 Hello traders, good morning. Welcome again to the Live Advanced Bookmap webinar. Today we're joined by Scott Pulsini, a professional futures trader. This webinar is held every Thursday at 10am Eastern Time. It forms part of our education here at Bookmap. Bruce fans, don't worry, he'll be back tomorrow. In the meantime, my name is Sam and I'll be hosting Scott today. Before we jump into the live analysis, let's just run through Scott's contact info and the disclosures here. You can find out more about Scott on his website, scottpulsinitrader.com. You can also connect with him on Twitter, scottpulsinitr1. And the disclosures. All Bookmap Limited materials, information and presentations are for educational purposes only and should not be considered specific investment and personal recommendations. Live trading is in simulation, demo, paper trading mode and strictly for educational purposes. Live trading executed in simulation cannot accurately represent realistic trading performance. Risk disclosure. Trading futures, equities and digital currencies involve substantial risk of loss and is not suitable for all investors. An 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 and 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. Hello Scott, how are you? Can you hear me? Yes, I hear you. Awesome. I'm good. How are you Sam? I'm good. I'm a little bit hot. I've had to turn my fan off because it interferes with the mic, so I'll be sweating through your session. All right. Let me... not a lot going on right now, but... Share my screen. How do you got my screen? One second. There we go. You're good. All right. Obviously, we're in rally right now, but there's been not one setup in here. This stuff that I've drawn here is from overnight. There's a huge stop run about 1 a.m. Central. It's here. It's like 1800 stops a little bit above there, pulled back, and now we're just ripping back up. It's just very... Rangy outgoing trade, but, you know, this is looking pretty bullish obviously here. Short-term anyway, so we just broke out of this. We got through this important zone from, yeah, directional conviction here, selling tail, directional conviction. We've just launched from there. So now we're headed up. The best trade would be if we could pull back in here and get a pipe set up. If not, this move here is basically, and we saw it last night, puke, right? So it's the whole idea of what's going on in these markets is two-sided trade, which are called balance areas. Markets are in one or two states. They're either balancing or they're in directional conviction, which is usually the puke, right? So last night, obviously, there was the puke. It was 1800 stops. We kind of pulled back here this morning. I would have gladly gone long. I trade off of the real-time volume setups in the SA indicator, so there was no setup down here, but this was a really good place to play a pullback long. Now we're heading to an area where it's going to get interesting, because I tell my trade room all the time, you don't want to be shorting on breakouts, right? Because you have all of these traders that are short having a puke. You don't want to stand in front of that. Doesn't mean it can't do that. No, but the best places to short are when you violate the I-mime node of that balance area that it tried to break out from, and that's a failed breakout, and that's one of my favorite trades, right? But now we're coming to an area where we already saw the puke middle of the night last night. I would expect to be maybe a couple more stop runs, and then anything in here I would sell, right? So this is an important area because this is where we got down this day huge, right? And this is where it opened, and we had more directional conviction out of here, and then the rest of it over here as well. We had buying tail that led to this up move. We had directional conviction down from over here, so this is a really important zone where especially with the low volume that's going on in the month of August and continues, you know, and plus people are waiting for this Jackson hole meeting. What's his name? Speak about speaks tomorrow. So, you know, it's going to take a lot for this to just pierce this. So if it does, then I'll be looking for pullbacks to go along, but I will gladly short this thing a little higher into this area. So again, I'm just waiting for some kind of setup. There's been basically nothing anywhere except for soybeans today. We'll go over that here in a little bit, but I'm actually going to delete this zone from overnight. Nowhere it is. I mean, you know, this is just like anything in charting. When you when you violated an area back and forth, it's usually not relevant anymore, right? So we had the stop run got we've got way up here and then we got, you know, multiple ATRs below here. Average to range five minutes. Average to range is what I use. So and it was from, you know, middle of the night last night. So I just I wanted to see how the market reacted to it this morning. So I'm actually going to delete that now and we're just waiting for a new setup. You can see what's above here. Anyone that's watching these webinars knows that these markets gravitate to liquidity because liquidity is the big money in the order book and the big money runs the show. So they will eventually get this market up here so they can get their fills. And then that could be a stopping point, but that would be right in the middle. I believe this zone and be a little outside of it, but might not make it up there. We'll see we'll see how it reacts in the zone. I just want to see one more spike. I'd love to see a spike into that zone. You can see a zero gamma spot spot gamma level up here. So ideally we get to move one more push up and get like another stop run, draw the zone and then try to short it. So we'll see. If not, if it could pull back, I'd like to go long. So this is what you should be doing every morning before you even start trading. You eyeball the charts and you see where the structure is. You see how it's reacting. You know your zones. Then when you get in the heat of the moment and you start getting your volume signals firing off in your indicator, you already know what you should be looking for. It's always if then scenarios. It's never, oh, I'm a buyer no matter what, right? It's okay. Well, I should, this looks long. So I already know I should be possibly be a buyer here if it comes back. If I get my set up, I know I could be a seller in this one. You know all this before you go into the morning. And then when you start getting the setups, you're ready to go. Right? Instead of just scrambling, trying to find out where you are on the chart. So that's, you know, the pre-mortem prep stuff that you guys should be doing. No, to know those areas. This is the same thing. This is like a balance area inside of balance area. This is the bigger one that we're just launching from now. But we're into this important zone as well. It's just like the yes, we'll go over that here in a second. But you can see inside of this balance, there's more balance. You can see how choppy it's been the last few days, right? And you see just tails, tails, tails, tails, tails. This is just out of those taking everyone's money is all it is. But broke out of that, came back, retested the top, held higher. So again, I was looking for anything to go along today back into this area. And that's exactly what happened. So I just didn't get a setup and that's the way it is. That's I, my main driver of my trading are, is the big money, dumb money type subs. And if, you know, if I'm not seeing it, then I'm not taking trades. And that's just my rules. The other thing you want to keep an eye on at all times is relative volume. You want to see, there's some good volume coming through these markets. And you can see, yes, hasn't been terrible. So this is over this every week, but this is a relative volume chart that shows you the exact time of day, volume based on the last 30 days of volume, right? So, and you got to remember the last 30 days have been absolutely horrible. So if you're seeing below normal, which is 100%, that's telling you how bad it really is. So you can see Nasdaq barely pepped his head over one time on this entire up move, right? So this is just a low volume rally. We talk about it all the time in my room. It, you know, when you see low volume like this, it's either going to range or the default is just always up when there's, when there's nobody in here to play, no big money. And it's just the way it is. It's, you would think it would just always range, but it's either ranging or default is up on low volume. They just push it, push it, push it, push it till someone actually, you know, big enough comes in and stops the, stops the nonsense. So like I said, yes, it hasn't, wasn't horrible here. I think this was probably 150%. It was 172% on this bar here. So it gets some little bit of volume coming in there. Russell is pretty 72% on, pretty sad, not too bad. I was actually yesterday at the close in my trading webinar. We saw that she could lessen here too. We can go over. There was a ton of buy ice right at the close. Can't see it on here, but you can see it on. I marked it on here. This was the area right here. And I was actually going to go long and pull back to there. I don't usually do that. I usually don't play setups from the day before, but it was the most buy ice. I mean, on my webinar, I was just like, it's shot because there was nothing going on. And the market started selling off or they were trying to sell it. And the CBD was turning one way, turning straight down. And there was just like 700 buy ice, 500 buy ice, 700 buy ice, 500. It was like 3000 buy ice, most I've ever seen. So that's this area right here. So I was wanting to buy that today on the pullback and I just didn't get back there as you can see here. So I just canceled it. I was wanting to buy it and then stop out right below that ice area from yesterday. But, and you can see it kind of pulled real close to there and then launched. But the moral of that story is, you know, when you're talking about much easier, if I just do this because I posted it for my room earlier. They were talking about the CBD, right? Humanly Delta and a lot of traders use this and they keep an eye on it. And they think it's like a red, like green light type of thing. And this is a perfect example on how yesterday you can see this, this delta went from. Minus 2000 to minus 10,000, meaning there are more aggressive sellers in the market hitting bids, right? It never means there's more sellers than buyers. There's no such thing. There's always got to be a buyer for a seller or there'd be a vacuum in the market. It goes straight down. What it means is people are selling aggressively, meaning there's more hitting of bids than buying of offers, right? So somebody was selling this like crazy. And yeah, that's good information. But if you're just looking at that, you're like, wow, something's selling us. I want to get short, right? And I actually did get short right in the close of just very little risk because it got an ATR bull of its own. But I also knew if it got out of love there, it was going to probably be a rip or unrally, which was what happened. Point is, if you're seeing this, this is not just a green light to start selling because, yeah, there were sellers and what they run into, they ran into 3,000 buy ice. That's very, very important information to know that 99% of the traders on the planet, I wouldn't say 99%, but most retail traders that, especially if you don't have book map, you don't know what's going on in this area. You just see this and you're like, oh, I want to get short. No, there was 3,000 buy ice that absorbed all of that. And then it went higher, obviously overnight and then into this morning. So the good lesson on CBD not to just be relying on CBD, buy in Delta, because it's not the whole story, right? Especially if you're getting, you know, 3,000 icebergs, most have ever seen. All right, so this isn't an area where this is Russell, we were just talking about, but you can see where this just stopped, right? This is really, actually I should have had this zone draw and we'll draw right now. So I draw my zones of one of the four important areas of charting. Top some bottoms about the four important areas or tops and bottoms of balance areas. Bottom, top, that's pretty confluent with this stuff, even though it was from before. You can see it lined up perfectly with the top of this balance area, this zone and then the bottom here. High volume nodes, which is just the middle of balance areas where the most trade occurred. I don't usually draw those because you could just die a bomb and I don't want too many lines on my chart. And then buying and selling tails, buying tail, buying tail, buying tail. Tails are very important because it means instant rejection. You see there's no one here, you can find them all over the place and then directional conviction. So there's areas that you want to have your zones drawn. So right here, this was a really important area. If I was long, if I would have got filled on that long this morning, I would have definitely been looking to get out here. Because this is, this market closed on this day and this is a major gap down. Gaps are considered directional conviction. So this is an area. Once again, if I got a short signal right now, I would short this. This is, if you just literally draw these areas and wait for the market to move into these important areas and then wait for your volume set up, you would be a very, very highly successful trader. Most traders can't, don't have that kind of patience, right? They want to jump in on every move and try to catch every run. And, you know, if you just wait for these areas, these areas, these areas and then you wait for your volume set up, you would be very, very successful. So anyway, you can see this is exactly where this market stopped, right? So now if this gets through here, that's telling me something and I have no problem being long for a move up to here. But if I get a short signal right now on the volume, I would love to go short right here. You can see we're far enough from this structure where you're not afraid you're standing in front of a huge puke, right? This is the puke basically and now we're here. So once again, if you have these areas drawn and known before the day starts, then you're just ready to fire when you get your setup. You know, if you're using the SI indicator, which if you're not, you're not getting all the information that is available. So you see there's nothing going on. So I mean, once again, my driver, number one driver, the SI indicator and the volume setups. The second thing I look at are the Ludwig levels, right? So talk about this all the time. These are main driver for my trading after the volume setups and they're very, very good for day trading as far as support and resistance. And then also coming up with a story of what's happening once you draw new lugs, how they're reacting. I talk about it every webinar. I did a video with Pamela Ludwig just one-on-one asking her how she trades these and it's pretty informative, very basic. But it's very educational. So you guys, it should be in this room if not somebody can post it. I've talked about it many, many times. If not, send me an email and I'll give you a link to it. And also if you want to try this, she's got a three-day trial to say saw it on the Bookmap webinar and she has special pricing for you guys if you want to try them. But again, I don't take lately adding things to my trading. So I have to watch them for a while. So I watched the Ludwig levels for a, I had a trader that I was mentoring. It was about a year and a half ago now, almost two years ago. And I was mentoring him on the SI indicator and the setups and my course and everything else. And he kept raving about these Ludwig levels. And it's like, I just don't like adding things to my trading. I try to keep it as simple, stupid as possible. I've always done that from being a scalper back in the day, making millions of dollars just staring at the dome. Never even looking at a chart. So like I always tell my room, it doesn't get much more simple than that. So it shows you you can make very good money being simple. Right. So I don't like adding things unless they're like just slapping me in the face. So he kept talking about these things, talking about these things. And I started watching them. I'm like, wow, they're pretty incredible as far as I mean, we can find even yesterday. I think he has bounced off the red lug like three times or something. Actually, it was just once it's edgering that one. But I think it was crude that bounced off. You could see red lug, right? And then when you get through the new lugs, you draw new ones. Or when you get through the red lug, you draw new lugs. But anyway, he was talking about these. And then I finally started watching them. And he, because he had made, I think it was last year, I can't remember now. I think it was last year from March, February to April. He made $1.5 million. And the guy was trading micros to start off his trading with. And then he was just so confident with the lugs and the volume setups that he just was able to up his size, right? And that's exactly what happened to me when I was a scalper. I started trading one lots, ones and twos when I first started. And when I finally clicked, I was able to up my size accordingly just because I knew what I was seeing was correct, right? So we were talking about this yesterday also in my room. We were talking about doing the Apex tryout to get funded account where you're not risking your own money, so on and so forth. And I said a lot of people can't trade or they don't want to trade those because it's kind of like a SIM mode. And they don't feel like they don't make the same decisions. For me, it's about being right or wrong. So I was always able to, we're doing a couple Apex strategies in my room right now. But to me, it feels the same whether it's on SIM or it's real or whatever because it's about being right or wrong for me, right? So that's how if you can get in that mindset, that's how you can grow your size accordingly as your account grows. You can go from trading a couple of micros to a couple of regulars into fours, eights, 10s, 12s as your account grows because it's all relative, right? If what you're seeing works, it works as easily with a two-lot as a 200-lot, right? So that's where you have to get mentally to start to grow your size. A lot of traders, a very vast majority of traders cannot increase their size. They don't react the same way because they start looking at their P&L and they start crapping their pants that they're going to lose their mortgage payment and their car payment and things like that. But you've got to get it down to science where it's just about being right and wrong, not the money, right? So I don't know why I went on that tangent. But anyway, he pointed these things out to me and I've been using them ever since and they're the crux of my trading next to the second most important next to the SI indicator setups, which we have not gotten one in any market. The only one recently was soybeans here and actually I wanted to trade this long. So this is a perfect scenario here, or perfect setup potentially. So we had bias to start. We did get an ATR below there and we retested, but we never failed and we got back through here. So when it did come down here, you can see there was more bias. This is like 200 something. So I was waiting for a move back into the zone to retest fail and I was going to go long and that's exactly what's happening here. So that step one is understanding your zones, right? I'm actually just going to get rid of this. So it's not confusing anyone because you always want to default to the most recent volume setup, right? And again, that was this, I believe this was like two something. There was a couple of different. So you have two different spikes here. You had 145 and then you had another 186, right? So you're talking over 300 bias in this area. You definitely got an ATR move away. So I use the five minute ATR. This is just the default on Thicker Swim. You can see it's 4.42, right? 4.45 now. So that just means four and a half points basically. Four and a point of sense in grains, the same thing. So the way I trade these, I trade these areas either aggressively or conservatively. The conservative way to trade them is way for your full ATR, way for your retest, way for your failure outside of an ATR. And then I'll take a long and I'll risk an ATR below the zone. There's other instances where the minute it breaks out of his own, you can jump in because it doesn't always retest. From my studies and my experience, it does retest the zone about 80% of the time in most of these markets, right? So what you are rolling the dice, if you want to trade all these conservatively, you'll do very well, but you will roll the dice. If you love an area, like I want to be long here and you're waiting for one of these, sometimes it just doesn't want these, right? So you've got to be able to accept when you missed the trade. We saw one yesterday and it was crude. There was a huge double whammy and it never retested and the thing just fell apart, but actually it was at the red lug and I should have been aggressive anyway, but that's besides the point. We'll get into that. Anyway, here's your retest of the zone. I know that my ATR is four and a half, so I like to go just outside an ATR for my entry. So you take the top of the zone, which is 47, we'll say 48. The ATR right now is four and a half points. So I'm going to go a few ticks outside that. So I'm going to go five and a quarter ticks outside of the zone. I'm sorry, five and a quarter points outside of the zone. That puts me at 53 quarter and that's where I would enter that trade. And this is all based on the volume set up. The ATR move outside more than ATR. I was like two ATRs basically pretty close. Here's your retest. Now if it fails, I'm in and my stop is going to go. It's outside an ATR. So five and a quarter points below this. And then I'm playing for move up. And then that's when I start to look at some of my targets and where this possibly can go, if this is a correct call. So go to the bean lugs here. So you can see here, we're just dancing around the yellow directional lug. Right. So this is like just choppiness. So I, any setups I get around the lug or ATR retest failure both ways. I never aggressive. I'm aggressive. Our at lugs bounces off the major lugs. They could, she calls them big red and big blue. Right. So you can see this is just dancing around. So I know my volume set up here. We got above. Here's your retest. I'll take the long. And then this is ultimately my target, which is, you know, 26. It's way 26 cents away. So we will see what happens there. And that has literally been the only setup all morning. There you go. Some more push it because nobody's in here. I'd be thinking maybe seeing some kind of setups here, especially near the zero gamma level here. And we talked about this. This is an important zone. So hopefully we can get something and I will short this. This is where gap down. Very talked about this, but this is where this directional conviction started for this day and led to this big down move. You mentioned it. There's got the gamma level. Nick had a question. Maybe you could explain what the spot gamma zones are and your cloud notes there. A spot gamma notes, these cloud notes are just here. And again, I don't claim to be an option expert by any means. Right. And that's pretty much by design because you can go down a major rabbit hole, you know, the inner workings of options. I mean, I think it's all relevant or I wouldn't use them, but I don't want to, I don't want to get too intricate. So you can see this isn't working here. You know, so he comes out every morning and he talks about what he sees with these levels. Right. So options dealers are a very, they're a very big participant in these markets, right, especially ES. It's one of the SPY and SPX are one of the biggest option complexes on the planet. Right. So it would behoove you to know these areas where options dealers are going to be hedging their positions. Right. So when a retail trader trader comes in the market or hundreds of them, millions of them, whatever and they, they buy and sell options. Well, someone is on the other side of that trade. These are the options dealers. Well, when they get low, then they have a book options book. Right. Or they have all these different positions based on what orders they took in. Right. So they have to, to protect themselves, they have to hedge their options positions in the futures markets. So is, is whole, the whole crux of this is to use an expert at understanding all these levels of where the options dealers are going to participate one and how the options areas are filling in to kind of owe you, give you an idea of the next directional move. Right. So again, go to his website. I can read all about it. He's a really, really smart dude. I could tell you that and he, he really, really gets into things, but it's very interesting. You know, he tries to lay it out more in layman's so it doesn't get too, too technical, which is good for me. But the way I use this stuff is I read his, I read his morning commentary and you want to really pay attention to when he says, Hey, if we break this level, there's nothing here. There's a vacuum meaning there's no significant options activity down to here. Right. So he doesn't do it all the time. But when he says it, you want to pay attention. Right. So he'll say like, he doesn't say today, just says there's basically no, just going to be choppy until tomorrow is, um, the, the Powell Friday, 10 a.m. Powell speech, 10 a.m. Eastern. Um, but when he says like, based on the options, if we break 4,200, there's, there's nothing down to 4,100. Pay attention because he'll basically say that it should be a, could be a quick trip to 4,100. Pay attention when he says stuff like that. Right. And then also pay attention when he says we, we don't, we expect choppiness and low, low volatility. So, and so on and so forth. He's been talking about this move index, which is the, um, treasury options and when they're at their high, the markets, um, seem to sell off. So on and so forth. So you can go down a major rabbit hole, you know, trying to understand every what in the market, I try my best not to do that because you know, even with these volume setups, you get all the time, you know, people, they're too smart for their own good. Some of the worst traders on the planet are some of the brightest people on the planet. Right. Because and the reason is, is because they need an explanation for every single thing that's happening and they need all these inputs and they're trying to decipher all this stuff. That's why, you know, a lot of doctors and like, um, scientists that they're, they're miserable traders because they need, they need to know the whys of everything. Right. And in trading, you don't need to know the whys. I use this analogy every webinar. You walk in a dark room and you flip on the light switch. Do you need to know, do you need to open up the light bulb and figure out how the filament works and how the light bulb works to get the light, or do you need to know, hey, I got light. Right. So that's, that's how you have to view trading. Right. I don't need to know what other participants are doing. Right. Or the whys, I should say. You're never going to know on top of it. You're never going to know because you get all the times, especially when this thing first came out. Well, you don't know, well, why are they buying there? They could be getting out of a, of a short. They could be hedging their options. It does not matter why this is occurring here in matter, the area is what matters because there's always two sides of the trade. And somebody is on the other side of that trade. And when this moves out of here, somebody is in trouble. That's how you have to view it. And if you try to make it more technical than that, or you just can't accept why guys are doing thing, you're just, you're not going to make it in this business because you're never going to know and you're just going to confuse yourself and you're never going to be able to pull the trigger because you have 85 lines on your chart giving you all these different, different signals. Right. So you don't need to know the why. So my point is here we are. I know this is a major. What's that? Oh, that's the natural gas number. I know this is a major options level. I know why I play these and why you should be looking at these is these are resistance levels until broken. Then there's support just like anything else in trading. Right. So you can see it came up here the first time. Struggle. Here we are again. You get these areas confluent with other major areas. And we already know this is a very important zone. Then you have yourself an awesome the more things you can layer on to into an area, the more important the area is. Right. So I know that's a spot gamma level. I know that's an important zone. Let's see what we got here. I know while here. Actually, that's not correct. Just they just love to push these markets when nobody's in here. I think it's not connected. Let me close this and restart it. The other thing we want to look at here is this chart. There we are. All right. And then what else do you see here? Right. So I know it seems like I use a lot in my trading, but I really don't. I use number one, the volume setups. Number two, Ludwig levels. Then I keep an eye on eWAP, standard deviation of eWAP. One standard deviation, this is one and a half, two. When you start to get extreme, you have these algos kick in and they revert it back to the mean, especially if there's no volume coming through. That's why you want to keep an eye on relative volume. That's another thing that I look at, right? And then lastly, spot gamma levels, obviously, but then these market profile areas. And you can see now we have three different things. We have the zone. We have this prior market profile composite. Actually, I think I left it unmerged to show you guys because we looked at this the other day in the room, what this area is. And you can see this is how I come up with these blue zones. They're composites. So these are single days here. Two, three, four, five. So I merge days, the value area. So the value area is nothing more than what 70% of the trade that day, where 70% of the trade occurred and that forces or forms this Gaussian shape as they like to call it, right? And then point of control is where the most trade occurred price-wise, right? That's all that's very basic. So what I do, what most people do that use these composites, which are very, very, very powerful, is when this day, at least 50% of the value area overlaps value area from the prior day, you can merge them and make a composite, right? So this was day two. So I would have merged this. I did merge this, right? And you can see the next day, same thing. 50% more than, it was almost probably 60%, 70% of this day merged with this composite. I merged that day. This day, same thing. It was that day. This day, same thing, merged this day. Now you have a five-day market profile composite area, right? And then you can see that this was another one. I cut it off when we started trading through it, but this one, you can see, it was still important over here, right? Like this was a composite, but this obviously was struggled at this level, and that's where we're at right here, right now. So again, if you know all these areas, then as soon as your, your volume set up fires off, you're ready to go. And so I know how important this is right here. So this, whoops, I didn't want to do that. Come back. There we go. And that was the spot gamma level. I know it's the zone I drew. The zone's from current stuff, as well. That's not from that from way back there, but this is obviously still important. So this is a great place for a trade. Whether you fail or you get inside here and head up to the next one, right? So now I have everything in place. I know it's an important area. I don't have a bias. I mean, I, I, I, I always want to be short these markets because I hate them. I want them to go to zero because I think it's so asinine and how we rally and things okay in the world. But that's one of my weaknesses, but we won't get into that. I will play this either way. Now I'm waiting for a real-time volume set up dictate which way I'm going to trade this. I know it's an important area and I know if I get a set up, it's probably going to lead to a bigger move. And that's all I do in my trading. I keep it very simple. I look for these areas and I wait. So you did have some stuff on the chart here, but you can see it's kind of convoluted. So I have, this was 350. So I have threshold for each market, right? Because a set up, 500 stop runs in ES is not the same as 500 stop runs in NQ. NQ is a more lightly traded product, right? So you have to know your thresholds. This is what my course goes over, my SI indicator course. It's on my website in the Bookman Marketplace. It goes over the set ups and the thresholds. So you understand what's going on. The set ups are based on my personal experience as a large scalper back in the day and how I would react when I was loaded up with thousands of contracts and how other people would react because like I tell you guys every webinar, you can see counterparty back then. You can see exactly what you were trading with. So it was like a big poker game every day and I know who I was trading with and you can see when they got loaded up and you know, you can push it against them so on and so forth. So the set ups are based on real life experience. It's not just my hypothetical guessing what's going on in here, right? So anyway, there's thresholds for every market and I just have not hit a threshold. This was probably might have been close. This was 387. I rarely go below the thresholds. I will go higher, right? So if you say, for instance, icebergs, it's 700 thresholds in ES. If you keep seeing like 1200, 1500, 2000, you probably don't want to be using 700 for that day, right? I will up it. I rarely go below my thresholds, right? This area potentially will do this for this webinar. I don't usually do this, but there's a lot of activity right in this area, as you can see. So first of all, you had some bias. This was only half threshold, 350, but you had a 380 stop run. Then you had a 349 stop run back to back on this area, right? So you had actually 189, 380, 350, so that's 700 right there. And then you just had another stop run right here. So we will draw this zone. Again, I don't usually piece together to get the threshold. Enough has happened up here and I know this is an important area. So we'll draw it. Hopefully you guys can see some kind of, some kind of trade today since it's been dead. So let's see here. The other thing too is if the markets like this and you're not getting what you want to see, I promise I'll have to draw this zone. It's not too bad. Just don't trade. Go, you know, it's August. There's all the big trade and most of the big traders are on vacation until after Labor Day, right? So if you don't like what you're seeing, if you're not getting your setups, you don't have to trade it or trade another market. Pay attention to grains, pay attention to crude, pay attention to natural gas. That's why you want multiple markets in your arsenal that you watch you're not forcing trades in crappy, algo, whipsaw markets, right? All right. So we'll draw this because there was enough in here that, you know, I think it's relevant, especially with this, especially when we talked about. So we want to see how this market reacts to this area now. You can see we're just struggling in here. So we'll see. I don't love this setup either, right? Like I said, I had to piece together just to get this on, but there is literally nothing going on. So it's very rare not to get one setup in any market. The last setup with soybeans at 37 was an hour ago. So this is pretty much unheard of across all markets, right? You'll see some days equities and nothing fires off, but usually getting some something in either crude, gold, natural gas, grain, so on and so forth. So, pretty surprised. All right. I need a breath. Any questions, Sam? Yeah. Adrian has a question here on YouTube. I'm not really sure what he means, but maybe you can make sense of it. Can you explain to us when a big ice and stop appear together in the stops and iceberg indicator, same direction or opposite direction? I've heard you calling it with a Japanese name. I have no Japanese names for that stuff. I didn't think you did. Yeah. If you have you have a buy. So that's my sixth setup that we've added recently. We call it the unicorn doesn't have very often. My room actually named it. So when you get by stops and by by ice in the same area, we call that stepbrother. So actually this would have been one. If this was threshold, this isn't rough children, remember, but this is a good example of getting pukes by pukes, which is not real buying. I mean, it's buying, but it's not initiative buying. It's people puking out their positions. That's why this is so important to know these areas. And then behind it, you have to buy or in the same area, you have by ice. That's usually a very good continuation area. So that's what we call that is stepbrothers far, far from Japanese. But that's that's what we call it. So I have six distinct setups. Right. We'll go over them quickly. We have the dumb and dumber, which is the dumb money puke, which is a retail trader puke. Again, don't be offended I'm retail trader too. But that's, that's just dumb money puke. Right. And that's when you get the puke and it fails. That's a dumb and dumber. Then you have stop and hold, which just looks like it may be. Right. Where you get the dumb money puke and it hangs here and then the big money continues to push it. Whatever big money is in here right now continues to push it higher. So stop and hold. And you have stepbrothers, which I just told you where you have the buy stops and buy ice in the same area. That's usually continuation move, kind of like the stop and hold. And then you have the Titanic setup when you get buy ice. And that's actually what I'm trying to play here in the soybean trade. Where you get the market runs into, the sellers run into buy ice and somebody absorbs it and it holds and it goes higher. And then you have broken ice where you have buy, say in this instance say it was buy ice and it got below there. That would be broken ice. That would be the big money trying to hold the market up and they're wrong. So don't get confused. Don't always not just, you see buy ice and you want to be a buyer, right? I mean, yeah, you want to lean towards buying because they're the big money and they usually get their way, especially when you see buy ice and you pull this down and you look at this, I can promise you today, tomorrow, then the next, it might even happen today, but we already talked about this. If this launches, remember, we said 1475. This is a great roadmap we talked about in the morning when you're coming up with your scenarios and your thesis and your important areas. You bring up your chart and you see nothing but liquidity in one way and black hole the other way. You can bet you are, you know what, this market's going to get up there. Why? Because this is the big money and the big money will push the market there eventually. It's just going to go straight here, right? When you start getting setups in the direction of that, then you say, yeah, it's go time and I'm going to use this stuff as my target. Top of the other stuff we talked about, right? I got one in that ramp. Oh, I was telling you about the setups. So it doesn't mean buy ice is always right, but you can gain in that direction, especially if you see the liquidity above. Like there is a very good chance this works out and is a huge trade, right? And then the other one is broken ice when the big money comes in and gets their asses handed to them part of my language, right? So we've been seeing that a little bit lately, too. So those are the setups and you judge the setups by the ATR move away and whether it can get an ATR out of there, right? So you can see here, talked about this ban on liquidity. I mean, it wouldn't surprise me to get up here. I would still short this if we did one of these, but speaking of which, let's see where we're at. Maybe I'll take this aggressively. We can rip out of this zone. Yeah, so I mean, according to my day trading rules with the lugs, anything above the directional yellow, if I get a setup above the directional yellow, I'll take aggressively, meaning I don't need to see the full ATR retest failure like we're waiting for in beans, right? I'm a little nervous here. I'm not going to be aggressive with this zone. First of all, I piecemeal the zone together as you just saw. Two, we are at a very important area where this could fail. Three, we're at extreme standard deviation of VWAP and there's no volume coming through this market right now or it's not very impressive. Many times you get the algo reversion back to VWAP. And then also we got the spot gamma level, right? So I would trade this on the long side, but I need to see, guys, you got to remember, trading is not usually just, you know, slap yourself in the face. This is a long, this is a short. Most of the time you're going to have a scale, right? And you've got to judge. You've got to weigh. This is the old-time scale, right? So we just went over, like, four reasons, four or five reasons that this could fail here, right? And then the flip side, you say, well, we got liquidity up there. That's check one. We got, we're above the yellow log. That's bullish, right? And then you weigh, okay, what is more important here? So you just come up with this, with the scenario, like, okay, well, we got four things that are bearish, two things that are bullish. So this is exactly what I'm doing when I just said, I don't want to be aggressive on this trade, right? You'll have instances where you get the scale and you get seven things that are bullish and you get your zone. That's when you want to be aggressive and you don't want to wait for retest failure because you may not get it because you got all these factors that are pointing in that direction. You see what I mean? So this particular setup, would I go long? Would go long, but I know there's more factor, more factors in the favor of this failing right here. I'll go long if I see the full ATR, if I see a failure back into the zone, I'm sorry, a retest back in the zone, then a failure out, then I would go long, right? So I'm forcing this market to do something to go long. If not, I want to be short. But would I go short aggressively up here? I could, I may, I'm still determining. I just don't like going short aggressive when we're above the yellow lug, but there's so much going for this trade on the short side, potentially, you know, mainly this zone, I mean, the zone I just showed you carries over the five minutes, but you can see this is also where we failed overnight, right? So you had, once again, markets are one or two states and this is all fractal, right? So here, meaning it's for the five minute chart, the 30 minute, 60 minute daily, it's all the same stuff. Here's your balance again, in the smaller the timeframe, the less meaningful it is. I mean, it's still balanced, still traders loaded up, but it's not as important as hourly balance, right? But anyway, this is the exact area, this exact zone that's failed overnight. And here we are again. So the point is, there's enough going for this that I could short this aggressively if it fails out here. So we'll put this in, if that happens, I'm not terribly excited about this area because when I, like we talked about it, pieced together this zone, but let's just put this in because I think there is a good chance this fails. So ATR is 4.66. You can see it there at the bottom of the screen. Again, this is just a Wilder's 14 ATR. It's default on Thicker's 1.68. So I round up. That would be 4.75. And then I'll go a few ticks outside of that. Two or three ticks outside of that usually because I don't like stopping. I used to try to go inside of an ATR and I kept getting ticked, filled to the tick and have it rip the other way so now I go outside. I'll go five and a quarter points outside of this zone. So then you take the bottom of the zone, five and a quarter points is 72.25. I would short 72.25. That is an aggressive entry, right? The conservative entry will be waiting for the full ATR, the retest, the fail, then going short, then your stack goes above here. Okay, so I still need a lot to happen to even get filled on this. So that's fine. I'd rather just... I want this thing to go a little higher and then get an actual real setup that's concentrated volume and one pop, then I'll be a lot more confident trading in either way. Again, this is pretty unprecedented. There has not been one setup in anything. I'm about to get filled in this market. Hold on, let me make sure I get this going on my other ones. I have multiple counts of trading. So when I get on these webinars, so often I forget to do things. Like last week was very costly. I got on the webinar and I put a trade in. I thought it was just an error. I've been making a lot of errors lately too. It's not been good. But I put a shorted in soybeans. It was supposed to be wheat. And I didn't put the stop in because I got on the webinar. And then I look after the webinar and soybeans are 22 cents in my face. It's like... My point is I got to be careful with what I'm doing because it costs me a lot of money. I'm not frustrated in the Apex account. We can go over that stuff too as far as Apex. But I have so much going on. I've blown it out like three times just because I forget I have open orders going into the close and so on and so forth. It's kind of embarrassing because I've been trading for 20-plus years to making those kind of mistakes. I have too much on my plate. I've been making a ton of mistakes. All right, another question, Sam. Any other questions I should say? It's actually pretty refreshing to hear about your mistakes. Maybe that doesn't bring you any comfort, but it's good to... Well, no, that's what I tell my trading room too. It's like, you guys see everything. There's no bullshit part of my language. It's not sugarcoating just my winning trades. They see me at my best. They see me at my worst. It doesn't happen very often anymore, but they see me on tilt. They see me go limit down on a day. They've seen many, many, many mistakes. It's like, but that's good. What I tell them is use what you're watching and use my experience so you don't have to go through the same torment of mistakes and listen to what I'm telling you so you don't have to go through it and blow out multiple accounts to you, finally get it. That's the whole idea of the room is to teach guys how to trade for yourselves and teach you not to make mistakes. You don't have to go through that torment for years and years and years until you finally get it. That's the whole point of my trade room, right? It's not a green light, green light, red light trading. You get in here, get out here. I do show my trades and I show the areas. I post charts all the time and I say, hey, heads up, here's a setup, here's a setup. Guys in the room are doing, the guys and girls are doing the same thing in the room. That's what I want. I want the community that are sharing all these setups because if you don't have the bandwidth to watch all these markets, you know what's going on. But the whole point of the room is to teach you how to trade for yourself. You'd be amazed how many people get in there and they don't want to learn for themselves and they're never going to make it. You're never going to make it mirroring another trader ever. So sorry, I didn't mean to cut you off there, Sam. No, that's good. Good stuff. I think the lesson there is, you know, there's no room for perfection really in trading. We're all human. We all make misclicks from time to time so don't beat yourself up. You know, we're all guilty of it. Well, I do beat myself up and it's a little embarrassing. My juncture, I should not be making mistakes like that, but it's very easy to do. Especially, I'm not just talking trading mistakes. I'm talking just stupid mistakes like I said, forgetting to put a stop and leaving orders and having open orders going into the global, or the regular trading hours, close stuff like that. That's not excusable, right? Those aren't mistakes I'm talking about. I'm talking about trading mistakes and what to do, what not to do, things like that. That's one of my weaknesses. I am very hard on myself. You can ask my room, all I do is beat myself up and that's one of my weaknesses. You've got to go easy on yourself. Markets are hard enough that you can't be in your head all day long mad because you missed a trade, mad because you got out early. You've got to use your mental energy for the stuff that matters and not be punishing yourself like I do. I'm getting better at it, but maybe another 30 years of trading, maybe one of it mastered. I was going to kind of expand, you had a nice explanation there on basically how you decide if you should enter the market or not. You kind of balance out the options and would it be fair to say you also, you lean towards the side of caution if you're all unsure and this is where the patience and discipline come in really? Absolutely. I've been talking about lately in the room and I've heard this so for a while I was just basically taking most setups no matter what, right? But like the other day, for example, there was a short setup. We've already talked about this on this webinar, right? So it was, I think it was, maybe it was last, I can't remember. Either way, here is your balance area, right? We got a setup here. It was actually a soybean short setup brief and I said, you know what? Yes, this is a setup and it was actually even ATR retest failure setup, right? And I'm like, I am not shorting here above all of this, all these loaded up traders that are short. This is when they puke. You don't want to be standing in front of a puke and we're seeing it beside there. You're seeing it in a yes, right? So it's like if we would have got a signal right here today right at the opening part of the webinar and it would have been short, I would not have taken this trade because it's just, does it mean it can't do that? Absolutely not. It can do that, or when it does that and when you get below the high volume, that's where you want to short. You don't want to be shorting up here standing in front of the way, standing in the way of pukes, right? So you want to use discretion in your areas. It's just not black and white, right? You got to understand market structure a little bit at least and understand, I mean, this is not hard guys. It's pretty simple to see balance areas, right? It's just two-sided trade, right? You want to see tops and bottoms like a few times, right? Top, bottom, top, bottom, top, go. That's a balance area, right? If you can't determine it, then you shouldn't be trading it, right? But then that's all fractal, right? So then you have that, but then you can make this one big balance area, right? Didn't quite get to the bottom here, but you can see it's like, everything's fractal. I guarantee if I pull this up on a daily and you'll see and the higher the timeframe the more important it is as far as the area and you can see how it looks different, doesn't it? It looks like a perfectly formed balance area. Let me get this damn chart over here. Now look at that, right? It looks completely bullish there. Here, look at that. This is a daily. So now, this is all stuff you have in your head, right? Because this doesn't change. It's like five-minute charts. You just know, okay, hey, look at that. It's the top of that balance. I know I probably want to be shorter. I also know if this breaks out of here. Now you're talking about months of loaded up longer-term traders that are whoever's short is going to be wrong. If it does something like that and like that, and you get through this high-volume node, then the shorts are going to be incredible. But this is all stuff that you need to know these areas to help you make better decisions when you do see a real-time volume. That's the point, right? So you can see this thing just now. This is all stuff from before. This is a gap down. We've tried it three or a few times over right here. So these are the areas you want to watch where that would be an incredible short just if you're playing the balance to continue. Or if we break out of there you're ready to go long. You're not going short because you know there's months and months of longer-term traders that are going to be puking out their positions. So yeah, you want to have a little discretion in what you're looking at to come up with the best ideas, right? So like I'm talking about here it says leaning more short based on all of the confluence stuff. But and I saw I would not take this long aggressively because of all the stuff we said the reason this may fail, right? And it looks like it might happen. I think that's your question. If not, let me know. No, definitely. That's good. We have another question here from crypto surfer. Is there a ATR you recommend on trading view? Trading view? Yeah. This is all pretty standard. I mean you need, all this is if you remember my trade room as well you get my templates. So you get the template to all my thinker swim charts, everything I'm using here templates to all my Sarah charts, the relative volume, the market profile stuff. So that's one of the perks of my trade room. But for this stuff this is just default. This is a wilders came out and this originally came out for the ATR for the days, daily type trading, right? So it was initially 14 days of where it was judging the ATR. But this is fractal, so I'm using default wilders ATR 14 periods. So it's based in the ATR and the last 14 five-minute bars is basically what it's basing it on, right? And you can see it and it oscillates, right? And this is based on volatility. That's all it's doing. We got up to about close to five and a half. Now it's pulling back because the market's starting to die down a little bit. But this ATR was taking into consideration this straight move up. You'll see this is actually pretty low. We've seen before this crappy horrible month earlier in the year we were seeing ATRs around 15. We saw a couple of 20 points for ES, which is pretty crazy. We're not even getting to 20 points now in Nasdaq. We were seeing 100 ATRs in Nasdaq. And that's why I use it because you can't go on another rant here, right? So many traders, for instance, to say TR is only 20, that's nothing. Like if this is earlier in the year when this was a 100 ATR, you're trading it like you're normal, like I told the story many times in here. There was some guy in my room probably six or seven months ago who was like, I'm quitting the room because I don't like the way you trade Nasdaq. I'm like, what are you talking? What do you mean? You don't like the way you trade Nasdaq. He's like when I trade Nasdaq, I like to put on a trade where I risk 10 points and I'm going for a 20 point profit. What does that mean? Who cares what you want to risk? The market doesn't care what you want to risk. There's about the 100 ATR. If you were putting on trades in a volatile 100 100 point ATR risking 10 points you are going to get stopped out probably 99% of the time. You may get lucky and catch one that goes 20 points. You cannot have these rigid standard points that you're risking in your trading if the market's more volatile. You've got to adapt to the volatility. You can, you can do whatever you want I guarantee you a high percentage of people on this webinar right now are only staring at this crappy market that's all they trade is ES. Two, they have their system where I risk 3 points and I'm trying to make 6. 3 points in this market, that's fine because it's not doing anything. But when this thing elevates to a 15 to 20 ATR and you're only risking 3 points you are going to get algo to death. Algos are 85 to 90% of the trade they want traders risking 3 points in a volatile market. They know they can just rip it around when nothing's going on big money's playing in here and just stop everybody out, right? And that's why most of the trades lately have been all stop runs. The point is you cannot have a rigid set amount of ticks that you're just going to be risking in any kind of market environment. You've got to adapt to the market environment that the ATR does. It helps me adapt to the market environment. And there's also guys that are like I don't like the risk you take, right? So, you know, you're risking the zone and if ATR is 10, you're risking you're getting 10 points above and you're risking like that's 20 points, that's 25 points of risk or whatever it is. It's like, yeah, but the volatility is telling me that I could get 25, 50, 75 points on my money on my risk, right? So that's the whole point. One of the number one faults that in trailing stops just based on your P&L those are the two major faults of retail traders why they don't make it. It's one, not adapting, having rigid rules for their exits and entries and then trailing stops as the market goes in your favor. Now, what you want to do is trailing stops so I only trail my stops based on new setups, right? Both this were to roll, so say they get filled here and this rolls down. It starts to come back. Am I getting out? Make sure I make three points. You could. But then what do you do? You get stopped out and then you watch it go 50 points lower and then you're beating yourself up the rest of the day. Oh, why didn't I stay in that? You didn't stay in it because you've got ridiculous rules because you don't want to give back your profit because you're snaring at your P&L, right? Just trade and have rules for when you get out and it better be based on what's actually happening in the market not because you don't want to give back your rent for the month. Guys, this is why traders fail and the algos know that traders this market starts rolling down and traders start trailing their stops and the algos, especially when they know there's no big money because they know just like we do like we can see, you think it does that because they come back to stop all the traders out and then it goes and not only that it'll come down so say it starts to move down here these algos put in their offers, put in their offers then they roll it back up, they make all the traders puke right into their offers now they're short and then it can make the next wave down sometimes you see that pretty much all day, every day. So my point is, trail your stop for a reason not because you don't want to give back a certain amount of money and the main reason you should be trailing your stop is based on the real-time buying action. Looks like I'm going to get filled on this trade reluctantly but the area is good enough I just again I piecemeal together this the SI indicator stuff there still has not been a single setup for over an hour in any market just crazy and you get some movement and crude as well so this is the other thing I'm using here is tick strike you guys everything I talk about there's discounts on my website too except for the level of levels you just got to go there and do the free day of trial and tell her you saw on the thing and you'll get a or on the webinar book map webinar you're going to discount but everything else I use is on my website you can find it so anyway I use this obviously you want to keep an eye on this see with equities you want to know you know these are the highest percentage stocks that weight the index that the futures are derived from so it would behoove you to know what's going on in here so if you see moves and you hear nothing going off here that could tell you hey reversals in the cards right you can use this to build your trading plan the other way is this as I know if I'm not staring right at crude I have no idea what's going on here this is what I've been using the stick strike for like 12-13 years and the one I originally was using it for was just to know when other markets were activity was firing off because I can't stare at 15 charts at one time right so it's like I mean okay they're really hitting crude now like right now I know something's going on here now I'm like heads up you might get a signal right so that's another thing I use kind of went on a tangent there and forgot what I was talking about um alright so you see this is why do you guys see this right here so the old me so it's been an experimentation with the ATR of the best places to get in so when I first started trading so talk about the standard points when I first came out the course if you have my original course I talk about a standard amount of ticks like I'll get it I used to get in the EES like three or four points below the zone regardless right which was that just defies what I just told you right you can't have a standard amount of points three points in one market is nothing in another market so then that's when I started using ATR well that was as well then first I was getting in when the market would move so say I want to get in aggressively like I'm going to do here right when the market moves 70% of an ATR I would be in because I was just trying to save some points I was being greedy and then I would get filled and it would do that and I'd be like that's not good and it happened for many many months I'm like okay I'm going to go to 80% of an ATR same thing would happen 90% same thing that I was at a full ATR same thing so I'm like okay you know what I'm going to stop trying to squeeze out a couple points I'm going just outside an ATR and you can see right there for right now that just saved me getting filled and watching this thing spike back in my face right so this is exactly why this has saved me a ton of money I still get filled to the tick this was pretty damn close but you have these algos that will it knows the volume area it knows when you get an ATR away from it and I'll spike it right back to the volume area right right when you get an ATR so this was the exact ATR I'll bet on it let's see 4.82 the bottom of this zone was say 77.50 that got down to 72.50 so it was pretty much 5 points 4.82 is you round up it's 5 points right so and you see here's your algos and here here what else is this okay yeah I'm short man I wanted to get short right out of this zone yeah I got it my favorite I'm going to trail my stop there you go trail your stop because you don't want to lose money now you're stopped out now you get to see this thing drop 30 points and you're beside yourself that's why you don't trail your stops in random areas alright there's the fill reluctantly so 4.8 oh we should get short of this too um so we said 4.80 right up to 5 and I go a few ticks outside there so I'm going to go 5 and 3 quarter points on the other side of this zone for my stop out first trade of the day so this is at 83.75 that's 88.75 89.50 is my stop see what I did there so I am risking in this trade I'm risking basically almost 18 points and I know people are like what the hell I'm not risking 18 points in this market are you crazy well the volatility and the zone is telling me I should risk 18 points so I don't get stop what's low point of that so I don't get algode right this thing can come do this for 3 hours right and it's just a meaningless area when something really important starts to come in actually what is this so I wasn't getting alerts because these are all under threshold but I am 2 4 you know I I don't like but you can see this is one house too right this is the great thing about the SI at the on chart so you can see right there I can get my damn drawer going here we go 5.59 executed you can see the line so all of this was one entity right and it was sell ice as well it's good to know again I'm not piecing that together to get the threshold I already pieced it and it was in the zone anyway so it doesn't really matter but it's just this is just this is the information if you do not you're not knowing what's going on with this like Kenny yesterday when I showed you Russell with 3,000 buy ice if you're staring at a chart you have absolutely no idea that that happen wouldn't it behoove you to know hey wow there's 3,000 buy ice in this area wow and the chart just looks like it's just a chart area but there's if you know that hey look at that look what happened so it's the most important thing you can have in your trading I say it every week and I'll say it to the day I die if you're not using this information you just don't have all the information period you can argue I'll argue with you till the cows come home you can be the greatest technical trader you can have the best in your mind system or indicator whatever everyone's trying to holy grail everyone's trying to find that doesn't exist you still don't have all the information unless you're using the real-time volume because that's what drives markets your magic bullet your magic area your magic indicator doesn't mean crap unless there's real-time activity there supporting it right and that's what this tells you you can see this is where this failed this is why we said we wanted to be short there was enough going for the short so that's why I short sorry Scott we've just lost your visuals there I'm just trying to get it back I don't know if it's at your end or my end say it again we've just lost your screen you did interesting it was me it's still it's weird stop sharing and reshare again I wasn't even on that it shows me it's still screen discord does this a lot so we've got the squawk channel in my room that goes out all the time you gotta refresh the discord many times or I gotta do it on my end some time if you got it there working yep we're back thank you okay now I'm gonna have to refresh my discord it happens all the time we're good now thank you alright so I don't know what you guys saw you didn't see but we could still hear you so I think I think we got the gist okay so now I'm short you know this can see this volume starting to dissipate so I'm open to myself and I don't like trading past we've talked about that many times we'll go over it one more time just to hammer into my brain for the 5 millionth time in my life you don't want to be trading between 10 and 12 east or central I told you guys I used to literally get up and physically remove myself from the office this is the exact time of day because I lost so many millions of dollars between 10 and 12 the big money leaves and then you know now it's all out it goes back then it used to be some market manipulators that would just whip saw the market back and forth it's the same idea now I show this every week just to show myself to tell myself stop being a moron stop being the monkey that keeps sticking his finger in the electrical socket thinking it won't hurt this time let's see here you can see here guys you know my piano is positive I've taken a big draw down this month because the month is just terrible but look look at this time period at this time so I'm on pacific 8 to 10 I've thrown away this is guys I'm trading tiny on this account this is like two two lots four lots right so 63,000 at the 10 o'clock time period and 114,000 at the 11 again 10 and 11 how many more remember this is even counting the millions I lost so how many times I have to look at this to tell myself don't trade that time period look at every other time period why don't do it so the point is this is very very very likely to I'm not saying it's going to come and sell me out but it's very likely to do this for a long time and just torture and the thing is when you're trading this time of day and then you start dealing with this it just wrecks you mentally like you get so tired of just watching it watching the emotion back and forth back and forth back just don't trade leave at 5 o'clock to 12 o'clock and I've seen some you know market guys on the thing say someone said the same thing on one of I don't want to mention his name but he's like said the same thing the 10 to 12 o'clock time period sucks the market guru guys like it sucks for some people but other people and me trust me over unless you just like if unless your algo unless you have algos built you like to whips up people yeah maybe you'll do okay but if you're a click trader you're very very well served to get the hell away from your screen between 10 and 12 right here we go like this is I already know what's going to happen here right so that's what it is I enter the trade around the webinar but I don't know what else to show you than that P&L to know don't trade from 10 to 12 and that's that's with the edge that I have right so this P&L shows you this is an edge I have an extreme edge and I still get smushed at this time of day hey here's a setup my most hated market something's going on something's going on so again this is an edge you can see not a very fun draw down in August but an edge your equity curve goes like that so still profitable but how much money I've thrown away three times my profit trading in those crappy hours alright so let's take a look at gold I don't really want to trade gold but well I do like you rarely see it anymore last since the war started it's just been all stop runs in here it's just whipsaw city but it's ice and this is significant you can see how to know where it's 300 250 sell ice like what's that all about right so something's going on and you heard bonds fire off as well something something's brewing it isn't important don't you guys think this is important to know this information right it's like you could be sitting here thinking everything's dead and all of a sudden you know you don't have this information and you're trying to play fades or whatever you have no idea that 250 sell ice coming out of nowhere I can't remember last time I even saw an iceberg in gold that's important information that's bonds I mean that's gold look at bonds I actually had a trade on from yesterday I kept overnight that ended up stopping me out that's what that P and you'll see this P out here in a second small loser but it's here middle and middle of the morning I don't know where 250 sell ice and gold and almost a thousand by ice and bonds something's up right somebody knows something the big someone's coming in big that's pretty important information you want to know I try to color code my stuff just so I know what it is so blue is for the buy ice I don't trade bonds very often again I put on a trade yesterday it was actually a winner I was I had one take away from the red log and I never got filled and I held it like a round overnight and I stopped up anyway here's your there's that so we'll look at our get gold and bonds on the lugs see where we're at hey well you know go bounce off the blue lug perfectly as usual these lugs are absolutely guys I'm telling you they are so incredible for support resistance targets so on and so forth you can layer in your your here we go we'll come back to this in a second so everything's just going to come in an hour so here we go guys so this is what I'm talking about now I can try on my stop what in the hell what do you know the big money's how did we know all this stuff was going to start firing off because you get started you saw bonds and gold and here we go right somebody's playing now did I even get filled on that so we'll come back to this I want to one trail my stop what am I doing here I'm trailing my stop because I love my profit and I really want to be able to pay my car payment this month I'm trailing it because there's a new volume occurrence of new volume vent you can see they're hammering all the stocks that drive the indices that drive the futures that's important to know what you think because volume is the driver of its lines on a chart I'm going to make this a different color so I don't confuse the two zones now what I can do is actually add to this trade as well but I need retest failure for this one where I got in this aggressively too but my first one so first and foremost what's the ATR 0.78 round up to 5 I'm going to go 3 ticks outside of there now remember my stop was way up here at 88 or whatever now I'm going to go 5 and 3 quarter points outside of here puts me at 76 quarter so now I just saved myself 12 points of risk getting the new setup you don't always get the new setup don't get me wrong now basically I break even trade if this comes back so now what else can I do or I was aggressive up there because of that zone and you can see look how good this zone was is this zone pretty good here is it pretty good to know these areas and then get your volume setup in those areas how did that work out same thing so we are still I believe above the yellow log so I will add to this trade but I need to see retest failure of that zone same thing we've been talking about well I wish I could add to this aggressively we are below the yellow log now so now I have this is what I have to weigh do I want to be aggressive with this we just talked about this time of day talked about this time of day out the volume let's see if it's picked up at all probably picked up a little bit it's still barely getting it normal that's the same thing I'm not going to add to this aggressively I'll add to it retest failure I already know what to expect here because of this time of day you could come up with cavea so I do have a cavea like if I start seeing one and a half, two, three times volume at this time of day then absolutely you can trade it just be careful if you see the volume barely getting it normal just ask and get whipsaw to death so what's going on here what do you want to pay attention to this is a prior market profile composite high that's an area where I get out of trades it's also going to be confluent with daily value area well daily value area is one standard deviation from VWAP so I will take off a couple right there and get down a couple more points I should say right around 5850ish and the other thing you want to do is keep an eye on this so if we come down to the 5850ish level I just showed you what that was where I'll get out of two of these and you see these things going crazy and you see nothing but red bubbles well you don't need to get out why do you want to be a buyer if no one else is buying if we come down to 5850 this is why this is so important I have to and it drives me crazy most days because of just like being tortured especially when it's going against you but we come down here and you hear nothing then you see blue bubbles you probably want to get out of some bubble right it may not even get down here I may just pull it's usual see if we got an ATR below here so the bottom of this zone is 60 66 three quarters so we said ATR is 5 look at that it was almost in the exact ATR who knew who knew you guys ever see this it's unbelievable I tell you we talk about it in my room all the time exact ATR yeah those know where the volume event occurred it gets an ATR below there and then just rips right back over and over and over and over that wasn't official ATR no I have to make a decision right if we go ATR retest failure am I going to add to this trade knowing what's down here knowing the time of day that's what I have to figure out this is where you get a little bit where it's trying to get a word better guys discretionary that's the word I'm looking for right I try to keep discretion out of my trading as much as I can right you know when you get you got it there's a scale right do I want to add to this trade we got the time we know it's the market profile composite high where it could bounce so on and so forth right other than that you know most of my trading is pretty systematic and that's how I want it guys this is coming from the most discretionary trader one of the most discretionary traders in this market of all time right like I was 10% of the world in this market at one point and it was just being discretionary flipping orders all day long so if I'm being systematic and I don't trade by my gut anymore you might want to take heed and be more systematic in your trading right it's just too difficult with these autos it's just like I tell my room my gut feeling is wrong 80% of the time so that's why I have my rules and I follow my rules the whole point is if you want to compete with the alcohols you have to be an alcohol and alcohol doesn't trade by its gut and alcohol doesn't change its parameters every time the market starts moving it has its rules and that's why the algos make all the money so if you want to compete with the algos you have to trade like an alcohol so we got that we'll watch hopefully we can get one more wave of sign and then get out of a couple down there not holding my breath I can totally see that thing popping up so we didn't even draw this on a Nasdaq so this was his own from overnight just in case the same area as that S&P area I showed you earlier so I'm going to delete that and we're going to draw the most recent volume volume event so 230 soft stops in this market that's like 2,000 we haven't seen one set up all day long bottom you want to use your little cursor guy here your crosshair it helps you determine where this started get this all the time how do you draw your zones where you just take your cursor where this spike started and see what bubbles fall within the spike that so it started here came all the way down to here well first now let's see if we want to try this don't forget we're at the pass the time we're not supposed to trade we're on the webinar hey look at that I wonder if that was an exact ATR and it came right back I wonder let's see or 20.75 so 21 points 3,250 was about in the zone it's just I just sit here in amazement every day look at this 32 so what do we say 21 points 3,250 down to basically 12 that pretty much 21 points I mean guys look at that like I can't stress it enough there you go so that was ATR retest so failure I could go short this as well let's see where we're at in the logs again if you can't beat them join them thank you let's see here we're below the old log here as well you see where we're at here this is an important area where there's good bones especially this time of day get back in here that's really important if we get back inside this one that's really really important so when markets get back or they get inside composites the tendency is to get to the other side so you see this one got inside and look at that the exact low this is like multiple days I'll just show you this here just to show you the power of these things this was the other day so it took a couple days for this to get to the bottom but it finally did because this trade has been so bad there you go now we launched out now it's trying to get back in if it gets back in you can expect the other side you want to watch the most reasonable one as well let me see if I'm going to just miss this entry that's not cool I wanted to short that as well hold on let me make sure I get out of this ES or is my ES chart why can't I find my AS chart seriously that's why because I hit it on this other screen there we go this is the area so now if I see given this a chance right these are still firing off or they were this dies I keep seeing blue amount of two because of the area we just talked about right give this a second see these light up again like a Christmas tree that'd be there you go now I'm watching down here it's this spot gamma very important talked about this now it's a support level correct I still may get out of two of these if it struggles here I'm out we already talked about this area this is the beauty of Bookmap 2 using these bubbles I don't trade off the bubbles but I'll watch in important areas you want to see hey there's just seller seller seller sellers and you want to see the size too if you see a bunch of huge red ones and tiny blue ones you can probably stay on the trade give this a second I would like to keep hammering this obviously I missed this trade because I was being a clown showing you guys the I'm just going to delete this right now because I'm probably going to get out of it I'm going to have to hop out of two of these alright so I mean I could when this pops back I could get short this I just I'm very hesitant with this type of volume the relative volume at this time of day I just really don't want to be loaded up in multiple products short but you can see here actually this is not you see yes this is what I'm talking about you could have a caveat to trade this time of day when you see you know this has gotten up to 150 160 percent of normal volume same with NASDAQ I will reconsider this short where I have that in it right here put that in and if it goes against me then you can hear me complain for the next 10 minutes till I get off the webinar filled on that the reason I did that because I was already supposed to be short right so now where's my stop though my stop goes ATR is 21.6 now so I'm going to go that's 22 points I'm going to go like 22 and half points above here that's 72.50 I'm not loving this short if it can't get inside that market profile though this is an area that these markets can bounce like I just that's why I got out of two of these so I probably shouldn't be putting this one on but this is what it is again I'm following my rules right I'm trying not to be discretionary my rules said volume set up we got the ATR actually I don't even think this was quite an ATR it was like right there it was this one we got to retest the failure my rules aren't as short but I think this is actually the full ATR so I may just got in this aggressively which I actually should have anyway because we're bullio look so whatever trades on my guts telling me this is going to be a loser but you're seeing right here first hand I'm not following my gut I'm following my rules right this rips up and stops me out fine my gut was right this time I didn't do anything wrong when you judge yourself at the end of the day you don't judge yourself on P&L you judge yourself did I follow my rules did I follow my edge if you did everything you're supposed to do you're going to have days you lose you're going to have months you lose as you see my ridiculous drawdown in this horrific month right it's going to happen guys this is trading this our market's work you just keep if you have an edge if you don't have an edge and you're changing stuff every day now you're probably going to blow out your account right but if you have an edge you know it works and I know these work I've watched thousands and thousands and thousands this is why I do the webinars for you guys I know they work you just got to keep taking them you take a loss take a loss winner winner winner winner winner winner take a loss winner winner winner winner right if that's what trading is it's a probability game alright I'm going to guess any other questions here I just want to kind of expand on that you said don't judge yourself on your P&L I'll kind of want to know how you do that because it's obviously a fundamental problem most traders have we look at the P&L you've talked about trailing stops and also when you're sizing up you tend to focus on your P&L more it's kind of a psychological issue is it just a case if you just need years and years of experience practice need to trust your system you can't have confidence in it or is there any kind of advice you can give or process you've been through to to not look at your P&L yeah well that that's the number one I tell this story all the time as well that was the number one thing I did when I took off as a trader I used to have my P&L right down here so I had trading technologies at the time right when I was scalping and I would watch every single fluctuation of my P&L I'd see I'm up 10 grand down 10 grand up 20 grand 40 grand 80 grand whatever it was right minute I turned it off and I'm a Star Wars nerd because I grew up that when Star Wars came out that was when I was like five years old right so I've been tired Star Wars family life so I likened it at the time to remember when Luke Skywalker blows up the Death Star how did he blow up the Death Star he turned off his targeting computer he stopped looking at the technical stuff like the not technical but he turned out and he used his his intuition right the minute I know it's dorky but that's fine I don't care the minute I turned off my P&L and I just traded and I just traded and all back then I was just literally I was just in and out all day long right but I was basing it on how the orders came in who I was trading against I was flipping flipping flipping flipping it doesn't work anymore right that's why I don't do it anymore we talk about that all the time but the right turn this off and I stopped staring at it yeah at first when you first couple trades you kind of know where you're at but if you're just zoned in and you're just zoned in in your rules you turn this thing off right on book map all you got to do is this it's gone and you just trade your zones you can follow your rules you trail your stops based on your setups you add my new setups you will be amazed at the end of the day first of all you'll start you'll lose track of where you're at right on the downside you want to have a stop in place with your broker because you don't want to lose more than a five or six percent of your entire count size in a day ever but when you're making money you will be amazed like you know you're doing well and you're just following your rules another winner another winner you will be shocked you will pull up your P&L I guarantee you'll have like your best day ever or it's in the cards it's coming soon right when you stare at the thing you just do not make the you just it's human nature guys this is why I tell you every webinar trading is opposite of human nature that's why it's so damn hard because most people can't turn off their money because money is what makes the rule go around money is making dictating your happiness whether you're on the streets or you can buy a B&W right so obviously it's gonna make it it's gonna be a factor and what you're doing if you're staring at it if you know you have an edge and you follow your process well then you're you know you make your money or you lose your money right but you know you have an edge and you know overall after a series of trades say it every single week right which I've been showing this lately too this is directly from trading in the zone right you guys can't look at this enough right the five truths first and foremost anything can happen I don't care how great your edges I don't care how great things look anything can happen at any time and you'll be wrong right you don't need to know what's gonna happen next in order to make money that means you just follow the rules you know you have an edge and you know overall you'll make money there's a random distribution between wins and this is this is the thing that you guys have to get through your brain there's a random distribution between wins and losses for any get sort of variables to find an edge most traders say they just started with me and they they say they took every trade I took and they started at the end of July and they took the speed and like this thing doesn't work this is what this is horrible blah blah blah no it's just random distribution right granted it's gone on longer than I would like but it's a random distribution between wins and losses that define my edge and edge is nothing more than indication of a higher probability of one thing happening and over another right in every moment of the market you make so I know there's a higher probability based on the volume events of one thing happening over another the way I trade the zones after watching thousands and thousands and thousands of them so knowing all this I don't start changing stuff when I have a losing day a losing week a losing month right how easy is it for traders to say oh my god my thing doesn't work I'm I'm fine I gotta find the next magic bullet right I know it works I know that it's the if there is a holy grail the real time of real time by events are it right so I know I just have to keep following my rules I have to control my risk so I don't blow up my account and I know I'll make money over the long run and that's what it is every week I liken it to a casino how do you think casinos are in business do they panic when a whale comes in and smokes them for 3 million bucks yeah they don't like it they usually will ban the guy for counting cards or whatever but overall do they change the blackjack rules do they say okay from now on we're gonna we don't bust until 28 no they know the math is there they know they have the edge they know over a large sample size there's going to be enough fish that come in that casino that makes them millions of dollars in a year same thing with trading as soon as you can get that through your brain the better you're going to do trading right alright so this was the official test of the zone I think because I think this first time I remember I was showing you the ATR I think we were within a tick or two but this one actually was the full ATR retest hopefully we can fail again so I'm not mad if I shouldn't have put this trade on on the retest failure you know what I'm saying but there's a reason this market keeps reacting to this area the traders that got run over so say you're sitting here with bids you think you're a big trader you got 500 in here and it just swipes right through it wasn't quite 500 what are you doing as it does this you're crapping your pants saying please gotta come back to this area so I can get the hell out of my trade comes back to the area you start to get out of the longs you just took that causes the next wave down that's what retest failure is it's simplistic but I'm telling you that is what's going on and that's why the market respects this area see that it's not coincidental you think it would be important in all these areas I would say yeah alright Sam I'm out of gas unless there's another important question in there I think we're close I was just worried a bit for a moment there I thought you were going to ask me some Star Wars quotes but that was a nice analogy turning off the targeting computer I like that I don't use the Star Wars quote that's a little too dorky I do do the godfather shag all those but Star Wars quotes are a little dorky besides take turn off the targeting computer no there's people are loving the rants here in YouTube it's good stuff I think there's been a extremely a lot of value there and a nice trade on ES it was a quiet market for a while but we had an action packed finale yeah action packed we're all relative absolutely you guys see it's like you know you wait remember I was telling you I love this zone I need to see something we got out of grant I was a little aggressive piecing that together over here but you know it worked and I wanted to be aggressive because of that zone so there was some I think even though there was very little trading there was some pretty good education today where you guys can start to build your own trade plan understand what it takes to be a trader understand the mistakes again I do this twice a day every day in my trade room except for Friday afternoons I go golf and that's basically my only break but that's a you know if you're trying to learn this stuff and you're not understanding yet it's fine it'll all slow down highly recommend you come to my trading room and you watch me do this over and over and over and finally you're going to get it granted there are one or two guys in the trading room that still don't understand it but most people will understand after you watch enough of these what's going on and it'll slow down and you will realize how simplistic it really is it's not it's not difficult it's really not it's so I say this all the time too trading is simple it's not easy right it's not easy because you get your emotions through the you know the ringer every day watching this stuff right and let the algos run the show but when you know when the algos are disrupted that's the whole point algos worst enemy are the high volume areas because it disrupts their game and then once it dies down then they start their game again right so this thing will probably bounce around for the next two hours so alright guys the only other thing keep an eye on this gold zone I didn't do anything with that but this was pretty significant and we also saw this significant area in bonds I would keep an eye on that I never got filled on I'm about to get filled on this soybean long if I get long on that then I'm going to trail my stop an ATR just outside an ATR below this zone that we talked about earlier then this is an important zone in bonds this was almost a thousand bias it's reacting to the upside just quickly show you the lugs because you don't have them to know whether you want to be aggressive with this trade or not this is how I do it so we're right at the yellow lugs so I would wait for retest failure of this zone of this area and actually I need to merge these there's a good example of merging so you can see just quickly so this day's value area did not fall within this day so I would not merge these two but this day 50% of this day more than 50% merged with that one or overlap that one so I merge these two then I draw my do they compose it now I know in this market so say I do end up getting long here right say we get retest failure that zone I just showed you and we start rolling up one or really watch this area so you got the bottom of this and that's pretty confluent with the red lug and baby lug here too so those if you do get long it's a great area to be getting out of your trade again we should have been a little more active but a lot of good lessons you know when markets are dead at least you guys get a lot of rants and some lessons this is my stop for this if this comes back and or a new volume setup I'll trail my stop just like I trail the stop on this one alright Sam thanks for hosting and I will see you guys next Thursday okay thank you Scott really appreciate it lots of lots of love in the chat there give us a thumbs up if you've found this valuable and join us tomorrow again Bruce will be back at 10am eastern time yeah thanks for joining guys bye bye thanks Scott