 Good morning book map traders Welcome one welcome all to the live stream My name is Charles. I run a community called pirate traders were focused on the ES the NQ and Looking at it as a two-way auction process. Appreciate you being here today. Let's jump right in All right So in preparing for the week the first thing that I like to do is what Jim Dalton calls the top-down approach the top-down approach is starting with the monthly charts and then Zooming our way back in to a smaller range so that we can get sort of that bird's eye view that That bigger perspective first Before we zoom in and start making decisions about what to expect intraday So we're gonna start with the monthly chart and see what we see here Well first and foremost We had a market that was You know, it had momentum it had a trend It then rolled over we had a pullback and now we are beginning that momentum once again So on the monthly It's bullish. The other thing that jumps out at me Looking at the monthly here is that there is a bit of a channel on the monthly From the lows to the upside So that just tells me that if the market continues to sell off I may want to plot that trend line to look for support, but for now nothing to worry about again We're looking at the monthly So let's zoom in a little bit on the weekly and see if we can get some more information there All right, so when we look at the weekly we can see why the market had to roll over up here It's the same place. We ran out of steam multiple times in the past We can also see that we are pulling back into a Previous balance area from the past I'm also noticing from looking at the weekly, you know, one thing that jumps out at me right away We don't often have long periods of weekly drawdowns Okay, we did have this one in here But generally speaking look three weeks of drawdown market pulls back up goes sideways for a bit Three weeks of drawdown market goes up and then pulls down again Three weeks market turns around and goes sideways for a bit another sell-off three weeks Market goes sideways for a bit Sell-off three weeks pull back up sideways for a bit So I'm noticing this pattern that since the market has rolled over to the upside bigger picture on the monthly chart The weekly doesn't tend to have sell-offs that last that long Generally, whatever pullback the market needs a few weeks is about all it takes So that increases the odds in my mind that this week could be a balancing week It could be a week that looks a little bit like this one or a little bit like this one or a little bit like this one Where the market basically just pulls back or goes sideways in a range We don't necessarily have to keep this constant downward momentum going. Alright, so now let me zoom in and look at the daily So balance inside a balance inside a balance We got two separate balance areas that we're going to talk about here If you're new to the concepts of the two-way auction process, this might seem a little bit confusing Because I'm talking about balance and breakouts of balance and what that will lead to and so on and so forth But I'm talking about two different balance areas from two different time frames. Okay So the first one is this white box that we have right here That is balance from the last time the market was in this range Okay, when we were here like a month ago, this is where we went sideways inside this area right here We pushed above failed pushed down below failed pushed back up came down finally found support to break out of that balance area If we just look at the range of the balance area Right, we just kind of look at the volatility of that range We can see that we basically did the same amount on the breakout Once we finally broke out the market made a move just as big as the range That is a very common thing when it comes to balance and excess So we consider the the area where the market is ranging a balance area and the breakout from that range excess It is common for the market to get the same amount of excess as it had balance at the very least Okay, so the market tried to go higher couldn't do it pulled back down to test that balance area high Test that high. We spent a few days grinding around trying to break higher Trying to keep the market going and we could not do it Okay, so then what happened the market failed and it pulled back into this previous balance area once it failed Actually, sorry Pulled back into the previous balance area came back up back tested it Tried to save itself tried to break out couldn't do it and then boom right to the opposite end So that is the second behavior that we often recognize with balance areas So first is that once it breaks out of the range It is likely to get excess the same size as the range The other is if it reenters the balance It is most likely that it will need to head to the opposite end It won't just randomly stop in the middle. It'll head to that opposite end. Okay, great So that's part of the explanation for why the market had this big down move last week Was that we reentered a previous balance area and the market needed to pull back. Okay, fantastic What else? Well, we also created on a shorter term time frame, right? You could call this balance area over the weekly You could call this balance area over the daily and that balance area was this channel that the market was making to the downside And same exact thing when we broke out of that channel The excess that we got was at least the range of the channel the amount of Volatility that the channel had Okay, so that explains that violent down move was that we were breaking out of balance and that was the amount That the breakout took us to. Okay, great. Charles. We hear you We got you the market broke out of balance. It had to have this big move to the downside as a way to You know balance off the excess. So what comes next from here? Like what do we expect this week moving forward? Well, this information tells us that one of two things is likely to happen this week Either and we're literally opening right on that balance area low, right? So one of two things is likely to happen either the market's going to pull back up into balance In which case that increases the odds that we will head to the opposite end Just like right here Okay, so if we can re-enter the balance area that will increase the odds the market is heading up towards 4500 That doesn't mean it has to go up today Just that's the direction that we're moving. Okay As you can see here, it took four days to get up to that opposite end. It may take that long this week The other Thing that could happen is that this balance area low Could now act as resistance This could be the back test, right? That takes the market lower If that is the case, I'm looking at this funky gap That we had when we rolled over the contract down to about 4,300 That would be the next target to the downside to go back and fill that gap Okay, so pretty much from where we're going to open today The market over the next few days has potential to make a pretty decent move And that is context that I want to have as I zoom in intraday Let's zoom in Got 63 people hanging out 12 likes I wonder if any of you are appreciating this insight You can show me by smashing that thumbs up button I sure would appreciate it Good morning to ebb and flow Jay, Sebastian, Maya, Gino, New Culture, Tom Al, Ali And JK, welcome Okay, so now we're zoomed in intraday looking at the market profile chart That is the chart over here on the left with the black background Okay, and basically what you're looking at when you see here is a series of profiles So each profile that has sort of the purplish color to it That is a regular trading hours profile from that particular day And then the one that's white and blue that is the overnight profile from the overnight So basically think about it like a candlestick. This is a candlestick for regular trading hours. This is a candlestick for overnight But it also gives us a lot more information because it shows us the market in three dimensions Okay So when I zoom in and I look at the what happened with the market at the end of the week last week I can use this three-dimensional view to kind of get a feel for what's going on. So first off On this day on thursday the market opened up here and it spent most of the day Grinding sideways, right? So the market was trying to turn around and head higher It was trying to build up that support, but it couldn't it failed That failure took the market lower to new lows Now because of the volume and the time that we spent down there in the lows Because we had a spike down that increased the odds that the market was going to keep going down But what is very interesting is the fact that we had such thin volume In between so tug of war up here break lower And then a little bit of tug of war down here So that tells me there's weakness left behind in here that the market needs to come back and repair I then see that the next day it was the same thing the market tried or sorry the market opened much lower Pulled right back up to where that rotation was happening at the end of the previous day And then just went sideways up there So this shows me visually I can see the auction process to the downside is coming to an end There is less and less volume On the lows and more importantly less and less time We don't spend a lot of time when we pull back So that tells me that there are buyers buying the dips as soon as they get a chance. They're going long and buying those dips So now we're going to look at the overnight range from this weekend the way the market traded from friday moving forward That trade was almost entirely Or was entirely on the upper end of friday's range in particular Where did the market run out of time and run out of volume? Where did the market run out of steam all weekend long when they when they tried to take the market lower? Right at the point of control from friday Right at the fairest price to do business from friday All weekend long they were buying those dips So that again is a little bit bullish to see right because we've been running out of momentum buyers stepping in every time the market dips And then over the weekend buying that support right at the fairest price tells us there are buyers in this market That want to take this market higher now. We don't know whether they'll succeed or not We don't know how far they'll push it But the buyers are stepping in so that increases my mind increases in my mind the idea That we're just going to go sideways or higher this week Right that the the massive momentum to the downside is likely coming to an end So what would I want to see to tell me which of those scenarios is playing out? Well, the first thing i'm going to be laser focused on is friday's high, which is at 43 96 We're going to open inside friday's range. So we're expecting chop We're expecting the market to play tug of war this morning. It'll push up It'll pull down it'll push up it'll pull down and we don't know how long they're going to have to play that game But they are going to have chop the first sign That we're ready to break out of that chop will be if we can get above friday's high And find support there. So if the market pushes up and we bring in new buyers I could get bullish to head up and test that overnight high New buyers above that overnight high. So same thing pushing above and finding buyers Would have me bullish to start heading back up and repairing the weak references above at that point once we have Support if we have support at the overnight high Then that is the sign that bigger picture We are experiencing a look below and fail of that balance area So just to simplify things i'm going to go ahead and delete this we talked about it But that those days are done that channel is gone gone, baby gone So we're going to stay focused on this balance area here If the market can push above the overnight high And bring in new buyers up there. It is likely in the beginning of that trip up to the opposite end of balance So again, I can't predict how many days it'll take to get there I can't predict How choppy or difficult it will be to read along the way But if we get above the overnight high and we bring in new buyers I am going to be screaming in my own head charles Don't lose the forest through the trees Very simply the market is heading back up towards 4500 So keep that as part of your analysis until we get there That is the target that is where the the Magnet the strongest magnet that it would be controlling the movement of the market. That is where it is waiting Okay, so to to get to that belief we have to get above the overnight high and find support Now let's say one of those scenarios doesn't happen Let's say instead we poke above yesterday's high and just pull right back down We don't get new buyers. Well, then I would expect more chop more two-sided trade more tug of war Same thing with the overnight high if we push above that overnight high and we don't find buyers there And we pull back down in more chop more rotation more two-sided trade that brings us back to the idea That we talked about on the daily Or sorry on the weekly That maybe we just need to chill for a bit. Maybe we've had our big move down and now we just need to relax We've had our big move down now. We just need to chill We had our big move down now. We got a tickety see for a week Right, so that's what I would be thinking If the market pushed above yesterday's high and failed and pulled back in or pushed above the overnight high And failed I'd say hey, man. We're just going sideways, right But what about to the downside? Well, that is where the overnight low will play a very important role Both because it was the overnight low And because it was the fairest price to do business on friday So if the market, you know chops if it goes sideways and then it comes down here It looks below that overnight low and it finds new sellers there That is important information that the market will be giving me that the excess is not done to the downside That we need more of a pullback Because the fairest price from friday isn't bringing in buyers If there's no one willing to buy up here We'll have to put the market on sale to find those buyers at a lower price Okay, so the overnight range is the bigger picture What's going to happen with the market? Yesterday's high is the first sign of a potential break higher So that's all i'm going to do i'm going to watch the market and see how it handles these levels What happens at yesterday's high? What happens at the overnight high or the overnight low? And then that will give me a signal of what to expect from here Any questions on any of that? Good morning cuba Sohail top gun pavel New culture says can we see the queue? Yes, we can You guys have had enough of the es Get that es out of here All right, let's top down the uh nq real quick. We got 10 more minutes. Why not? So obviously nq's been moving with the es it's going to be pretty much the same story here Looking at it on the weekly i'm seeing that channel of momentum to the upside On the Monthly i'm seeing this previous balance in here And thinking we're probably seeing something like that over here very similar to the es And in the exact same way This morning will will tell us Does the market need more access to the downside? Do we need to keep going or are we ready to cool off? Are we ready to spend a week just going sideways or maybe even pulling back up? All right, let's zoom into the daily Yeah, the read here is not quite as clean as the es but it is the same conceptual idea If the market gets below the overnight low, they are likely heading down to fill this unfilled gap to 14 5 18 That was just the gap created by the uh contracts rolling over So if we can't turn the market around today And either go sideways or turn around and head higher likely that is the target down there So now let's zoom in and look for some levels It's literally exactly the same as the es Yeah, it's like textbook exactly the same as the es Okay, same story. You can just repeat it for the nq So same thing there overnight, right? What happened when they got to friday's fairest price to do business? Ran out of momentum No buyers down there. I'm sorry. No sellers down there, right? So that increased the odds that the market wants to roll over to the upside That it's found some buyers and it wants to see how far they can push it So same exact thing as the es we're opening Well, we could open with a gap up Um, but anyway, we're basically opening inside the previous day's range So we will look for that chop Exactly the same as the es the first thing to watch is this high which is like right where we're opening If we can turn that into support You could look to test the overnight high if we can turn the overnight high into support You're looking for that larger pullback I'm sorry, uh Larger balance Back up to around 15 500 Okay, so if they can get above that overnight high and find new buyers there that should tell you It doesn't matter how tricky it seems It's heading up there towards that opposite end. Okay And same exact thing with the overnight low So you're looking for chop in the range If they can find support at 1408 they can look to test 148 60 Support up there looks for continuation higher If they come down and they start to build resistance below 147 30 Well, then that's bearish for further downside continuation So, yeah, they're literally textbook exactly in line Very nice. I like very much It's also worth noting it's likely to change but the highest amount of liquidity on the book map is above price Meaning there is a stronger magnet to the upside this morning Yeah, so now we're just chilling Chilling like Dylan up in here Happy saljury. Oh, sorry. I'm gonna say that all wrong saljuro Happy saljuro How do you set up your bubbles for filter on nq that I cannot answer for you the nq on the um The book map I have not given enough time because I don't you know trade nq all day every day I haven't given enough time to figure out exactly what the bubbles the best um Numbers are for the bubbles, but I would love to open that up to the chat What settings do you guys like to use on book map if you trade the q What do you do? Good morning, Jonathan Chris scalping strategy 80 or adam music almost called you a da music a da music Welcome adam es trade monkey in the house nick is here frito Ian What is the charting software on the left? It's called market profile software or tpo charts The company that I use is called window trader But if you just google whatever brokerage you use and tpo charts, you can probably find it Mr. Rhee in the house. Good to see you umar show the gold show the gold I'm not taking off my shirt. No matter how hard you ask and I'm just kidding. All right um Yeah, we could take a look at gold I can't pull it up on my market profile chart oof So gold's got a potential swing trade here. Whoops So again just talking about balance and excess we can clearly see The gold market has been in balance for a while We had this big move to the upside a little pullback and then just continue that excess So now we're basically just going sideways Trying to balance off the excess Okay So there's two things that are interesting to me right now about looking at gold For a potential swing trade First thing that interests me is the lows We can see nearby This is the area where the market Created momentum to the upside and then found support when it came back down So there's a very good chance the market could find support in this area You know, we'll call it 1900 to 1920, right? That's a great area for the market to find support at work last time So that is interesting to me Why is that interesting because it allows me to cap off my risk It allows me to say I want to stay below 1900 with a stop Because the market is likely not going to go down there. It's likely going to find support somewhere in here, right? The other thing that is interesting is this trend line on the daily right here If the market can break out of that trend line Come back down and back test it for support You could have a confirmation in a change of the momentum Which is the breakout and the back test And very limited risk for a potential trade right back up to that opposite end So I wouldn't be jumping into it today right now at this moment, but there's some potential there Literally look at this. This is it right here So market breaks out back tests and then boom if you use that low as a stop Your trade would have been That much risk For that much reward Yeah, baby Very nice So, yeah Gold looking good All right, the market is open. Let's see what happens Open in a chop zone, baby. Let's chop Okay, nq gapped up that is more bullish to see So obviously the first order of business is going to be for the nq to fill that gap It's got about a point more. It's got to go down But then you're immediately looking for support at that gap fill If they find support there that is a gap and go that looks to test that overnight high If it fails more chop Okay, so obviously it's too early to make a call here Because we are in a chop zone and the market can likely go up and down for hours But if we're able to get above yesterday's high right now Oh, never mind Not happening I was going to say we had good taper on the low but not yet Okay, so now that we're back above Yesterday's high above Friday's high We're looking for can we turn this node we just created right here At 43.95 into support. Can this hold the market? If it can we'll look to head up and test that overnight high at 4407 Can They hold it Can they do it? Moment of truth Okay, so we held support that is bullish to see increase in the odds We're heading up to the overnight high But we do have some resistance right literally right now at 40401 And we're right through it. No no sweat NQ never filled its gap So this is a gap and go But leaving that one last little point behind is not a good sign That tells us there are likely still buyers waiting at that gap fill So if they can turn this overnight high where they are right now at 14860 into support They can keep the momentum going But if not, we may need to come back and test that gap fill once more So the idea is they have the momentum But they're getting a little too long a little too fast And they may need to pull back and test that support once more A new culture says is it safe to short 4407? That's a great question It is but it should be a fast trade So that should not be a trade that you're going to sit in and fall in love with It's one of those trades as soon as you enter and you're in profits move your stop a tick below your entry Because absolutely they could poke up here and then pull right back down 100 But so far the market has been telling us momentum right so far It's been telling us it wants to keep going higher today. So the way I trade to be better to be a buyer Um looking to buy the pullback Rather than a seller trying to make money off of the pullback because the buyers have the momentum. They have the control So it's hard to predict if it fails. How far it will pull back before the new buyers step in Does that make sense? So it's a perfectly legitimate trade But just as soon as you're in profits move that stop Because they could instantly find support and come right back through Charles, why do you think buyers are in control? What gives you that feeling? Well, first off we talked about the momentum at the end of last week How there was thinner and thinner volume and less and less time on the lower ends of the ranges There was the fact that the overnight built up its support right on top of the ferris price from yesterday And then now today we have higher highs and higher lows on the daily So the momentum on the daily is over that increases the odds. We're either going sideways or higher today Um, so none of those things are bearish, right? So I don't want to be a bear If i'm getting no signals to be bearish i'm getting neutral and bullish signals Wow, nq found support at the overnight high that is bullish to see So you're pushing into some resistance right now at fourteen eight ninety four And then some major resistance up at fourteen nine eighteen Ladies and gentlemen We have some short covering entering the market At least on the queue Okay, so now we are looking we know the bulls are in charge. They've got the momentum So we're looking to see can they hold friday's high We've got potential support at forty four hundred which is the halfback So we're looking for a bounce there But even if we don't get it, we don't lose our bullishness We stay bullish as long as we're above friday's range Again looking to test that overnight high If you have not yet, please smash that like button got a hundred and thirty Awesome individuals hanging out, but only fifty nine That pushed that like button at least we could get ten more Gotta gotta be able to get ten more Nor auto trading. Good morning to you. I'll just tell you right now bullish q-ish our bullish Bull is q-ish The q is bullish looking for support at the overnight high Maya, where's the next target for the q of a fine support? I just mentioned it It's that large volume node at fourteen nine twenty And of course now that we've gotten support at the overnight high If they can hold it, what is the other thing we're telling ourselves? We got to remember what the market looks like on the daily Right, we got to remember that there's a balance area And so if they can hold that overnight high That will tell us and we don't know how long it'll take it may take a week But that the highest probability is that we're heading back up towards that opposite end So to be honest, this is not as clean a balance area as the es But I would still see it that same way Speaking of which can They hold it Oh both markets Dun dun dun dun dun dun dun dun dun Okay, so the screens that you see over here on the right now. This is what we call the market internals I'm focused on the one in the bottom right called the tick chart ti ck And that basically shows me the momentum in the market So so far the ticks have been below the zero line yet price moved higher So that tells me that it's more short covering and less new money buying And so if the buyers want to hold this high right now If they want to stay in it and keep the momentum going They got to poke those ticks up above the zero line The more time that these ticks get slapped down at the zero line the more likely the market needs more chop more sideways So can they hold support? Can they break the ticks above the zero line? Can they do it? Okay, tick smack down again. That's not a good sign for the bulls That means we're not bringing in very many new buyers here Dun dun dun dun dun dun dun dun dun All right back through the opening price All right, so what does that mean? It means the market is not ready to go higher just yet The bulls are in charge. They do have the momentum. We've got the higher highs the higher lows We've got value completely higher But this just means the market needs to go sideways a little bit first Before it's ready to break one way or the other So now we see it as a chop zone at least on the es. Let's take a look at the q q still holding that overnight high So this is a very important level now Right here at 148 60 If they can't hold that Right if they if they can't bring in the buyers here at the overnight high It will mean they likely need to come back and fully fill that gap So could get a pretty big pullback if they can't hold it But let's see. Maybe they can More short covering in the end queue Charles, how do you know it's short covering? And not new buying Well, because the price is going up But the ticks are going down So if they're selling the underlying shares But the futures are going up That's probably people covering shorts Not new buyers Scott says a break of the one-time framing down on the daily for the end queue. Let's rip and make daddy happy Well, daddy should be getting nervous they got to hold that overnight high But if so, yeah, let it rip Absolutely Buck wheat says the Russell's been in a nice dip since the open Beautiful price action Yeah, the Russell's another option. It's just I can't look at everything. So I keep it simple Okay, so getting back to the es we are once again finding support on Friday's high So now I'm going to click back over and look at the market internals and see where the ticks are If they're below the zero line, I'm going to assume the support means nothing But if they're able to get those ticks above, we may be getting some buyers. Let's see what happens Still below That's a no Just means we need more chop to bring in those buyers Scooball says support. I don't trust it yet Don't trust it yet Mr. Rhee what software shows the market internals any charting software should NQ main NQ is bullish So they held that overnight high And they finally got the ticks above the zero So no no doubt about it buyers are in charge Next stop 14 9 20 es still playing tug of war May need one more pullback Okay, so now the question is es bullish as well ticks finally caught up with the price So now can they turn what was support or what was resistance into support? Can they turn 4402 into support? Or the halfback or the uh Noted yesterday's high Okay, so earlier somebody asked me about shorting the overnight high At this point that would not be an advisable trade Look at how hard the buyers had to work to get up here Right they did a day to fight so hard to bring in enough buyers to get to that overnight high So there's a very real chance. There's support waiting now To break on through to the other side So if you are shorting that overnight high, you may want to move your stop below your entry Don't fall in love with that trade Scooball says below opening was just a stop hunt. Yeah, we know that now We know that now All right guys well with that I have to say goodbye Head on over to the private stream for the brigade members I'd love for everyone to join if you're interested It only costs 10 bucks a month and you can listen to these live streams for the first hour every morning To give you some guidance As far as what to expect for today, I am bullish I do think we are either going to go sideways or higher today And if we can get above the overnight high, there's a potential we can make a big move higher But we just got to wait and see it's a little too early to make that call right now So I am looking for support above the opening price and continuation higher from there If the market pulls back down through the opening I'm looking for chop inside the overnight range And because we've had all these buyers I do believe that they will be waiting to buy support in there if it does pull back So I am bullish bigger picture And we may just need to spend a little bit of time going sideways first It is worth noting once again that the larger amount of liquidity on book map is definitely to the upside So there is a straight slightly stronger magnet to pull the market up than down With that I will wish you good luck And happy trading We'll see you in the brigade stream. Thank you very much. Bye. Bye