 Good afternoon everyone. Everyone hear me okay? Just wait another minute before we get started. Should be all good. Today, we're going to talk about market-state awareness, a little bit of awareness in general. Before we get into it, I want to go through the disclaimer. Everything that we're going over today is going to be for educational purposes. The main thing about trading is that you are using risk capital, so you definitely want to use capital that you can afford to risk because if you can't afford to risk it, you're going to make bad decisions. You're going to make more emotional decisions and it's just going to not turn out well. So it's best to make sure you put yourself in a situation so that with the capital you're risking is either not your own or it's capital that you can afford to lose and that is the winning ticket. A little bit about me. I've been trading for over 35 years. I started out in the floor of the Mercantile Exchange as a runner. It was really literally my first summer job in high school and I've kind of caught the bug and I'm still addicted. I've been working with traders since 1984. I started my analytics business and again right off the floor. I got involved with the professional local traders and also the institutions that were feeding the orders to the traders. So I kind of started out on the professional side and been working with aspiring traders as well to bring them into the business, provide them with a foundation so they can really succeed. So my background is futures but I got involved in crypto in 2013. I've been through a lot of cycles with crypto so a big believer in the space, big fan of Ethereum and Web 3.0 and what the blockchain can do and so definitely carrying the flag on that one and a lot of what we do and what we're going over today in our analytics is really tools that empower traders through fact-based methods and self-awareness. So fact-based trading before I get into it, what is that? Basically trading, making decisions based on objective data and analysis rather than subjective emotion or opinions. You know absolutely experience matters in trading, you know just playing basketball matters, you know how long you practice, the insights that you have but they need to be grounded in truce and you need to have a fact foundation to you know to check yourself. It's so easy to let your emotions guide you and you know and also having that consistency so when you're dealing with a subjective approach it's not scalable, you know you're limited and you know really comes down to having you know a fact check to help guide you and so you can really you know leverage, I don't really like to call it opinions, I like to call it intuitive function. You know your ability to trade intuitively I think is the main power that any discretionary trader has and how do you get to that state of flow? How do you know what's the best way to do it? Well the best way to do it is if you really know the facts and your body knows that, your body knows that if it's a subjective opinion versus it's a truth and when it's a truth it can trust it more and when it can trust it more it can just you know help get into that state of flow and when it can't it basically causes anxiety so having having a fact foundation is really paramount in trading. So we're talking about market state awareness and you know the challenges for day traders you know the conditions change every day you know that's the dynamics and so you've got your tactics and tools and and how do you apply them when you've got different conditions and so you know having awareness of the market state is absolutely helps to solve that issue you know and then your tactics have limitations you know most tactics are you know let's say trend following or fading momentum you know and you know you're going to get when the markets don't go anywhere your trend following you get chopped up and and if you're doing a return to mean deviation strategy you're going to get run over on the market trends so your tactics are limited you know and you need to you've got to you need to have a quiver of tactics and you need to apply them in the right states and that's what we're talking about you know and there's there's constant uncertainty out there and having a fact foundation gives you some kind of benchmark to you know get get some clarity and so we're going to go into uh some of our trading tools and introduce you to our playbook which identifies market states as well as the structure of those states and and how we use book map with that as well you know one thing I wanted to get into before and you know the presentation and just kind of awareness of you know where you know who you're competing against on the trading landscape and and the and you know you're going up you know if you are an independent trader or and you're a aspiring trader what are you going up against where you're going up against the pros and they have a big team you know it's football season coming up so I figured I'd pull out some images now I'm from Chicago so there you go but you've got you know the the prop traders got a whole support team they've got you know strategists quants they've got a separate risk manager they've got a head trader who's looking at a kind of the mandate for the whole for the whole business and that's that's their team and they're going against you and so who's on your team you know JSA analytics look to be part of your team and provide you with you know some of that support definitely the quant work provide you with strategies and foundation and give you some tools to help you manage your risk we are here for you so market state what is it and how do we apply it well market state is the strategy foundation it's the baseline you know to you know pull out a widely used quote in trading you know strategy without tactics is the slowest route to victory tactics without strategy is the noise before defeat you know that that you know that says it all you know most traders are tactic masters you know you have these tools this toolkit of strategies that you use and you you apply it religiously every day and and you know you've got it down but what is the strategy foundation what's the baseline behind that and most times that's missing what we're saying is that you need a quantitative strategy foundation for your tactics so your strategy foundation for your tactics your tactics are a piece of the puzzle you know your tactics are setups you know whatever you base you know your subjective the you know methodologies that you use to make trade decisions and those setups occur you know on you know if you're playing chess your tactics are the pieces and you're playing the game but you're playing it on the board and the board is the strategy foundation and that's what market state is it's your found you know it is your foundation and it's going and sometimes that foundation is positive sometimes it's negative sometimes it's sideways but you know and and then you know and if you're put you know if you're at war you know what's the terrain of the ground you're you're playing a sport is it wet out you know basically how do you adjust your tactics based on the state you know so if you have if you only have tactics it's it can be frustrating when you have that strategy foundation along with your tactics you know you've got the whole package so market state awareness is your edge and your edge is intuitive trading so what happens and when you really are in a state of flow you it's the difference between knowing and thinking you know if I if the words go through my brain I think I immediately have to check myself that is one of my triggers that I use all the time whenever I think that I know there's an issue and I need to go fact check my facts because I should know I should know what's more likely to occur and I should know is my current position in alignment with that or not because if I know the facts and I know the state foundation I know what's more likely to occur then I'm able to anticipate I mean able to anticipate opportunity not react that's my big issue with all these indicator systems it's just you're always waiting for data to go and you're and you're reacting you can't succeed by reacting you have to anticipate what's more likely to occur absolutely you can use absolutely you can use other tools to validate your position and add to it and if they don't validate you know tighten your risk up but in trading you need to anticipate you can't react and this you know as master Yoda said you know there is no try you know it's just do if you want to get long get long you know you're executing you're knowing you're anticipating and you're executing you're not trying to do something you're doing it and we've all had days like both of these days days where you know we have a we're negative on the market and we anticipate an opportunity and then when it gets validated we press it and when we're in the state of flow we're you know and have some of our the biggest days that you've had on in your pnl they look like this you don't do a lot of trading and you catch some big moves and you just kill it you had awareness you had vision where this thing can go you're patient and you held on to versus thinking and trying you're negative and you get into a your position covering it too quickly re-entering making some money you're happy and then you start pressing it and you end up chopping yourself up and giving it all back or just having a slight winner when you called the whole move you were aligned for the whole move and you just and you let yourself give that away you're just trying too hard you're overthinking the situation this is the difference knowing anticipating and doing thinking reacting and trying and you have the fact foundation keep it simple trade with the facts trade with what's more likely to occur and execute don't think don't overthink so how do we apply market-state awareness and we're going to get into you know the actual tools that we use to identify market-state but how do you apply it you need to clear your mind you need to remove your bias you need to know the facts and this this is this is your mantra every day in trading whenever you think you think something I think this is going to occur because when you say I think you're really just saying I hope and when you when you get those doubts in your trading in your position that it's an it's a it's a trigger that I use it all the time it just I got anything I need to clear my you know just get the eraser out just erase everything in your brain we move any kind of bias you have turn the chart upside down if you have to just do a reset and then go focus on the facts what is true what are the facts and it is my current position in line with those facts you're getting your you're getting squeezed on on your stop and you're about to hit your stop you know is it true you may be in the wrong set it is my stop good yeah it is do I need to you know trigger it myself and let the market squeeze me out no all my all the facts are true I'm in alignment if that's not the case and you're not in alignment and your risk is too great absolutely now you've got awareness that hey I need to dance out of this trade I don't need to wait for it to get filled it's wrong things aren't aren't performing to expectation and I need to kind of switch gears and protect what I can and so the big difference with understanding and having market-state awareness is it switches from you know kind of this might occur to this more likely will occur you know what are the probabilities and that's it and then every time you're in you're putting your capital at risk you should understand what is more likely to occur and you should understand is my position in alignment with what's more likely to occur and if it's not and you still want that position because markets they can turn you know you know the when you're playing cards and the dealer has 15 and you have 16 and you decide to hit and you can't hit a five but it's not likely that's going to happen so but I can things can always happen that's what risk management is all about but align yourself with what's more likely to occur and understanding the difference between hoping and what might occur or what you want to have happen versus what's more likely to and so when we talk about market states you know most traders are looking at a market state as it's trend state or it's not trend state you know I call these general market state types I actually added a pivotal to that I added extremes but these are you know these are more general states and as you'll see with our tools we get into a little more detail than just general because markets you know positive trending market market that makes higher move highs higher move lows it's a bull trend and our tech we're going to apply certain tactics in a positive trend state we're new you know some of those trending tactics will work the same in a negative trend state but they might be a little different most markets when they make you know just move negatively a lot of times you know that that's a little faster than the upside maybe not crypto but they both you know they both have their nuances and they definitely have their nuances when you go in if the market's in a non-trend state or if it's pivotal or if it's at an extreme you know and so this is where we go into you know we need to adjust our tactics so we you know having that awareness and just because a market's in a bull trend or a bear trend or a non-trend state you know you know if it's in a bull trend doesn't mean it's you know you come out and you're just buying it you know positive trends have pullbacks markets aren't linear but the important thing about market state to understand is it's the foundation it's that plane it's the playing field bottom line and having that awareness that we're on this field and absolutely the expectation is that the market is going if the market is going to perform the expectation it's going to make higher move lows and higher move highs and trend up it doesn't mean that this session we're in this corrective phase and this and the market opens up higher breaks out to the upside and trades lower all day it's just part of what a positive trend is and so that's part of the expectation and that's the key what is your expectation you know if we're in a positive trend we're expectations we're having you know the market's going to have positive structure if it's and if it's a accelerating trend it's those pullbacks are going to become shorter and shorter what's more likely to occur what's more likely to occur is the market's going to trend and trend following tactics are going to work better and what trend tactics will typically work better buying ones positive ones so we're looking to accept buy signals so you know if we have a tactic tool kit and we have you know an oscillator system we have a you know a setup that is to fade markets and then we have a trend following system you know our trend following system is when we're going to we're going to want to lean on that's going to be the the one of focus you know so if we if we you know if we're masters at all these tactics and we just run these all these tactics all the time we're going to have some issues so here's here's a you know market and we've got a overbought oscillator tactic we've got a trend following our trend following tactic and we have our fade deviation tactic and we're running them all you know and when the market shifts into trend mode oscillators just don't work you're going to get run over they're going to get overbought and they're going to stay overbought and you're going to sell it and you're going to get that you know run over with that same with fade tactics when you fade you know fading the market fading the market we're going to get you know we might pick up some little gains but more likely we're just going to keep getting stopped out because we're fading the moves you know we'll pick up some gains and some fades but we're going to give a lot of it back but our trend following tactic it's going to work great so if we have we don't have a strategy foundation we're going to our non-trend tactics are going to lose and our trend tactics are going to win and if we have good market state awareness we're not going to execute our non you know our non trending tactics you know we're going to shelve those till the market proves us otherwise as long as the market's holding that structure we're going to trade our trend following strategy and we're going to have and we're going to catch that move we're going to you know participate in that opportunity and that kind of goes us brings us to the next section of you know understanding market state awareness understanding the market structure not thinking but knowing so here's our playbook application and this is what it's designed to do identify market states this is what we call our market grid and for crypto we're covering finance book map um on blockfills i'm sorry um coinbase and kraken are some of the exchanges that we cover they're all similar a little different you know a lot of you know most people are involved in perpetuals the grids color coded so you can red hues are more negative so this identifies that cardinals in a bear trend and bitcoin cash is in a bull trend ethers in a neutral digestive state doge is in a bear trend correction ether pound cross is in a neutral positive shift so the grid allows you you know our grid allows you to really identify market states through your tactics or work best in so if you're in a non-trend you know a general market state that's a non-trend and if we these commentaries they don't change from one non-trend to the next they're just they're there to identify what is a non-trend you know it's a sideways environment with choppy trading conditions in this market state directional rules are not expected to be sustained so we're not expecting follow-through opportunity exists on both sides of the market but profit potential is limited and should be realized sooner than later so take your money if they give it to you you know markets that do end a session with a strong directional bias will have trouble sustaining that bias in the coming session without the support of a positive shift in the next section's market state so if you know we're making a big strong certain if you have a market in neutral digestion that has a kind of a linear one-way trade typically that those are the times with just that exhaust and then the market goes into the next session it just turns around falls back into neutral you know the one thing about neutral digestion though and this is important for your tactics is that they can be the precursor to a breakout so absolutely the expectation is more likely to occur as the market's not going to follow through but as the market continues to coil and digest it's a precursor to a breakout and typically what happens in a neutral digestive state is that when it changes into a trend it's signaled by an early trend session move with no break in positive or negative structure so if the market is going to break out it starts right from the get-go from the new session and so for crypto that's 12 am utc time so i'm in chicago so that's 7 p.m central standard time and during that initial phase that you know kind of the first four hours of trading the market makes a decision and a lot of times you'll see it just starting to build momentum you can use like a simple moving average just to you know give you some guidance of hey it's building structure and it just goes it doesn't stop you know even you know it's even mentioned here simple moving average is a great tool to identify possible breakout day with the expectation that the market's going to scale up or down or maintain the trade above or below that moving average and so that's just kind of a simple tool to use in a neutral digestive state so the expectation is going sideways unless the market's showing you that it can it's trending and it's holding positive price structure or negative structure so it's holding a you know a simple moving average let's say and it's been doing so since the beginning of the session those are tells as well not to just step out and fade momentum when the market's in neutral digestion so that so the idea with the commentaries is all about giving you nuances giving you tells just like a bull trend yeah what's the definition of bull trends of markets making higher move highs higher move lows if it's not doing that it's then it's the definition of the bull trend is not true and that's a huge huge thing to you understand when you're trading is you know if the markets are going to tell you if it's true or not true and one thing about a trending market if it's true it's going to hold higher move highs higher move lows or for a bear trend situation it's going to hold lower lows lower highs it's going to hold negative structure and as long as the market continues to hold to hold structure you know in a bear trend further losses should be expected it doesn't mean there can't be corrective pullbacks but you know positive price action is expected to exhaust below the high inflection point that will maintain structure simple as that the things that you know intuitively or not you know this but you have to make you know keep that you understand that that's the foundation you know because any violation of that break in negative structures more likely to produce a neutral shift in a positive transition so if the market isn't staying in its trend mode and we do break the first structure point what's more likely to occur we're probably going to have a sideways terrible day you know if the market's been trading on the offer all session but it's not been able to follow through on any negative breakout you know those are those are situations where the market's making a new move low and it can't follow through there could be a corrective squeeze into the close you know it's typical in trending markets they make that they've had that big move during the day and then they can't then near the end of the day they haven't been able to really follow through on their breakout and you can get those corrective surges so this is you know because if it is going to trend lower just it'll continue to create that negative price structure so it's all about just being aware of your environment and that's that's what the the market grid does it gives you insight into the environment and you know literally this is a book on your on the coffee table when it comes down to defining what that state is what the background is one of the things that this application also does it gives you additional insight to that state so you know understanding the general context of the market expectation you know what's what type of momentum is expected you know so in a bear trend correction you know we expect it's a corrective trade so it's non-trending so non-trending that's more sideways so again this is like a little more detail than just trending or non-trending it's it this is a non-trending bear trend correction so this is a I love market states like this because it gives me the opportunity to potentially get at the the next the initiation of the next trend move so I search out corrective trend states for opportunities you know they they're not I'm not anticipating so much momentum but I'm I'm looking for those squeezes because generally you know it's it's a we're in this positive bias of a bear trend a corrective bias and so markets states shift are in constant shift they're always transitioning from one state to the next and also the structure of the market can change you know can change this tone so this market ICP I like this protocol is in a bear bear trend correction so it's a negative trend we had a positive signal so we want to take a look so now we're going to get a little more detail on this bear trend and we're going to look at the structure so we know that this is you know bear trend correction it's what I call a signature state so it's you know it's not as basic as just a bear trend it's a correct of the bear trend so it's a nuance but what is that but now we're going to take a look at what we call our sentiment bias and currently the sentiment bias has no bias and it's located at what we call our directional which is in the midpoint of what we call our critical range for us right now and you know focused on market state awareness we're just getting more granularity into the detail of this bear trend correction so we know we're bear trend correction but now how does sentiment skew that that state well because sentiment is has no bias and it's balanced you know the market that's in a bear trend correction signature state with the r level equal to the directionals defining the base for any corrective shift if the market's going to hold firm it'll maintain a trade above here so this is this sentiment bias is identifying the price point that says if this bear trend correction is true the market's going to trade above this price point and if it's not true we're more you know the market's more vulnerable to reestablishing that bear trend so sentiment bias is going to skew the market state it's a real key piece these two price points up and DP and really the structure is just made up of three price points so if this looks complicated just focus on three points you got one point the green line it's like over under number above but it's positive below it's negative well because we're if the market's in a bear trend correction and a bear trend correction is is a you know basically has a positive bias because it's a corrective move in a bear trend that's the expectation well this is telling you where that expectation is true it's true if it's above this price point if it's not it's we're more likely that we're going to be in this situation where we're there's a potential for a bear trend correction so let's go let's go take a look at ether and then we'll go to some live markets I've got that teed up and then this is also more of a general market state so it should be a little more straightforward so we went over the neutral digestion before it's a sideways environment take profit sooner than later this can be a precursor to a breakout calling action will build power if it's going to break out the tell is that the market's going to make a move early in the session it's going to hold structure you know with the market states as well and with the grid you we can look at you know previous period uh grids and so just for fun you know we did have a big positive move yesterday and prior to that the market was in a bear trend and so what happened is the market transitioned and it transitioned into a neutral market state and as you'll see as we're getting to talk about structure the structure point yesterday for ether was 1652 which was basically telling us in this bear trend that the mark as long as the market's below 1652 the bear trend's all good everything is all good for negative trend but if we get it we can't hold a buck below this price point there's an issue with the bear trend and we could see a corrective trade and that then that's that's what happened and so today we come in and that that market did transition we had a big surge transitioned above 1652 and rallied and it it didn't turn us into a positive situation it just turned us into neutral so we understand the neutral state so let's take a look at structure and what what how does that how does that come into play now and how does that help us give us better market aware you know market state awareness of based on what the structure is well sentiment today for ether is at 1660 so let's take a look at um let's take a look at that structure so these blue just this is my ether daily chart i've got a five minute up here this was yesterday's action the big surge so here was that 1652 actually like this is a integration that we have you're interested in this integration you can get it with our subs with your subscription with us so here's that sentiment bias yesterday and we had the uh you know the mark was in a bear trend and then when it couldn't maintain a trade below sentiment it produced the sharp rally which transitioned ether into more of a neutral market state so so now we're in a neutral state i'm going to remove yesterday's action yeah the integration is great you can kind of get a lot of different views so here we have sentiment for ether is at 1660 and so this is our market what we call our market structure bias so we have our neutral digestion what's the parameters that define that digestion that's going to be the critical range these three price points and what this is identifying is that sentiment is positive because it's below the market it's below the market here so what this is telling us is that ether is in a neutral digestive state but the structure bias is is positive because the sentiment is below the market so the expectation is that we're you know we're going sideways but it's a buy break environment you know buys are more valuable than sells because sentiment is below the market so the positive this positive momentum from yesterday is basically still in command along as we're above 1660 those are metric boundaries kind of the areas of influence around the inflection points so if you were looking for it a trade opportunity this is the area of signal acceptance so you're you know you're to help with your risk management this helps to identify a boundary of where your signal you know where you can accept buy signals in this but right now we're you know just going through market state awareness improving that awareness and so the market structure bias it takes this expectation market expectation of a sideways trade within parameters and it defines those parameters and then it gives you a bias and so that bias changes adds a little more granularity to that commentary and so with the r level you know this range between the down the dp stands for downside pivot 1680 and i'll put the critical range on right now so what this is saying is this band defines the lower support extreme of this technical state so anticipate an underlying positive sentiment bias with all trading above this range this band here so really any exhaustive signals that come into this area are an opportunity you know if the market's going to keep its legs under it'll it'll base above here with the expectation for a rally targeting the upper resistance band at the up so the ideal situation is the market gives us a break to buy into this area with the expectation that we're going to get a move up to this area now a break below the sentiment a break below this structure then that's going to make this neutral digestion state not true because it's broken structure and so that that would have the market vulnerable to a negative transitional shift and you can see you know this section of the playbook helps to identify risk so in the current situation trading here at 1702 between what we call the directional and the downside pivot we're in this less risk area less risk meaning there you know the market has more propensity to to go higher prices have more propensity to go higher when we start trading below the downside pivot which is below you know below this critical range you know this area is kind of an actionable area and we and it identifies it's kind of at risk because if the market you know this is where the market's going to make a decision is it going to transition lower or is it going to stabilize in the rally and it'll do that within this zone and then if we trade below the sentiment it puts us in a risk on situation this is when the market's vulnerable to negative events just as if we start trading above the upside pivot this this room this makes it more likely it could have a positive event why because the market's breaking out of the neutral digestion to the upside and it's in alignment with the sentiment bias versus if we start to break structure here that's going to tell us that the market is transitioning lower we got this negative bias so again it's just you know further granularity of what it means to be in a neutral digestive state with sentiment below the market you know since we now we have this this awareness of this is the foundation that we're you know that the market's in and we can you know even without the price map levels just having that state awareness and here's the here's the you know close or the you know at 12 12 a.m. UTC time here's our close and our backdrop and our foundation is sideways neutral so that alone with you know the market coming having this big strong surge yesterday we're coming in today and saying okay hold on you know we didn't transition into a positive or transitional state we basically just moved ourselves out of the bear trend state and into a neutral posture and what's more likely to occur is that we're going to go sideways and so then we can even just looking at price structure you know it is let me blow this up just a little bit so we you know market makes a surge higher high makes a low makes a high makes a low it's consolidating we have this price point here we open up for the new session we're breaking structure here which is a tell kind of setting up some sideways action and then when we break structure here it's a tell the market wants to go lower here's the previous days high previous days closed previous days midpoint previous days low so that was the tell the setup to for the market to you know basically test the previous days midpoint so now if we add some structure to the to this we can see you know sentiments below the market here the directional is the rotational number within this critical range so here you had kind of validation also here the markets struggling to you know it's basically topping out at the metric boundary of the directional again it's just all the different pieces factual information this is all quantitative that come together to give you give you clarity for the moment and then if we had the critical range so we're sideways situation we have these additional structure points that help to position manage opportunities within the critical range so it's kind of a stopping point also for a neutral digestive state as you you know get more into our work you'll understand that you know when the markets do get into a neutral situation and they and they get and they get this you know the part of what happens in neutral is the market digesting and coils a lot of times they when they tighten their coil they will tighten it up within what we call our critical range positive critical range negative so right now they you know that that stabilization there we've got some pretty good definition here at 1692 so I'm going to just as we kind of close out the presentation just kind of bring it all together of you know how we use this the market state awareness with the structure and with the order book you know again these are just you know one thing I like a book map so much is that you know it's given us the facts of the microstructure so these are the facts of the macro structure we know we're in neutral digestion we know that this is the low point of that neutral digestion we know that this is a positive bias this is our kind of our by zone area that we're looking for potential exhaustive opportunities so now we also understand that since we are in neutral and you can we're more than midway through the period that this area and the market did stabilizing above the previous day's midpoint and the previous day's midpoint is a great momentum level so if you know we had that big we had the big surge yesterday we the market is performed the expectation of the state so that's what we're you know what's more likely to occur market goes sideways it's going sideways now if this you know if this positive momentum is going to kind of remain intact holding above the previous day's midpoint is key because if it doesn't it's really going to validate this sidewaysness and it's going to affect you know most likely tomorrow's session that we're going to kind of end the month in the sideways situation what the market is currently doing right now it's it's down shifted into neutral what did it do it's digesting this huge surge as long as we're above 1692 based on just timeframe structure we're positive the fact that we're stabilized here about 1696 cr minus which is as a you know we're still in this less risk situation and when you get into our work you'll understand that that is a validation point to make a move to here which then you have alignment with the previous day's midpoint so this is a great alignment that says hey if the market is going to rotate lower and give us a setup down to sentiment this is where it's going to be triggered below the midpoint and below this metric the fact that we're stabilizing here above this what can occur well we can do have a rotational move back up to here and it's still in alignment with this neutral digestive sideways outlook so the you know currently the two scenarios that are playing out in the current session for ether is yes we're sideways yes we want to take the money off the table when we have it if the market's going to rotate and coil it's going to coil within the cr plus and cr minus that would be a rotational trade of digestion of this huge surge makes sense so the fact that we stabilized here we anticipate the market to reject here so if we get that move up to this level it's a fade and and as the market transitioned above here there's a likelihood more likelihood it's going to make a play for that area and the other scenario is that you know and so your risk is defined here and a failure here which isn't so much a sell opportunity as it is is a setup for a break to buy and we can use the microstructure in the order book to give us insight to what's going to occur so we have the big picture structure our strategy foundation neutral digestion what's the structure of that foundation the structure bias is positive because it's below the market here the critical range gives us our big boundaries we have our minor structure levels within that critical range to help us with this trade we identify alignment with with just general price structure and this is time frame structure and now we go into the microstructure of the order book and here's an integration that we have where our levels are plotted in the cloud notes section of book map so you can see here in real time and you can also you can see how the the liquidity is building up around structure points and when you see imbalances and liquidity shifts that gives you insight you know here you've got the VWAP I like to look at that and so if the market is you know so at the moment is this market going to transition higher up to 1736 well the VWAP can be a good a good additional insight to that the beauty of the playbook is it can you know quickly go to any market it identifies its state it identifies the structure of that state with the structure bias and additionally it provides you with some key strategy themes so because we're in the state and the structure these are the strategy themes so for each ether you know just as we went over the optimal strategy is to fade momentum into the sentiment and to accept a reversal strategy off the downside pivot so what a reversal strategy is the market breaks below the date downside pivot maybe it doesn't get all the way down here but then it trades back above this metric and that's a that's a positive signal so that's a what we call a reversal signal so that's this is really where we want to spend our money when we get these opportunities these aren't the only opportunities for this state and structure but they are the best ones the other opportunity was to fade momentum against this on a surge basically what are we doing but we're fading the critical range we're fading this neutral digestive range that's the optimal thing to do and what are our head strategies well if the market fails you know if the market breaks structure below the sentiment bias or a break structure above here then that's when our trend following strategies and tactics can kick in until then it it's messy so the the opportunities in a neutral digestive state are at the extremes which is typically the case and trading in the middle can be sloppy there can be rotational trades and as I mentioned there is the potential for this this minor rotational trade which is basically is just shrinking this range so your market-state awareness you're you've got a weapon here to really identify quickly what the context of the market is what the structure of it is and what the optimal themes are and that's your statistical baseline that's your fact foundation and from there that's where you apply your tactics so if you have any questions feel free to email me directly at js at jservices.com if you want to test drive the playbook go to jsservices.io and you'll be able to sign up for a free trial and I also recommend that you if you do sign up for a free trial we will also introduce you to our educational partner Dharma Capital Trading and our live virtual trade rooms but the first step is just to get on trial with us with the playbook well thank you for your time today I hope you enjoyed the presentation and we'll see you next week