 Good morning traders. Welcome to the book map all markets webinar. This is Bruce at book map I'll be your host today as I am on Monday Tuesdays and Fridays Next week's gonna be Monday and Tuesday will be off due to the US holiday anyway, these webinars are at 10 a.m. East Coast time and Anyway, I'm the the book map educator been trading for quite a while and Orderful a specialist here at book map and lead the trading education. We have quite a team of traders and educators and Have a lot of expertise here in order flow and market micro structure and we'll go over a lot of it today for you as well You can reach me at our discord server Bruce at book map and my Twitter handle at flow order Okay, and oops one more thing and most important I have to go through these disclosures So you guys know what you're getting involved with General disclosure all book map limited materials information and presentations are for educational purposes only and should not be considered Specific investment advice nor recommendations. These are only ideas. These are concepts It is the start of your process or some ideas to bounce off of your current trading plan Wrists disclosure trading futures equities and digital currencies involve substantial risk of loss and is not suitable for all investors Past performance is not necessarily indicative of future results. All right. Let's jump in Let's take a look at these markets and see what's going on here and let's Look at the S&P many we can look at whatever Markets you guys like it's all markets webinar here, right? Most people want to look at the S&P. So that's what we do In fact, this is looking like a classic right now a breakout pattern second leg of a Bull flag so I would look for price to come up. We're just above the 4400 at 02 we see a lot of buy volume here So let's see if we can get a little bit more up here. We're not we're not at all look at that as exhaustion We're gonna get some sellers there kind of come in right now and they're likely gonna test down to here Okay, that back back to the figure right now All right, so this is maybe some potentially some trap volume right now in the bigger picture though We're we see this is pretty pretty bullish here. So looking for maybe back up into You know 4400 4404 or 06 Okay So, yeah, this is this is how Just right off the bat here understanding order flow Understanding that this is exhaustion here put this into your trading plan. This will enhance your trading plan plan tremendously Good morning, Louise and BBM Yeah, nice weekend. Thank you So right here, right? So do we want to buy here? No, we don't look at how many times it tried Up here, and there's just a little bit of buying back We can we can find out exactly how much 19 contracts is what transacted up here at o2 and a quarter That's not enough. It's not enough to bring it up into this o4 liquidity a feature here note that I'm looking at the COB column here as a percentage Okay, so in fact if I configure this You can right click there and then you'll see this size as a percentage So if I uncheck it, this is now The liquidity in here you might like that To understand these areas in terms of the percentage in the order book Right instead of having to kind of meant mentally put that together Anyway guys that just a quick thing right off the bat. We we noticed the We're looking for the buying coming in very beginning of this webinar We're looking for continuation looks like a great flag pattern and then here's our retest and no buyers up Here we don't want to get involved Okay, in fact you might look to to trade it back down to what we just talked about this little area here at the figure That's where it's retested and now the question is are we gonna get a lot of sellers down here? And push it down to here Okay, so so far so good As you can see that's that's breaking down right now And we're just looking for these simple moves here Okay, and we talked about this on Friday There's our move right so now question is is is that enough? It's and is it gonna go further. Is it gonna come down to this level here? Okay, so we talked about the difference between supply and demand and support and resistance a bit talk more about trader psychology and trade management on Friday right, so we think I might continue on about this trader psychology is been really Interesting taking it from a very different slant and Saying that it's it's really a bunch of Huey It's really can you manage the trade or not? And but then how to deal with some of the trade management issues Hey, so for example This is how we're using order flow to give us an edge. We don't see buyers up here. We're not a buyer Hey, we got a pullback here. We're looking for coming back up and then breaking out Okay, we need buyers up here. That's part of the Plan that we're looking for in here We're also looking for the book to support it underneath. We didn't get any of it Look at how dark it is around here. In fact, let's go back to heatmap store Settings here No, yeah, not much. There's just not much demand in there All right, so we're gonna get sellers that are gonna come in and they're gonna move it back down to these the bottom of these ranges Hey, and we're already down to even beyond where we thought this might go To this swing and where these buyers came in right here Hey now is there still more selling pressure? All right, I'm looking for a pullback now And I'm looking for the pullback to 97 and a half and maybe back up to 4400 the figure Okay, now, I don't see I'm looking for it, but I don't see it Hey, not yet And we're looking to see if There's more selling pressure here or maybe exhaustion like we did see up here on the buy side We're looking for exhaustion here on the sell side Or potentially trap volume which is setting up pretty nicely right now for a potential trap This would be the trap volume and we look for buyers to stream right up here quickly to this 97 and a half and We see that happening not really not really nothing the book is starting to see the book here underneath here see that These guys are not getting out of the way But they there's some there's some supply demand in here in the in the order book. So yeah likely Kind of creep on up into this 97 and a half area here is what we're looking for All right So now we're just putting these pieces together and understanding the order flow in general and when we see something really good That looks like It really kind of hits us over the head that this is what the market wants to do because the participants are telling us Then we look for these moves to unfold right and then we talk about other scenarios as well So this this move Was not not really telegraphing much to us. It was we saw some support here So we were looking for the move up to 97 and a half. That's unfolded already And now it's not much of a move right But but that's it though And what is a you know a Point and a half or no a couple points almost so Now it's now it's gone a little bit further. So, you know, it's up to this 90 99 area here Okay, now I would look for some sellers to you know start to come in and maybe pull back to 96 and a half here and we're talking we're talking about back and forth in here right now But we're just starting to understand the supply and the demand in here And that's what we're going to cover today is about the supply and demand I wanted to cover on Friday We'll cover it today. All right, and we can also continue on about trader Matt trade management and some psychology and in terms of trade management only that's the way I think to go Not all this other stuff if I didn't feel well and like no, you know, like you know You either know how to manage your trade or you don't if you are not capable of managing your trade You don't feel well. Well, then don't go to work You you need to be able to manage your trade All right. Good morning everybody Let's see here over in discord. Good morning. Good morning slowdown Hector and Stan All right, so anyway um Yeah, interesting interesting interesting break down and obviously stop run here And then now we're back up to coming back up into this area here. Okay, and some pretty strong buying now All right, so we might be able to get back up here and then see that breakout. How many times have we seen this move? Hey get everyone going like the the wrong way here or in this case There was a pretty big stop run in this area here and there was no more buying no more demand This is one of the scenarios to look for If this is a stop run and we can look in the details to how many are new buyers. How many are stops? And then we don't see any more demand here And we start to see supply coming in and sellers coming in We're looking for a mean reversion trade at minimum Okay, and then also potentially down to the swings here and then That would be the move And then what we what we're seeing right now is this look like great flag pattern when we first started Just looking just beautiful right look at that should come up to here is what it looks like maybe up to 10 And then instead Exhaustion sellers everyone gets stopped out. We can verify that here. Here's our stop run And now we're right back up here Okay, so now we're back to the same scenario up here. Do we see some demand up here? Do we see buyers? Okay, and if so These we're not looking so much for a stop run any longer. We're looking for new buyers not not people exiting their position and If we're getting to get enough in here, can we can we make it up to 0 4 0 6 and maybe 10? right, so we're measuring this whole area out here in terms of Support and resistance and supply and demand And now I'm using them a little bit interchangeably right now It's not really the case a support would be where price came to And then and then bounce back. Okay, so This it would be without the heat map basically if we take the heat map off. These are areas of support Okay And price accepted up in this area up in here. These are areas of resistance up here Okay, this is where price came up and was not able to break out from it right now We can talk about the aggressors here as supply and demand as well That basically demand is that the aggressors they they they want in they're buying and then and the aggressors demand is is This is why it's called the aggressor They want in bad enough that they're gonna even pay up for it And they're gonna cross the spread. They're not gonna wait They're gonna You know, if it's fear missing out or whatever it doesn't matter They want to they want in they move the market and they move it up into a higher area. They lift the offer And then we we see if there's still demand in here by the aggressor And you can see well this kind of demand here. Well, you know, we see this a stop run No, we don't know the details on the stop run. We can we can figure it out, but Anyway, we know that there's There's some demand in here and we know that these are also stops getting, you know It's not necessarily demand. It's false demand in the sense that they are exiting the position Okay, so it's not Demand to enter the market necessarily some of it is And then we'd see supply or sellers coming in And then moving it to lower areas and we look for these areas here of these previous swings as being support Okay, because this is where price accepted before All right, we're talking about auction market theory here and and just a and in a very much Like a bigger picture view here Okay, so I would look for a bounce here right in this little area here and we didn't get it We came back down to this swing here and I would look for a bounce there And we didn't get that either until it went through it back up back down again and then back up Okay, so now you can see what happened now. Obviously. This is hindsight We're looking for the potential for this to break out up into 06 into 10 and There is not enough demand up here It's looking pretty good. It's not bad And then some back and forth in here and we can zoom in again and look at this again and just look at Okay, here's some demand by the aggressors trying to lift the offer Here's none Here's a little bit very little up here Here's a little bit. Here's less and they can't even make the highs here Hey, and we see buying in here. This is where the they can really get crushed If there's not enough buying in here to lift it That's where they'll exit And we should see the stop runs to the downside And anyone who bought in here is going to be a seller in here. All right, so That's what it looks like's unfolding here And we're right back down to this previous area here Okay, which we call Support Okay, now when we turn on the heat map, we're going to understand supply and demand a lot better Okay, and support and resistance a lot better We're going to look at in terms of actual order flow And not just the current market as you would in your dome, but we're going to look at it in terms of The Players in here that want to buy with their limit buy orders. This is where they want to deal They're a little bit below this area here Okay, so if that's the case Then sellers here If there's if they have enough supply To trade down into these areas here, then we need to see what happens down here And right now do we have enough sellers? Maybe starting to come in a little bit right now So all right, let's see if they can they can hit the bid into these areas here at 94 and Then maybe down to 92 and a half Okay. No, we're getting buyers instead right now Big iceberg in there. It looks like Not that big That big This is really interesting to me like The traders that are are trading these very simple like swings And we know that's gonna happen because we know a lot of people out there don't have book map They're gonna be looking at this and they're just gonna just buy off of this. That's it Hey, well, we get so much more information. It's like, do you really want to buy here? I wouldn't I mean maybe this moves who knows but like I want to see them trade into this I want to see the supply meet the demand and I want to see the victors be the demand All right, and that keeps me out of this trade And maybe we will trade down here and then we'll see what it looks like all right, some questions in here and Trader Carlson, I'll get back to your question. I see it and I know I Asked you to come over here and put the question Into the all markets. I have it partially answered for you already I'm really laying on that psychology No, I mean it yeah, I It really just came to me a bbm is like I've I've heard like some Traders that I respect heavily and they don't talk about trader psychology. They just don't Like they just show up to the desk. They're there. They take opportunities and they manage their trade. That's it They know their opportunities. They know they have an edge. They look for it. They hunt it. They they they're just stalking it And then they they look for it and they manage to trade and if it works out or it doesn't work out That's it and they look for the next one All right, there's your trader psychology and it's so it's so easy to say that however Once you're in a trade, it's a whole different thing Right as it's a whole different ballgame. You're once you're in the trade You're like, oh, you know should like I got it last time should I add into it or? You know, should I you know move my stop or should I? Did I did I miss it should I get a full position on did I only get a partial? And this kind of back and forth in your mind Does not create clarity Okay, so how do you how do you overcome that? Well, how about this? Just all in and all out Keep it really simple and Don't worry about scaling out right now Okay, look look for an opportunity like this right here. We covered this setup many times If we get buyers up in here and we're not We're not but we're looking for like, you know some buying in here. Maybe that book to be Show more Demand at a higher level here and these guys start pulling their liquidity up here. We get that We're looking for this to these aggressors in here to trade above this range And price to accept at a new higher range up here and back to the figure 4400 And we're not getting that so we're staying away. In fact, we're getting our sellers and Yeah, they you know now we can look at this in a different way Now can the sellers drop it down into 94 92 and three quarters or 92 and a half? Maybe maybe and here's now it looks better because they're pulling here But here's why is we have this sorry guys. We have this here and This here and we're failing to make higher highs And we're looking for it. We're looking for it here, and then we're looking for this move Right if we don't get it and we start getting sellers down here the bottom of this range here Then the sellers have the potential to squeeze these longs here That would be your long squeeze and we look for it to trade and test down into the demand down here and That's it All right, this could be your range bound trade This is something to study now again like I like I Started the webinar Consider this a concept or an idea to either add into your trading plan or to go back and back test and maybe Make it a different setup within your trading plan Okay, because the participants are telling us something here, and that's what we're reading in book map Guys, we haven't even looked at the bigger picture yet. Let's let's take a quick Look at our daily chart here on the left in the middle of the hourly and then on the right the 15 minute Okay. Well, this is an interesting daily chart We we saw this, you know Talk about demand. I mean hand over fist. We saw it coming in. We were looking for these moves higher We're looking for higher on the weekly. It was looking just beautiful even on the weekly here better I'm I'm shocked that we made it above this swing And closed above it on the week That's pretty bullish And we made it up to almost this swing here now This is a weekly chart. So it's up in this area where we tested and that's where people took profit or sellers came in This was high enough for them to be a seller try to trade it back into some of these areas in here But this is overblown and value here And or maybe it's just that would be that would be a reversal You know that is overblown in value and to try to trade it back down into these areas here And it would be a false breakout then But maybe it's just a lack of you know back of demand And you know price it just needs to go kind of go back and forth for a bit Before there's new buyers that start to come in And then move it higher that would be your flag pattern In that case okay on a weekly chart all right, so Let's take a look at the daily here And because that's what we're trading and the time frame we're trading here is for the day And let's look at this candlestick chart. All right So now we know that there is demand in here with looking at the wicks. Okay, and we know that there is demand or lack of supply is because You know price went up we have wicks, but price went higher All right, so then we can see the wicks up here and we can see that Traded above the area it came back in and the sellers started to come back in All right now today is a funny day. We had you know the down day on Friday And then here We can see that we just poked below the swings here And then traded back up All right, so that's what's happened today And let's take a look at the hourly in here. So we're not getting too much insight right now. We're back in the range This is a false breakdown Hey, so who anyone that sells in false breakdowns here Are gonna get punished? And that's when you look for You know some pretty strong demand to come in and and bring it back up into these areas where there were previous Sellers that's the same thing. We're looking for on our small range bound trades that we just talked about here These buyers for them to get punished and for them to get stopped out down here And then potentially go further now we just went down to this liquidity here and that was it Actually, it's still looking good here. I don't see a lot of demand coming in by I'm seeing sellers here. So now Yeah, I would look for the sellers to trade back down to to this liquidity here. Now. We don't know And I don't I wouldn't say that we have all the pieces here either in the order flow the behavior For us to really say like yeah, they're they you know the sellers are looking to they have full control And they're looking to trade down here Hey, we know that they have control We see that there's not enough buyers in here. There's more sellers But you know, we we also want to see Supply in the order book at a lower level and we want to see these guys pull a little bit on the On the bid that tells us more that tells us here that they don't really want to buy anymore and The sellers are telling us up in here in the order book that they're interested in selling at a lower area Okay, so that's when we look for that move to unfold like this Okay, now see see how we got that now, but the move is already unfolded and we want to see it before that happens All right, and we want to see these guys pull here. They did not pull they traded All right, so now are we low enough now to find buyers? Let's take a look No, they're still selling so it looks like it still wants to go down to 90 here and Let's zoom out 90 is a good area We can see the previous area of liquidity and very strong move here. Here's our 930 cash open Hey, we can look at that area too. Maybe we'll move back down to here where they broke out from in this area Okay, and this price action here Okay, now one of the things I would Let's just take a look at this On the daily chart here One of the things to take a look at now for your bigger picture and understanding supply and demand in your daily chart and a daily chart It's a good chart Why I don't mind candlesticks in a daily chart in here is Hector, yeah, we can get to market structure and The price action We're doing it right now on the higher time frame Okay, on this daily chart. So for example Hector if we're looking at this here, what happened on This daily chart well price actually did go lower So we know that and we know we talked about the Short squeeze anyone that shorted below is gonna gonna feel the pain so And the move back up now once that pain is over Maybe we can if we can come back down here and revisit this area Maybe we're gonna find more sellers and we can get a really nice move Hey, we can get a really nice move outside of all of this price action that is above 4381 they're somewhere around there Right now it already pierced below it So it's already poked its head down below here So it's possible then that there's more sellers That can can bring it lower. So this is some weakness in here is what we're talking about in And and and let's just even let me take a step back And why why the the daily in terms of candlesticks because it's a period of the day That makes more sense a period of five minutes a period of an hour does not make much sense to me And that's just pure streaming price action for the day This is one of the reasons I think book map is excellent because it doesn't show a Period periodic data and aggregated data within that period. Okay, you're gonna get all of the data But for the day that makes more sense to me Maybe the week maybe even the month, you know where we're large larger time frame traders are making decisions And that period ended and the new day starts Okay, and they're gonna be trading based off that new day. All right. So anyway, that's that's the I think we're Yeah, I personally feel this is where we were kind of led astray to be honest Taking this model of candlesticks and periods for the daily makes good sense Floor traders used to do this today it it opened here it traded there and then it closed here and They have a record of that that makes sense because the next day is the next day and and there's trap traders all over the place Or you can start to understand it now on a smaller time frame though. That doesn't make much sense to me and maybe that's just my take on it, but Anyway What we're talking about on that daily chart is some weakness And we're talking there just exactly about market structure Right. So and we can say we can take that same concept Hector and look at this. Here's weakness again Right now not this is a lot more weakness. Not only did it poke its head below these swings here Hey, it's it they drove it lower. Right. This is what we're looking for on the daily chart to happen Hey, so now sellers have taken control Right, then then they're firmly in control now now. Where are they going to get tested if buyers come in? It's up here And that'll be the first area maybe here, right? on a pullback And they will they will test it most likely at some point But right now sellers are in control and yeah, we're looking for going lower here Looking for our 87 level. It's just about to be tested Okay, now Good point Hector. Let's let's clear these drawings and let's add some structure to this here Okay, and what we're gonna do here in terms of market structure Is outline the swings? Okay. Now. That's not the most precise. Let's get a little bit better here Okay, all right So and Then let's look at some of these other areas here and where we broke out from this is what we're doing with the market structure They starting to understand these areas. All right, so here we go that weakness is coming in hand over fist Right now we're gonna get a pullback here. They're gonna only be so much selling You guys that are looking at your market internals You know like your tick charts or your tiki or whatever it might be There's only so much pressure and then it you get your retracement and then you get more selling pressure And that's how you get these these moves in here And this back and forth in here in these channels That's the phenomena in the market. That's what's that's what's unfolding. All right, so let's see here Let's see if we do get a pullback right now right now. I'm not seeing it at all I'm see I'm still seeing selling pressure in here, but I'm starting to look for it though We're at areas to look for Some exhaustion on the sell side. That's what we're looking for and right now. I'm not not seeing it Okay, we're just getting some back and forth in here the demand or the supply here on the offer is good Okay, and these two areas here and they're pulling on on the bid All right, so we found some more sellers. They're able to take it lower here All right, we now let's let's talk let's look for our stop runs and then let's look for our trap volume Okay, and then we can go through our scenarios here. Okay starting to set up a lot nicer in now in here now We can also look at some smaller time frame structures Okay, so now what we're going to go through is what about Seeing these guys pull looking for our buyers here to begin with green dots right there Okay, we want to see this liquidity here pull And we want to see them add here and they're not right They're not So it's we're still we're still seeing that pressure in here, but we're looking for it right That's what that's where the scenario that's why we go through the scenarios in here Okay, so in the scenario I didn't have time to get to the other side of the scenario um We're looking for it in some of these areas in here because Because of the market structure now what happened is we're just getting a lot of sellers right now They're really really dropping this market So now we're at lows of the day Okay, let's go back to our higher time frame here Okay, so we talked about the weakness in here and then potentially if we can get back down again Uh, we can get our sellers to drive it, you know through this whole area in fact back down into maybe like, uh 4309 or you know 4300 Hey, we also here have a Uh a pretty big gap here uh in the um Hourly chart right so looking for that to fill first that would be 43 45 down here These are these this is how these gaps can fill this could be um It's not a not an island uh a gap. Well, maybe a little bit in here But uh, yeah, we we'd look for the sellers to just uh, you know try to blaze through this area back down to 45 here I have a 15 minute chart here on the right Well, we see some wicks down here. We see some buying come back into the range now All right, so now we're going to probably see our trap trap sellers Boy and the the real trap would be here Again, it would be here Kind of where we outlined it before And precisely where we outlined it before it would it would be buyers in here that we'd be looking for it for them to move it back up Nice little spoof in here And then they pull Let's clear our drawings for a second here And the questions over here on uh Tube Okay, look at the demand see the demand coming in Now is that a spoof I don't know the spoof once before it looks like it's probably that looks like the same behavior to me But it's the reaction to the spoof. We want to understand now see the demand coming in now Okay, so we're back to that scenario again up here our green dots buyers Okay, this is how these these reversal patterns can unfold But you know, are we going to get it now? We might we might but uh, because we've dropped hard and fast here So we get hard and fast pull backs too Okay, but likely we're going to probably get another retest back down here Okay, I'm not seeing it right now. In fact, they're pulling here. They're adding here and we're getting buyers so It's a little little it's not not the easiest here to see they they did start to add back in but here Here they are again in the book And what what's the reaction here? So think about this in here what we're doing and what we're looking at in here In the auction and this is this is our support and resistance for a small zone here If if someone's in in an auction and they show show that they want to be a buyer here, but You know it repels a price People think it's worth more and and they start to maybe pull here on the offer Okay, so then we can look for now price to start to stream up 39 Or our 40 level up here, or I'm sorry 90 level Yeah guys, hold on just a minute here Yeah, good morning Zachary BBM as you can see like how important it is to go through both of these scenarios, right? Both the bullish and bearish scenario in here Uh, because one one or we're looking for one or the other to play out And we then we just look for the behavior to tell us like for example on friday I I at the end of the webinar I I started to cover a move Uh, and I was looking for only one scenario to play out And I was really focusing on that to play out And I said, yeah, yeah, yeah, I see the opposite one. It can come up here and blah blah Um, and it did go up there and My bias though kept me from Uh taking that trade Right, so that's where like outline the scenarios Uh can be really really helpful Look for the behavior to tell you where the price wants to go Okay, so we're waiting for the for the traders to tell us where it wants to go Okay, and then we're reading that and then we're going along with it Yeah, marz. This is the it's not a stock. It's the s and p. Uh e-mini futures We can look at a stock if you like It's the same concepts though Now see again look at the demand here underneath and are we what was the reaction? Okay for the aggressors. Well, we found some buyers see it now now. They're pulling here great. All right, so let's see It come up to 90 now Sellers are coming in starting to come in but these guys are still here. They're not spoofing now They're staying in the order book here Now they didn't really trade either They they may pull But uh, you know to be honest, they they're staying in the order book. It was one tick away Uh, they're pulling here on the offer. No doubt about it And we're getting some traders up here So you can have it trade higher Okay up into 90 Okay, 89 probably first first little stop here in the smaller picture, but 90 is really the target here Okay I just by understanding this imbalance in here and the auction telling us Okay, this this is starting to play out pretty nicely Uh, still looking for 90 They're still supporting underneath. See how it's bluish in here. It's not as much Uh demand as earlier down here Hey, but they're still here Uh, and they're pulling over here. You can see it's darker in here And we're getting higher highs. So still looking for 90 Hey Very very simple things Now we never know We never know this is where the risk management part comes in, but this is where we're looking for an edge And we're looking for that edge to play out And not just on this time frame It's the same on all time frames when you zoom out and look at the bigger picture See it Okay, so on the bigger picture Well, maybe they come up we can get enough buyers to stream up here to 94 93 and a half whatever it is all right now We're listening to the the players in here, right? We're reading the order flow The current market and the historical market here Uh, and then we're looking for that move to 90 now. That's already unfolded And now depending on your trading plan, what is it you're looking for what time frame? What's your risk parameter? These are all questions that are different for all of us And maybe you're scalping maybe you're all in all out at 90 done looking for the next one Hey, or maybe, you know, you're looking at a much bigger picture here Uh, and uh, the picture might be like this Looking for well, it's already kind of come through that Uh, maybe this swing here though something like that Volume profile guys, it's a nice little Rejection area here Hey price, maybe maybe it fills in here knows But uh, right now this is a low volume node So trade up here and then that's it. Maybe it rejects back in here again All right, maybe you see you'll start to see Test this this is again not prove it prove volume profile prove it works Right it price. I mean according to um The auction theory here Price should reject Uh in here. Okay, probably at 93 and a half Right because no one no one traded there before Maybe it was uh, it auctioned too quickly through here and it's um What do you call it? the um You know, but I don't know failed auction in this area in here. So um It needs to kind of come back here and and test it for real The concept um anyway, uh, so Yeah, and then this is how you can start to build out some ideas for your trading plan It don't just read a book and oh here. It's so visual. This it's so alluring. It really is so alluring Of wow, this is a low volume, uh node here. It's uh, I know that uh, I should I should short it here It that will I just really don't think that will serve you well uh You know, you can look for Or understand what this means in here and then look for the behavior Of these traders to give you insight uh for that unfolding and understanding what this means here. It means rejection It nothing really traded here not much All right, so uh, uh a lot traded up here And that's how you get your high volume node. So this was a previous value area and we're coming right back to it now It is a wicked move here It broke down hard made lows of the day Uh, and then rejected that again here. This is the second time it's rejected on this daily chart uh, and uh There's our hourly here and it's come back into the range here So maybe is it going to fill this gap in here? I don't know a lot of wicks in here Hey, but boy, it would be great to see one more retest a little bit lower here And then I think we usually look for that if if it doesn't make a higher high in here on the on these charts And you can get back down in here We look for those sellers to to take control and back down and fill the gap It's tested enough times and it can break through All right, here's our knee jerk reaction. Uh, and your your um Maybe your profile traders uh shorting it or taking profit up here Okay, so again if that's if that's your target Uh from this move great Just go back look at it retest it Back test it uh The way we've been covering in here in terms of order flow is very simple This was where large transaction previously occurred Or this is where that move dropped from And there were sell it. We know that there's sellers here. We know that there is supply here Not only previously currently It's they're telling us they're right here. That's where price went up and tested Okay, so I like to lean more on this instead of something like volume profile This is these are just facts uh volume profile is a it's it's a concept So it's a way of looking at the data Uh and understanding that uh, yeah, this factual that there's more trading up here. That's true And there's less here And how many times have we seen uh, you know price come up into these areas and and blast through it Okay, so we want to understand the supply and demand in here Okay, same with cvd Is like, yeah, okay. Well makes sense that over time you see more buyers or sellers in this direction or that direction But here, uh, we really it tells us something in here Okay, these are just facts. These are where the orders are these are where the sellers or the buyers are transacting That's that Okay, so we start to understand their behavior. We can start to look for some of these moves to unfold All right enough, uh, let me get to some of these questions here and we'll get back to more supply and demand or support and resistance. I think Guido is is complete nonsense. Okay. All right. Well, if you don't I don't know how us to describe it to you. I mean you can see it right here in the chart Okay, uh, you can even see see how it accepted above this. Uh, it broke out above this area here and is accepting here It's not nonsense This is how the market works In fact, let's let's even take it a step further here um To understand better how the market works You can go here to bookmap.com Click on the more button Go to our learning center here Uh, and then we have a couple of courses in here Okay getting connected get connected to bookmap and connecting to data Uh, we have how to use bookmap. This is a getting started course Uh, and then we have this one here market mechanics course. This is about learning the markets And how these markets work, right? So, uh, I would recommend that you watch this Uh, and then we go through very, um, simple things in here For example, let me show you Yeah Right here Really really simple things What moves the market? You best offer best bid the the aggressors in here and the Uh, the contracts Uh, and the liquidity at these levels and what happens when these these transactions take place And what moves price? And we see all sorts of things in here so technically for example limit orders can't move price Okay, but they can certainly influence it Uh, and in that sense. Yeah, they kind of can move price Okay, but technically they cannot it's just you know price might not be able to get through an area if there's enough liquidity So this is these are the market mechanics and we're just taking these ideas of market mechanics to A higher time frame and up to all these all these different instruments in here So, uh, that's that Okay See any other questions Uh, monday kim can be a really good day. I think Uh, it depends it really depends I mean, you know mondays and tuesdays can be some really good range bound trading Uh, and then wait for a little bit later in the week for maybe some fundamental news to really move the market Uh, marz The youtube is a little bit slower. There is a little bit of a delay. Okay. It looks like guido left See marz. I think I answered your question 43 88 Yeah, I mean these are limit limit buys here Uh, and that now now we're seeing transactions into these Now see the little the little white line here vertical white line So one player is probably holding about 450 500 contracts there. So one player is dominating the, uh, the offer here Uh, and then now we're going to see the reaction here now You can start to understand a vacuum of power in here basically same concept um That if this larger player pulls Right that's going to disrupt this, um supply and demand in here or the supply Okay, so it happens all the time. This is what we're just showing in the market mechanics course how, um, you know support Or i'm sorry, um the limit order book can, uh influence price Okay, now what happened here? Well, this guy is he's spoofing Okay, he's spoofing He pulled he didn't want to trade Hey, so, uh, he pulled at the last second here All right, so it's not false orders. Let's uh, let's be clear on that it all it all that means in here is that um He he had his um his size in here And uh, he pulled them away Hey, but he still has to have the money to have to to place the orders in here That that has to happen But uh, he pulled away. He did not have the intent to trade at the last second Okay, now a lot of times you'll see the like a flip of the order book here that now that that's prohibitive practice, but um, it it works pretty nicely you'll see that Uh, as the aggressors come up here, they pull and they actually flip to the um to the bid uh, and uh after after maybe, uh capturing um, uh some some sellers or i don't know Uh someone someone who's um Uh, maybe maybe trapped a bit or um You know, basically it puts the cap here. Maybe it's at the same price level. Maybe it's a little bit lower. Maybe it's a little bit higher Um, but you can look up cme rule 575 and they'll they'll detail it out for you We have some videos on it as well But to understand a flip of the order book It happens a lot Uh, sometimes I mean a flip of the order book doesn't have to be um, you know some sort of devious, uh prohibitive practice It could be just that you know people didn't really want to you know, uh Sell up here and they want to sell up here instead And maybe they want to buy over here over time But if you see like this really quick move, uh, and then a flip of the book that's You know most likely um Prohibitive practice That's you know, I think I'm caught up guys on the youtube except for bow if you have two If you have level two market data from rhythmic, um, well, it's actually yeah level two is what you want, but it's full depth of market Yeah apex trader there. This is I'll tell you why everyone's using rhythmic data like apex trader or You know top step or you know one up or whatever whatever You know funded trader program um That they they all use the paper trading figure uh feature from rhythmic So, uh, uh, it's it's all turnkey You know solution, which it was just great for us Because we think rhythmic data is uh Superior here, uh, because first off it offers full depth. So when I zoom vertically here All these levels are live. So for example Up here, this is live liquidity up here And we can go up to like let's go up to 4500 Here it is up here. Look you can see the even the back and forth in here right, uh Some I'll go Way up here pulling and pulling and adding pulling and adding And then big big chunk of liquidity up here. Look at this interesting stuff up at 4500 All right, let's go back to the current market If you guys want to do that how you can do that is you left. Um, well, I'm sorry hover over the price ladder Hold down the control key and then left click hold and drag Okay, or if you just want to left click hold and drag you will zoom vertically All right, so that's how you do that Uh, once you do that though, then right click back On the price ladder and go to recenter. See that's on recenter none now But it was on recenter best bid and offer. So you have to go back to recenter best bid and offer Yeah, tom it almost looked like it was going to get filled that that that spoof in there But they pulled you you know how you can kind of When you're zoomed out You know, you can kind of recognize it by um You know, was there a big transaction? Is there a big green dot into that red bar of high liquidity and there wasn't right, so Then you're you know, you know that they likely pulled Okay All right, so we're going to let's go through these scenarios again in here Um, so we're down to retest where these buyers came in. Okay, we looked for that little area in here on the potential pullback Earlier, we got it now and we got up into this area in here, which we outlined Uh, and uh now we're coming right back down Uh, now I'm going to go through the the bigger picture scenario here That's our gap fill on the hourly and on the daily how we talked about there is weakness here Uh, because uh, we already punched below Uh friday's low so and we are coming back to retest it now And look at the high end here. Okay, or here on the 15 minute chart If we're gonna accept back into the range, we need to find buyers take it back up above here And they didn't even get there Right, so there's still weakness in this market here and that's our higher time frame analysis And now who knows right? We don't know Maybe all of a sudden they come in hand or a fist down here Right, we're starting to see some some uh buying pressure or at least uh lack of selling in here Right, so uh It just looks like a pullback really There's heavy selling in here And potential squeeze yet again right here in this area here Hey now they're not going to get squeezed until they get up above this area here. So I'm seeing the sellers come back in All right, so I'm still looking for continuation 80 76 Uh, let's what's the gap fill here? 46 Okay, let's look at an atr in here. All right And this is how you know measured moves atr's we can we can kind of look at some of these things Uh as well. All right, so here for example This move and let's look for it to maybe unfold again All right, and that matches up pretty nicely with 80 Okay, so Yeah, let's see if we get it looking for the selling selling pressure. Everything looks pretty good here They're pulling on the uh on the bit a bit. They're adding a little bit on the offer here And they're starting to come in on the bit a little bit here All right, so now let's be open-minded. Let's look at this here Um Sellers are in control and we're still looking for them to go lower most likely or that's scenario number one Hey, it's not most likely but we're looking for trend continuation Scenario number two is we get back up here and we get our buyers up here above this selling pressure here at 86 and a half And then we'd be looking for not only a move to 80 Uh eight and a half, but maybe even higher Hey Maybe even back up into these areas here All right, here's our exhaustion. Do we get sellers? Yep a little bit offer The bid is also showing here, but yeah, it looks like the sellers have the uh Have the edge here. So looking for the retest and then trade into These lows here They back down to 80. All right, let's see here now. How would you manage this? Okay, so Suppose you're in or somewhere around this like kind of 80 84 I guess something something like that Uh, and you're looking for this to trade back down into these areas Stop at break even is what I would I would do and I would look for this to break down Okay, that would have been stopped out Get back in look for the continuation here And let's go over why I'm going over this. Um This this kind of trading style Right now. This is something that I I'm looking at All right Is because like we're looking it we're going to read the behavior and we're going to look keep it really simple And look for the move to unfold now If it can't unfold now Then something's wrong, right? So so we're looking for Uh You know something else may happen. So we're going to look for This to set up in a way that we know sellers remain in control And we're looking for the for the the supply and the demand in here to help us Okay, so this is not playing out Okay, in fact, we might get back up above here and look for that squeeze to the long side here Or short squeeze. I'm sorry All right sellers. Let's see them really pick up here And I don't know not seeing it Not seeing it nothing I mean, I'm I'm still looking for sellers here, but it is it is there's too much area in here Uh that it that buyers can move it back here very very easily. So we're just going to avoid it Stay away from it Okay, look at look at demand coming in on the bid in here And it kind of pulls Okay, not enough buyers in here They see that see the buyers in here can't even make a higher high They're looking for our sellers again here at this Uh bottom of this range here. Do we see them? All right, they're starting to let's see if these sellers can drop it into R 81 and 80 level a bit of a spoof there Pulled as liquidity Not an easy not an easy setup here It's looking a little bit better with the supply on the offer here This is it's just not easy. We're not they're not telling us in here. It's not hitting us like over the head here that uh Uh, you know the behavior in here is is not an easy read. That's all Okay, so then You do nothing We wait for these the behavior of these traders in here to tell us something Um, yeah Hector, I don't really look at any I kind of just look at my own levels Uh, I don't look at other people's levels Okay, and I try to keep it really simple Um, like I said on this daily chart it already poked below here If we can get more if we can get a retest back down here. I'm looking for it to break Okay, that's weakness Right now the opposite scenario is And you can see it better on the 15 minute chart I think the daily and the 15 minute chart the hourly is helping us understand the gap At least in my mind And but also a potential, um, you know Like a measured move here from uh, oh seven down to uh 78 Okay, so or let's say that's um 30 points or so okay, so from 80 here can it you know make it down to 50 and that would be a measured move just about to fill the gap So if this can break in here, it should be pretty pretty quick move. I imagine on the sell side trade to trade down here It, uh, it's just it's been back and forth in here Uh, I still see weakness though in this chart On the 15 minute chart Well all three actually, uh So, uh, it poked below here, uh, we're seeing this not make a higher high We're still seeing it making wicks down here But they are making lower lows in here and we're lower highs in here on the 15 minute Okay, so we know they're poking down through this area in here So we're looking for those sellers to really move this here And that would be the scenario one right to look for Scenario two would be a rejection and then a move back in with high volume on that buy side And then we look for the retest back up into here And these wicks up in here, which would be about the figure or o2 And then maybe you can get up higher and maybe you can maybe we'll see a gap fill today on the other side And we don't know But we're gonna wait and in these key areas and look for These supply and demand uh and participants here to to give us insight Right, so let's look back at book map Even here guys like okay made a one tick high higher high here See see the weakness in here now. Let's see it looking now. We have now what we have here Is the fuel these buyers got it wrong Watch the stop run to these lows and into our move into 80 and 81 Right, so let's let's uh kind of extrapolate something from this information in here And what we were reading The scenario now is different In here we we thought in here what we would get Since you know, we're seeing some a little bit of exhaustion in here. We're still seeing sellers come in here Looking for them to to drop it into these areas And instead we didn't we got back and forth in here And we got some buyers take it higher by a tick only a tick in this range Hey, but so This is something to um Look at and understand in order flow Is trap traders these guys here If if they can't buy and get back up into these areas here and I don't see it here Okay, and we get sellers down here. We're looking for the drop Okay, so A lot of times it looks like it should do the move And just it there's just not enough. There's it. We didn't get a good read in here. So we stayed away Uh, and now we have something on our side though is we have this buying in here to have it to get it wrong Okay, so now the question is are we going to start to see them getting squeezed All right, so we again we go we we go back to these areas in here and it looks pretty good so far now The sellers make it squeezed if they if they can get back up above this 84 and three quarters Right, but the scenario looks pretty good now for these buyers to get squeezed sellers to drop it into our 80 Uh our 80 level and maybe even lower here Okay, because now we have these guys getting it wrong All right, so on days this is something to take a look at when we don't have a good read and then we do have Rotations back and forth and you can see that the there's traders up in these areas here if they can get squeezed And we look for it Right. This is going to be the this is the fuel here. It's the stops in this case So a lot of times, you know, you have to go higher to be able to go lower It's kind of the concept if it makes any sense But these buyers in here Are going to have to be their position now as a seller and this is where they're going to be selling They haven't they've sold A little bit. We see a little bit of stop activity here, but not a whole lot Still looking for a big big stop run through these areas here They all I want to see all these buyers in here get it wrong And looks looks pretty good. Let's see it now Let's see it looking for that big stop run to the downside here Now we've got to go through the other scenario. It's really important. Uh, so the other scenario is this This is where the buyers came in here This is where the sellers started to come in in here Where are they going to get upended? They even in here, they're really going to get upended in here, I would say So and then then you'd look for the buying up in here And then back up into the highs Of this little range here, uh, and maybe higher maybe back up into test here Or here And that's the opposite scenario Okay, I'm going going with the primary scenario though until we see something different And we don't see that opposite scenario unfolding right now It's still looking for a really big juicy stop run here to the downside They are 80 Level just to tick away yep, um The iceberg is is uh, if it goes up is buying if it goes down. So there's iceberg selling in here I'm looking at it as uh here. I'll show you my settings for icebergs Stops Okay, there's our 80 level guys um now Look it it did what we were looking for right. This is where for me Uh, I would take a partial profit Okay, but Holding still Or a bigger move This is what I was looking for now This it's it's really up to you guys like a lot of times you wait this whole time All this back and forth in here once it starts to move like this you get your really beautiful moves All right, uh, you'll get this a big juicy move like this in here and Yeah, and then you look for that to unfold again okay, but We don't know You can reduce some risk And you can look for the continuation here All right, how to brace the unknown I think is what we're Going over And look for something that's higher probability Okay, we got some stop runs, but not a whole lot Again, you know that this might we might get a little bit of scenario one and then scenario two is the one that plays out here It's possible So we had we have to be flexible for that And the level is still here. I I think This is where the sellers were in control and this is where they'll be out of control Up above uh 83 and three quarters sellers still in control Yeah, Hector, I I I just want to underscore that like I don't I think I think it's important for you to look at your levels like okay, so and how can I model that all right? So let's look at my levels Okay, we went through it on the higher time frames on these three charts in here Uh, and then understanding what we're looking for In some of these scenarios in here Okay, we and we know that there's some weakness in here. I don't need to look at anything else Now I'm just looking for the behavior in the book In the historical book to match that that uh that scenario That's it Still seeing weakness in here. We got a little bit of flurry of buying But look at the buying again, just don't be shaken out of these things like uh You see some of that buying coming in but they they were not able to get back up to here Uh, they didn't even come up to this little swing here at 83 All right sellers still still in control Still move in the market All right guys. Well, I I I really wanted to go over in in a lot of detail. Maybe uh, We won't be able to do it tomorrow tomorrow. We have a protrader webinar with um um With options millionaire, uh, he'll be on tomorrow at uh at 10 Hey, so, uh, I'll show you where again like at that learning center or go to bookmap.com Click on the more button and then go to learning center here uh, and then events Join live free live events scrolls you down the page here And here's options millionaire right here futures and options is what he trades And um, uh, it should be on the calendar here. It's not should be okay. I'll have to look into that But yeah, he'll be at this time tomorrow All right, and but what I'm what I wanted to say was I go through here that Uh supply and demand support and resistance understanding what these levels are in here Uh, and then looking for order flow around these levels here to give you the insight Uh, so for example, uh with debra, uh, we've talked about it many times in here. It's like, okay Well, first off identify. Let's just even identify your support and resistance areas. Okay without the heat map Uh, and then where where do you want to trade? Uh, and uh, is it is it down here at at 80? Do you want to be a buyer down here? Well, some people are Hey, but I'm I'm not really seeing buyers taking any control here at 80 So This is giving us insight. Okay, not just the um Aggressors in here. Also the book is giving us insight here Hey now they they transacted here Uh, and uh, now they're up at a little bit higher level Hey, but let's see. Do the the sellers take these guys on and trade into and through these guys not yet In fact, we're starting to get buyers in here. All right. Well buyers should be able to lift it then right up to here And that should happen now Hey, they're they're bidding up at a higher level. They're pulling here. We're getting buyers They should be able to lift it now Just up to here 83 75 Right. So and and we're just looking for that move Uh to unfold. So we're starting to understand this in a bigger picture here Okay, maybe this turns into a bigger reversal Okay, it starts with this liquidity getting filled in here And uh making a higher low and a higher high The book to start to shift Uh and uh on both the bid and the offer Uh, and the and the aggressors tell us something And the one thing that we got to be careful about is again this trapped volume in here and the fuel Uh, suppose this here which because we're just looking for this move up into Uh, what was it? I don't know 83 75 right and it it didn't even do that Okay, so what what we have here is a little bit of stops Back up and we're back in the range in here. Okay now sellers can firmly take control again They're pulling now they're pulling again. So now again, this is it. It's the same thing in here. This is the trap volume And we can look for a move uh for the for the stop run down here below this swing And let's see if we get it here and for our sellers And let's see it sellers And there's someone on the bid right here. They got to trade into and through that guy or that guy's got a pull Okay retest. All right sellers you got it now. Let's see if they go for it. Nope Someone coming in And and they transacted All right more selling pressure see Should be able to drop it 77 and a half 77 78 and a half here is the first level. No failed to Okay, so here's here's this is actually something gary had talked about Gary Norden You got to be really careful here and you got it wrong now These are the guys being trapped and we get them we get the squeeze higher here. See this see the stop run here There's our squeeze if you get trapped in the squeeze get out Just get out All right, don't you can always get back in So take a point loss Whatever so that's just one way of looking again not a trade recommendation like uh We we don't recommend trades. We just read the behavior in here and then look for specific moves to unfold Can they or can't they do they have enough? Supply and demand in here to to move In balance and supply and demand All right guys, well, let's wrap it up. Thanks for coming everybody. We'll go over more support and resistance another time But I want to get down into that. I think it resonates with people understand that concept But understand it really in deeply in here in in the order flow Then all of your patterns can make make sense no matter what it is that you're trading So it really comes back to very very basic Support and resistance and supply and demand that Can give you a lot of insight in here Uh patterns traders what you know volume profile traders doesn't matter All right, so enjoy have a good day everybody We'll see you tomorrow with the pro trader webinar and options millionaire at 10 a.m Okay, thanks for coming. Bye. Bye