 Okay, good morning everybody, it's 8 o'clock, it is Wednesday the 6th of December and I hope everybody is having a very good trading week. We are live on Discord and we are live on YouTube. I'm going to just change the slide to the next slide to make sure that that is working so I can see it and I'll do the disclaimer at the same time. Okay, all Bookmap limit add one there just saying, no, nobody here can predict the future no matter what any presenter says. Anyway, I will ignore myself and I'm just putting up a new slide there. The Learning Center in Bookmap and there's a link on the Discord channel. I think there's a link in lots of Discord channels in Bookmap at the moment. The Learning Center is being revamped so it's been redesigned and I think there's a lot more content going into each of those sections which are segmented clearly and cleanly now so hopefully it's more used to people that are setting out in Bookmap or are focusing on a particular area they wish to know more about or improve. Anyway, let's move on to have a look at quickly the screen. So before we get into the slide show, I will just point out one thing. Just for the purposes of this webinar, I've added in the Delta numbers in that column. It's exactly the same as we had it on the last webinar just so that we can actually use that for the Delta tails. I don't tend to have those numbers in when I'm trading. It's just for this webinar only. So take it with a grain of salt. OK, let's move on to the slide show. OK, right. We have one bit of news coming out in this hour of power, the breakfast hour. And that is the ADP employment change. It's not ranked as the full three bars of importance by TradingView or Investing.com. So I would tend to agree with that. I'm not expecting a huge amount of volatility. We've already got some of that employment news yesterday. And that is one of the reasons why the market was so bullish coming out of the gate yesterday and perhaps today as well. We can dig out some dailies on some of the indicators, sorry, some of these symbols that relate to that. Basically, what I'm talking about is that the news signified that people think that inflation is coming down or that the inflationary pressure is not as high, so the chance of interest rate cuts increases and the chance of interest rate hikes decreases, both of which are good for the market. Later on, they've got the balance. Oh, sorry, I was ignoring that one, the balance of trade and exports. Yeah. Yeah. So we've got two bits of news at 8.15 and 8.30. I'm actually thinking that's not today. I've got the notice today. Wednesday, December the 9th, non-farm productivity quarter on quarter. OK, that's not the main one. The non-farm payrolls itself is not today. So even though we've got a couple of things happening at 8.30, I would not expect a huge amount of volatility in the way that we saw the volatility at the 8.30 AM release yesterday. So, yep, so they're all there. You can go and see for yourself. I recommend the calendar at 4x factory. That's one of my favorites. I just pulled this one up because I've got a lot of trading views stuff on my screens. OK, let's ignore that. OK, on to the dailies. I have just got one horizontal line drawn across the most significant highs of the last few months. And what I would like to point out in the daily is that, even though this may look like a slight rounding top in NQ, and you've got ES below it, I take the ES chart probably with a little bit more value than the NQ one because this current rally is being driven by the finance sector, all the things to do with inflation and currencies. So NASDAQ has been weak. But then if we look at the dailies, which we will do in a second on what happened for Apple and Amazon, et cetera, you'll see that they were very, very strong. So if we're going by pure price action only, when you've got a big move up and we've got a range, which is essentially what the ES is in at the moment, the likelihood or probability is that it will continue in the same direction IE up and given what happened yesterday, even though we may chop around for quite a bit longer, the price action is suggesting some form of continuation, whatever that is. Maybe it'll just be a breakout failure and then it'll go down or maybe it will keep going up. Who knows? We cannot predict the future. And just looking across, I mean, you can see yesterday's bolt upwards and what happened as well at the beginning of ETH. ETH is shaded in gray. And I'll talk about that when we talk about our technique in our session today. Particularly, I'm talking about this spike upwards in the Japan opening session, the first hour of Japan or the fact that it actually was before and continued into the Japan open. Not normally quite as strong a move as that every day of the week, but that was very, very strong today. OK, let's go back to where we are in book map and have a very quick high level zoom out. So I've got the unfiltered ES and I've got the Trademap Pro, which I use in ES really as a higher time frame chart. That's what I'm using it for. I use the one in NQ a lot more because it's a lot more readable than the unfiltered one. So this in NQ is filtered. If we go across to there, that's unfiltered. And you can see I haven't been really looking at it. And you can see the Argo bands and the actual resting liquidity is very, very hard to see. So that's why I do not tend to focus on it. And you can even see I have not added in the delta numbers there because I was not preparing it for this webinar. Instead, we'll use this one, which is the filtered one. And again, it is only filtered to show orders that have not changed by size or price level at any point. And I've got the whole of the session going back to that ridiculous ramp up. And it was quite ridiculous. It basically opened up there and went and gone straight for yesterday's high. And it was a rocket up in the Japan Open. We can talk about that when I talk about stops in a little while. But anyway, let us get back to this in a more usable fashion. And remember, with these filtered heat maps, or within any heat map, my personal view is that it is worth using a mouse with some form of very quick scroll so you can get a clearer picture. I mean, if we just leave it as it is, this is the NQ one on the left that I'm looking at. Sometimes you might find that clear. You might not find it clear. I mean, it's certainly clear in the sense that you have these resting liquidities up at 16,000 and 15,990. But in terms of what's happening in this zone, which is the 15,950 to 15,920, you can get a little bit more clarity by zooming in both horizontally and vertically. And just to see where they're bounding price at this stage. And then you can have a look across at the profile and the delta profile to see how it's going with this. And this is just a gentle pullback that we've been having that's taken us back inside yesterday's high. Gentle is my expression because it contrasts with the violent up move in Asia, which did remain strong for most of the day. This pullback actually only happened. Let's have a look when did it happen? Happened at about 6 o'clock or about 6 AM. Until then, the market really was very, very strong. And all longs were working really well. And shorts were basically you had to have a tight stop or your pulse would have been racing as it hurtled towards your stop. And the theme of today's session is stops. And I will get onto that in a little while. OK, so we've got a little bit of break up action here. And one of the things that I do like about the NQ filtered heat map, which is the easiest thing to see on this chart is when it has a slip, slip ups or slip down. So that's where it's a vertical move straight up, where there's virtually no price action or trading between this price level here and this price level there. By the way, I do have my tablet here today so I can actually draw on this. So let's see if it's working. Right, so this here is what I'm calling a slip up. And the probability is it will retrace most of that, if not all of that, not necessarily immediately. Sometimes it might take hours like the vertical spike up in the Japan Open, but the probability remains, I think it's been estimated to be about 80% that those slips are reclaimed later. And this one here did not take long at all. We've already been retraced completely and gone past it. So let's move back to the cursor and then we've slipped back up again. What time is it? Because I've got to be aware of that news and I might turn on the feed. That's the financial juice feed. So those of you on YouTube will probably hear this. You should hear it on Discord, but again, I don't know why. It's exactly the same wavelength feed, which is a mix of my microphone and my browser outputs, which are both on yet. So anything that I hear in, I actually should make sure I'm listening to it as well. So I will just switch that across. Yep, so I can hear it as well. I did not have it on. I had it on my computer speakers. I'm one of those people that actually love listening to music when I'm trading or when I'm programming. And I spent an awful lot of today programming. I was trying to fix a bug in one of my own codes. I think it took me four and a half hours and about 57 different attempts to fix it. And I had to find a different way of doing it in the end because it was unfixable. But that is the joys of programming in C++. Okay, the time check is 8.12, just coming up to it. And you can probably hear financial juice there. So we're gonna get some audio from them in the next couple of minutes. So that's just the precursor. I may turn it up as we get to 8.15. And speaking of that, let's have a look. In case there was any volatility, what is the picture in ES? And remember that the liquidity map in terms of resting liquidity and guidance for future direction, bearing in mind that we cannot predict the future, but taking that into account, you're gonna get a better representation of a guide to where price might go in ES than NQ. If you rely too heavily on some of these resting liquidity levels in NQ, they can be great, but they can also be misleading. And this is the thing I've spoken about at length. It can be a double-edged sword. It represents both support resistance and also a magnet of attraction. And sometimes neither of them. It's just a furphy or misleading. So what have we got in ES? So we've got quite a lot of support getting down into this 4580. They're just taking a bit of it away, but the main support is staying there. It's not huge. So if we actually look at the price level in question, it's only about 45 and there's more liquidity down below 4574. So not huge. And I will get onto the TPO's and the relative volume just after this news release, but essentially in ES, we are right at yesterday's high, but not at the overnight high. So we have pulled back from where we were and we have some support in the heat map going into the release, which should be out in about 90 seconds. And going in there, we've got a decent little bit of positive action both in NQ and ES. So it'd be interesting to see if they get some traction or if they're just gonna come back towards this liquidity down here at 4580. If I was going to guess, I would say, maybe a little spike up and then a slow grind back down to the 4580, but I cannot predict the future. And I do not trade on the basis of my predictions because I would never make any money. And again, that's relating to the theme that we are talking about today, which is stops and the different approaches that we can have and we'll get onto that because we've still got 45 minutes. So we've got plenty of time, but let's just watch this news first. So we've got 35 seconds. This liquidity in ES has also come out. So if we zoom in horizontally, we can zoom in a little bit vertically, not too much because we won't get the picture. You can see this liquidity clearly removed at 4580, but they've kept the one at 4578 and the one at 4574, 2510 seconds. I was in sync with the unannounced there. Four seconds and a little spike up, lower than forecast. Okay, so we can turn off that feed. We can turn it back on at 830. So we've had a spike up. We haven't had a grind back down. Partly the reason for my suggestion of the grind would disappeared because that liquidity was removed. The only liquidity now left below is the one at 4574. And then if we zoom back out, they've added some liquidity up here at 4685. And you can only see that they did that by doing that vertical zoom because it came in relatively recently. It came in at 814 just before that news. And remember, a lot of this is manipulated whether we like it or not. Or rather, there are people that have access to information before it is released. You can call it insider information, whatever you want to call it, but it's a fact of life in the trading space that this is not exactly a fair game and that's why mathematics is so important. Okay, and if we were to draw a horizontal line at the scene of the crime, roughly around about there. So we'll just mark that in at the 4584 level and see whether it comes back or not. I didn't really watch the NQ, but I know we can take that. That's pretty much where that was as well. So we'll just have those there. By the way, if anybody has any questions, comments or anything, especially when I start talking about stops, later feel free. Alois, good morning. I do like your surname, Santa. It is a good one. And Trout FY, oh yeah, sure. And Trout would like me to describe my common setups. Okay, I will do that one. I think I've got the wrong ES, there we go. This is the unfiltered one and the reason why I like looking at that one is because I pay more attention to these stops and icebergs in ES than I do in NQ because they're more meaningful usually. So we can now see that liquidity. We've got 554. I'm not sure why that did not appear on the other map. 4594, maybe because they've been moving it around a bit. That should have appeared. So I do watch this one more. So we will stick to this map here in ES and stick to this map here in NQ. So we've now in NQ, you can see them pushing towards this little bit of liquidity up above. I'll just turn my phone on to mute. Sorry if anybody could hear a couple of beeps. Okay, and we should draw across the scene of the crime in the unfiltered heat map. Let's have a look roughly around there, same level 4584. What we're waiting for is to see whether we're gonna get any retag of that line and then what happens when we do retest the scene of the crime. It is a crime today because there was something, there was some action. There was a crime that got committed right at 815. In other words, price moved a considerable distance away. Now we're gonna have our first retest of it. You can see in NQ, we're almost there. It's got a decent spike down. You can see that little vertical spike in ES that I've been talking about. You know, that I do say that those are often reclaimed, not necessarily immediately. That is the point. The point is you've got to stick to your setups, your trading plan, and just factor that in as information. And maybe a target, if it went down a little bit lower later, and you had a stop. And that was a multiple R target. Maybe that might prove useful then, but not right this second unless you were to take the bounce off the scene of the crime, targeting a new hire or something. Okay, whilst we're on this, I did get that question from Tratt. So what are these columns? Okay, right, well, the first thing to note is that this is a completely unfiltered heat map. There's only really one add-on that's being used on this one track. And that is the MBO stops and icebergs. So for example, this pink line here is a sell iceberg, which was only filled to the extent of 63 contracts. And the red ones are stops or MBO stops. They're not the only stops that can happen in the market. So it's just a stop that is identified by a particular order ID. I do not have any bubbles. So I have no volume bubbles, delta bubbles. And one of the reasons is, so I can see these vertical slips. And the other reason is that I have things like visual time and sales, et cetera, that I can see in Sierra. And that's why I prefer to see the price as a naked line in book map. I think one of the exceptional features in book map is that you can zoom right into the microsecond. And I like to see that price action to the microsecond without any cluttering of colored dots, et cetera. So that's why, and I also think that without those dots or the volume bars, I can see the heat map more clearly. I've normally got the heat map dimmed out as much as possible, as you can see by that slider being to the far right-hand side, but you still get quite a bit of shading. A lot of people tend to have quite a little bit more shading so you can have that by turning it up. I will occasionally mess around with that slider and see if there is more clarity in the heat map at this instant by increasing the brightness of the map. In terms of the columns, the first two columns are just levels that are pulled from me drawing rectangles in Sierra. So whenever I draw a rectangle and I give it some text, like here, YDH, yesterday's daily high, that appears within 60 seconds in the book map cloud function. So in other words, that is, that's a cloud note. That's a cloud note. In fact, both of those are there off different charts in Sierra ones. My execution chart and the other one is my TPO chart, which we will look at in a second. This column here is the delta column and all this column is, let me drag it in, is it's the volume profile but with a delta ticked and not split, okay? And this is just the numbers of this column. So these two columns are identical. One is just bars, one is numbers. And actually we're right on a demonstration of why we've got that today. So you can see here that this is a cell iceberg of so far 697, but in the delta column, you can see that there's an ask bid difference of 1158. So that is telling us that there's a potential iceberg much bigger than the 697. And that's just to give you an idea of the potential of buyers that could be trapped and that could push this down because those buyers could be used as fuel to go down. And here we have re-tagged the scene of the crime. Maybe it'll go down much further, but that's a very short distance. So in terms of the types or sizes of swings that you trade, that is entirely up to you in your trading plan, but that is the reason why we've got the numbers and the delta columns. Sometimes if you just got the delta column and you have no context of the actual numbers and you just see a big fat green bar, it doesn't give you the context. If you see 1100 there, it's gone down because it is just what's within the map from time to time. So if I zoom right out, it's gonna get less and less exactly. Sometimes if you look at the bars without the context of the numbers, you'll just think, oh, a big green bar, nothing of it. When you see 1158, you think, ah, that could be decent fuel, and that could have got you a couple of points or so, or maybe more, who knows. Then you've got the volume profile, which is the chart volume profile, which again is just what is within the chart that you can see at the moment. Are you the visual part of the chart? And the numbers are that. So if I, the numbers of the matching numbers, so if I just drag that, so the only thing that's different here is I have not ticked the delta box. And these numbers are for the volume profile. So this is for teaching purposes specifically. Actually quite like having these numbers here. So I may keep this, I might keep this exactly as it is for when I'm trading later on, probably tomorrow, probably you will watch for an hour in RTH, but I don't know if I will trade. I'll have to be quite interesting action. Last night I did trade the first hour and a half of RTH and I found some of those swings are very violent, very choppy. You had to really be quite patient and pick your moment and then go with absolute lightning speed. Anyway, where are we at? 25, we've got some more news in five minutes and we'll turn on the audio feed for that as well. That's my friends at Financial Juice and they are my friends and I do not think they mind if I mention their name and the fact that I use their feed, okay. And yes, I have paid for that product. I own a lifetime subscription to Financial Juice so that is not sponsored by them. That is me as a trader having to fork out certain expenses for things that I find useful. Okay, so we're now in a little seller and buy iceberg trap and hopefully I've answered your question trap so that you can understand why I've done it. The reason why I've done it from a high level perspective is that I'm trading Wycoff supply and demand, auction theory or overlap to such an extent that it's essentially the same thing. So it's probably best if I just call it auction theory. So I'm trading auction. Sometimes I'm trading very, very small auctions. Sometimes I'm trading larger auctions and I'm always trying to do it within the context of other timeframeed auctions. So I'm acknowledging that most of this is likely to be fractals and that I am trading one fractal within another fractal or fractals. So that is why I've set it up this way to best see the auction. For example here, the auction that has gone from this swing here up to that swing there and then back down to the scene of the crime and now holding the scene of the crime. Remember we're still in this bullish phase after, yes until we have a nice big down day it's gonna stay quite bullish. We have the Santa Raleigh coming up in mid-December. This part of the month does not tend to be so strong but so far we've been quite bullish this week and a lot of that is due to currency expectations with these interest rates, as I said. Again just doing a time check because I don't wanna miss this news in case we have another scene of the crime here. If we go across to NQ, this is a pretty much better demonstration of why we mark these scenes of the crime. So at 8.15, this news which caused more of a reaction than I imagined because it was weaker than expected probably. We had a big move up, nice spike up. Probability is that it retraced, it did retrace. On this occasion it retraced right back to the scene of the crime. They had a nice spike through and immediately bounced and now we're closer to the high after that scene of the crime and we've got some resistance in terms of this liquidity that may be holding us back a little bit but essentially just a big trading range of chop between that high and the scene of the crime as the low since then. Okay, I won't do that technique stuff until after 8.30 because I think we may as well wait around for this news and just look at the heat map until then I think a lot of you actually prefer it where I just do a lot of this live commentary and just talk about what I'm seeing. So what I'm seeing in NQ, I'm seeing this one, if I go all the way back, I'm seeing both of these as potential real liquidity because they've been there since 1800 hours yesterday. So they've been there all of the ETH session. So the likelihood is I have a view that the larger a level sticking out in NQ that stays there for a decent period of time, the more likely it is that it will get filled completely so that that's just a view that I have. I'm still statistically building up the evidence for it but on the evidence I've got so far that is a reasonable assumption. Okay, so the main we're holding the scene of the crime and we're being held back by this liquidity and we're just at the top of yesterday's range. Okay, whilst that's there and what have we got? We've got one minute. We can quickly flick into the TPO for, actually we'll keep the heat map on and we'll just have a look at the ranges. I can just drag them across. So the ranges relative volume has been strong all day and what we'll be looking at the ETH range just really bang on the average over the last 10 days. You can see NQ nice and high over 100 basically smack bang on average and again ES the same 19 or 21. So it's met our expectations. When you have large economic releases maybe these ones are those. You know, you might get a bigger range and when the average is above the 100%, there is a mathematical correlation so you might get 120% of that volume but it doesn't quite work as beautifully and simply as that. I wish it would but this is the market and the market does whatever the market wants to do. Okay, we've got 20 seconds. Let's turn on that feed. Come on. Yep, it's streaming again. So you may hear this in a few seconds. So we've got the US trade balance. They've removed that liquidity just there. Low than forecast. Low than forecast and they like that news so it's continued to go up and we've got this resting liquidity. We'll turn off the feed now. So it doesn't interfere in the feed for this stream. So it's quite nice timing when you say that this resting liquidity looks real and then it starts moving towards it. Certainly is not magic anything that I say. I never claim that I know any more than anyone else and all I do is mainly look at probabilities and that applies to both auction theory, price action and all the other stuff that I will look at like looking at things across many, many markets. I'm just trying to increase the probabilities that I understand what might be going on. Having said that, maybe it's just a spike up and they can't come all the way back down. If we look into, we zoom right into this one to see whether any of this is really a spike or it's just a nice steady channeling move up. So that looks like a steady channeling move up rather than the spike that down there looks more like a spike and they reverse that straight away. When I talk about spikes or slips or anything like that it has to be very, very obvious. If it's not obvious that it's a completely vertical move then it isn't one. There's enough nuance in all our readings as it is and all the things that we do and sometimes our trade plans can have lots of moving parts. So the fewer nuances and the fewer things saying that trading is a pure art, et cetera, the better. When you say that the discretionary side of this business is a real art versus a science, that gets dangerous. The more science that we can get into this, the better. This is a mathematical game. This is a game of chance and we have to accept that. So that 90 is coming up quite quickly in NQ. So they've added some liquidity. So it may not get through it the first time. They've added some liquidity at 87, 88. But you can see the liquidity at 90 is quite a lot bigger. Anything over 30 we take with more interest than anything under 30 and this one's got 67 and this one's got 174. That is at a round number and we normally take those with a pinch of salt but the fact that it's been there for the entire session and the fact that we've got this close, i.e. 12 or 11 points away brings that more into focus and the fact that we are in quite a strong bullish move from yesterday. So we've taken out the 90 and the next one there of any magnetic attraction is the one at 16,000 which is also a round number and they do love round numbers. And I think I may have been streaming the last time they smashed through 16,000 a couple of weeks ago. I'm wondering if I'm gonna get a repeat now and they're just gonna smash this and keep going like they did that time. Nope, they've backed off for a bit. They've backed off, so that's resistance but that's gonna be a great big flag that they're waving at market participants that they can transact in that area. So it's likely to get tested again at some stage. Again, we do not know when, but we had a first approach. I'm watching the NQ action and accommodating on that more than the ES because it's obviously moving quite a lot faster. So there's more for me. In terms of this recent liquidity and how this filter deep map does add value, you can see that this liquidity down there had to nicely as support, it got close bounced. What were we looking for if we're looking for anything at the moment, it's long. Once that's broken and there's some action to the downside, maybe we can look at some shorts, but who knows? Okay, let's go back to the TPO then. Okay, now if we zoom right out, we can see this. Time for me to draw isn't it? So does it? Then I dropped my tablet pencil. Let's see if it still works, yes it does. So effectively, if we just draw, without me merging all these profiles together like I normally do, what I'm just doing is pointing out the obvious that there was this big fat range, which is really around about there. And at the moment we are sort of breaking up from it. We've had this breakup overnight in the ETH, which is the M-shaded gray area and I'm just looking across at the next value zone, which is this here. So if it gets past this line here, it's rejected on the first approach, but if it gets past that one, then it's likely to traverse, or the probability is it'll traverse to the other side of that value zone, which would be in the M4604 zone. So it'd be interesting to see if it gets there or not. Again, we cannot predict the future, so we cannot predict whether or not we will get over this line here and into this value. We do not know that, but that's just something that is apparent from looking at where all the auctions have been recently. So we get rid of that. And then when we move across to the NQ1, oops, I've not done this with it. I might just use my mouse as well in tandem. You can see the NQ1 is a little bit weaker because we're really in the middle of this very large value zone, so if I draw that again, and I'm just drawing, oops. I'm just drawing where the most obvious value is without doing any detailed analysis of exactly where it is. I'm just saying it's obviously in there that we're in this big range, and we're now at or just above the midpoint of the range, and that if we can get back above there, then maybe we'll take out that high there. So that level, and the font is really quite small, but essentially, if we get past this naked point of control, which is up at the 16.0, 7.0 mark, probably I can't really read it, so it's really, really small. I don't really wanna put my reading glasses on just to read that. One of the joys as you've been around and you've looked at this stuff for years and years and years, you occasionally need to put on reading glasses, but I still kind of refuse. And that's just to show you that we're in that kind of range. I mean, if I did the opposite and actually did merge them, so I'll just give you an example of what happens. So if we started with a merge profile begin, and then we merge everything to the end of yesterday's RTH, you can see that we're essentially in the middle of this larger value zone within NQ, but if we're there, then you maybe we're over halfway, and we've just been filling in this little hollow tummy in the middle, and once we get past that, then we can zoom light speed ahead towards the high, but we shall see, we do not predict the future, and we do not try and predict the future. Let's reset that one. Okay. Right, what else did I want to talk about in this? I'm gonna get onto, yes, this I did actually want to have a look at as well. So one of the things we were looking at the other day was TNX. Okay, this is the, I'm not quite sure why it's not giving me the scale, but it doesn't really matter. All we need to see is a clear direction, and this interest rate down, which when this goes down, that is positive for stocks, and we're not quite a strong move down from the moment they started believing that the interest rate rises were over, and that is continuing, so that is still very, very bullish at the moment. If you follow this, maybe, you know, if you're following that part of the macro, maybe the list chart is one to watch on a daily basis going forward, and you just keep an eye on that one in case there is a strong reversal. But at the moment, there isn't, okay? Let's quickly go back to NQ, filtered map, just checking the questions. Yeah, Trout, you've got another question. I'm also checking, no, nothing in Discord. So seeing if we've got some people. Yeah, we have got some people long today. It's always nice to have some people so that I'm not talking to completely empty space. Trout, what can I do for you? Oh, you just commented, it's a clean setup. Okay, yeah, no, the idea, Trout, I say this now and again. I've been through a lot of indicators. I've coded a lot of indicators. I've had charts with lots and lots of funny lines all over them. The maths is the most important part of this game, right? If we focus too much on pretty pictures and bubbles and lines and things like that, we can get distracted from the maths to the extent that we are doing this on a discretionary basis and we're trying to see things from our charts and from our heat maps, we want to make them as clean as possible. If you've got too many things on there, your brain and your eyes are gonna get distracted and you'll get distracted onto things that may not be the core of what your trading is all about, right? And this happens to all of us, especially every time we add something or take something away from our charts. Okay, now we are down to 20 minutes and I did want to have a technique chat about something and I have a screenshot which, let's just leave ES visible and we'll just zoom in and we know that NQ wants to get back up there eventually and it needs some fuel, but the problem is that at the moment, all this delta is pretty bullish. So you kind of wonder, they've got some red delta there and try it, you haven't seen these before with these delta tails. At the end of a down move, you want some nice big red delta tail and that's basically red for lots and lots of price levels and a decent number in the delta column to give you the fuel to go up. That's why I've got that delta column in there, but the moment it's pretty green. So you want some red eye about now to give them some more fuel to go up. Otherwise they may exhaust and then have to come back down here, for example, down to here to refuel and then go up or they may wait until RTH. Anyway, that's that. So there is a screenshot there. All right, why have I got that one there and what exactly is it? Okay, as people are aware that have been on this channel with me in the last couple of months, my own trading philosophy is that I take equal dollar bets, right? And if I go onto this blank page so it's the same risk dollars for each and every trade unless there is a huge reason for an exception, right? And when you may have reasons why you deviate but the rule has to be 1995% of the time it's exactly the same one R on each and every trade, right? Especially until you have mastered particular setups and they have a statistical edge with a multiple R edge. You might wanna throw a couple more R's in terms of equal dollar bets at them but otherwise you cannot predict the future. So why do you wanna say bet four R on this one and one R on that one and 0.5 R on that one? You're implying that if you don't have equal dollar risk bets that you do know the future and that you are Nostradamus. And I don't think any of us are Nostradamus. Meanwhile, there's a nice little iceberg forming in ES. So I'm just watching that one. So that is the fundamental tenet of the way that I approach risk, okay? I do not know the future and I'd rather put on an equal dollar bet. It helps in the sense that mentally easier to accept same loss each time so you become more emotionally immune. And I'll say that with a big caveat, well, you're never emotionally immune. Your emotions are always part of this but the point is that say you take 20 trades in a day just theoretically, right? And you know that your win rate to get you the positive expectancy from a long-term set of trades that you need for your trading plan to work is something like 60% or 55%. Something as low as that because as long as you have multiple odds on a few of them, that's all you need. That means that of those 20 trades, you're gonna lose seven, eight, nine of them. So you have to try and get immune because the maths are not gonna work if you widen your stops and you take a loss that is much, much bigger than your equal dollar bet, your one-hour bet. In that scenario, you are digging yourself a hole and it affects both what you have to achieve in terms of your winners and your ability or your willingness to let trades run their due course both in terms of achieving the expected targets that you had or just not losing or giving your trades a chance. You know, in other words, taking small losses and small wins rather than equal dollar bets and letting them play out. So that's why it's so important. You know, why do you have a win percentage? It's so that you accept the mathematics of your trading business. Anyway, let's get back to this. So what is this? Okay, this can be any timeframe. I think this one was actually taken off my 10-second chart and I often have 10 seconds in the European session. This is NQ, right? These are just high-low bars. The reason I've got them is exactly the same reason why we can see them in bookmaps. So you can see that those vertical slips easier. And because I don't actually care about candles or where a bar actually closed, they are colored so that the red ones do actually have a close low than the open and the blue ones vice versa. And the numbers are simply some form of zigzag rotation. This one I didn't code, but I'm just using this one because it's essentially it's got a minimum of two bars and when I change from 10 seconds to five seconds or to 20 seconds or 30 seconds, it works. It works every time. And essentially it's showing me a rotation that is longer than two bars until you get a reversal. So why have I got this here and what does this have to do with our stops? Okay, time for me to draw again if I can remember where I put my pencil. Okay. One of the things that I've said and here, let's draw it. We've got a swing high. It's not the best horizontal line in the world. One of the things I've said is that you've got, you've got X and you've got a Y, right? If you look back on my first webinars on this channel when I was talking about supply and demand, right? And supply and demand, I'm saying that X is essentially a category A or B type trade and Y is a category C which is a spring upthrust, breakout failure, swing failure pattern, whatever you want to call it. So what I'm trying to say is that those locations which are near this swing high are really good entry locations rather than necessarily stop locations. So if I get rid of all that for a second, come on. All right, and we'll go back to the pencil. So I'm saying, good entry zone potentially, right? Excuse my handwriting. So why do I want to have a stop just there? If I know this is a good entry zone, why do I want to have my stop just above this, right? And you'll see that a lot that people have. You have your stop just above the swing or a few ticks above the swing or a little leeway above your swing. I'm saying two things. One, this is a good entry zone based on the trading planner and the types of trades that I look for and how I use Bookmap. So this can be really, really useful as an entry zone, not an exit zone necessarily. And secondly, and as equally importantly, I cannot predict the future, right? So if I place my stop just there, right? I'm almost saying to myself, I can predict the future, right? And I can't, right? What can I say? I can say that I might be good, you know, I might be having a good day at reading structure, auctions, big auctions, little auctions, order flow, et cetera. So I might get in at a good part of a swing, you know? And we've got big swings, little swings here. So you've got, let me just get rid of that because that's gonna distract us. So you've got a big swing, for example. You know, you could say that is a swing. I think I need a different color. So excuse me, let me just get a different color. Let's go greener. So we could say that that was a swing there. You could also say that right down there was a swing, right? So you could say that was a swing, that's a swing. You could also say this little one here is a swing, all right? Okay, and I'm now gonna allude to an old webinar from Future Straight at 71, where he was talking about rotations, stops, et cetera, because if you can dig that one out on the internet, he spends a whole hour, maybe 90 minutes talking about this, I think it's completely free. Maybe on YouTube, maybe on the old futures.io on that forum kind of on their YouTube channel. I think they've changed their name now. But basically, these are all forms of rotation. And I think my handwriting is dreadful, so I may actually use the text thing, ah-ha, there we go. And let's just go down a size. So let me just type here. So you've got large rotations, medium and small, all right? You might say that, I'm just gonna check the time as well, because I may run out of time. I'm conscious that I'm doing this a little bit slowly, but it's probably worth doing it slowly so I can get the point across. That you are okay, you are trading these big, you're trading these big moves, or that you're trading these little moves. But let's just assume that you're trading these big moves, right? And that your aim, say you magically got in this zone here and you're targeting, maybe there's some liquidity up here, or whatever other reason you're bullish, talking about which I think NASDAQ has just, whoops, just having a look. If it's gone through, yes, it's just gone through that liquidity. Let's just go across to it there. Where's it gone? Yes, so it's just taken out their liquidity. I'll leave those markers on there because we're gonna go back to the rotations chart in a second. Okay. So you've got large rotations, medium rotations and small rotations, right? So if you're going to use a rotation as part of the rationale or basis of your stop size, and what I am doing at the moment in my current thinking is yes, I am doing that, but I'm gonna explain how I'm doing that in my six minutes left, right? You can take a very aggressive approach and say that the average rotation size might be from here to there and that because you're such a good trader, you can cope with half of that average rotation size. That's a very, very aggressive approach, where you take a more conservative approach saying that this is your average rotation and to work out your average rotations, you can take a sub-session like this. If you use something like InvestorRT, it's got built-in statistics on rotations. That's wonderful. It's very expensive and I don't use it. Or you can export your data, like you can export your data from Sierra and shove it into Python and you'll get your average rotations that size that way and they've got a built-in zigzag chart so you can just use that to export the data and that's very, very easy. There are two or three lines of code that you need to write in a Python Jupyter Notebook to get that, so you can do that, right? And say that I'll use the whole rotation as the basis for my stop because I'm pretty convinced that I'm not going to be taken out by the whole rotation. Or you can take a very conservative approach. If you take a very conservative approach, the downside is that it is much, much harder. You've got a much bigger stock, so much harder to get your 2R, 3R or 4R. That's your multiple 2R, 3R and 4R. And that is what you're really after. You're in a game fraught with risk but you want the mathematics to work for you. So you've got to find some balance if you are going to use these rotations as your stops to work out how you're going to use them so that you're giving yourself the best chance both to make sure you don't just get wicked out by every micro swing. And secondly, that you are at least giving yourself a chance of getting 2 or 3 or maybe 4R on a good trade entry. And that's the basis that I use them. So I've written a code, my current iteration of this code in Sierra, and remember, I'm not here trying to sell you anything, because I don't sell anything. So it takes, you know, I've got a button on my keyboard, so I press it, it asks me for a number. So I'll analyze what these rotations are like, for example, I'll say, here it might have been that 35 was the average rotation size, and I'll say I'll take a 35 as my stop size because I believe that I can get two rotations worth to my target. For example, say you got in here and this was your target, right? You've also got to notice with these rotations as well, it's not one rotation that gets you to that target. Here, say if you got in here, you've got a rotation up, then a rotation down, then a rotation up, then a rotation down. And then a huge rotation up, then a rotation down, then a rotation up. So in effect, you've got like one, two, you could say four rotations up and three rotations down that get you to that target. And, you know, there's absolutely nothing stopping you moving your stops as things work in your favor. And it's recommended because your R calculation is a live calculation throughout the life of your trade. Time checked, 8.55, just seeing if we've got any questions on that. Yeah, so essentially, yeah, so my code takes the number that I've accepted as either the aggressive or the conservative or the average rotation or part of a rotation size based on, you know, I can see the live rotational analysis and why I use the live one is because every market session is different. Why do I use the relative volume? Because it helps to, you know, discover or deduce the level of volatility that is likely to take place in this sub-session. And I have lots of sub-sessions that I look at and I try and delineate between them. They have lots of different types of volatility. So, you know, that's why I like these live rotation sizes to give me a best indication because, you know, this is maths, but this is also discretionary because you're deciding where that stop level is, but you're accepting that you don't know what the market is going to do next. You cannot predict the future. And then, yeah, that pumps in the stop size, which then calculates, you know, the number of contracts that I can trade. That's done all automatically so that when I press a limit or a market order, it's that number of contracts that are traded. And, yeah, so all I'm entering is a number based on this average stop rotation size, or the average rotation size, which is a live number. Anyway, that was my two cents on just rotation and how I use them. And you'll find it's quite similar to what Future Trader 71 was talking about except that he does his on, you know, he'll take three months of rotations. I think we live in a market environment which changes so much even during the course of a single ETH session. That's why I have these sub-sessions that I can't do that personally. And that's why I have to look at these live rotations. It also, you know, when I see what they are, it helps my mind, my mental side of me, except, you know, if I've gone past that rotation either I was completely wrong or my ability to execute was pretty poor. And, you know, in those circumstances, you know, my stop should be hit and I accept that. All right, let me just get rid of all of that. So we're continuing to go up. So smash through that liquidity, pull back a little bit, and grinding higher. So the theme remains bullish. You know, you've got this liquidity here around this scene of the crime and it may well get re-tagged later, but, you know, but we can't assume that it will. You know, it's just there. The auction is up. You can look at all these little micro swing lows on ES there. You can look at them also on NQ. You know, they'll have these little swing failures where they just take out the previous one by a couple of ticks and then they continue. That was nice to pull back there and then on they go, but they're clearly exploring upwards at the moment and there's a macro reason behind it. So, and we have to respect that. But we then take into account, you know, all this other macro stuff and also all the transactions that are taking place in correlated stuff and in other symbols that affect this, you know, in the large ETFs that also invest in the same stocks these futures do in the option space, etc. Yeah, but it will be interesting to see what happens when we get to RTH. So let's have another look up at the levels. So they're painting quite a few levels in ES and some of them are not smack bang on these round numbers, like that 100, usually a round number of orders, that's 1605250, then they've got 9250 and then that one is a round number. Yeah. I can add to my statistic, you know, when you have a very large number and it rests for hours, increased likelihood of it being taken out for us during our hours, so it always helps to see that live and to see a statistic like that actually play out. And let's have a look across at ES. They've just added a few of these liquidities. You can see when they came in, it was after the 830 news and then this liquidity around the scene of the crime from the 815 news was put in after 830 as well. Yeah. So yeah, the other thing about liquidity and well worth saying is they can change that at any time. They can add these levels. You know, these levels were invisible before 830 came along and so you don't know, you think, oh well, there's a fallacy at looking at some of this stuff. It can act as resistance but there is nothing stopping them because you can't predict the future for price to go through that and then they provide more liquidity above. Remember, a lot of these people are market makers to explore upwards. They'll provide more liquidity upwards and just because you can't see liquidity up above at 829 does not mean it won't suddenly appear at 831. It often does. So yeah, that's the last thing I'll say. I think I've run over my time by half a minute or so. So again, thank you very much for watching and paying attention during our techniques session. I hope that was some use or information or an assignment. Anyway, thank you very much for coming.