 Hello everyone testing testing. I will get going here in a little bit. All right. Welcome everyone I'm John Slazos from Dharma Capital Trading today. We're gonna go into price structure a little bit and talk about you know having more of a factual Baseline for your trading so It's just listening to Bruce yesterday and we're talking about a lot of different ways to watch your order flow and It can't be overwhelming There's a lot of details and So having a good fact foundation behind it You know gives you better insight To when these things that when when something's occurring, what's the value of that opportunity? You know what and you know if you if you have if you take the time and you're let's say you're analyzing a market Are you using technical analysis? It's it's still a sub it still is subjective and you need to have some fact foundations to You know really give you better insight to what's true You know when is that signal real? How much should I bet what's it worth? How much risk should I take is it worth taking a risk? What's the opportunity? And so that's what we're gonna talk about today You know when you find these opportunities and you're in the moment Taking you know kind of a getting out of the forest looking from above the forest to kind of see you know Oh this there's a clearing up ahead Instead just dodge and trees you know, so we're going to talk a little bit today about price structure and then we may get into Touch on our market structure as well and price structure is is one of our foundations that we use and It's a part of our fact-based trading solutions and a disclaimer here, you know everything we're going to go over today is educational so there's there's no We're not giving out any recommendations here This is all for you to help improve your trading and One thing I can say about on trading is just make sure that you're using risk capital when you're trading so you're going to make better decisions And everything that we're doing with fact-based trading is really just to To get you comfortable to get you get get your mind right so that you're making clear decisions when because you're basing those decisions on facts not on off your emotion and You know using objective data analysis and reduces the speculation and subjective biases That's what we want to do because then you're going to know that intuitiveness is going to be clear There's not going to you're going to have a clear Line into what is true what you need to do makes it easy And when you have that fact foundation makes it easier to follow your gut and your guts in the right place You're not your guts not hoping or you're not fearing that something's going to happen because you have this statistical baseline you know in the So the common perception of price structure is You know we you know, we're either you're using a hollow clothes chart or a candlestick chart and you're identifying swings in the market of It's the market trending higher to any lower not trending You know putting trend lines on here your identifying channels or longer term Situations or is that a double bottom or is it not should I consider it putting you know is this you know, here's this support Here's this resistance You know basically it starts to become a mess and then maybe you're looking for the confluence of everything You come down to one one price point and that's the BLL and you're anchored on that and that can be an issue as well Bottom line, you know, you're gonna draw a trend line differently and look at a swing differently than different people So all of a sudden become subjective and so we have to we have to look for some kind of factual foundation that we can use And so our perspective on price structure is You know really focusing on specific time frames and You know the basis of this is really from the money that moves the market fund managers, you know, they're are marked to market and They're more concerned about last week's quarterly close and how they're performing against that or last month You know most most the traders are kind of month to month, you know, how's the monthly performance, you know, they do not care about, you know, interday Support resistance, you know, they're looking at structure and they're and they're looking at time frames So they're looking at the high low last and the midpoint of a time frame, you know It's what's the high low last and midpoint of the previous month. That's a good guideline. And so This kind of structure is factual. It gives you interest, you know, good insight You know, where's the previous month's low previous week's low previous quarters low Previous, you know, last month's close. Where is that? Where are we in relationship to last month's close? And so the concept of price structure is, you know, this is, you know We're referring to the patterns of price when over specific time frames and that's the key thing and you know, high low close but also the midpoint because the midpoint is going to give you a sense of momentum since a direction, you know Or, you know, absolutely if you're using the close is the market going to close higher or close lower today That's obviously that's something that you're looking at every day with your net change But is it closing above the midpoint of the previous session that's going to show more of a sentiment bias there And so that's another important fact and then that, you know, what time frames? You know, and it, you know, so if you're a day trader, you know, you want it You obviously want to be aware of what the previous session is What it, you know, where's that high? Where's that low? Because if you're, you know, if you're selling the market and you're above yesterday's high There's a potential issue. Well, let's look at the weekly structure then. Okay. Well, we're above today's high yesterday's high But we're still, you know, we're still below the previous weekly high So maybe we're okay, you know, but understanding knowing those facts is going to give you, you know, better clarity You know knowing where you are for the year And they're based on the weekly structure You know, this is Bitcoin Bitcoin, you know End of the year on its lows and it's been moving and it's moved off the close And it's been going higher and came up to the yearly midpoint, you know, that's where this is where we are We're gonna go retest the previous year low Are we gonna transition higher and test the previous year high point, you know, this is just basic structural facts You know, where are you at in relationship to the quarter? You know the coin went above last last Quarter's highs and couldn't hold it. Are we gonna go back to the last quarter's midpoint? You know kind of dialing in on the monthly time frame where are we at on a weekly time frame on a daily time frame, you know So these are all these are all facts facts that you can, you know overlay on top of the Microstructure, you know, so when you're looking at the order flow in the microstructure, you need this statistical baseline And that's the key, you know having this fact-based indicator, you know, and this is where you you want to anchor On truth, you know, because this is providing you this objective benchmark for, you know, assessing market performance And it's going to give you Insights that are based on facts and it's going to enhance your Decision-making and again, this is this is really where the basis of this all comes and why markets move is where the money moves It money moves markets and that's and that's what and those are the fund managers and That they're using price structure as a benchmark for their performance You know, this is their objective Evaluation of what they're doing, you know, their their performance is benchmark to these metrics, you know If you're a stock trick, you know, if you're managing a mutual fund, you're gonna be benchmark to the S&P 500 You know, so these are you know, it's these are all important things and you know Using it for your risk management, you know when you have when you understand your price structure And if you're a momentum trader You like to trade with momentum Well, if the market's trading below the previous days Low-point, you know, there's an issue with that You know, and where are you at within that structure and then the bigger structure time frames? Yes, these are key points for your decision-making and for fund managers it helps with their allocations you know, you know based on, you know, their structure and and how Where different assets are within their structure they they'll use that to you know change their allocations and Just having, you know a basic understanding of what's where sentiment is You know, are we above the previous quarter close are we below it, you know This is gonna be a big influence on fund managers and you'll see that in the market And you you know, you should always know where that you know That what's the last quarterly close or less monthly close because the money does and If the market's hovering around that area, it's about to make a decision, you know And especially into the quarterly time frames So the importance of price structure and trading is key and as we mentioned, you know These are the these are the facts that we need to be aware of And in this example, I'm just going over the month and the month is a great is is a fantastic long-term foundation structure You know, no matter what time frame your trading Because a lot of the money keys around the monthly performance figures John Henry one of the largest CTAs, you know built, you know, it was business off of your monthly performance metrics You know, basically he would his fund would never have It never had a drawdown greater than 10% Because he basically shut it down if he got near that that metric And so any money that was looking to invest in programs that had low drawdowns. They went to him And you know, and so these monthly monthly performance metrics are really big and You know having that as a framework And understanding that Whatever asset you're trading, you know, that's what them. That's what the money is gonna be looking at there any money That's involved in that asset And so using these, you know, kind of clear acronyms previous monthly high previous monthly low previous monthly close and previous monthly midpoint and so getting into how can we You know really use these metrics in our trading and this is all intuitive So, you know, what is the high and the low? Those are just structure high and low points You could call them, you know, the high structure point is going to be act as a resistance Low structure point is going to act as support, you know, and that they're going to be pivotal The midpoint is more of a momentum level and the close is going to you know Is that net change that everyone in the world is looking at so for the structure high points You know, you can use them as such, you know, is the markets approaching the previous days high It's going to act as a You know to look to reject that price momentum and if your market takes out that high It's going to act as a as a boost in momentum and that's and you know, that's when you switch to your Microstructure at these points. So, you know, that's when you're using book map and Identifying, you know, what's happening with the order flow here? What's happening with the order flow here? What's happening at this moment? You know in this situation the market had an emotional move from the midpoint right from the get-go the start of the session And then the close gave it a bias and we broke out to the downside below the previous days low But it couldn't hold it, you know So your microstructure is going to give you those insight there is the market really building up to make a move or not But you know, but structurally you have that foundation you got that base And you know that the markets holding above the structure low might make a play of it back for the structure midpoint or the high Midpoint's a great level. It's a great momentum level Especially when the midpoint, you know matches up in the previous days midpoint is matching up with say with the current days VWAP And these are great momentum traits Especially, you know, when you can you know knowing that hey, this is a if the market starts to rotate Up through this area. We're going to get a momentum surge or if you know if we get some follow through here You know, this is going to act as it kind of a resistance because that you know The negative momentum that started out the top of the session Make like it might make a new play So that you know Understanding the midpoint of the previous range is important Just as you should you should always be aware of what the current days midpoint is which is basically the midway VWAP the previous days close is important as well and more becomes a bias and then it kind of a Money is really interested where the market's going to close at the end of the day So during the day it can be a little wily That's why I think that the previous days midpoint is a better momentum level than the close but the close can is definitely going to act as a Boost in that momentum. So if we do start to you know trend lower The fact that we're below the close is already negative And then and then the fact that we start to trade below the structure low point That you know all of a sudden, you know, everyone in the world is going to be looking at You know, what's the net change and that changes down and now we're below the law and so and then using your microstructure to to manage that and then understanding and noting the alignment between higher and lower timeframes You know, are we do we have a situation where? The the daily and the weekly are coming into alignment or the monthly in one second. So here we have the brown represents the monthly structure and The green represents the weekly structure So we have a start of the week and noted in the alignment with the monthly midpoint is negative We have the weekly midpoint and so this it you know becomes and then you've got the monthly close and the weekly close And as the market, you know, it's not able to really base start above the monthly close and weekly close and all of a sudden, you know, we get this negative surge where you got that momentum on the weekly and Since we're already below the midpoint on the monthly where can it go? And you know, he gives us this insight on what the bigger picture is Here's a situation to start of the day and this is the the weekly Midpoint and it's also the previous day's high So previous days midpoint previous days high and we're opening up Below the daily midpoint previous days midpoint and below days close And that when the market starts to fail below the previous days low point gives us insight Where can it go? Well, you can go down, you know, the next kind of structure point is back down to the week previous weekly low And this is what happened the other day in Bitcoin any questions on that So this is today's action in Bitcoin and this is this is powerful stuff and it's simple and it's basic You know as the market is rotating around the clothes Coming down into previous structure low point. We had a bunch of news come out. So we had a big event After a big event, you know, is this event true? Are we really going to move? market retest of lows Start, you know Can't press through it Stabilizes We get back above the clothes all of a sudden the net change turns positive Is it real? Are we you know, where are we going? What are we doing more likely not the market? We've got some numbers coming out the end of the week So more likely we're going not going anywhere. So if we're not going anywhere Where can we go? Well, you go back and test yesterday's highs What's kind of a trigger on that momentum of the midpoint? It's our playbook and Bitcoin is in a Neutral digestive state. So we had a big move but the market is really just more of an added digestive posture So this is what we call market structure and market structure is if you know Identifies the state and then this market structure is the structure of that state. So we identify that state to be sideways Expectation the market's not really going to go anywhere But it does have a negative bias below our sentiment. So below this 27,000 126 area And since we are in this state and structure, what do we look to do? Exhaustive signals off the support or off the lower structure Fade momentum into the upper structure So we have it, you know, so now we've got this foundation of facts this benchmark foundation and now we're going to add What we call our critical range to that. So this gives us further clarity an additional layer of facts to focus on So incorporating price structure and market structure We know we have the previous stage low point, but we also know that just below it We've got a major structure point the 25,279 and a half And so when the market is pressing below the previous day's low point We and you know, we know that there's structure below that And this is something We should be able to also see Book map pull up the So this is something that I like to look for, you know identifying, you know, where the resting liquidity is And so here we can see that the rest, you know, if the previous Days low point was basically here So you had some liquidity coming into support the previous days low point And then you take it out and it doesn't fall through but you're taking it But then you also have resting liquidity below that point. So this is a this is a nice feature And just real simple to identify that you've got liquidity Below a failure from the previous days low point So below here And and actually this is even lower where it is down in this area, which is in alignment with this So when you see, you know, this kind of alignment when you have emotional trade into structure And especially when you have a situation like this where you've got A previous days low point that's above structure It gives it provides a good potential head fake opportunity You know markets, you like to, you know, take out previous lows previous highs and then just reverse And that's something to consider and then when you have situations where that failure is happening in front of structure A lot of times that can be You know a powerful Generator of a turn These are our minor structure points and they are good validation levels so When the market, you know, market coming down to test this boundary here And then immediately coming back above here, if the market, you know, this is a tell that this negative momentum is Is stalled there's a problem with it. The market's not going to be emotional anymore You're not going to have that that super release. We broke structure here by coming above this boundary And you know in seeing this a big big sell dot here and a big buy dot here It speaks to the fact there's you know, this market's choppy There's there's an issue and when the mark and then the basically the retest and coming back above here with this enhanced liquidity You know, this is really what validates and sparks this move here but when you have A clear picture You have an expectation From the get-go from the start of the session, you know, your your your probabilities. What's more likely to occur You know market is in a neutral digestion. It's either going to break out and make a run Or it's going to perform the expectations of the state, which is go sideways. No bias And we know that sentiments above the market And on a bigger picture, you know Bitcoin's been having some issues and it and it is it's negative below 27 000 basically So that's the high point. That's where the the selling energy really is is up here So on the downside, it's kind of a little porous where the market might be probing lower But we would expect that the upside to have some pretty, you know solid resistance Because it's solid structure But this is the foundation. This is the baseline So as we're coming into this area, we have a we have our fact foundation of we have our price structure Which is in alignment with market structure We're looking for more of a reversal situation off the dp. So an exhaustive reversal We don't get a complete reversal We'll get an exhaustive move And then here we get a transition above the What do we call our directional? Which is a kind of a precursor that leads into this transition So now we're coming into this situation. So we've got a a market that is Basically in neutral Searching now to define its its new upper boundary So this neutral is kind of has it right now. It's got a little bit of a negative lean And so we're looking for the market to make up It's is it can it make a push this high or not? And if it can't And we get a failure back down through here. That's what's we're going to we call a cell up reversal So the market has already confirmed. It's making a play for this level. Can it get up there? And so we have an additional structure point here At 26,088 and that might be it Either way, we're looking for this Positive surge to exhaust in the market really to go nowhere And the validation triggers if the market comes back under this 26 400 level So here we have the VWAP coming in at the directional We've got some liquidity built up here Let's take a look at These other order books as well Okay So we do have in coinbase here. We've got some liquidity above sentiment Right here and the combined book, you know, we're at the top But we have, you know, we'll have a lot of interest at the CRX plus So this is our validation. This is our kind of a critical range extreme number And so The order book has given us some insight that that might be it We might not be able to make a play For sentiment and that the market is going to end up topping out This surge is going to end up topping out here an extra line here So combining Price structure with market structure You got a lot of people that were caught short here They're getting squeezed out What's the high point that squeeze? It's going to be previous days high, which is in alignment with our sentiment bias at 27126 But now we can see that the And we have this integration with book map where we provide our structure Read it with the cloud notes And we have the market Challenge in this area we get a lot of You know, all the people that sold are starting to, you know, puke out of this stuff here And we've got some good liquidity that's coming and defending this area So this is going to be a a prime area So if any type of shift in liquidity on the microstructure basis at these levels Is going to be Something to consider for the market to potentially rotate back down to the Structure midpoint the key here is focusing on facts have a Have a baseline so At the very minimum you want to take a look at these Previous structures you can look, you know, can also incorporate the VWAP or what the what the midpoint is on For the for the current month is an is an important metric, but just the more fact-based Statistics that you can put into your trade decision matrix is key To what we provide And if you're interested, you know, you can please come to our website check out our tools Request the integration Play around with it And see if it helps We'll be here next Tuesday Get into more fact-based trading solutions And how we can empower you to you know succeed Any questions, please feel free to email me directly Or you can DM me in the Discord channel Enjoy your day