 Good morning traders Good morning book map community. How's everyone doing? Good to see you. Happy Monday All right, well, let's jump into it. So first things first. Let's talk about what happened last week last week was a little bit chaotic in the market We've had this larger sort of balance area that we've been stuck inside as of recently and We've just been bouncing up and down inside that range From the lows back up to the highs from the highs back down to the lows again and again and again and So at the end of the week last week what we had was what we call a look below that failed So when the market tried to go lower On Thursday and then on Friday it came back up We knew the market wasn't ready for continuation to the downside that is a look below and fail The highest probability coming out of a look below and fail is continuation to the opposite end of balance Now balance areas don't have exact references. There's not like a one exact price I could point to but what jumps out at me very clearly is this area right here around 4183 we got some weak references up in there and that also seems to be the area We are again and again the market is running out of steam running out of momentum So that to me seems like a good target if we failed to go lower and we got to go somewhere Looking for new sellers or new buyers. That seems like a great area to me So that's sort of the main focus that I have coming into this morning Can we continue this momentum that was created from the look below and fail? How will I measure that Okay, so the very first level that I'm gonna watch as An important level for potential support is gonna be this area right here around 4152 Okay, we could tell that was support around the end of the day for the market on Friday That was also where the closing price on Friday was that is also the half back From the overnight session over the weekend and that is also where the prominent or sorry the point of control From the weekend is so the first level I'm watching to the downside to see do we still have momentum up is That area right there around 4152 can that hold as support now if they can hold that area I assume they're gonna head up and test that overnight high. What does that mean? It means the market will push up above that level and then see if it can find new buyers up there So does it just push above and pull back right back down or does it push above and stay above if it stays above? I look to test Friday's high Okay, which is up at 4163 Exact same question there. Do we look above and pull right back down or do we look above and find new business up there? If so, then I'm looking for that continuation higher Right that to me is the signal that the market wants to head up to that opposite end of balance Now what's gonna happen up there? I don't yet know right, but I can look for a trade from yesterday's high up into that area If we're finding support up there because it tells me that look below and fail is Still in action that momentum is still going. Okay, so then what would tell me that that momentum is running out Right. Well, that would be if the support in that overnight range doesn't hold if the market opens And we push down in here and that area around 52 doesn't hold well Then I'm looking to see can we stay above the overnight low right here at 41 42 Can they find support above there or if they poke below do they pull right back up? Any of that is sort of neutral to me So if we don't find support here and we go lower I feel neutral if we test the overnight low and we do not find resistance I feel neutral, but if we start to find new sellers below the overnight low So if we push down here and then there's new business going down Well, then I say to myself that momentum is over that look below and fail momentum has come to an end And then the next question is okay if that momentum is over What weakness needs to be back filled and then suddenly the gap we left behind on Friday comes into play So to me, it's pretty much if they can find buyers up here They're looking to head up towards the 80s if they can find sellers down here They're looking to head back down towards the four thousandths Okay In the middle while we're inside this overnight range, it will probably be very difficult to figure out You know who's doing what who's in charge who's gonna win who's got more momentum So I consider that a chop zone and I'm just gonna let them chop it up 30 people hanging out Good morning everyone That's pretty much it. I just went through my whole spiel It only took five minutes as it normally does So please feel free to Ask any questions good morning to Alexis Hamza and the six million dollar man welcome So if you wanted a better look at that concept that I was just talking about with the balance areas and why that's my focus Let's just goes we'll go look at a few of the previous ones. Why not, right? So down here we had a balance area Where the market was trading around inside a range they were able to break out They actually created another form of balance in this channel, but that led us to get up here to this higher level We started with a little small balance right here Broke out of that made a little another small balance up here Failed to go higher which brought us back into the previous balance That caused the market to fail back down to that opposite end of balance We looked below that area, but we didn't have any new sellers there So where did the market obviously needed to go right back to the high, right? So it looked below it failed that caused the Sling shot back up to that balance area high We looked above it and once again, we didn't have buyers up there So what did it have to do slingshot right back down to the low and we did it once small No buyers and the slingshot began So that is why I am, you know trusting this momentum to continue to the upside today Pretty much almost exactly like this candle played out last week Right here That was the look below the failed began the momentum the momentum continued the next day So I can easily see that exact same thing happening here today and that is why it is the highest probability I'm of course aware of the fact though that anything can happen. Look at all this choppy choppy chop So inside this zone they could give us any kind of day. I'm not like Absolutely 100% committed to the idea that we have to go higher. It's just the highest probability in my mind. That's all But I know what to look for if that support around the overnight POC doesn't hold If that overnight low doesn't hold well, then I know we got to pull back and look for that gap below to get filled Hamza says what book map add-ons do you suggest the only one that I use is the stops and icebergs and I think it's amazing. I Highly suggest it It's not that it tells you direct things It's not that I look at the stops and iceberg setting and I go like oh cool I should buy now or I should sell now or I should put my stop here It's more just like it gives me an idea of what's happening in the market Is this a moment where a lot of the activity that's taking place is just computers? That are that are trading in a certain type of range It allows me to recognize those behaviors and that to me is a huge edge If if for no other reason just to manage my own psychology So that I don't get frustrated when I don't understand why the markets being weird Another really powerful thing about it that I never predicted ahead of time, but I've come to love It's simply just looking at the liquidity in this form in the order book like this So just the way you have all this color right here Showing you the liquidity that's waiting to fill right and then you have the liquidity that is actually filling over here on this side And so what happens sometimes is out of nowhere All this liquidity disappears Just like that in a flash and when that happens. I know okay sit back and relax Charles Some things just come out some piece of news or some important whatever and the markets have just disappeared the liquidity Which means anything can happen they can push it up 20 points They can pull it back down and it won't really matter It's there's no way to judge what's going on in that moment because it's just random There's there's too thin of volume in the order books for there to be any reliable information So back in the day before I had book map when these things would happen I would just feel a sense of being lost Right like the idea of like what is happening? What's going on? Why is the market doing this? When is it gonna stop? But Now I see that liquidity go thin and I go up here we go something's gonna happen Let me wait for it now if I'm in a trade Probably I do nothing But maybe that means I move my stop or maybe that means I just exit at market because I don't feel comfortable with that If I'm not in a trade and I'm looking for an entry Maybe that tells me to wait to hold off on that entry Maybe if I've got a limit order in the books, I just pull that out Because while that liquidity is thin anything can happen. Do I want to be a gambler that's in the market when anything can happen? No, probably not but here's where it gets fun. So then as soon as that liquidity starts to come back Well, then I know where does that liquidity come? Which side are they trying to hold? We're looking for continuation in that direction. So that to me is really becoming my favorite part of book map Just being able to not feel that sense of confusion When the market goes dark Which is very emotional All right, so if you look at these different support levels we talked about this earlier But I'll just run over it once again because we've had a few new people join us welcome new people Happy to have you So what am I looking at here? Well, I believe the market is going to be in a chop zone first thing when the market opens But that the highest probability is that the market is going to go higher So the area that I'm watching is essentially between 41 40 and 41 70 To me this area is a chop zone. They could take it up They could take it down and it won't really tell us anything unless they Give us information at specific levels. Okay So the levels that I'm watching above is the overnight high at 41 61 and yesterday's high at 41 63 50 Can the market get above one? If it can stay above can I get above the other if it can stay above can we head up to test that resistance around 70 and Then to the downside. I'm looking for support around 41 52. So if we push down do we bounce there and turn around or Do we need to continue lower and test that overnight low if the market finds resistance up here at 70 or Support down here at 40. It may be range bound But the break of either one of those levels will lead to a lot of continuation in that direction So I will look for a new momentum in that direction if they do Exciting morning guys anything can happen. Although. I think the highest probability is support and continuation higher Maya good morning to you Maya says how come the market likes to go back and refill gaps and weak references? You know, I'm not sure I have a great answer for that to be totally honest with you it's That old expression nature abhors a vacuum. There is just something about Unfinished business that the human mind can't doesn't like If there's someone somewhere who wanted to buy there the market will go find them and give them a chance to buy It's the weirdest thing Many a paper has been written on why gaps need to get back filled and I don't think anybody really knows they just do but what's different about The average Joe taking a piece of data like oh gaps off and backfill and the way we use that data Well for us, it's just a single data point. We think in probabilities So sure the gap below us needs to fill But there is a lot of other things that the market could tell us first That would lead us to believe that action is coming right now. There's no reason for that We had a look below and fail. We had momentum all day to the upside last week We stayed in the upper end of the range in the weekend. So right now the market is telling us We don't need to worry about that gap below Right now we got momentum up Let's worry about that momentum up when that momentum is over then we worry about the gap below and so for us That is getting resistance below the overnight low. That's a sign. We need to start thinking about the gap But right now that gap's not even on my mind. I like to take the market one tick at a time Ty Lambert welcome. He says What are we viewing right now? Well on the left side of the screen? You're looking at a market profile chart So that is the ES Basically the one on the left is Friday's range and the one that's light blue in the middle. That is the The weekend's range the way the market traded over the weekend And then over here on the right we have book map and I'm sure you know what that is If you're here Tom says our I love it. Welcome Tom Pavel's here. Good morning to you. Scoob all in the house the Shah The whole gang is here 58 people let's smash that thumbs up. Please those those thumbs ups really help out Convince his YouTube to send some new people our way Ten minutes till the market opens Any other questions for me? Waffles. Good morning to you. Scoob all says Friday was such a textbook market. Yes, sir. I Concur for those of you that are just joining for the first time I've never heard of me and don't know anything about anything that I ever do I trade the auction process. So I look for momentum balance in excess and Yesterday Friday was just a perfect day for it. We had a gap up That was the market telling us we had momentum up That momentum continued first thing in the morning with what we call a gap and go So that was a confirmation of that momentum up Pushed higher the market got cessation Which was a signal that momentum was over at least for the short term marker went sideways for a few hours and Then it broke the high and it began that momentum once again up into the end of the day Now none of that in and of itself is really all that exciting. It's pretty textbook, right gap up gap and go trend rotation breakout continuation textbook But what really made it fun was the fact that it was a look-blown fail of the bouts The fact that we watched the exact same thing happen a few days before And we knew we were seeing the same thing once again Opened momentum higher continued all day up to the opposite end Momentum continuation higher Well, we just won't guess what's gonna happen next and so you say well Charles, but what about the weakness? There's so much weakness You got the gap that needs to fill that's weakness You got the lows at 71 a week. You got the lows at 36 or week You got these single prints you left behind on Friday that needs some backfilling with so much weakness behind you Shouldn't you be bearish? Shouldn't you think the market has to go do that has to go deal with all of that? No because the momentum is still in the market It is only once I get a signal from the market that that momentum is over that I will then take that weakness into account and once again that is resistance below the overnight low New selling below 42 is that sign? We need to go repair that weakness And I'm not gonna worry about until I see the sign Um Thaddeus says I didn't realize there was a way to filter the bubble size. Where can I find that info? Yeah, I think you literally just right-click He-map settings Yeah volume dots there it is volume dots Yeah, the reason I do those dots I just I This is just like a personal thing visually when the whole thing is covered with dots I just find it distracting like I don't know there's something about All the parallel lines the squiggly lines and a million little circles It's like too much for me So I really only use those to show me huge imbalances right those circles are showing you the delta between the buyers and the sellers So if there's way more sellers I want to know or way more buyers I want to know otherwise I get my information on volume more from the volume profile So yeah, I'd rather be able to clearly see You know the bid ask spread and where it's finding support and resistance The emperor says is the left side of the screen found in bookmap note is not it's a separate software called a window trader But you could find anywhere if you just Google market profile software anywhere that has market profile software But it is a separate thing I Also have you'll see later on I also have a set of Charts in the background here. I call the market internals That is the breath The Advanceers vs. Decliners and then the ticks for the Nasdaq and the NICI and Then I keep the SPX and the NDX up on my chart on 15-minute candles because I like to look at the 20 moving average on the 15-minute candles the simple moving average But that you know that doesn't come up till later First we got to get through that chop zone. I talked about Let the market grind up and down and all we need for that is price volume and time my bookmap settings for the volume dots Clustering by volume with 50 and then minimal display volume 300 You don't have to copy mine though play with it and see what you like That's what I did One thing that you will hear me if you if you do choose to become a member of my community the pirate traders brigade One thing that you will find me talk about a lot is I don't encourage traders to ask other people for settings and stuff like that What software should I use? What setting should I use? How should I do that? I know that's instinctual because you're like well if somebody else knows what they're doing I should just do what they do But what you don't realize is your brain has a very specific way of processing information Which is different from them and so the only real Way you can know is just by trying different things out Play with the settings see what works for you Two minutes till market open any last questions Before before everything just goes live Scoob all says when people have to start with something fair enough fair enough It's cuz at least I it's a baseline. I didn't know I could yeah fair enough All right everybody deep breath in deep breath out Visualize the day The market is gonna open and you are going to maintain complete control You're not gonna let your emotions dictate your behaviors today You're gonna allow the market generated information and so the chop begins So as always when the market opens like this We don't really know which way it's gonna go, but we can get insights from the market So we're gonna test support and resistance levels We ask ourselves what happens when we get there so we're testing the first potential support here around 52 What happens when we get there? Do we find support if so when the market comes back up? We ask what happens at the half back, which is 50% of the range. Does it find resistance there? If it finds resistance, we look for it to head lower If not we look for it to head up and test the next resistance above And then we ask the same question there that we asked at the support Do we find resistance? If so, do we find support at the half back? And we just let it keep going chop chop chop chop chop chop chop chop between these levels Again and again and again until it finally holds Support or resistance at the half back and then breaks one way or another We assume they'll just keep chopping it up. We call it a chop zone All right, there's the support so now we're looking to see what happens at half back Does that become resistance for another smack lower or do we pass right back through? Heading back for the high. All right first support breaks heading down to the next one So now we are looking to test 41 46 50 That was a base of single prints on Friday The reason that jumps out at us is because it is weakness in need of repair The market likes to backfill any area that has Single prints like that, but it can often find support right at where those single prints started So that is our next potential support Well on top of it being a chop zone I think it's just become what we call a bot Genetic in zone so the reason we call it shenanigans is because a lot of times the computers the algorithms They kind of a bizarre way of accumulating positions where they Grind up and down inside of ranges in a really bizarre way. I would describe this area as that right now So not that that's any kind of surprise we were expecting chop Okay, so now that we're back at half back as always does it become resistance or do we pass right through? Scooball says the overnight low is weak that is correct But it's all the same to me if we if we found support at 46 I would assume that we're not going to test that over an overnight low either way And if we broke support at 46, I'd assume we're testing that overnight low either way because it's a chop zone and They can do whatever they want All right, so passing back through The half back tells us that the chop will continue And we are likely to find resistance and come back down for those lows at some point But for now we're looking to head up and test the resistance. So we got a weak high at 57 and then resistance up at 59 as they just choppy choppy choppy Scott says I want what you have in the morning. It's called cocaine Never start the day without it Now I'm just a morning person I just have energy in the morning Take comfort in the fact that I'll be dead by noon Scott says the NQ is looking weak. Let's take a look at the NQ okay, so To do the NQ let's actually start by zooming out and looking at the daily real quick Just because I have limited screen space these days So what you can see what is different about the ES in the NQ? This is the ES is balance area here this larger big box So you can see we're going from the lower end of that box towards the upper end That is bullish, right? That is a sign. We got to keep going till we get there But the NQ on the other hand is Already at the top of their box, right? They're already at that balance area high So this morning could be a look above and fail Which would be the exact same thing that happened there last week so wow You know while the ES is halfway heading up towards its high The NQ could be failing and heading all the way back down towards its low So that doesn't mean anything right now. That's just one piece of data to take into account They could just as easily find support here and get continuation as well, right? This might just be a back test Breakout back test go so let's get a little closer. We'll look at the market profile chart for insights Okay, well first insight we just got below the overnight low that is bearish to see so now if we get resistance at 13 to 90 we can look for continuation lower from there right because of that could be a look above and fail So then all that stuff we talked about before when we were talking about the ES all the weakness We've left behind well. We now head on down for that weakness in the queue first set of single prints down to 13 one 98 and monitoring for continuation lower from there If we get resistance at the overnight low so NQ looking bearish, but the ES still in a chop zone still neutral It's got I don't know who this nightbot is But nightbot needs to chill out but says Stop spamming caps warning the man is not allowed to laugh out loud with joy and excitement Nightbot What you doing? mug Kyra McGirara, sorry man slaughtering that says I'm shorting the ES will you go for a brother short that ES Just don't fall in love with it, right? There could be support at 46 there could be support at 41 and The market could instantly turn around and had right back up through that opening price so Nothing wrong with going short if you like to trade the chop, but just do not fall in love with that trade In my humble opinion, of course What is this North Korea? Man can't laugh. He says yes I'm Monitorizing the zone of 46 Yeah, 46 would be a great place to take profit. The only problem is you just don't know how long it's gonna take to get there You might have to sit here. It might go up. It might go down. It might go up and I'd drive you nuts first But it's a fair place to take profits once it gets there speaking once. Here's your chance Here they come. All right, so here's the potential support round 46 For the chop to continue we'd be looking for them to head back up and look for resistance at the halfback All right, so internals wise things are at the very beginning very very beginning You got to understand about a chop zone man. They can just fool you quick, but This is the very beginnings of a potential for a market to start to build momentum down What do they want to do? Well, they just got The Advanceers vs. Decliners below that zero line. They want to keep that below Same thing with the ticks here. They want to keep those ticks trending lower and below that zero line and Also on the 15 minute candles On the SPX they're testing that support right now So if that support breaks that would also be bearish to see So it is still a chop zone But they're just starting to give us some bearish signals here Patrick says that's a new one. What's a new one? Seven mile reach did I hear rubber chicken in the background? No, that's my door buzzer I guess it does sound like a really intense rubber chicken Like a rubber chicken that's getting driven over by a truck So it's interesting to me to see this liquidity in book map is getting eaten up Real support stepping in there So now the next thing we're looking for is the look below of the overnight range Do they just poke below there and pull right back up? Or do they put poke below there and get new sellers? New sellers would be bearish a Look below that pulls back up would be more chop And this to my mind means probably more chop Some computer changing its mind. Oh We're filling. Oh, no, what do we do? Oh, okay. Well, okay It's over It's arising. Yeah Hey, man, it's cool. It's a cool word It's like you're watching it and you're monetizing it at the same time Micao says are those advances versus declineers Up here as a symbol on thinkorswim. Yeah, it's Money symbol AD SPD if you want just the S&P 500 or ADD if you want the entire Nicie market and they should be available in any any broker and there you go They turned off the bot shenanigans own Once again book map very helpful So we know they did some sort of real business here. This was not a game They wanted to get some kind of position going Then they pulled the market back up and when it started to run out of steam. They just said, okay. Goodbye to this Iceberg up here. That was the bot shenanigans own So that is actually a little more bearish. I think Let's wait and see Very exciting very exciting morning here. All right. Well, I'm only here with you guys for five more minutes This one ends at 10 a.m. So do you have any final questions for me? Is there anything you're just dying to know? Before I go I won't be back for a whole week. Come on book map get after it. What are your questions? Also, what's it gonna take to get some thumbs up up in here? Come on 129 people hanging out only 45 thumbs up. You're hurting the pirates feeling show them some love Ten likes. Thank you guys. Appreciate you Frito says so far Friday's J. Lo is holding for support Yeah, I wouldn't call it support though But yeah, technically it is I would really more think about it like the overnight low They're just keeping us inside that overnight range But why? Alexis, do you continue live after? Yes. I'm switching to the brigade live stream After this one So if you are a member of the brigade you can sign up at pirate traders dot IO There's a link in the description If you're a member of the brigade, I'll see you in the private stream coffee attic says what's a week low? It's a great question coffee attic a week low is Essentially an area where the market turned around and reversed and went the other direction But they didn't really complete the auction process So there is likely still some liquidity waiting down here That liquidity waiting is a target for the market when it comes back that direction As I said this morning if we can poke below that overnight low Find resistance there We start to get bearish and head down for that weakness Well to me book map is saying that the bot shenanigan zone is over So whichever way they break it hopefully we can start to get some movement here You can just see it's getting tighter and tighter There they're tightening that spring even more and more Scott says seems like shorts are running out of steam No, I'm gonna disagree with you and the reason I will say so is because they haven't had to test the halfback We keep pushing lower and bringing in new sellers at that lower price. So that's not running out of sellers Not yet. Anyway All right, and with the printing of the B period it is time for me to say goodbye to the fine people of book map Or voila, you shall be missed until next week when we meet again For members of the brigade head on over to the brigade live stream and I will see you there in about two minutes Thank you all so very much and Look forward to seeing you next week. Bye Well speaking of running out of sellers. Here's their chance. They have come back to test that halfback So 4150 can it hold as resistance? We'll never know