 Good morning traders. Welcome to the bookmap channel. My name is Charles. I run a company called Pirate Traders We're a community for traders. We get together every day to hang out while the market trades live and talk about the ES The NQ and the way that it moves through the two-way auction process Happy Monday everyone welcome We got 39 people hanging out Appreciate you. Please smash that thumbs up button if you don't mind by hitting that thumbs up right away first thing in the morning It just tells the YouTube algorithm to keep sending new people and we like new people or anyway We think they're just okay But we appreciate them stopping by so please hit that like button all right well Let's talk about what the market was doing last week and then we can talk about what it might do this week So last week the market created what we call a balance area Which is basically just a range on a daytime frame that the market is trading around inside of Hold on just one second. Let me reset my data a range that the market was trading in inside of You know the period of a week we created a high We came down. We created a low. We came back up to test that high We came back up to try to break out of this balance area to the upside, but we've failed We opened on Friday back inside that balance area Well, the highest probability once that happens once you look above and fail a balance area Is that you are heading back down to the balance area low? So the move down yesterday wasn't really that bearish It was just a move to look for buyers at that balance area low at that same location where we were finding them last week Again and again, right, which is somewhere between 4495 and 4508 Okay, this area was acting as a low where the market kept finding support and turning around Well then at the end of the day Friday, we spent most of the time and brought in most of the volume where Below that value area low So once we got to the opposite end of value, we didn't get the buyers stepping in like we were expecting We didn't get the bounce to head right back up for that balance area high So that was a little bit bearish to see at the end of the day on Friday and what I said to the brigade members before we closed out the stream was Where the market opened this morning would be the telltale sign for what comes next If the market could open back inside the balance area above the balance area low Then we would likely be heading back up towards that opposite end of balance once again but if we opened inside the lower end of today's rare of Friday's range or We opened with a gap down that would be a much more bearish scenario Because that would tell us that the market isn't going to turn around right back To that balance area high just yet So think about it like when a store puts things on sale, right? A store has too much of certain inventory, you know, they bought too many pairs of jeans This quarter and they got to get rid of some. What did they do? Hey, let's put the jeans on sale So they start off with like 20% off and they see is that enough to bring in the buyers That would be like a rotation Back to the opposite end of balance, right? So now that we got back down to that opposite end of balance This was a fair price for people to step in and do business last week So the question becomes is it a fair price this week or do we need to put the market on sale even more? Do we have to make it 50% off or 75% off to move these jeans? How much do we have to put the market on sale in Order to bring in new buyers for people to say that Apple stock or that Amazon stock or whatever Is so cheap. I just can't resist it. I got to buy it I got to have it and they start buying again the fact that we spent all the time on Friday Below that balance area low and then the fact that you can see if we zoom in that that exact area Was acting as strong resistance in the overnight over the weekend They kept trying to get back up and trying to get back up and trying to get back up and trying and trying and trying But they just didn't have the buyers That increases the odds that today the market will need to pull back to bring in those buyers so seeing that we are opening in the lower end of the range is bearish to me and We've still got, you know 20 minutes until the market opens. So as far as a gap is concerned We're gonna have to wait and see there if we open with a gap down The first order of business would be to fill the gap But that would obviously be the most bearish scenario if we open inside yesterday's range. We will use the overnight high as a Sort of deal or no deal level So we'll be expecting chop and as long as they are below that Overnight high we will assume that is bearish as well. Okay, so it is The combination of those two things the fact that we created a balance area We went from we failed to break out above went to the lower end and now we're failing to get back into balance Those things in combination increase the odds the market is moving lower today. Okay? It is also worth noting the market loves to just rotate and grind and grind and grind On a balance area low So it could be a choppy morning where we go nowhere for a few hours and then we make a break that would not be unreasonable Okay, well now let's do Jim Dalton's top down love to do the top down on Um a monday morning and basically the idea is you know, we're trading intraday every day And we're getting an understanding of what the market is doing on a minute by minute basis So it can be helpful at the beginning of the day It can be helpful to start by zooming all the way out to the monthly charts Then the weekly then the daily just to kind of give us some perspective So let's jump out to the monthly charts and let's see what we got So basically we're just looking for any sort of insight that we could carry forward that we could say all right This is what's happening on the monthly time frame. What would that mean for the weekly or the daily? So monthly time frame first and foremost we have excess to the upside Okay, that excess is moving in a channel right now Okay, so that means that it's not a straight up It's building and building and building bringing in those buyers Okay, so that's not super helpful intraday today because we could balance off right here Turn around and head higher or we could come back down to test that channel low So that doesn't give us a ton of insights But what can we definitely see with the monthly chart that the market has rolled over on the monthly That the momentum we have had making higher highs and higher lows um You know for for five months straight is now over we made lower high lower lows and we're now making lower highs Okay, so now let's zoom into the Weekly and see if there's any insights we can gain from there So the weekly appears to be in a balance Which is a weekly balance, right? What we were just talking about was the daily balance area that we had last week Now what we're looking at is the monthly balance that we've had over the last few weeks where the market broke out of balance On the weekly time frame created excess created balance broke out came back balance once again Okay So again not super helpful for today Much like the monthly The market could turn around and head higher from here Although the higher probability is that we are heading down to test this trend line Which we will get a better look at when we zoom into the daily Okay So then again when we look at the daily we can see that the market is in balance We were balancing around And now we're right at that lower end of balance So today we'll play a very important role The market will decide Does it want to turn around and head right back up towards that opposite end of balance once again? Or does it want to continue lower from here? Being at the balance area low is a great place for the market to chop and grind and get as many people long And as many people short as they possibly can Before they make whichever of the two moves they're going to make So all of that corresponds perfectly with my analysis when zoomed in And looking at the market profile chart So as I said, I will use the overnight high at 4507 As resistance above As long as we are below this level I will assume the market is heading lower. That's it. Not overthinking it Don't ask me a thousand questions today I've just told you my plan As long as the market remains below the overnight high I remain bearish That does not mean the market has to go down in a straight line It doesn't mean we can't go sideways for hours first and then break lower But I am bearish as long as we are below that overnight high Okay, if we get above it And we come back down and we turn it into support Well, then everything changes my entire narrative instantly changes too This was a look below and fail of the balance area And we're now targeting a move back to the balance area high Okay, but there's no reason to be bullish for that move whatsoever Until the market gets above the overnight high and turns it into support Until you see both those things Do not be fooled That's why we grind and chop and grind and chop and grind and chop On balance area highs and balance area lows Is to fool as many people as possible By being aware of what levels matter You can save yourself a lot of guessing and worrying and being confused. What's happening charles? Is it going to go up or down? How long is it going to take charles? Right, don't worry about it as long as we're below that overnight high The the market is bearish for continuation lower The first potential support that I see based on previous support and resistance is at 44 85 We will likely get a bounce there, which will give us a chance to test Yesterday's low fridays low once again. So we push down we find some support. We come back up We look for resistance there If we get that resistance, I would then look to fill the gap that we left behind on 98 to 44 77 Okay, once that gap is filled I would be asking myself is that all the market needs to reverse and come back up If not, I'd be looking to test the untested virgin point of control at 44 65 I'd play the game there again. If that's not enough to reverse the market I'd be looking to repair the poor and weak references at 44 51 and 44 45 Okay, so I'm not saying we're gonna definitely make a move down here to 44 45 today Not at all But I am saying as long as we are below the overnight high That is the direction that it's going How far they can push it will have to wait and see at each important reference But to me this market is bearish We put it on sale on friday and we did not bring in enough discount shoppers to get back into balance So that means we likely need to put it on sale Any questions from the chat 15 minutes to mark it open Uh, good morning to John Q. He says best song to get my mind ready for the day queen I won it all I'd have to replay that to remember the song Good morning tv Alyssa good morning to you ebb and flow good to see you Frito in the house Frito says careful Wanting it now That's funny. Yeah, you gotta you gotta take it whenever the market gives it to you Good morning to nap Michael welcome Jay in the house. Thank god. It's monday and the casino is open, baby David g. Good morning Past 2910 Says the four hour is oversold Um So here's what I would say I would say All weekend long the participants have been trying to guess what's going to happen for us during the regular trading hours today, right? They have been Pretty neutral. There've been about the same number of buyers and sellers But where they did business is really really important Okay, so if when you say the market is oversold That means you think the market has to bounce up at the market open. That's fine I can live with that but what really matters is what happens in this area up here If that continues to hold his resistance There's going to be a whole new set of sellers that will step in And they will take the market much lower So The overbought oversold thing doesn't really matter when we switch from the overnight To the regular trading hours because there's a whole bunch of new traders ready to do business Uh geo says can you point to the recent balance area on trading view? So you got I mean there's the market's in balance bigger picture. So there's a million balance areas Um So you got last week's balance was in here So we looked above and failed came back down. We're now testing that balance area low You also have a larger set of balance happening On the weekly that looks more like this right here Okay, and then you have like on a monthly you have this balance right here Which is this trend line and then we haven't tested this one yet, but we'll see when we test that one So the market is coiling right on every time frame. It's just balancing and balancing and balancing winding up that spring tighter and tighter and tighter and tighter Oh, they're making it so tight Ken good morning to you caution good to see you Map says we got fomc press conference on wednesday So that means Whatever big break the market is going to make could happen on wednesday That doesn't really change anything about this morning's narrative though It is still all about whether we stay out of this balance area or we re-enter It's all about 4505. Are we above it or below it? Any other questions for me? We got 67 people hanging out only 36 likes that means half of you hate me You guys hate me Smash that like button Well, we're here. Let's take a look at the enq And we'll see what's happening there. I have a feeling it's very similar to the yes Okay, so we got balance on the enq as well A little bit of a messier balance area So the important level to me this morning is going to be this cumulative node Right here at the overnight low Around 15 300 or sorry 15 3 35 This is the magnet right enq loves to go from one large cumulative to the next So it went from this one Broke away it went up to the next one up here It tried multiple times to break away from that one and couldn't do it So it came back to it Once we failed on friday Straight back down to the other one So this right here is going to be the important level to watch You know nothing too exact but just around that overnight low 15 3 35 And um and expect it to act like a magnet. So expect there to be a lot of chop there The market will push down and it'll grind and grind and grind and grind but if it breaks away to the downside Look for the next move down to the next major node 15 090 and if it pulls back up Then you're looking at a chop zone Between the overnight low and the overnight high Yeah, that's just prime to chop right in there So just boom boom boom boom boom boom sideways move And same exact thing as the es if they can get above that overnight high and Turn it into support. This is the trick They must also turn it into support Then I would be bullish to turn right back around and head up to this node So it would be like tug of war in here tug of war tug of war tug of war breaks above Boom short covering comes back down boom finds support Then i'm good to head back and target this big node once again and and with the uh Low from friday if they chop tug of war tug of war tug of war break below come back up turn it into resistance I look for a big move to the downside from there So the queue could chop some broccoli this morning Chopping broccoli All right back to the es Good morning es trade monkey monkey Got 84 people hanging out welcome If you're new and you have no clue who I am or what the f is going on right now. My name is charles Uh, I have a group called pirate traders brigade. We get together every morning for the first hour of trade To talk about the markets the es the nq and try to figure out what they're going to do that day If you're just joining us now and you missed the beginning I would recommend going back and just rewatching the first uh five minutes or so You have five minutes until the market opens But I would basically just explain that I am bearish today neutral to bearish As long as we remain below the overnight high at 4507 If we get above there things can change and my opinion will change quickly But until then my assumption is we don't have the buyers down here To head back up yet. We will likely need to put the market on sale And try to fill this gap down to 44 77 Looking for the buyers there So it's not going to happen instantly. We're going to have chop. We're going to have sideways But that is where I think we're going Looking for some selling in the market Selling on a monday morning Alyssa says and charles has a great educational study course. Thank you Appreciate you Yeah, I also have a market profile e-course So if at the end of the session today, you're like holy moly charles That was amazing How can I learn to read the market like you do? Well, you could always just check out that e-course 200 bucks A mere four points in the es and it's yours Good morning pavel. Welcome 95 people hanging out 45 likes Smash that like button Um ebay buy and sell says it seems like your screen is frozen um Is the little yellow bar popping up and down right around 44 94 As long as you're seeing that you're seeing it live It's just the market ain't moving we got two minutes till we open Frito says I started checking out the new e-course materials yesterday. Good stuff. Thank you, sir Yeah, added some extra bits to the e-course So we've got book map and internals how to read them as well as the uh Risk management, which is basically the most important thing of it all Um pass says charles. Do you trust weekend gap? Well the way I read it there is no gap right now um If we open inside friday's range, which we're literally like within a point at friday's low Then there's no gap If we do open below friday's low I will see the gap is being from wherever we open to friday's low and I would expect it to fill Oh now we have a gap. We have a half a point gap y'all eBay nothing is moving. Yeah try resetting All right, so we did open inside friday's range literally right on the low, but that's inside the range So that tells us the market is likely to chop this morning We're likely to get some two-sided trade in here The first potential support is at forty four eighty five And we will look for new sellers there. So does the market bounce Back up here, or do we get new sellers down there? And the first resistance above is going to be about forty five hundred So we'll just watch it chop between the two as I zoom out here on book map I can see that the liquidity in the market is about the same on both sides of price And that there's actually more above so that further increases the odds of chop this morning We'll have to push up to get to that liquidity first before we take the market lower And we'll monitor what happens with the liquidity below as we do As the market pushes up Does this disappear or do they add more and more liquidity down here? Super exciting stuff here With the with the chop Andrew says wow, I have to check out the additional content you added The course itself is well worth the money Even before you added that. Thank you, brother. Yeah, if you haven't checked it out yet, do it for sure I think risk management is the thing most traders don't understand They they think to be successful in this business You have to be right all the time You have to always win and that's just not true. You can lose just as much as you win Um, you could be right half the time and make a wonderful living You just have to manage your risk. You have to be extremely disciplined with your position sizing So that the half of the trades that you take that win Will make you more money than the half of the trades that you took lost you And once you can wrap your mind around that mathematically to see it and understand what's going on It makes managing risk much easier If you're trying to discover a magical system for trading the market that will always work and will always win Good luck with that The market is constantly changing And you must be able to adapt with it the only way to be able to adapt with it Is to manage your risk as you go along All right, so as we're getting up to the 4500 number My first observation Is the liquidity is drying up Right, we had all this liquidity up there With these dark red, you know candles right here and as soon as price got up there, they were like, haha Just kidding gone now So let's zoom out a little bit with the book map and see where that liquidity moved When it disappeared from there, where did more liquidity pop up? Okay above So as they disappeared, I got to change colors here Um, as they disappeared the liquidity in here, they started to add it up here So they're trying to create that magnet to get it up there to test This node up here around 4505 More chop my friends more chop Chubby chubby chop Percy says NQ please It's moving. Good morning. Norado trader Oh, yes, sir. So it's testing that node that I talked about at the overnight high so Only if it can get all the way above 15 430 And come back down and find support would I get bullish? So to me the higher probability is that the market is going to run out of steam Come right back through the opening price Let's see what happens NAP says the position sizing explanation in the risk management section is a game changer Thank you, sir. Appreciate you got 124 people hanging out only 60 thumbs up That tells me we got about 60 people out there that it got their thumbs going sideways Smash that thumbs up button, please So we've now got a low volume node at both the high and the low Of the a period here so far today That is a sign of more chop to come It is unfinished auctions at the upper end of the range and the lower the end of the range So that increases the odds at some point they're going to have to poke up and then come back down or poke down and then come back up More chop. Okay moment of truth for the nq Is this a look above and fail of the overnight range which would be bearish to head back down towards the opening price Or can they turn this into support literally right now? Nope Look above and fail So chop on both markets Okay, so now we're back below fridays low We had no support at the half back So that tells us we are bearish to choppy They could find support right now And turn around and head right back up Or they could start to turn Yesterday's low, which is also our opening price around 45 Or sorry 44 94 They could turn that into resistance If we start to see resistance here that is bearish for continuation lower If they pass right back through no problem more chop Let's see what happens. Good. Good morning big balls trading But like basketballs Are you a sports? memorabilia trader Okay, so do we get resistance here? All right new selling at fridays lows bearish to see Increasing the odds we're going to test the overnight low at 44 87 Oh, I got a package I got a package, but I'm not wearing any pants. So I'm not going to get up and walk over and answer the bell I'm stuck This is why I should never use a camera Viper, thank you brother appreciate you Trader Pete in the house Jay says but you have socks on right? I don't I have flip-flops on Mark says the 44 52 area would be a nice test today Which equates to 15 to 50 in the nq would love to buy support 15 to 50 You're probably 200 would be better I do see the support you're seeing there But again, it's it's about tug of war. So you got this node right here if we break away from that They're probably going to that next big one So I would say 200 15 200 at least But let's wait and see Let's break lower first Still in a chop zone Okay, so speaking of which the es just made a good low With good taper and good excess They also did not have to test the overnight low Which is a when what should happens doesn't So that increases the odds the chop will continue. They're not ready to take the market lower just yet So the next level we're watching is the half back at 44 96 looking for resistance there To come back down for that low If not Coming back up for the high Chopping broccoli All right, no resistance at the half back. So the chop continues Nq back up to test that overnight high So same question as before can they turn it into support or do they look above and fail once again? Okay, so we're now once again asking the question. Can they turn yesterday's low into resistance? Or do we chop right back through again? We may have to do this for a while Hold it So what we want to see now in book map to give us an indication if they're going to take the market lower We want to see some of this liquidity above start to disappear As long as these big red You know candles are up here That's a magnet tugging on market to come back and test it once more We also have the weak high as well So The market's got magnets pulling on it preventing it from going lower So before it will be able to some of that needs to disappear and new liquidity begin to build down here So that's what i'm watching right now Okay, what do we just see Went from dark red to lighter So they are starting to pull a little bit of liquidity Good morning, Santiago. Welcome Anyone else who's new pop in the chat say hello My name is charles. It's nice to meet you Paul welcome happy to have you okay, so Where are we at right now moving forward? Well, clearly we have chop Okay, we have large nodes of liquidity in book map above Increasing the odds the market will at least try To test this node up here around the 4505 area Okay But we have Lower highs and lower lows on the daily And we have value overlapping to lower So the market is telling us that it is more likely that it wants to go down today But that first it may need to go up Looking for liquidity up there Then it'll turn around and head down So my analysis has not changed from what it was at the opening this morning I am still neutral to bearish on the day And I will remain bearish as long as we are below the overnight high And the only thing that would change my mind Is getting above it and finding new buyers up there Turning that overnight high into support is the only thing that would change my mind That the market wants to go lower today Now let's pop over and take a look at the NQ Okay, so twice now The NQ has poked above its overnight high, but what did it do both times? It just failed and came right back down failed and came right back down So that is telling me that this market is bearish They don't have the buyers to take the market higher Not yet Now they're in a chop zone and so they'll keep chopping as long as they need to chop They'll go sideways and go sideways and go sideways Driving him mad But the higher probability remains a break to the downside And the only thing that would convince me otherwise is seeing those new buyers Up there at the overnight high they've tried twice and there were no new buyers You think the third time is going to be the lucky charm? I don't know We'll have to wait and see That is the end of the stream here on the book map channel I love you and I appreciate you all for joining got 135 people hanging out Come on back next monday morning and hang out once again If you're a member of the brigade which only costs 10 bucks a month That's less than one tick on the es But anyway only 10 bucks a month to join If you're a member of the brigade head on over to the private stream and I will see you there If not, I will see the rest of you next monday morning. Thank you very much and have a great week everyone Bye