 Welcome traders to today's session where we are going to be discussing the impact of the geopolitical events on futures markets and we're also going to be looking at how we can utilize a unique trading tool provided by Bookmap to better inform our trading decisions. So once again welcome to the presentation just going to give it another 10 or 15 seconds here to allow people to log on. So my name is Patrick Munley, I've been trading for over 15 years, I'm a money manager and mentor, I'm also a resident market expert providing exclusive market and trading analysis to Ticknell clients. I also run the Ticknell futures trading strategy group. Today I'll be acting as your host for this event so feel free to message me any questions you may have regarding the topics being discussed you can pop those into the chat at the end of the session. We are going to open up a Q&A where we will cover off all the questions that you have. So once again I do encourage you to just drop the questions into the chat box and I'll be moderating that. Today industry veteran and trading legend Dan Granzer is going to be presenting and walking you through his perspective on the developing implications of the current geopolitical landscape and specifically the ongoing Ukraine crisis. He will also introduce you to his unique behavioural Japanese candlestick analysis for the futures markets. He's then going to pass the baton on to Bruce Pringle. Bruce is a professional trader with over 10 years of experience and he is also the chief education officer for bookmark. Bookmark is a unique trading platform that provides traders with a visual presentation of order flow and market liquidity. These tools like I say are designed to help support and help traders really make better trading decisions by understanding the depth of equity in the market. The purpose of today's session is really to provide you with some actionable analysis. Our intention today is to work from the macro to the micro discussing potential trading opportunities and at the end of the presentation like I say we will open up a forum for Q&A and finally we'll wrap up the session today with a very generous offer from Tick Mill and I will explain how you can get complimentary six month access to the bookmark platform at the end of the session. So let me pass you over to Dan and we should be able to see his screen. I just want to make sure that everyone can do that. So if you can see Dan's screen and if you can just type into the chat box a why that would be very helpful. One second I just need to open the chat box up there we go. So if you can type a why in the chat box if you can see Dan's screen thank you very much. Dan I'll pass it over to you. Great thank you Patrick hello everyone great to be with you. What an exciting time in the markets we have a lot to talk about today so let's get started. What I'm sharing with you today I just want to let you know is general information it's you know Tick Mill I'm not affiliated with Tick Mill they're CME group they're not endorsing anything I'm going to share with you these are ideas that I found helpful and I hope you do too. As Patrick said my background it comes from the trading floors here in Chicago that's where my ideas and concepts kind of get formulated and it's through a word of mouth network I have to tell you I've had the chance to work with over 400 and some different exchanges I mean institutions around the globe typically I would circle the globe a couple times a year but over the last couple years with the pandemic I have it but what's interesting about it is what it does show me about how markets are reacted to by different institutions and different parts of the world their attitude towards risk can be different but you know also the commonality that we all face as someone who exposes capital to risk to risk in the market but to again to give you a quick idea I'm going to go over some of the economic issues we're going to talk about behavioral candles I got some live markets for us to take a look at and then Bruce is going to take us through the exciting world of book map so let's get started now when it comes to crude oil about 100 countries produce crude oil in 2025 countries produce 50% of the total world production United States Russia Saudi Arabia Iraq and Canada now the top three United States Russian Saudi Arabia are the only ones that can produce in double digits so in other words produce more than 10 million barrels a day the United States in that 2019 was close to 13 million barrels a day Russia right now I think is around 10 million and so is Saudi Arabia Saudi Arabia does have some room to the upside but we get conflicting results on this in terms of capacity but we talk more about that later globally the world consumes about 100 million barrels a day if you can think about all the production the world does I think of going into one gigantic barrel and out of that gigantic barrel of oil the United States consumes about 19 to 20 million barrels per day that's been typical for the last few years for this for that country for our country here US produces about 10 to 13 million barrels per day so we do import well where does that come from well if you look at the top eight in terms of where we buy crude oil I want you to focus really on the top two here for a minute Canada and Mexico our friends in Canada we do more with them than any other country by far you know 56 percent here is what it's showing oftentimes it's over 60 percent they have tar sands that they have a little trouble refining because it's not easy to refine the United States has the capabilities of refining that so that comes down to us so we do buy that crude oil from them Mexico has heavy sour crude and it's also difficult to refine we have refining capabilities in the Gulf Coast to take care of that so what we'll do is we'll buy that how heavy sour crude refine it and sell product back to them we can also sell those countries light sweet crude which they can also process so that's that relationship by the way we a lot of people think we get most of our crude oil from other countries these are the primary ones but let's take a look at Russia you know 1.7 percent of our imports and it's obviously changing right now is our relationship with them has changed because of their invasion of Ukraine let's talk about export though now remember Canada and Mexico check this out the five destinations that we send crude oil to well Mexico and Canada not surprising based upon the types of crudes that we're talking about in the relationship we have with those countries but here's what else it means it means that for us to buy that crude oil from Canada we need Canadian dollars and for us to buy Mexican crude well we need pesos so this also has an international relationship when it comes to currencies you and I'll see that when you start talking about markets but let's go back to crude the world's most actively traded commodity the nine mix division it by the way that's a part of the CME group they the contract specs it's a light sweet crude oil futures contract it's the world's most liquid form for crude oil trading the world's largest volume futures contract trading on a futures on a physical commodity contract used as an international pricing benchmark light sweet crude refee are preferred by refiners and here's why because if it's light it has low paraffin if it's sweet it has low sulfur if you have heavy sour as we were talking about from Mexico it takes extra steps because you have a lot more paraffin and you have a lot more sulfur so you get higher yields if you have light sweet crude so gasoline diesel fuel heating oil your yields are higher if you have a light sweet crude and that's preferred by many refiners but light sweet crude refiners cannot necessarily refine heavy sour crude because of extra steps that's in the process that they may not be set up for here's just one thing I do want to mention to you about this particular product you may have already seen it but it's a micro crude oil contract and it started trading this year just a few months ago micro means it's one tenth the size of the full size contract it means that your margin requirement for this market could be a few hundred dollars not a few thousand dollars so your capital requirement goes down your exposure per tick goes down but here's what fascinates me and what you're looking at in the micro in the other full size contract this is not an issue because it is a globally traded market but here's what fascinates me it's this just a couple months later they are trading almost 20 now they're over 20 million contracts and 40 percent of the volume comes from outside the united states that is a comfort that means if i'm working in order at night when i'm sleeping there's somebody else out there trading it so for us for any of us no matter what time zone you're in there is somebody out there also looking at this market so liquidity comes into play now let's talk about russia the invasion of ukraine the economic impact the eu market for fossil fuel supplies most of moscow's foreign income or at least it did crude oil at 70 a barrel just for your reference made russia 120 billion dollars and we're trading above that right now so it is a key source of revenue for them oil to much of europe is being cut as you know crude is instead flowing to asia where india has become the top buyer followed by china moscow was selling crude at deep discounts at 30 to 35 dollars a barrel so if you're india you got 1.4 billion people to take care of you can buy crude oil at that discount you have an existing relationship already so for that to expand not surprising here's an example of that expansion india imported 12 million barrels of russian oil in 21 this year so far 60 million barrels so they increased by five times just this year in terms of their input so is russia losing income stream to europe yes is it changing yes so we're seeing an example of that kind of behavior india is a refining hub they can send out refined products with strong margin now their profitability goes up in may some 30 russian crude tankers went to india unloading 430 000 barrels per day versus 60 000 barrels per day in just january and march of this year so we're seeing dramatic changes there sherlock i bought 99 000 ton shipment from russian crude and they only have one refinery to get that thing going turkey is another key destination for russian crude uh and there's some pipelines here we're going to take a look at chinese state india and independent refiners they've also stepped up their purchases from russia in 2021 china was the largest single buyer of russian oil taking 1.6 million barrels per day on average equally divided between pipeline and seabor and routes now let's talk about that gas that's another major issues so who does russia export gas to well the primary customer in europe is germany then you can see here we got out idly belarus turkey netherlands hungry hungry push back on making any changes to that gas from russia because it is critical for their economy that attitudes change a little bit organs kind of rethought that i think but so this is where it typically flowed and you know just a couple years ago that is changing and what what is that economic impact what has it done and if anybody here is in europe uh one of the things you've seen is the increase in prices or maybe not seen but felt what we were paying six dollars for five dollars for they were paying at that point in time and this year now over 60 dollars 10 times more and right now where we are you know that's four times we're around six dollars seven dollars was we're going to see they're paying over 40 and asia is right up there with them so it's really had a tremendous impact on the cost of not well a whole variety of things and we're going to talk about what that is one of them is right here it's electricity look at these charts you see vertical moves in each one of these for germany france idly the cost of electricity is taken off so many countries switched to net gas because it burns 60 percent cleaner than coal the prices were cheap and it was an economical thing to do in the united states we produce more electricity with natural gas than we do with coal now and let's talk about how they move it because natural gas isn't something that's easy to move crude oil is far easier you know it is a gas so to get it in a liquid form you got to squeeze it you got to put it under pressure to slow down the molecules and then they get it very cold and it transforms into a liquid the things that you hear so much about i just want to point out two things to you so that when you hear about them you're getting an idea of what they're referring to and that's right up here Nord Stream 2 we heard so much about that they completed it from Russia to germany but it was not accepted by germany so that's empty and here's Nord Stream 1 that tan line that one was shut down on monday for 10 days of maintenance a lot of people are concerned are they going to turn it back on remember though for them to leave it off that didn't come to them as well and so i don't know how aggressive they're going to be on that but we'll see all right now let's talk about we russia is the world's largest exporter of wheat united states number two canada france is the largest exporter or producer of wheat uh in europe and then we see the ukraine this is also a critical area russia is the world's largest exporter with more than 18 percent of global exports ukraine and russia together 30 countries at risk are egypt more than 70 percent of egypt's imported wheat you know comes from this region and remember the arab spring well that started with the price of a loaf of our flatbread actually so it is a big deal it's a politically it's a very big deal and for the people who live there india indonesia turkey they rely on the ukraine and russia wheat to make flatbread nat gas and tourism about 50 percent of the grain for the world food program buys buys to feed 125 million people worldwide comes from ukraine 78 percent of turkeys imports come from russia 9 percent from ukraine and wheat is used in turkeys food industry processed food is a major turkish export uh sanctions imposed on russia means harvested and stored wheat isn't being bought that's changing but for ukraine wheat harvested and stored from last season it won't be shipped or what they're trying to do is come up with some other alternatives the seaports have been closed and farmers in some areas that they have carry over from last year and they're looking at ports on the danube to export it but here's the challenge if some of those farmers the cost for export for transportation is huge so that means when they sell that wheat they're going to be at a loss but yet they're forced to sell it because they need some income so it's a very tricky situation it's happening there what happens to that winter wheat that's currently in the ground that was planted in the autumn and it should be harvested in this past spring was it ukraine let's talk about another market 16 percent of global corn exports ukraine supplies 60 of the corn to the eu if you look at this chart of different countries the green line is production this is all based on percent all right so the green line shows percentage of world production of corn and united states is one of the larger producers as you can see there and if you look at it see china is really a biggie too but you don't see any export the blue line represents percentage of export china consumes it all they don't export it but look at brazil look at argentina and look at our friends in ukraine those four countries are critical for global supply when it comes to corn the most common use of that corn is for animal feed so it's for protein production is where that comes into play now let's do this let's talk about another critical area before we finish up here russia is a major exporter potash aluminum ammonia urea and other soil nutrients disrupted shipments of key fertilizer has a global impact russia and belarus account for more than 40 of the global exports of potash last year one of the three critical nutrients to boost crop yields russia accounted for key types of fertilizer 22 of global exports of ammonia 14 of urea 14 of map brazil the world's biggest soybean exporter but they need imported fertilizers and when you think about it russia and belarus were the source of 50 of those shipments so some people are saying okay there's problems in europe no problem farmers who just plant more well do i plant more if i can't fertilizer and i can't get my return on that extra investment that's what's being faced ukraine and russia supply 75 of the global sunflower oil that represents 10 of all cooking oil indonesia the world's largest palm oil exporter i'll show you in a minute how these come into play but they were planning on banning exports then they took the ban off indonesia accounts for half of the world's supply of palm oil the most widely used vegetable oil it's used for cooking and production of all kinds of products palm oil is competing with soybean oil prices i'll show you that in a bit the ban was designed to bring down domestic palm oil prices because they're trying to deal with inflation but they've opened the door a bit and we'll see the result of that when i show you that but crops like sunflower and corn they're planted in the spring but who's going to plant them in the ukraine if you look at the south region of ukraine and the western region there are some farmers out there they're also farming around big craters in their fields from russian ammunitions but if you look at this who's going to do it you got the draft going on you got mined farms the invasion itself shorties of a fuel and fertilizer so it's uh and transportation challenges and we haven't felt the impact economically of this yet of these areas you know russia second largest supplier of platinum uh ukraine supplies more than 90 of a semiconductor grade neon gas used in lasers in the us semiconductor chip manufacturing we think we had a problem before with semiconductor chips and not be able to get cars produced and other items well we haven't totally felt this either russia supplies 35 of the platinum also for chips large impact on the european car manufacturing volkswagen bmw closed assembly lines in germany because there's a shortage of wiring harnesses harnesses that are manufactured in ukraine tire manufacturer michelin also announced that it's going to close european uh plants because of the logistics of this invasion last thing i want to show you here look at look at the this breakdown of items that come into play here and you look at palladium and platinum those are used to produce uh catalytic converters so where's that going to be coming from we can start feeling the pinch in that regard and we've talked about these other areas but i want to point that out that i think the impact economic impact as we get through harvest as we still have to deal with these transportation logistics we're going to see continuing impacting the market and let's do this let's let's look well let's do let's finish this i guess i'm going to tell you something about where does russia fit in it's 11th the largest economy in the world it's 1.7 percent of the global economy its gdp is around 1.5 trillion slightly smaller than the state of texas ukraine's economy is about the size of nevada's economy and it's 33rd in the united states prior to the invasion of ukraine total value of the russian stock market which was really coming back 251 billion dollars and that's about equal to the market cap of pepsico and 2020 36.5 of all russian imports and 37.9 of exports were with the eu so it's not just crude oil and that gas that we're going to see an impact when it comes to this i just want to show you quickly a tool that we're going to be looking at today many of you are probably familiar with candle charts this is a something i saw in tokyo teaching a course for bank of america in the dealing room there was a fellow drawing these candle charts i was there to teach a different technique but my point is what i want to show you is it went went through my mind as a market maker thinks about market and there they draw a box between the open and the closes the closes above the open that box called the body i have it as green traditional color is red that i consider it buying on the other side when the box closes below the open i think it represents selling when the highs and lows don't match the top and bottom of the candle you see a vertical line on the highs i think it represents sellers it's called a shadow and on the downside i think it represents buyers coming into the market now the sizes of the bodies represent commitment momentum the size of the shadows give us an idea of market acceptance or rejection now let's take those ideas and i oh i just want to tell you i have a website dangrams.com you can click on the button here start here it's a video that's a trading floor behind me in chicago and it just talks about what you'll see in the video then you can click on free market studies learn more get started and there's a click on free registration some basic information you're not going to hear from me unless you sign up for a daily email that will tell you when the video is produced it's done every day the markets are open and you can go back seven years or so and look at previous videos and mentioning this because if you've never traded futures this may be something to consider if you've traded only stock indices maybe you want to look at something else so let's do this i have one more thing here and let's pull up some markets now these red and green lines are buy and sell levels from my point of view these are not trade recommendations but it's just to give you a reference of what someone's thinking about and what you can do for example the dashed lines are that's a previous trade so if you went back to let's say july 1st looked down here at the bottom it says july 1st if you went back to that video for that date then you would see this being set up and the red line here it would be a sell level uh the dollar difference here if you're not familiar with this market is a thousand dollars a contract and the next buy level here is at 38 60 now today because of the price action we're seeing you know we had ppi coming out we had a few things that markets kind of nervous about but we're also seeing buyers coming back in we're seeing a bounce and the issue is if we finish like this this green line that you see here that's going to be lowered because how do people want to go into the weekend that's going to be the issue also over here in the nasdaq market from this previous buy level to that sell level just to give you a reference here that difference is um what is it it's a four thousand dollars down here in the dow that difference there was 650 dollars and over in our friend the rustle those small to mid cap companies this difference between the buy and sell level is 900 dollars that doesn't mean much it just wanted to give you a feel for what those represent let's look at the next one quickly these are the currencies interesting where the euro is uh we were talking about that before we started today you know we've been below par before back in uh two early 2000 we were around 83 cents or something in that range um so we have gone below that to below parity if it finishes like this i'm going to look for an update on friday as we go into the end but fundamentally as anything change no there's enough uncertainty the dollar is stronger so when you have the dollar this strong that means these currencies you would expect weak the us dollar strong commodity prices down that would be expected now here's a swissie uh the difference between that sell level to that buy level which happened yesterday it traded above that uh that was uh two thousand six hundred and twenty five dollars a contract and uh a couple others just to tell you about well let's talk about british pound also continues weak in that market this dollar difference in that market was uh 812 dollars and 50 cents uh but you can see they've all broken to the downside they're still maintaining that selling pressure you know the canadian dollar and our friends over here in the ozzy dollar are two interesting markets because they're resource-based economies and we're seeing a little bit of buying coming back in it'll be interesting to see how we finish out this week bitcoin as you're probably aware has been a little soft over the last few months again you could go back to june 13th or so or 12th and you could see what was going on here with that red line that sell level in a couple days ago it traded above its buy level the dollar difference in that market was 37 thousand dollars a contract and you can see here i want to point out to you though this is a buy it failed but you notice the shadow on top it backed off so that one didn't cooperate and right now it's trading above its next buy level so and here's our sell level there but instead of doing that i want to get through a couple others here quickly because i want to get this over to bruce he's got a lot to share with you today uh these are interest rate markets you know the the 10-year notes that you see here uh the dollar difference here between the buy and the sell level again just to give you a reference was two thousand five hundred and sixty two dollars and fifty cents and the difference here between this sell level and this buy level was three hundred and seventy five dollars it were in the bond market this market gave us that rally here's the buy level there's your sell level in that market and that was a two thousand six hundred and twenty five dollars a contract i'm looking for weakness in these markets so for friday's action i want to see down days if you look at yesterday's video i said i was looking for inside type days we have that now ideally for a close for this week you'd want to see it down the reason for that is that when money what we're seeing here what i'm showing you is how capital shifts between different sectors so when it comes out of the stock market it goes someplace one of the places it goes is interest rates and that's what we're seeing here now also metals well let's talk about that what is going on here with gold times of uncertainty yeah uh high inflation yeah those are motivators for this market gold or precious metals are what i consider an excuse market and right now the us dollar very strong we're seeing the impact here so from that previous sell level this is still in a bearish condition over here in silver though it traded above its bullish level uh that dollar value there in that market was eight thousand three hundred and fifty dollars a contract over here in copper i'm looking for a potential up move here but not as long as the doubt and uncertainty in the globe uh stays where it is right now china consumes 48 percent of global production watch china uh and oh the dollar difference here between that bearish and bullish levels those dash lines uh in that market that was eight thousand no it wasn't six thousand five hundred dollars a contract again just to give you a reference but let's i got two things to talk about and we're going to stop here crude oil and we've been talking about that what's going on with it well we're bouncy we're below a hundred dollars i have to tell you i think 105 to 95 is fair value in this market so even though we're finding buyers do we have a reason to rally at this point i don't think we do uh the dollar value difference here between that bearish to bullish level here was five thousand dollars a contract just to give you that as a reference that gas firming up this is a market you look for it to be explosive uh this action we're seeing today is not even though it's a green candle i'm looking for an inside to lower if indeed we finish this way so this red line today that's going to be moved higher the dollar value here in this market was three between the buy and sell was three thousand five hundred dollars over here in beans uh that difference between that sell to buy levels in that market uh was five thousand dollars a contract this is a market that i do look for further movement to the upside there's more room there same thing in corn this dollar difference in that market was three thousand one hundred and fifty dollars a contract a follow through to the upside is what i'm looking for there and for our friend mr wheat from that bearish to bullish level in that market that was twelve thousand dollars a contract uh but right now even though they're selling the rally that's what those shadows tell us on the floor you'd see the broker selling into that not buying it but if we trade above eight fifty you want to see it closing around eight ninety so that's a few things going on in the marketplace you know i mentioned to you about uh soybean oil and soy uh and palm oil here's what's going on and you can see that this is a result of what we're seeing in russia and ukraine and when when indonesia said you know something we're not going to export palm oil look how the market reacted and then when they said yeah we'll let some of it go we see some volatility uh in these markets well those are a few ideas i hope you find helpful and bruce i'm going to turn this over to you to have you share with us the interesting things that's going on with book map and i'm going to stop sharing here so we can get back to this and turn it over to you okay great so thank you dan uh really interesting uh presentation there on the uh on the fundamental outlook here uh and uh and thank you patrick for hosting this event and the opportunity to uh to present here um so uh looking at book map here can everyone see my screen yeah yes i can say okay great and uh let's see um all right well first off uh you know for a lot of traders when uh they look at book map here uh they're very confused uh and there's a lot of information on the chart here uh it makes sense uh i understand that uh that it looks very uh complex it's actually not complex it's quite the opposite i'm just going to give a quick overview so uh everybody understands what they're looking at here uh we don't have time to to dig in too deep here because i want to go through some of the markets that dan was covering and then take a look at what's inside the candles uh to see not only the transactions and the market structure but to also see the liquidity where are they buying and selling uh for example we'll come back and revisit this but look at the parity here uh in the euro dollar uh right down at one dollar tons of liquidity uh and uh and it starts to trade into it but look at you can even see more in the heat map and we'll go over it in just a minute uh but they're adding more contracts here there's more buyers here uh so understanding this information uh where the buyers are lined up to deal that gives you a lot of insight uh to where price might go next uh so anyway let's uh yeah let's let's start maybe with the euro dollar that's fine uh we'll uh go over what you're looking at here now in the sub chart here we have um the uh stops in icebergs that actually we can access uh it's an add-on so i'm gonna i'm gonna close that up actually for right now uh and then we're going to look at um just these three elements on the chart uh that uh book map is displaying there's only three uh and uh very very simple and straightforward data here in fact a candlestick chart with a few indicators is more complex in theory than what you're looking at here in book map uh so let's take the heat map off to begin with uh and now we're just looking at two elements plus the candles uh and in fact let's take the candles off uh now we're just looking at the transactions with the red dot is a market sell order uh green dot is a market buy order this is the aggressor uh volume that you're looking at uh the um uh size of the dot and the color give you uh insight to how much traded uh in a graphical representation here bigger dot is more sell transactions uh and smaller is uh less uh transactions so less buys here more buys down here at the bottom uh and then yeah so let's uh take off the volume dots and now we're just looking at one very simple uh element it's just best didn't offer uh that alone uh will give you some insight here uh some really nice stuff just looking at best didn't offer here uh look at the breakdown here and look at the breakout here right at the same area uh and seems to be accepting above it so just understanding market structure uh via uh best didn't offer uh so uh is giving you all of the price action so a candlestick uh it does not give you all the price action it it gives you aggregated data within a period uh and then dan uh is expertly reading the uh these periods here and putting together uh where price might go based on uh reading these candlesticks and understanding uh the context here uh of the of the market action so um the the the details though like this drop consolidation and then it dropped again and it kind of slowed down as it dropped down here uh and then as dan was uh uh pointing out the wick okay this is buying pressure well let's take a look and add a second element on here which is the volume the transactions from the aggressor okay so sellers on the way down it's quite a bit of buying here uh at the very very bottom uh and then you can see not not a whole lot on the way back up we get sellers come in for another uh barrage lower here uh some back and forth in here but mostly buying and we get buyers back up here and then at the top here at this swing we're getting more buyers so looking forward to come back up and test into these areas here just by looking at best didn't offer and uh and the volume uh and then we can see the the breakout above that area here there's going to be a lot of stops triggered above that area as well so anyway just two elements here and then the third element though is the heat map this is going to show you the other side of the trade who's on the other side it's from the order book so if we look at the current market right here everything to the right of the vertical white line here uh is current best been offered last traded volume our price ladder and the ceo b column stands for current order book so what you're looking at here uh is the amount of contracts these are limit sell orders above the market and limit buy orders down below you have the numerical values and a histogram in here if we zoom in a little bit i'll show you uh and so you can see the liquidity this this is the auction here right now uh and we can see that they're always adding and pulling liquidity from the market and this is where you find your buyers and sellers all we're doing in book map is taking that liquidity and transforming it graphically so areas of high liquidity 62 contracts are 96 down here is this color it's uh this red orange you can see the heat map up here the scale of the heat map red and orange is very high liquidity then yellow and then white and then blue and then black is the least amount so all we're doing is taking it and plotting it onto the chart but we record it and we plot it onto the chart historically so what looks to be really complex with all these different colors and lines is very very simple it is the adding and pulling of liquidity and that's all it is so you can see that well as the market came down there was some interesting or interest in buying here and then they pulled at the last minute they did not want to buy yet we found aggressors with the green dots and buyers and they started to come come back up toward areas of high liquidity that they pulled here on the offer and also up here at this 66 $1 and 660 here now we can see kind of a small breakout here back up into this area in this swing here so anyway very very simple stuff that we're looking at here but we have the context of what's going on here in the market so if we zoom out just a little bit market was trending down and then we can see that down at the bottom here we didn't find many sellers we start to find some buyers and they're starting to lift it back up and test some of these areas where it came from and that's just understanding the structure the volume within the structure and also the other side of the trade the the limit buy and sell orders who's who's taking that or who's not taking that so if we zoom out and look at the higher timeframe picture here i've got data back to about 6am east coast time we can take a look at this context so here's the market as it's coming down toward this area of high liquidity at 05 and it traded into it right here you can see the transactions taking place right into it and then it traded through it in a big way and pretty pretty catastrophic break there and it continued on down and tested parity here okay so interesting move into that and we know as you can see in the heat map here see how it's getting kind of red in here and see how that they're they're kind of bidding in front of this area this is context this is showing that yeah they're eager buyers in front of that area they're starting to front run and we can understand that behavior you can also see that buyers started to add in a little bit lower here they're probably looking for price to test through it get filled at a really great price and then have it test back and maybe through the dollar value here so anyway the that's what was what unfolded here in the market we can see precisely the behavior here these guys meant to trade and they're still here in the current market these guys up here at 02 well they started to come in not too long ago as the market is coming down they started to show interest at a higher level here this is the context this is where the buyers want to deal and i will see if they they actually deal when price comes down like here and trades into it this is what we want to understand and this is how you can now look into and see what's going on within the candlesticks in fact we can dim the heat map a little bit here and we can look a little bit more closely at the candlesticks and the the volume and the liquidity so here's our move to the downside and as dan pointed out the buying pressure okay so this candle closed to the downside here but we found some buyers and then off of this low here well we start to find more buyers and then we break through now this level is not really seeing too much in the candles this is in our candlestick chart but we can see that this hour here closed at this kind of swing and kind of equal low from the previous hour and then the then the breakthrough now look at the breakout and now it's returning precisely to the area where it broke out from so some pretty interesting stuff here now on your candlestick this is looking pretty good to continue lower why because look at the and this is not a trade recommendation we're just reading the order flow here's why well look at the sellers come in and we just broke below the swing here now we want to see that selling pressure continue so let's zoom in here a little bit closer and let's read the order flow let's let's turn the heat map back up a bit and this is good we see that there's more sellers now at a lower level okay we're do we find the sellers down here not not really nice selling in here and it's starting to kind of wane now well maybe we'll get a retest back up here back up into this little kind of a zone or area right here at 475 maybe back up to 525 and so I look at the liquidity just coming into the market right now interesting interesting move there or interesting phenomena a lot of people just jumping in and interest in dealing here so now let's let's take a look at that so we have kind of equal buyers and sellers on either side here so it's kind of convoluting the picture a little bit here we want to read now the context though of this liquidity that came in so how did the market react to it do we find buyers or sellers here and we haven't really found much yet now we're starting to find a little bit of our selling here okay all right sellers then let's see if you can drop it down to 03 here or maybe 250 or 200 down here okay so we're just looking at what's inside this candle and this big move to the downside here on the hourly candlestick chart and below the swing here we need to see sellers below the swing for continuation and to move away from these previous areas in here and that's what we're reading in here and trying to read okay if we don't get that we're looking for the retest back here to this liquidity so you can really start to see what's inside some of the candlesticks and then start to target some of these areas as well now you can break this down into a smaller candlestick chart no no problem but you know it's up to you what time frame you're looking at and you're trading so anyway starting to find some buying interest here didn't find too many sellers here not enough so looking actually pretty pretty good if we can just see we're looking for our sellers here buyers on the other side okay so let's see if we're seeing quite a bit more buying up here actually one more test up here and some more buyers we should get the move or pop into some of this higher liquidity here and that's the what we want to look at here and understand in terms of this context so is this going to be a kind of a false breakdown of this area or is it going to accept and go lower and that's what we're trying to ascertain here by reading in the order flow okay so anyway that's the euro dollar and we can jump maybe over to well gold was kind of interesting to take a look at here on the way down into or below 1700 and then kind of the move back up after trading down here you can start to look at all sorts of different details in here in the order flow traded into this liquidity here below the 1700 we have 98 on down to 95 this these guys are getting filled on the bid here okay so lots of selling but someone's on the other side of the trade in fact stops in icebergs we see people getting stopped out and icebergs that they're they're actually on the other side of that trade as people are getting stopped out and they are buying we got a retest here we make a slightly higher low and now we want to understand where are the buyers coming in where are the sellers well here's here's buyers above this little drop here let's see if we get a bit more and then we should get the move higher into high liquidity and maybe even 717 10 there's the move up into 1710 now I know that's hindsight but it's the same process that you look at just starting to understand what's making up the candlestick what's inside of it and then you know going going with that overall a higher time frame read aided here by the the order flow so let's let's jump over and take a look maybe at the s and p e mini and what candlestick do I have here and I got the one hour as well right that's fine and well we see the move in the overnight here so I have data back to the eight o'clock last night east coast time here's the drop in the european session all the way back down into our 930 cash open here and it continued on down to the downside here but look at the buying coming in here quite a bit of aggressive buying coming in okay so you can start to look at that and then look at your candlestick charts as well and so I look at some of these swings up in here and the buying pressure on some of these wicks in here and did they get filled on the bid yeah they got filled in here in here and you can see them kind of nibbling away in here but and we're finding buyers all the way through now we're finding buyers but they're not able to lift the market here not yet but the buying pressure is really starting to map you can just see it in the color and the size of the dots here compared to the sellers so what we see who's taking the other side of the trade well liquidity in these areas here lots of icebergs too the hidden orders they're not going to be seen in the in the order book so so anyway the buying pressure mounts here it breaks it and then here's the hour candle closes at this point here and yet the buying continues once we get back up above here on buying we look for the next area and some of these areas where we previously found selling pressure and we'd be looking for a test up into those areas and in this case the market did exactly that came back up into those areas here so anyway we're just you know reading and looking at the candles on the higher time frame here and then understanding what's beyond that though or what's inside of that and then that gives us a lot more insight to where price might go next so I think let me know if you have any questions here happy to go through any markets that I have up here we've got the notes we've got the wheat we can take a little bit of wheat or corn I've got the crude oil here and I've got the Nasdaq as well hi Bruce just a quick question from Howard looking for some clarification with respect to what the red and blue lines below me I think it's playing at the start yeah well this this isn't this isn't part of book map this is an add-on I'm showing it just because like it is a pretty pretty powerful and insightful thing that the CME offers a market by order data okay this is something you need they've had it for about I think over five years now but no one's really taken too much advantage of it and until the last few years it's showing the positioning queue you can look it up on the CME website and it will show you precisely like like right now if we look at this S&P E-mini and we look in here with the current order book well these are the number of contracts here okay but we don't know how many orders are in here so like actually down here we actually do and this is pretty insightful too let me show you this these these three areas of high liquidity here well this little white line here is is indicating that one larger player is holding you know between a third and half of the liquidity at this price level and it's most likely the same player because look he's got it on three different levels here this price level at 46 and a quarter 46 and 45 and three quarters so the the white line is equal likely the same player so that's basically what the MBO was the way that the CME advertises it however we're able to extrapolate from that data in the way that the orders come in we can start to read where people are getting stopped out as well as where there's hidden orders not in the in the order book they're they're icebergs and that's the whole concept of iceberg is a larger player doesn't want to show his hand like this guy right here so doesn't want to scare price away so he wants to get filled without showing how much liquidity he has so that's that's what the sub chart is showing here we also have an on chart but I turned it off for now anyway it's a very specific thing that is an add-on like I said and it is also you will need a specific data provider for that as well there's only one that's offered that so anyway it just gives more insight it's not a signal you know indicators the way we look at indicators they're not signals they are more influence to reading the order flow okay the order flow and especially as dam is going through with the higher time frame and understanding sellers and buyers and then confirming that in the order flow here just as we did hear you all of this buying not able to lift it and then finally it starts to break and nice break here as you guys can see it's tested right back down to where it broke from as you can see as well and so now we need to see is it going to accept or reject here and that's what we want to read now is that with this s&p a lot of selling starting to come in look at the buying coming back not as many so this is kind of like a low volume pullback at the moment here so if we can see did they get filled here on the offer not really and I've seen a few more buyers starting to come in right now all right well this can they pop it up to this 55 area here not just for you know they're starting to pull here at 54 so we just need a few more buyers and we can get a move here to 55 so just reading the pressures in here just like this buying wick here we're reading the pressures here in the in the order book and that's all we're doing so you know trying to get that additional insight and Bruce another quick question here can we take a look at bitcoin sure um I don't have it up and you know what exchange I mean are you looking at the the futures futures contracts yeah okay and what is the symbol for uh for bitcoin I think it's under btc just btc okay yeah pretty thin as you can see so not many contracts in here we're looking at ones threes fives etc and not a whole lot of transactions either so yeah this is this is bitcoin and yeah you can just see kind of smattering now very very close to the current market here so you know and a pretty big spread as well because the the thinness of the market another quick question here bruce from from denny will book map provides support for footprint chart or similar to that in the future um a good question um well potentially uh we're always looking at you know developing for whatever uh people are looking for uh and whatever helps them uh in their trading uh so uh you know basically what you're looking at here though without the footprint chart um is you're going to get a lot more data or a lot more insight footprint charts are great uh however it still is a bar of aggregated data so if you're looking at your um your bar uh there will be very precise volume but it'll be you won't see the nuances in here uh you won't see like uh the retest to where it broke from out here right or you know some sort of a pullback like here uh from where it broke from over here and look at the selling starting to really pick up here right that might be on one bar uh all of this activity here you have the context though of the structure okay this is back and forth structure uh and then if you if you can't make a high or high here uh you start to see a lot of selling and a selling here at the low we're looking for you know price discovery uh to the downside to previous areas of liquidity this is a pretty good example here uh looking at uh at wheat uh down into the 800 level here so uh anyway that's kind of the the the drawbacks um of a footprint of just the aggregation of the data uh but the um uh you know looking at uh each chart as its own kind of strengths and weaknesses uh you will certainly not get the uh the other side of the trade uh in your footprint chart uh it would be interesting to add it here into book map though uh we'll have to keep keep uh have to get back to you on that one in the future um Bruce uh we've got some interest in taking a look uh I don't know if you've got yesterday's data um on the heat map for the drop that we saw in the ES or the NQ I do uh for the uh for the ES uh you know here's the here's the drop um well I have back at well eight o'clock here I'm sorry so uh we can see the the European session here unfold from 2 a.m east east coast time here here in New York uh and then this drop back down into uh uh you know 37 25 or so and here it is I mean uh and this is very typical uh another thing like just the kind of insights that you can you can ascertain here uh from order flow like you know as as this is moving lower these clusters of selling at lower lows into high liquidity and then you can see how the market kind of bounces out of those areas retest some of these areas and look on the other side here where's the liquidity there's not a whole lot this is very typical in a downtrend uh you'll see this all the time it's more clusters at the lower lows uh and very little buying uh uh at these uh swings here that are uh it's basically exhausting out it's just not finding buyers uh that's when you can start to look at your candles uh and your wicks uh etc starting to understand that uh wow okay well we're not getting a whole lot we get some sellers below this area here you know look for a break uh and look look again we're retested here right to where it broke from right so uh there's a lot of things that you can kind of piece together uh that you know trap traders uh comes back here and like oh boy yeah I'll sell no no problem uh whatever the case may be um you know it's uh it's here in the order flow you really can't escape it it's uh it will be uh showing it here good stuff okay do we have any more questions here for Bruce while he's uh to my mind he's done an exceptional job of uh I'm explaining bookmark platform um Bruce just to clarify um we've had a question here regarding uh GME is that I'm thinking is that GameStop I guess GameStop is and stocks I don't have any stocks open here these are all futures products but do does um does bookmark offer the facility for uh traders to get that data to yes it does excellent yes yeah we you can subscribe to uh some data feeds for uh for stocks uh as well as um I think up to 21 different cryptocurrency exchanges that we connect to um Denny uh at what point the market makers uh sorry Denny your question uh I mean I think any part of it has come through on the chat there if you want to drop it back in he hasn't got that uh 21 cryptocurrencies I think Bruce said the Jose yeah uh currency exchanges uh exchanges yeah you just go to bookmap.com and connectivity section you'll you'll see uh there are many different exchanges that we connect to different there the data is is free they're you're connecting directly to the exchange uh not a data provider or ECM but uh with the the futures market here for example I'm connected to Rhythmic right now you can connect to CQG uh and a host of others uh as well so we connect to many for futures as well okay any more questions for Bruce yeah I didn't I didn't get to a lot of different things in here uh there's we're very feature rich we have a lot of different volume columns in here that you can take a look at as well as uh order columns and and also uh delta columns etc there's there's time and sales uh custom notes um there's there's a lot uh but I just wanted to give kind of a brief overview here let's take a look at what happened to our uh Euro dollar here so it accepted lower uh and we we we've kind of left off seeing these buyers come in and they were able to kind of as you can see here kind of lift the market from this consolidation period here and the buying here that we saw come in uh and uh you know we haven't come back there yet so all it did was it was test up and we were kind of looking for that test up into this liquidity up here uh this 450 to 470 area here which has already already tested now our question is with kind of uh reassess the the uh value here of this instrument once again we've tested up here are we finding more buyers well then where's the next area well high liquidity and also market structure maybe up here at uh 560 and something like that and Bruce uh I think I will ask could you please do a brief intro into the order column uh the order column um so uh not sure what I think he's referring to the the book uh in terms of where the liquidity is on the right hand side the histogram okay so this one the current order book yeah sure this is basically your dome uh we actually have another uh add-on product that is actually part of one of the subscriptions the bookmap global plus subscription uh and we have a DOM that you can access your very professional level DOM here so like I can show you that as well it's up to you uh you know you can you can uh create uh a configuration here in the columns or you can access uh this product here uh and uh you know trade right from the uh from the DOM if you if you prefer that so this is uh obviously it's a separate window here so you can we have the flexibility to take a look at that as well so in anyway this very very simple data in here it's just uh these are the contracts at these price levels and that's that these are limit sell orders and that's all they are and limit buy orders down below and interestingly uh this is something we discussed before today's session um how you can uh the visualize spoofing order spoofing yeah yeah so um and uh I saw a few nice examples uh uh I think yesterday or maybe a couple days ago uh you know the euro dollar is actually pretty interesting one because this is so uh heavily kind of uh hedged uh you can see the larger players in here uh at each price level and you know you can kind of start to understand that well this is likely some of the same players in here the moment that they pull out of these three different price levels you know they're they're kind of adding and pulling in here and we can start to also um when we zoom in you can start to find a better example um start to to piece together like you know them pulling from some players pulling from one side and adding to the other uh etc like right in here uh this liquidity was pulled because it went from first off from uh high liquidity uh and we can get the number here um 49 contracts down to 40 down to this color here uh which is 35 well they kind of added here on the other side and pulled from here and potentially added over here uh that went from 21 to 26 to 35 and you'll see this behavior again and again and again like in these areas in here maybe adding here pulling down here etc so you can really start to look at the nuances of the activity of the intention of traders do they want to trade at these levels or not uh here you can see that they wanted to trade they they provided that liquidity and here here the transactions taking place right into that liquidity so these guys got what they wanted they wanted to be buyers here and they they bought sellers traded into them and the transaction took place um another question here from Jenny at what point market makers will end their liquidity hunting until it hits the very high liquidity zones based on your experience at what point market makers well a lot of times what you'll see um and and this is actually pretty pretty good one I think uh is is looking at the currencies and boy it's kind of funny we're going over the currencies um just because uh we we typically don't uh most people want to look at the stock indexes and that's what we cover in our our education uh but uh you'll see this behavior and and and you know each market uh trades a little bit differently but the overall um fundamentals of buying and selling uh is the same uh there's just different kind of behavior and different kind of players in here for example uh you you'll see that well prices you know starts to come down towards some of these areas and they pull price comes back up and they start to pull that happens typically a lot in the in the currencies uh but then you're looking to see when do they actually stay in the market so the market makers when do they want to take the risk and then they'll they'll stay in in the in the queue and they'll transact so uh yeah that's understanding where they're transacting is really pretty pretty important thing to understand and then not only where are they transacting that that is important but it's the context after that that's really important was there still more selling pressure below these these transactions here or did they absorb all of that selling pressure uh and then and then price there was no more sellers there's there's still more buyers but there's no more sellers well price is going to revert back into areas uh where they can find other sellers here on the offer right and uh you know this this there was a little bit more selling pressure it traded through but look look how the buyers start to come in okay so uh yeah once we start to see that we kind of look for some of these other areas up here at maybe 440 or 470 to potentially transact and in this case it just kind of came up to this liquidity here still testing up to that liquidity there uh and uh yeah then finally we got the move here back up into that swing and that's kind of what we're looking at in the live market excellent um how could be the best way to find out the next movement of the market talking about probabilities I can see liquidity at both sides of the chart so I guess Ricardo is trying to ask how from a uh trading perspective you were best able to identify the next directional move yeah yeah sure well um it's it's really understanding that context in here so uh uh you know these three elements here uh that understanding like well okay look at look at the reaction here to this liquidity here are we finding buyers yeah starting to so maybe if if if they show high liquidity in here now they just pulled it though right but if they mean to to trade and they stay in here and we find buyers that's the context we're looking for this liquidity up here to test or some you know we're very close to it and that's where you start to understand it and again like we're going through a process in here but this is actually very simple stuff uh is we're talking about auction and auction market theory basically this is no different than going to the farmers market that you know where where is that where are the sellers well they're over here the majority of them well do we find buyers wanting to trade with these sellers well then they're going to charge up toward it and do these guys actually stay in the order book do they fill so it's it's this context that we want to understand between these elements in here so here you know we traded up into this 480 level or 475 more buying above it and then that was it these guys are actually be kind of trapped here and we see that the sellers see how sellers are kind of they came in below that area here and this this cluster of buyers and to put the squeeze on you know these these guys that bought up here are going to feel the pinch if if if you get enough sellers to trade back down at some of the lows here you can see who's winning the battle here right now so buyers are we saw that this is this is basically like a spoof right in here it's not we don't really know but their intent though was they came in they skewed the auction and we found some buyers a few and then they pulled so they didn't take any risk they didn't really transact now they did right here and we're getting more buyers above it so let's see let's see if we can get back up to 520 maybe even 560 we're looking at 560 I think we outlined that earlier yeah here where it broke from here so there's your context and that's how to kind of put these pieces together okay another question will bookmark show resting stop losses for the even futures I think you've covered that before with the icebergs and that's an additional add-on is that well yeah not we don't know where stops are resting but we know when they transact so yeah I can show you that it might be better to take a look at the S&P E-mini on the on that or the NASDAQ there's just you know quite a bit more depth and a lot more transactions but yeah in fact let me turn on the the on chart indicator here for stops and icebergs and you can take a look at some of the details in here I'm fascinated by it to be honest and it never gets tiresome so just just loading right now and let's take a look so there's actually an iceberg up just disappeared okay okay so and then we'll take a look at a stop run in here in fact let's take this let's take the icebergs off for a moment here and we'll take a look at okay so here was a stop run of 134 contracts up here this is what it looks like this is what happens in the market and we're just this is the beauty of what I think bookmark is displaying is simply displaying what unfolded you know it it doesn't it's giving you the the truth of what's behind some of these moves so this is aggressor behavior in here lifting the offer okay and you know we're looking at you know microseconds in here so you know this this move here it looks like it might be you know something lost data or something it is not it is basically a one event an atomic event that took place in unfolded and then best didn't offer update after that so you have a kind of a chain of events that happen when you get down into these sub second levels so here buyer came in we could have they could have been squeezed out we don't know but we know that there was a lot of buying in here along the way in this big move to the upside here stops are triggered but this one player has not his order has not gotten filled yet his order is basically filled up here and this red line in here is showing when stops are now starting to transact okay so along the way as this one event unfolded stops are triggered and we don't know where exactly but we know when they're transacting and when you get slipped and your your stop gets slipped this is what this is exactly what's happening so you can see precisely where the stops start to transact and they actually lift the market a tick or two in here as well one tick i don't know if that have any questions on that or if that i think i think that's covered it off okay bingo replies what a buy sweep yeah this is this is a buy sweep we have a we do have a sweeps indicator that will also show these areas on the chart and we also have an absorption indicator as well there those are all part of the global plus subscription package all these kind of add-on indicators so yeah you can get that with that that that subscription type um okay i'm just cognizant of the time here we're running close to an hour and a half and i don't know if dan has got any additional commitments that i need we need to think about wrapping things up here does anyone else have any questions either for bruce or for dan can't see any additional questions coming through what i just briefly like to do for everyone i'm going to take uh control of the screen here now and uh and discuss the offer i mentioned at the the beginning of the session that tick mill are providing to clients essentially what tick mill are giving you is that if you sign up for a futures trading account and on the screen there you can see a screenshot of the oh uh patrick i don't see your screen you can't see it uh there we go you should go see it now okay great so um tick mill are offering a essentially a six month complimentary subscription to the bookmark global plus package that bruce has been discussing that gives you those additional indicators and tools i think bookmark charge about 99 dollars a month for that subscription so uh tick mill will provide you with that for six months for free uh if you have a funded trading account with tick mill i'm going to put a link into the chat here uh which is this subscription sign up just a quick note patrick on that the the stops and icebergs are not included in in the global not in the global plus that's correct but the sweeps and absorption certainly is excellent okay so once you sign up and you've you've funded your account the minimum funding requirement is a thousand us dollars you'll then have access to your subscriptions and you can see here that uh we have the bookmark subscription we simply uh sign up for that you do have to play a uh a ten dollar connection fee that just gives you the cqg uh data fees that uh bookmark support and then you will have uh you'll have your access all set up and like we say you uh as long as you maintain that funding account for the six month period you will have full complimentary access to the bookmark platform and bruce just uh just one other quick question uh do uh bookmark provides uh training videos for for the for the service oh yeah we we have um hundreds of videos basically but uh uh you know some of the uh are more kind of onboarding of of kind of going through uh you know some of these elements like how to read them uh and then all the different features and components and uh we also have daily webinars uh that go through uh reading the uh live market uh word flow excellence excellence okay so um with that said and uh hopefully everyone understands the offer there if there are any questions you can reach out to me via my email now i'm happy to point you in the right direction um dan any other input from you at the stage no it was great to be with everyone today i hope you've gotten a few ideas from what i discussed that may give you some insights and bruce great to be with you patrick also always terrific to be with you and i look forward to our past crossing again in the future in the meantime i wish everyone much success with their trading brilliant thanks dan bruce final thoughts from you now thank you dan thank you very much and thank you patrick uh no a pleasure uh and i too look forward to crossing that again in the future excellence okay with that said then i am going to wrap up the session like i said you've got any questions regarding the offer or anything that's been discussed this evening feel free to reach out to me on email and like i said i'll point you in the right direction so thank you very much everyone for attending tonight's event i hope you've got some uh actionable ideas to take away from this and i hope that you will join us at tick mill and take advantage of the uh the book mat offer thank you very much and best of luck with your trading