confidence Once you are stable, which means you can follow a trade plan Then potentially subject, you know to all the caveats that you know Can you move up to a micro and the micro will give you the opportunity? With a I consider a relatively reasonable risk again subject to your trade plan account size, etc and qualifications to trade To trigger the emotional side of this because before you're moving on to the next setup and the next this and the next that You've got to reconcile yourself with a foundational piece which allows you to attempt to integrate to vet ideas like this and then Trigger the emotions Because your job is going to your biggest obstacle whether you believe it or not and you probably don't Until you've been doing this a while is what how you get triggered emotionally and how your brain gets flooded With chemicals in response to a this stimulus and how it causes you to lose control Of your intentionality because your logic is overwhelmed with chemicals You know so you can have all the intention of the world not to move your stop or bail out But at when the moment you're in that chemical condition, which is triggered by the risk state You're out of your mind. It's like, you know, you're under the influence You need to understand that And you won't get that you won't really you want to experience it Until you actually put a dollar on the table that would be the next thing I would suggest that you deal with Because no matter what trade plan you you create and it should be just something that gets you going You know in my opinion You've got to deal with that that the psychological thing before you Do anything else and again, it's all subject to you know, what's important to you but to me The biggest kept secret In the world even though we all sometimes talk about it, but it's not thought about is These emotions and how they disrupt the best intentions and trade plan so Build the basic foundation Use whatever process you find is consistent that you can relate to You know what my approach is Experiment get some metrics Have the discipline to create a plan with the risk-reward ratio That's necessary to justify risk, you know, you need that parameter. It doesn't have to be complicated Trading is not complicated. We make it complicated because we think in complexity Somehow reveals something, you know that we're going to get something somebody else doesn't have we're going to see What the other guy doesn't see I don't think it's I think it's the exact opposite I think it's simple And we obscure what's in front of us because we think complexity gives us some kind of edge Actually complexity removes the edge in my opinion Again, just my opinions Not recommendations nothing so Here we are. So what's next if you had a runner, you know, you'd keep your helmet on but the fact is on a two You'd be done So the question becomes is that okay? uh, my stops You know guys you just have to kind of find out what you need. I will show you what I have here um Yeah, you know why I keep it at one um Because I want to see everything Now for the alert, I'm not interested unless it's but I don't have alert set up on here You know because I don't want you guys to be hearing all kinds of chatter and the reason Is I don't want these filtered. I want to be able to open this up These are aggregated. So you see what it is as I open this up It breaks them apart And then as I zoom in it just puts them together so You know what I'm looking like here or over here You know, I'm looking at this exhaustion Notice this This is exhaustion on the other side right here and look where it came Hello Huh a coincidence 484 stops Lower price here. Let me open it up. This is a reverent. This is a triggering structure. This is a long triggering structure Now let me let me clarify long Notice 254 lower price divergence 101 three or eight See the divergence Now, why does it matter? here 3905 That's a triggering structure. So what do I do with this? If you think it's a long you ought to come over here and Flog me. It is not. What's the context down? How might I use this? Well Location Exhaustion trigger Potential reversal not long. How about cover? Not a recommendation But do you see how I think about it because I'm trading the auction now if we break under here. I have a target below Somewhere Let me keep looking here. I don't know when I don't know if I know nothing Wasn't there a show? It was a sergeant Schultz See, you didn't think you'd get old tv, did you? Mason no ibf. What's a trend exactly? The ibf. So, you know is a mean reversion trade that means we come back above here. It's a squeeze and we're going to return Here Under in a balanced configuration Potentially it would be a long back to here In this configuration since we're out of balance It's nothing what it is is potential to come back here But not along It's a covering Can you guys understand the difference between now if we were in balance balance meaning Inside yesterday's range Two-sided trade, but who is there a really a buyer here or is it a short covering? Think about it Do you want to get long Or do you want to use behavior? Which is going to be up here Instead of a long and it's just a question subject to your time frame in your trade plan to get short How do you think of this? What's the trend? There's the trend up or down In her day we're in balance. It's rotational. This is the potential where we're going to go This could be a long if your trade plan Takes countertrend trades Me not so much I want to go think of a Countertrend is counter attack, you know, and you know how they send those guys up. Hey, you guys charge this way We're going the other way. So if you're stuck if you are long What are you going to use a counter rotation for do you think you might use it to get out? So when I'm thinking of the context and the trend, I want to be with the strong hands I don't want to join these guys I want to use their behavior and what creates their behavior by stops by stops by stops all the way up Now where does it stop? I don't know So because they're the weak hands So I want to watch So we're going to watch this for a little while. Okay and see the behavior This is structural This is your long, which means cover. See that's me You up to you. So if this is a long, it's not in the context It is signaling to me a counter rotation. Where are the stops here on the other side? And where else? Here So this is my target Let's watch it Not a trade recommendation. And if you're asking me what I get would I get long per my plan? No Per some of your plan you guys would But in the trader lab, we want to keep traders Understanding context and help traders understand What the difference is between this and That why why is this a higher risk trade potentially than This Right and that's a question you should be able to answer If you don't know the difference then you got to spend time You should come to the trader lab if you're interested in the trader lab go to bookmap.com. You'll see a little link says join discord chat You don't have to be a subscriber You know, you won't be solicited nothing and there's loads of free education stocks Options futures crypto order flow How to use different tools and bookmap, you know, all kinds of interesting stuff And it's available. So if you're trading the cues or spies or your position trader This auction is generic in the sense of time frame. If you're trading a higher time frame, you just be working these You know 69 was the number above remember What was it? Uh, my brain is gone 39 69 Yeah You'd be working 39 69 you'd be covering here No, let me ask you a question if you're playing the options and i'm not talking about the cues I'm just talking about the spies is that range workable if you're in that Product because I think to make that product worthwhile. You need to bigger range So then you just move up to a different time frame. That's all it's fractal And you still can use the interday structures for triggering You know again subject to how you do your thing Um, not a recommendation. It's this logical And by the way, if you come over to the trader lab and visit there's 60 pdf's up at the top You hit the pin that you can download and take a look at they'll give you ideas There are things I've developed and that I posted For bookmap last year Somewhere and uh, you know, they put up there Which is why they asked me to do the stream because they I guess they kind of like what they saw And uh, plus a lot of traders I was posting in the book just a regular futures channel and bookmap And there was a lot of interest in the way I kind of slice and dice the thing The market notice the behavior Is it logical? Also, there's an introductory video I did which is also pinned to the top of the trader lab On auction market theory volume profiling kind of philosophical things, you know, how to think You know, at least what's he developed for me over the years. I'm a slow learner guys So there were no There was no internet. There was no information So my learning curve was really slow because I couldn't get information So I kind of existed in the vacuum and there were not we didn't have screen traders. That was the other thing It was really technical analysis was really thought of as voodoo I mean, it was really looked down upon So because it was all fundamentals and reports back then, you know So, um, but technical analysis evolved, but it just was not in the mainstream So it used to be more like open interest commitment to traders Uh reports, you know supply demand Kind of a thing and then the market would adjust I mean reports still impact us today But you know, we have other things we can look at, you know, like the auction and the profiles Which all we had was bar charts, you know So you're looking at classical stuff It's still, you know, we still do the same things, but we just have better tools today To see it, I think But many of us go down the path of indicators by a software package, there's an indicator in there Um, I've always And don't forget I did that myself, but ask yourself why are there 80 to 100 indicators on a software package? Why didn't we just need four or five? Why did they have that many? Are they all derivative pretty much at the same thing? And if they worked, why would we need another one or another one? They don't work In my opinion and the reason they don't work is not that the indicator doesn't work is that the indicator is not context sensitive And retail traders don't understand context or auction. They don't understand the purpose of the market and how it works I think if you can get your brain wrapped around what this is doing and you can look at it right now with me and see why You're going to have an advantage that other retail traders Never get because they're still searching for the right tweak the right indicator the right combination You know a full moon whatever it is. That's what they do Notice the behavior Was it clear? Now your countertrend trader. This is your target See if you're not Then this is your cover I hope it's logical and I hope you got something out of this today. Are there any final questions? Yeah, hulkins heros, right? That's a long time ago The price is right Price check where the stops VWAP mid nothing to do outside edge remember. Does this look familiar? Be a tourist Nothing to do remember what I suggested and again, I don't know this buying structure I be once we come across here. It stops countertrend Okay Remember what's your plan? Are you going to take this side? This is your target, right? If you don't take this side, then you're looking To get involved on the other side not a trade recommendation If your trade plan Was this you would be long? To hear Is it logical? Uh, oh boy, it's I'm just sharing what I consider the basic Overview of the auction You know what I do is not Really germane? I don't think You know what just remember I got 42 years of this So what I do is not necessarily Is let me just say it's built on top of what I'm sharing with you Okay, so I'm giving what I believe and you know if it's not you guys can let me know kind of the basic foundation to build a trade plan I can't give you the trade plan. I can give you the mechanics to help you Determine, you know based on behaviors where you might want to interact with the market And I'm doing it from one dimension Which is alignment with the trend now The other side of that is in a different content remember context in a different context I would be discussing two-sided trade In this context, I'm only discussing one side But depending on someone's skill level There are more ways to interact so but if I think for traders who are developing This Long is a very dangerous proposition For traders who want to get aligned with a higher time frame It's the short is the trend, but The context in this at the most so the higher time frame is a short This is balanced two-sided trade. This is called mean reversion. So we got Trade context inside context. That's confusing, isn't it? But let's put the pieces together. This is my primary target We did it. So then what outside in back to the stops under here, then who knows, right? Check reversal Cover that's as far as I go because it's trend alignment Or Mean reversion because we're in balance check back to here if that's your trade plan And for our conversation, that is not our trade plan Yes, I should say Covering is Is that makes sense? Well, I'm only taking shorts because And I might not be taking any more shorts. This is this was my short This was my obstacle Price check in the big aisle Still too low Then what? Squeeze For the our conversation in the stream There's nothing for me to talk about About getting along here But potentially Somebody else might I think that that's as far as I need to go with it. Does that make sense? So This is either Subject to your trade plan and remember what we talked about Stops under here And the key was they weren't taken out here So they were still sitting there And this was our Higher time frame location see all the alignment So cover Or If you are a counter trend Player in balance Long Back to here And then punt So So neither here nor there But I think you guys get the idea Am I right or wrong? I hope you got something out of this today guys Let's see where we're going Again, no trade recommendations here. We're just tourists, right? Watch this area Stops are sitting Here Here Let's remember what we have Auction Here Here Stops here Here Let me just get back here a little bit Always write this down Look to the left This is a VHVN Variable high volume node So we're going to watch this area Not a trade recommendation We might be done At the moment Right? You see If this then that If not Then what? Here is the target 4 to 7 Right in here Right there This is yesterday's close Remember First time we came to 39.69 First time Bounced right off it counter rotated Came back later in the day Took it out by just a little bit Counter rotated That meant This was it This was the low Then yesterday We opened inside of this range That created a two-sided trade Because we had checked this in the higher time frame Right? We were trading two sides yesterday We opened in range So it was a two-sided trade Mean reversion Then we closed under here Warning Will Robinson What's next? This Very logical Now what? So far so low Too low Then what? Potential to go wherever We can come back to 69 I doubt it Is the potential to come back and check this Just like it checks everything else We just check this If we can't get back Doesn't matter Like We didn't get back here We may never get back here We might be in a hurry to get down here And again I don't know My job isn't to know I accept I know I don't know So I can keep my mind open To what might happen You know? I mean Interday depending on your fractal and time frame It's always going to be changing So let's observe So you guys can kind of see it Long here can't you? Or at least the cover Right? Is it logical? Any final questions before I As they say pull the plug Actually I'm going to go a little bit longer I'll go about 10 minutes So ask your questions now Remember Trade plan Process Prioritize your inputs If you can't prioritize them You have randomness That is not a good thing I am not random Market is One of us has to be consistent It's me This Random So the thing is Behavior though Where is not Now what happens? No idea If we take this out It's like somebody opens the hatch And down you go Or we can take it out And come back Look what we did here This is insight Provided by the participants And what they perceive is too low Too high and fair It's an auction We demonstrated something to you guys Today and every day About how the market works If you can get your brain wrapped around What the purpose Why? You're the shopper Why would you buy an S&P here? Well If this is the previous higher time frame Retail price And we check it And the market says you know I think that's too low In the higher time frame North to where? I have no idea Who's in the market? Shorts Where's their stops? Above the swings So this could be a long For our conversation Nope But Read between the lines Subject to your trade plan Any questions guys? Oh boy I overlay fractals So I start at the top For me the higher time frame Is the daily You know the Which creates like an intermediate time frame thing So I'm dancing inside these consolidations And when we come out of them There's a lot of energy Released that's what gives you the outsized Rotations Moves Because think about what a consolidation is No matter what time frame it operates in There's people Traders on both sides And whichever side is off sides That energy gets released That's what created this move Once we got back down here Price check in the big aisle Too low Triggering structure Reversal North Retail Retail in the higher time frame Retail in the developing time frame And then squeeze it here And who knows So I hope it's logical That's auction market theory This is not complicated If you're interested in it Come over to the discord book map Trader lab And I think you'll find it a lot of fun And insightful And maybe it'll help you I mean there's no answer In trading The other aspect of trading that I find Is it's belief Is it's risk You gotta believe it You gotta believe you have something That makes sense And you're not changing it all the time If you're changing it I suggest you stay on sim Until you don't need to change it You need statistics You need to know a probability Of one thing happening over the other You need to know that If we check a retail price In a high time frame That might be a good idea To get out of dodge If you have a counter trend plan Then you might understanding the context And the structure You might get long To get back to Mean revert And then if you think like a retail trader But you don't act like one Where's their stops Here Here Whatever Open Maybe high the day No clue, doesn't matter That's all this is If you make it more complicated Then you obscure what's in front of you Again, this is just my opinion But it's built on my experience And it wasn't a pleasant experience In case you want to know I paid a lot of tuition More than I think anybody should Because it took a lot of time And a lot of dead ends On a project Researching and working An idea that is logical But it's not functional In the sense of how the market operates Before I understood how the market worked And that took believe me A while I was really chasing the wrong thing But I didn't know it So maybe by watching this stream It might save you some time If you can relate to this But I don't Say Up to you YouTube, how are you guys doing? Good? I think YouTube passed out If you I invite you guys all to the Bookmap Trader Lab For nothing else Just Take advantage of the PDFs There's 60 of them And there's that introductory Advanced webinar I did On the web text channel Also during the day I do drop in And continue narration And discussion Of behavior And can you guys understand And see why we might be thinking long Which is not really Germane And what I'm attempting to do here But let's just say we were talking About a counter-trend trade Or mean reversion Call it whatever you want The logic behind it If that was part of our conversation Which it's not PSC This was a long But I'm not Discussing that here And the reason was This Right there And the stop pick That was the basis of these shorts Was this Once we had a reversal Right or Subject to a counter-trend plan And I'm just for our stream I don't talk about those See the idea is Once you can deal with this Emotionally And structurally You will be able Once you are consistent See there's two sides to the trade There's a long and a short Well if the trend we perceive At this point at least Once we get back here Then it's over That's why In the stream I says you'd be covering Not getting along Because the purpose of the stream Is to get you the foundation Because if you're only trading this side of the trade I think you're okay You know at this point Once you are consistent With the dominant side Assuming we're not in a balance See we're in balance now This is contextual But let's assume in the higher time frame That's who we want to get aligned with Except now that's done Because of that Logical right And if you have a trade plan for this It's a long Which we don't discuss Because that's like I consider that a bit advanced Because you could really throw yourself Into a Cuisinart if you don't Understand this really well So think about it If all you took were shorts And that's all I talked about today How many successful trades would there be There'd be quite a few, wouldn't there Right, same So you never have to get long If you're triggered with FOMO That is a warning sign That you need to be thinking about Okay See the stops going on That's all those shorts are just sitting there So just sitting there Why would you stay short Question Why would you stay short I can't imagine Now get long, different conversation Right For my purpose Is this For you guys And when you can execute In a disciplined manner Being calm And detached And following your plan You can then build on it And add If you don't understand the context And the mechanics and how the market works You're going to be zigging when the market's zagging So it's like start with One side When it's one side of trade And then don't worry about this If you're FOMO says I want this I want that Not good Something to think about Any last questions before I go Oh boy I expect The wrong word I anticipate it's going to take out the I.B. Hyde And the reason is What's at the I.B. Hyde Anybody YouTube stops Right Fuel So for me Stops Target And theoretically speaking If I was playing the long Would you know Scale Target That's not a bad trade is it What do you guys think And it's not a recommendation I just want you to understand Remember think like a retail trader Don't act like one Stops are under here Retail thank you Location Countertrend Mean reversion Now it could have come here You know gone south But what's more important Higher timeframe There scale Punt That's trading Thanks everybody for visiting The trader lab today Hope to see you tomorrow We have NFP in the morning The other thing to consider Is with a significant report You're going to get short covering Right Logical Got to think like that Would you be holding short Or would you be getting out Think about it This morning gap lower Responsive buying Squeeze the terrier Now take it to the next Time frame You hit a key level You don't even know about Because they don't think like this They don't understand auction or market mechanics They're just out there with their indicators Bang why Ask yourself why Why Can you answer why If you can now you're going to understand If you can't you got more work to do In my opinion And I'm here to help you with it If you find any value in this I think Retail traders never get to Because they're long gone Because they think the answer is in an indicator I'm not against indicators I don't want it ever to sound that way I just don't think If traders don't understand context And this kind of behavior they can't deploy an indicator Where would you be getting short With an indicator Here Here Or long Here Would you be getting short there Would you be getting short here How about here Where would you get short I don't know would you get short here Or is it a long still What would you do what would your indicator Your indicator doesn't know context That's where the limitation is When I was designing trading systems I kind of figured out there was a problem And it was because it would transition I didn't understand context But I understood there was a change And I wanted to try to get the system To change In other words that it would recognize Wow we're not directional We're getting rotational But because the system is looking In the rear view mirror By the time it would adjust I was already you know Body slammed So it was lagging And that's the problem I find with an indicator Besides they're not contextually sensitive They're also it's like driving Formula 1 but looking in the rear view mirror I don't think that's a good plan You know Formula 1 are trading Have a good evening Watch out for NFP If you're interested in watching this again If you grab the link off of YouTube Before the stream ends You'll be able to watch it up until around Maybe 6 p.m. Central Standard And then YouTube removes them If you're new to this I have several videos Posted up on YouTube One is Inside day One says I think breakout Or something And the other one is multiple time frame Those three will give you some ideas On context and different mechanics If you will how to Operate in them because it is different Triggering structures are the same But behaviorally they're different So you need to adjust I think And actually have different trade plans For the different context So this is now We had directional Now we're in mean reversion Outside in See how it's different Well if it's different behavior I got to have a different plan If you're one size does not fit all Take care everybody Thanks again Go to bookmap.com If you're interested in joining the trader lab You won't be solicited You don't have to be a subscriber Bookmap to take advantage of a lot of Free trader education I think you'll find it really helpful Free is good And it covers options Stocks Cues, spies Futures of course Crypto and order flow And other things Stocks, icebergs Things of that nature So there's a lot of diverse Education available to you And it's everyday there's something And now those of you in the trader lab I will be active After we stop the stream here I'll be in the visit But as you know I have my own thing To be doing here Catch you later, thanks again everybody Thanks for being part of the Trader lab and thanks for visiting Remember our hierarchy, our process This is how it Starts Where the rubber meets the road But this is the basis of the whole thing What's too low What's too high What's unfair Where's retail And the market's constantly looking Where is it Where is it That's the job Oh it's on sale I'm not paying that Retail What is the context What is the time frame I trade outside From the outside So top down inside out So higher time frame Into the lower time frames Or fractals They're not really time but that's how we think of them So microstructures For initiation and trade management You know risk And then the context for alignment Which changes in our day All the time So it's that recognition and then adjusting And then this is the tool To interact Where I can get into microstructures See the auction in the shortest time frame I can identify Stops, stop divergence All those other items that are very useful That's my process And this is what we do in the Trader lab Thanks again for being here See you tomorrow, NFP HVN Microstructure Chop chop See the structure And the counter rotation See if there's something else here of interest So Couple of things to think about here This Is a selling structure But it may only be a counter rotation There's stops sitting here There's a reasonable chance we're going to get there At some point So what do you do Notice right here Exhaustion, see it, 88 19, stop divergence Liquidity Chop chop, break, trigger Pull back, volume Liquidity Counter rotation These, you should grab screenshots These are triggering structures Now I don't Trigger in a vacuum I You can learn the auction By narrating it Mentally, like okay Here's the microstructure Here's the divergence Here's the liquidity So break Pull back Potential short Now before it's a short It is at least telling you a counter rotation To where? No clue Right Now how might you use that Is that Maybe Useful for trade management If you're a short term trader Is it a short Mean reversion See, what's your plan Are you just going to hold For this Or are you going to manage To trade and be out of it And not care about that What's your plan So there's two things you could do here You could be out of this Or You're going to ride out through this Counter rotation, but it can come all the way back here What are you going to do So before you ask yourself the question Or I should say the answer You got to know the question I should say And you got to have an answer Before this happens That's part of a trade plan So it would be, okay Long Which is pretty nice, right Scale To where Here Selling structure Now what Nothing, something Or what Put a question mark And answer the question But it has to be consistent It can't be well You know What are you going to do You need a specific plan To address this You're going to go, I don't know Well, that's okay, you don't need to know Right now, but you need to think about it As a trader What is better to do Is it better to see a triggering Structure and some alignment With the book right here Exhaustion You see, we're seeing a trigger Right, and then what Break, warning Will Robinson Pull back and as soon as it Fails, you might Subject to your plan, be out of it I think it's still a pretty nice trade I don't know about you But now we're in mean reversion World back here So if you're trading mean reversion You may or may not take The short, you might have just Exited along Looking to get long again Or subject to your plan And again, I don't know We don't know anything, right This is a short back here The possibilities, and all we know Is what might happen I know we might get over this thing I know that We're in balance Again, I know this is vulnerable Okay Mid, VWOP, V-POC Write this down, are on top of each other That is balance Write that down Mid, VWOP, V-POC Aligned Balance This is vulnerable This is mean reversion If you took a short So remember, what's the question Exited along, or take the short Or both Write it down Screenshot Think about it This is how you tear this apart What I spent I don't want to even tell you how long Deconstructing and reverse engineering Looking at it What is it saying Now, I don't know what it will do When we figure that one out We'll have the ATM in the basement But since that's not probable Then the thing is In trading What is it saying Can you interpret it This is your convenience store Your little auction Chop, chop, chop Too high, too low Too high, retail In here Break, trigger Pullback to what Retail, short See Or chop, chop, chop Structure Break, pullback You can't get above here Jettison You know, the canopy comes off And out you go You push the eject button Is this logical Not for the trader lab I'm sharing with you guys Some ideas And whatever your trade plan Is, that's what you should do I wanted to share Why this is along But it's not along I hope I'm speaking out of both sides, aren't I Because In the trader lab If you're building a trading plan This is not what you do You cover Just like this You're out Same, isn't this the same thing Bang, bang Now, we didn't get here It's still on the hip parade But this is mean reversion Why, if you wrote this down Mid, VWOP, V-POC Balance, what's mean reversion Balance Two-sided trade Where might it go If not, sale a gear That's all Not more complicated than that So Long Mean reversion Back here Then the target is this Selling structure Warning, Will Robinson Break, pull back Can't get above, out Or short to here Is this logical, can you guys see it So guys, this is contextual This is what I'm talking about Context, and it can be mind boggling Of course Because it's changing So in your trade plan You need to have some rules That says, if this Then that If not, then what If short If short, then That stops Get a blow here Off you go If not, then what Come back here Reversal structure trigger Then that Stops are up here Then what, then that We get above it, then where Here, selling structure Now what, exit Or short Because we're in balance You already know that, right Mean reversion You gotta sort it out If you're in a hurry And you don't get this part down You don't need the rest, in my opinion Because it won't matter This is where you gotta spend your time Now we don't know What the market will do Where the price gets too high And the buyers run out of You know, we don't know any of that So don't think we're gonna know that What we know is the context And then we can Be aware of that Now if we take this out, it changes things You know, we may take it out And come back in And still mean reversion But we failed So, outside in Look where we're gonna go Is it logical? This is mean reversion With the mean underlined Are you guys tracking? I'm gonna be cutting off the YouTube That I intended We'll go a few more minutes Since we're in the game here So this is the target on mean reversion These are not trade recommendations Mean reversion is return To retail So think of it like your shopper Oh, it's on sale Remember, this is too low At the moment, higher time frame Oh, I'm not paying that Retail Balance Potential to come back Right here And then Potential to come back to the other side Or not, again, nobody knows But this is where you'd be going Notice the book, right here VWOP, V-PAC, MID Balance So that's what you got I think it's kind of Logical So when we talk about the context We're doing it in multiple time frames Right? We're doing it In this time frame, which is the higher time frame Right? Micro composite, which is your big Consolidation using daily Candles, bars, whatever you want to call them RTH only And And it's all logical This So this was the fair price In this auction Okay? Right here And where did we go? Once we got under 69 We go to the next level If it's too low At the moment, then we can rotate If we eventually take it out What's next? Here So that's how I do this So I know If I'm under 69 Now I checked here, so I have to be careful Because And we have a big report tomorrow So there's a lot of stuff going on But it fits Right? It's logical Gotta watch out here But still, this is a bit of a Look at this This is a potential buying trigger Not to get long For a potential rotation For me, this supersedes This supersedes everything It's like, remember The chassis is this And the context So this shows me the auction All these little, these are auctions Up here That high volume Which you can see here Is saying too high So now where's the highest volume On the day? Now I'm in the fractal So this is micro Now I'm coming back to the developing timeframe Which is this For the whole day And then this is for the whole enchilada Which we already did So maybe we're done I don't know, doesn't matter to me This is what matters to me Short Or out of the long, right? Pick one That makes sense You know, Zoom It takes time I mean, all of this takes time It's a different way to think This is not like Read a book and it doesn't work like that The real world really Is more, it takes A thought process and an understanding It's like you want to be a doctor Anybody, by the way I mean me too If you want to become a specialist Or a professional, think of the learning curve To be excellent in anything Whether it's a sport Or business or experience Whatever it is It takes time And education And I My personality type is kind of Process oriented I think in a sequential pattern And In trading it's about consistency So I accept the randomness In the words I don't know I mean we come back here I know what it represents What it'll do Yesterday we got down to 69 And bounced off it initially And then when we broke below it It changed the complexion of the market We went into then a breakout And acceleration Which is why we're down here today So I know that But until it does it, I don't know it Now here, look what we did today We came here and now We're coming out of it We still have this on the table You see it get here if I was short I do have a reversal structure here Right Which I talked about But I have to ask myself what's more important Well to me This is more important And it doesn't have to ever get there But we're in balance So Outside in Now what happens here, I have no clue Now the other part of this is How do you manage this trade When you get the reversal here Are you out Just like we had it here See, what's a trade plan That's what you guys, all of you Have to sort out And it should be just if this, then that If not, then what If I get a reversal Is that your plan to get out Or is your plan To ride through A counter rotation And risk giving back A trade equity or MFE Maximum favorable excursion In order to get that Is we got here Is that close enough Or do we want this What's your plan What's your rule Those are the answers you need to have And then you just act accordingly Per your plan You don't change your mind This time I'm not going to do this Or this time, you know what The way you can measure it And then adjust it if it needs adjustment If you're inconsistent Then you have random inputs And you basically If you watch my introductory video You have chaos Because you can't quantify it Anyway, that's my two cents on that It's illogical Yeah, eventually that's correct RTH start Yeah, the Baylian indicator I know I think I first became aware Of the 12 to 1 stat in I don't know 2010, 2012, something like that So I keep an eye on that one But it's not in play So let's see how this thing does Do we get down Remember, VPOC Mid, VWOP Is our Initial Let's just say target Now if you're running a 2 lot, let's go back If you're running a 2, your scale, your risk neutral You're going here You put your helmet on Order in your lunch And wait All this is noise You have to sort out noise and the willingness To give it back We get here, we miss it by whatever You know Then what If you're hung up on every one trade And it's like win or die over it You're emotionally attached You develop a sense of detachment Not indifference But detachment That's all that kind of Circles back to the psychological problems Which we all have by the way Nobody, by the way You can't short-circuit the emotional state Or the chemicals that get released in your brain What you need to do is recognize them In short-circuit In other words, go, yeah, okay, I know I'm feeling this But my job is not to react to it My job is to understand it Not react You know And then whatever happens happens Because in a career in trading If you're new at this You might be thinking thousands of trades Yeah, thousands Thousands Tens of thousands, it's really mind-boggling So then one trade Is more important to do it consistently Than it is the outcome of a trade Of any one trade Because they're all random in the sense of Is it going to get here Before it gets Here I don't know the answer to that So I don't know So that part we don't know And if your emotions are being triggered Like gee, it missed it Maybe I ought to get out, right? That self-talk, that has to be You got to put a lid on that And accept the randomness Because over time One trade that You don't have a process for managing it Let's just say you just go down with the ship Or whatever, you know Then it's just one of thousands And over a distribution or a sample size More of them are going to get here Then take this out Probably Past performance, not a dicker future result So those are things to think about You know Market manipulation, Riz I don't know what are you going to do about it If it is manipulated The jungle that we're in You know Yeah, Ritz, it's always manipulated By manipulated it means There's different actors in here With different agendas and timeframes There's HTFs in here High-frequency traders They might be going for a couple ticks There's the book that is manipulated Algo behavior And then there's us And we're at the If you want to know where we are Because we're the least informed The least sophisticated And we're Have the lowest skill set Because we are trading Against the best in the world And I mean the best I'm talking like, you know, Ph.D. Quants That are creating system processes I mean, you're just physicists The best minds That can be hired by the hedge funds That's who you're trading against And if you can't take A passive attitude or do what other In my opinion, again, this is just an opinion What other retail traders are doing If you think you're going to be competing Against these guys So maybe doing something different Right Is the first thing But in my opinion You're not going to find it in a candle off the shelf indicator At all And I can tell you That these guys are not Doing that Think about it What are you guys going to do this weekend Is anybody going to be doing some homework Some research Is anybody going to be listening to the videos I've got posted on YouTube The three videos Is anyone going to be reviewing The primer video That's posted in the discord chat In the trader lab Is anybody going to be trying to increase Are you taking a passive approach Are you hungry Are you aggressive Are you motivated Do you eat and sleep this Because it takes that kind of commitment Motivation And persistence To become highly skilled And get an outcome that's different From the masses And remember retail trader statistics Not exactly encouraging What is encouraging Those statistics are an asset If you know how to How to anticipate their behavior That's what I do Listen, we're all the retail trader We're all the guys who would sell the mid We're all the guys who would sell the V-Bop Or whatever And we're all the guys that got stopped out Maybe we should think about that Number one, anticipate it Number two, don't do it Interesting, isn't it See this kind of behavior is algorithmic See this? Now when you see this If you think it's a long, not necessarily What might be Is a trap Get us long And they're taking the other side Then if they pull this, watch I don't know what it'll do I have no idea So let's watch There's no way to know Is this really a buyer Or is this a skew In the book to be able to sell it And I don't have the answer But let's see what it does The thing with order flow is I never really know What's going on That's why I trade the auction You know, as a primary chassis I don't know about what this is Hindsight, it's always clear But So let's see Remember, we got stops here So you got to think out of both sides I have no clue This high volume Is like an over and under for this Stops are sitting Here Here So now we got a say 182 stops coming out So it is short covering We didn't get here So now it's up to your trade management Let's observe I'll stay a couple more minutes So the way I look at this First of all, I don't know what's going to happen So that's the first thing This is an auction This is what was too high Right This is the high volume node This is like your v-punk So we can come back Here or not If we don't get above here Then we still got this If we get above here Then we got that If this then that, if not then what I don't know Do I want to be out of the short By the way, I don't know the answer to that But here's what I know 200 stops Stop divergence Microstructure Let's see what it does No idea Kind of fun to watch the market, isn't it Rob Davis We're the plankton Ori and the artist, it might be a bot That's blocking you And it might be I don't know why Or it's your name Or where it's getting Blocked from, so that I haven't seen Hi Johnny This is a triggering structure As you know, this is still our target Now I have no clue This was our short This is our target Missed So it's Warning Will Robinson Pull back against this This is the auction That was too high If we stay below here There If we come above here There, how about that After that Punt, that's trading We are still in a mean reversion structure But you know Shorts are in the market, they're vulnerable Of course Let's see if we get down here This is, you know Kind of where your intestines get kind of tested You know, because this is where Emotionally If you're sitting short You have to put yourself in the mindset What's my trade plan Do I get out Where's it fail Isn't it above here Are you able to live with it You give all this back And it does take you out Do you bail out Because you're triggered emotionally But the structure hasn't failed See, it might Those are the questions You should be writing those questions down Because you've got to answer You don't answer them while you're feeling emotional You have a trade plan You've got to pull your little sheet out Like I have, and it says This, that, if this Bang, that's it That's my accountability piece If my plan is I'm here, or scratch Or whatever My trade plan If it comes back I'm going to have an emotional state But over time, what is the better Plan Versus one trade Do I trade Do I change my trade plan Because I didn't get here See, what do I do The question is, not what I do What do you do If you don't have the answers You don't have a trade plan You've got a long weekend Throw a few shrimps on the Barbie And get to work Because you only get one chance Unless you have an unlimited bank account And all kinds of time Don't waste time Use it Make progress Set goals Don't try to bite off too much at one time Take it sequentially Step by step Warning Will Robinson, VPAC migration Now This could be trouble We're still looking for this But now I am on alert This means the volume And the potential acceptance Is Moving against the position That is suggesting Potentially this is too low Now I have to be very careful here Not a recommendation So we're going to watch it Now I get aggressive Means to manage the trade Because this is giving me insight That this might be too low Retail, right? It still could come down and check Is this really too low But this is a caution flag And I would be very quick To maybe change my behavior Because of what the auction Is telling me, not for any other reason Not a trade recommendation This is the auction Remember, why do these things move around When we were coming down, right? They were moving down Now it's moving up You notice a change Volume and price are moving higher That is a indication Of potential Change And by change Pressure Potentially to squeeze In other words, and now for me I can't get long, right? Because I'm still in a mean reversion mode But the behavior is changing So I have to be caution And maybe flatten out And it appears You know Now it can still come here, right? There's stops under here But the behavior is suggesting something That's a conflict So now you need a trade plan I have it in my trade plan That maybe I should be doing something now And it says Where is it? Gotta look Hold on It's been so long since I looked at this thing I gotta find it V-Pok migration Counter migration equals potential failure Market moving away from current value Caution potential exit How about that? That's my rules Okay? It's on my trade plan My sheet Anymore because some of this is in my brain But You know So that Movement Is the counter migration Which says potential failure Right? Is it logical? So for me This is caution Big time Saying that volume Remember what's this auction market theory And volume Volume The volume moved From here to here This is retail Isn't it saying this is too low At the moment It can still come back and check Remember price check in aisle 3 Isn't this too low at the moment In a higher time frame Doesn't that put this on the table now? Because these guys now are going to be on the hook Can you see it? Can you see why this is like Where's the Where's the exit in the theater? Maybe Is it logical? If you understand the auction It is speaking Retail Too low Pressure Squeeze Make sense? See you guys See you tomorrow Thanks for being here Thanks for being part of the trader lab If you're interested in some more Tools And to join a community Of like minded traders Go to bookmap.com Join the discord chat You don't have to subscribe To bookmapper You won't be solicited There's probably some good things in there That might help you out if that's your