 8. Here we go. Welcome everybody, it's 8 o'clock on Friday the 25th of August. I hope you've all had a good week. Over on Discord we've been streaming ES and the action or the slow grind up to some resting icebergs, cell icebergs, which are in the direction of the heavy liquidity, i.e. the heavy liquidity is above. Anyway, let us start with our disclaimers. All bookmap limited materials, information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Trading futures, equities and digital currencies involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. That is the screen that I've been showing in Discord for the last 10 minutes. So that's now up on YouTube as well. We haven't got slides necessarily for this presentation but we are going to be doing a repeat really of last week. Last week on the Friday we looked at trading supply and demand, three particular setups to the long and to the short side, so that's three long and three short, in the little session leading up to the London Open and the 90 minutes thereafter. We actually had quite a lot to go through so we didn't go through that many setups because each one we did in quite a lot of detail. We're going to do the same with ES but first of all because it's been a big week and we've had major Nvidia beat on its earnings, we've got Jackson Hole etc. and we've had a lot of movement yesterday so it's pretty worth doing a quick recap of some context. So if I switch from the screens onto some slides. Okay, just having a look at what we have lined up. We're here between 8am and 9am Eastern and effectively there is nothing for us to talk about in terms of economic releases during our hour of power. But if you go fast forward to 10am and 10.05am Eastern you've got Fed Chair Powell so there is likely to be a bit of volatility around there. In fact you've got a few different speakers. You've got Powell, Harker and Goolsbee later on in the morning so that there should be some volatility and if we look at what happened yesterday that's another reason why we may get some volatility. Okay, before we do that let's just look at some stats. Somebody asked about that during the session on Wednesday and actually include the slide up front so that people can see that I am looking at stats all the time but I only look at them in the sense that they are statistics and nothing more. The ones we're looking at are up here and we're looking at after a big, big session yesterday The average is the right hand number which is for ES that column and for NQ that column and today's range is the left hand column. So for ES in Asia we've got 10 with an average of 14 and you're at 20 with an average of 27 and so far an ETH overall 20 point range against an average of 29 and for NQ 104 point range against an average of 141 but that average has been boosted upwards a bit by some of what happened yesterday so especially the RTH. If you look at the average now in NQ for the RTH 246 points and we will have a look at the range in yesterday and we'll see why that's boosted that up and the other number that we look at here is the relative volume so 88% so it's still reasonably good, not enormous. You'd expect after a day like yesterday with such significant range to be over 100 but it's still good and in light of what happened yesterday still eminently tradable. All the other stuff relates to RTH and since this is an ETH where there's not too much point dwelling on it. By the way as usual I am on Discord and on YouTube so I can see comments on both and feel free to fire off any questions. Okay all right this is the daily picture on ES. Again I did mention that I do use trend lines on a very high time frame basis and a very very small time frame basis or short time frame basis. The lower line here, the less steep line for ES has been the longer term multi-moving sorry multi-month uptrend and that's the trend line there. We broke it decisively and it's interesting from a pure Wyckoff perspective or a trend line perspective that we did come up and retag it. I'm not saying that I'm not actually commenting on any probability of that occurring I'm just saying that on this occasion that did occur both for ES and if we move across to NQ pretty much almost for NQ not quite the same but you know it got close enough and I actually think that is a good point to make that trend lines are a rough guide so the fact that it provided a zone of a potential retest the fact that it didn't get there is neither here nor there provided a zone it got somewhere near that zone or got into that zone maybe the NQ hit its 50 day moving average so there was some confluence there around that kind of stuff and that's about as far as we really talk about technical analysis in the true technical analysis sense in these webinars. Okay let's move on. Okay on to the TPO's. So here we have ES I'm just looking at the numbers because they are very small and I admit they're very small in this screenshot and I think the thing to note here is how large the RTH range was yesterday and a couple of other things to express from a profile perspective this is more profile than it is Wycoff here if you look at the range of ES yesterday not only is it huge and being an outside day it's actually a double outside day it took out what were effectively two up days after the NVIDIA beat hold on CMJ is not saying anything but book map and TV charts sorry CMJ this is because of the way Discord operates so even though that is currently visible in YouTube it's not so if I dragged it across to my third monitor you'd see it but it's really it's for the purposes of the YouTube webinar and historical viewing of people watch this and most of the people that have been watching my webinars over the last few weeks have been watching on YouTube after the event and thanks yeah. Okay so going back to what I was talking about this is more profile what I'm about to say than it is technical analysis so you have a day which took out two up days and so effectively anybody sorry not anybody a large proportion of the buyers the longer term buyers that bought on this day or this day have been taken out and are in trouble after what happened in yesterday's RTH I think amongst the various commentators are the shadow trader put out a video today saying it's the type of day he calls a buyers shut off day that's where it basically takes out a lot of buyers and Qbuy 90 to stop right let me just get we just had some action so let me just switch back to the screens there yeah one of the reasons why we had our screens up early in Discord was because we had these cell icebergs that came in for the last swing high we had 300 there and 300 is a significant number of cell icebergs or resting cell icebergs at this time of the day and again we're talking about ETH not RTH and we're talking about a little bit of time before the 930 open so in our current context of the action that's been happening in ETH ETH for the last few days and few weeks 300 is a significant number and there's also a proposition or a supposition that I occasionally put out in these webinars that if you have a significant cell iceberg it acts as a target for people to come and retag basically the auctioning theory behind it is that they are advertising that they did transact at that level and are willing to continue to transact at that level that's the basis of the theory for why it may get taken out you also have confluence here which I pointed out a little bit earlier which is that you had most of the liquidity above so in terms of the magnetism the magnetic effect of resting liquidity that was driving price upwards and one of the things that we said in the Wednesday webinar was that we look or I'd rather look at this outside liquidity market which is 2000 versus 2500 I'm looking at the ratio I'm not looking at the specific numbers so it's 2500 to 2500 or 1.25 depending on how you process ratios in your own head anything that is significantly above one to one is the basis of forming some view or opinion that it may go in the direction of the higher ratio and here the higher ratio of 1.25 or 5 to 4 was above so again just a confluence that those two factors the resting cell iceberg and the clear liquidity above and if we go down to the three minute chart in ES and NQ sorry we'll look at the ES one because this is ES so NQ's secondary was probably a poor high yep it was a poor high just looking at the TPO across in other words there was an opportunity for the buyers to flush the stops of anybody that sold around the overnight high or the previous overnight high so you had a confluence of three factors in Wycoff terms or blind demand terms generally the more confluence factors you have the more weight that some people put on trades I don't necessarily look at it that way I do like to see all the factors that might be in play and then I think in terms of liquidity and stops so if any of those factors point strongly towards stops great it's something that I will be watching and thinking about if it goes hand in hand with logic or common sense not that markets always operate with common sense so again something that you might take into account I mean here we had a huge down day so if we go back to the images again get off the screen and we'll go back to the images we had a huge down day yeah that one's ES again so after a huge down day there's always the potential for some retrace and a lot of people like to look at yesterday's mid value as a point of retrace higher 50% retracement of the prior days range as a typical example typical again is a dangerous word to use when you are talking about trading but for a large range it's just a statistical measure I've done quite a lot of analysis on things like technical analysis indicators and the probabilities associated with pullbacks and you will never hear me talk about Fibonacci or you'll never talk about me saying that Fibonacci has any statistical weight in any of these webinars so I'm not much of a probability trader I prefer doing other setups but if I was then a 50% of a large move is something that I would look at if that is what I was doing but it's really what I'm doing alright we will keep on with the images so you have the NQ again similar the NQ took out the prior 2 days almost took out 3 days worth of range or RTH range and we are stuck at the bottom part of the range in NQ that's yesterday's RTH range and we are below value so value really is that zone there or that wider zone there and NQ currently is below it so there is always potential it's going to go back to its mid of yesterday or at least where most of the trading took place in other words it's VPOC a volume point of control that kind of thing if we go back to the ES yeah it's got a I cannot even read my numbers because they are so small so I'll have to look at my other screen so the VPOC, the VPOC in ES is up at 4420 you've got a lot of value between 442450 and 4401 so once you get into that value again this is one of those theories or learnings that people teach you about in the profile world that once you get into value there is a statistic that it will cross all the way to the other end of value again that's not something that we are going to comment on in this webinar ah Steven yep sorry I will get back on that screen sorry Steven I've been talking about what's on YouTube I have a think about that for future presentations where you've got people in Discord not seeing the slideshows that I'm showing in YouTube it is a valid point I've got OBS Studio going on my fourth monitor so I'm able to flick around between screenshots images that I've captured the bookmap slides and the streaming screen which is my third monitor so Discord really the way Discord is set up for streaming it is just that third monitor so it does not have access to my OBS Studio in the way that YouTube does but I will have a quick think about that as well to see whether I can arrange it so that it is looking at the OBS Studio output rather than just the screen of the third monitor it is actually in higher resolution I believe in Discord so the screen that you are seeing right now with ES grinding up into the liquidity up above we've got 208 at 4405 and 235 up at 4409 that is probably higher video quality on Discord but again since I'm not really looking at either I'm just having a quick look up at YouTube you know the quality seems okay the numbers are small but there's a reason why I've got my numbers small so that I can fit more onto the screen and show you more things such as the 3 minute charts in ES and NQ to put some context into what we are seeing in ES at this time of day in ETH and I can't stress enough and I try and stress that again and again context in the ETH is critical in my opinion because the RTH market the underlying stocks that form the S&P 500 index are not fully open they have a pre-open session which opens about an hour after the London Open and then opens properly at the 9.30 Eastern time but because you've got a large chunk of ETH where those stocks are not open the correlations with other drivers such as the currencies, gold other indices that we've spoken about and we will continue to speak about in this webinar are probably a little bit more important than they would be in RTH okay alright okay let's get back to the slideshow on YouTube again I will consider what to do with Discord on the slides for the next time there's just one just a couple more slides I wanted to go through okay that one on Discord you don't need to worry about this is the resting cell icebergs which I screenshot in Discord about 40 minutes ago okay and finally this is the only other slide that you won't see on the Discord channel that's in the YouTube I have done a snapshot of a very low time frame because the main purpose of this webinar is the 90 minute period of ES between the London Open which is 3 AM Eastern and about 4 30 AM Eastern what I've done is I think I've got a 15 second just a candlestick chart of ES just to show as an example that if you're trading such a short period of time and we are talking about 90 minutes here it may help with you seeing supply and demand setups again we are going to go into those I'm going to draw those and explain the logic behind each of those three in a second you may get more setups and you may get better entries if you are on a smaller time frame as well as your overall time frame whether that's a 3 minute, 10 minute, 15 minute hour whatever you want to look at I'm just saying to help better identify the supply and demand zones if you need a time chart as well you may want to look at a smaller time frame you may be perfectly happy with being able to see those time frames as we zoom in and out of book map and again I think you can do but it's just a thought anyway let's go back so we leave that screen as it is we are going to start drawing again so bear with me with this one again right let's see if this works yes miracles okay let's see I think I'm drawing blue this time so we are drawing in blue we're going to do the shorts first okay and we are going to do A and C again I apologize for my drawing and my handwriting okay so here we have a swing high this is and we have price moving down so the question is maybe we use another color here is this A supply zone so if price comes back to A or to B or to C do we have a valid setup in supply demand technology to then take a trade a short to get us down and get us at least one R in terms of matching our risk and hopefully getting a multiple of the risk dollars that we put down in this trade so go back to blue or maybe we'll go into this dark purple color alright so what is the rationale for trading supply here and again this is a recap of what I did last week but I just thought because we are doing it again for a different instrument for the same period 90 minutes but today why take it okay so if we look at A first of all the rationale that it will only come up to A is that there is really strong supply here in other words sellers were really really keen to get on board and push this price down and they've got a view that they want to get the price down to wherever whether it's down here or down here or down here so in other words the rationale for A is the strongest desire by sellers and the rationale for B is they are not quite as keen or they are keen to get a better price remember they're selling so the higher it goes the better their price or their potential profit so B slightly less keen less keen sellers they want a better price to sell it and C is the classic upthrust or breakout failure so in the example of C what they want is that you may have had some sellers here or here or here they want their stops to be flushed and to get an even better price at C so they want to take advantage of some of those initial sellers who may well be on the right side for the actual bigger move but they want their stops to get their price to be the best possible price and then ride the way down ok so so those are the three variations of the supply and demand and again I mean if we were going down let me go back to blue so if we were doing exactly the opposite so if price came down here and then it was retracing back down we've got exactly the same thing so you've got A you've got B and you've got C but in reverse and everything I've just said applies symmetrically so the other way around ok and where are you wrong the clearest way the only one that is 100% clear or as close to 100% as you're going to get in this business is this one is C the breakout failure the risk point is the end of that flush if that was the swing the swing high and we went up to there and then retraced down that is where that trade is wrong the others you've got you've got some measure of it being wrong around about here here here all the way up to around about there and that's when I start talking about volatility based stops or I start talking about fixed point stops that's what I'm talking about more for the A and B variations of that setup so that essentially is the supply and demand that we're talking about so we just ditch all of this and we go back to back to ES let's have a look at what actually happened today and again we're grinding up towards that liquidity which is kind of expected I put that supposition out probably about when did I put it out put it out 726 about just over half an hour before the webinar started this is the fun bit which is always fun trying to drag this back to roughly 2am eastern ok the best I mean even though we've looked at the context of what happened the previous day one of the best things you can possibly do for your own trading is to go in with a completely clean mindset so you accept that anything will happen so that even if you thought oh it's going to go down further or oh surely it's gone down too far it's got to retrace for reason A, B and C I'd say the better approach was just to say I don't know what's going to happen I'm going to trade my setups I know what those setups are I know how to see them in bookmap if they come I will trade them and I will try and get multiple Rs on my risk where I can ok sorry I have rewired too far but we're almost there ok we are there now so we are we're coming into 2am eastern so as we said previously you've got the German pre open which is really this period here 145am to 2am east 1am, 130am I have absolutely no idea why the Argo seem to like these round number half an hour points but they often do so it's just one of those again take what I say with a pinch of salt and please go and look at your own charts and see when volatility or price action tends to pick up so coming into this 2am German open if you zoom out on the liquidity and this is quite a heavy zoomed out picture if you look at the range that I've zoomed out to you've got 4,450 above and 4,330 below so you've got 120 points that's massive in ES but sometimes you need to zoom out to get a full context on where the resting liquidity really is to see whether it provides some guidance or not but bear in mind that the outside liquidity numbers that I've got here and again I'll show you the settings for that that's just the 30 price levels above and below where the last price was traded the last price traded here is going to be this dot here so it's not the last price traded now at 828am it's the last price traded wherever I drag the bookmap heatmap to so at that time you've got a ratio well above 1 you got 1.8 to 1.4 and with the naked eye you can clearly see there's a heavy band of liquidity above which may act as two things one it may act as a magnet and two it may act as resistance in the on the initial approach or touch sorry I was just having a quick look across at the comments and again I repeat please please feel free to ask any questions you want I mean I did not trade this session today I had other commitments so I was not at my desk between 2am 4am eastern so this is a bit of a learning one for me as well since we're going to go through this in quite granular detail I mean I have seen hundreds of these before and you get a flavor the more of these you watch there's probably another good point to make the more of these you watch the more you get a flavor of the price action that is likely to occur and that is instrument specific so if you watched 50 of these ES they say between 145 eastern and maybe 3 hour periods you can always speed it up in book map on a replay period between 145 eastern and 445 eastern you're going to get a flavor of the type of price action and the type of games that occur day after day after day and just because they played a game yesterday or the day before the day before that does not mean that is the game in the near future but I'm just saying that if you've seen a 50 games or 100 games you're likely to have seen the game that might play out so that the shock or or surprise that you feel may not affect you in the same way that it distracts you from your trading process and your trade setups and your trade management and execution there is nothing like experience when it comes to handling ridiculous price action behavior in these markets okay so we've stressed that we have we've got significant liquidity above rather than below okay but one thing that we do look at when I just drew it was we are trading supply and demand okay and we have broken our multi month uptrend so what I'm trying to say is that if you get a supply or a retest of a supply zone and it is a valid setup it is something that you do look at regardless of whether you take it or not you wouldn't on my opinion be looking at it and I'm just watching ES and NQ get to the high of the day now so I won't zoom away forward because it will take forever getting back to here again you know that NQ is about to hit some liquidity up above at 14910 and ES is currently at 0450 so I think I mentioned there was some liquidity up there and it is tagging that second liquidity okay so you've got a strong run up here you've got 4384 you've got over 6 points maybe 7 points in this one swing upwards and if you zoom right in you can see it's a good strong swing tiny tiny pullback okay then it approaches let me zoom right in then it approaches, this is the A zone on that supply demand zone or the supply zone chart that I just drew so we haven't quite got the double top we haven't got a plush at that stage of any stops and a reversal we've got this A zone so if you believe that the supplier sellers were very keen to move this one down this is the zone that you would be looking at you know are there any other help factors for us on this particular part of this book map chart again maybe I need to drag this one across I did I know I had the 15 second earlier but I can't show you a 15 second in ES in trading view because I have a very very basic plan in trading view because I do my main analysis in Sierra for time frame kind of charts okay let us zoom back down to one minute on that one okay and we're coming into this 2am zone so this area here is corresponding to what we are seeing in book map there so I'm saying that you're here there one of the things that we liked to do when I'm looking at supply demand setups is do I have a target that is valid in my eyes as in something that I really really believe in again I didn't trade this session so I'm coming to this kind of cold in the same way that anybody else is looking at this and they did not trade this session is so what am I wary of when I look at this one I'm thinking over the longer term the next hour and a half after this liquidity up there is likely to be at least approached if not touched and interact and traded at so I'm very wary that if I do take a supply a retest short here it is more of a scalp or short little swing than it is a longer thing that I'm going to be able to hold for the next 90 minutes but that also contradicts what I just said which is that you do not predict the future you do not know what's going to happen and you must go into this with an absolutely open mind so that if you've got this value set up I haven't got a trigger here on the market pulse or anything all I've got here that might have been a trigger for me is what I said the other day which is a test of large volumes so I'm looking in here and seeing a trade of 300 there so that's a retest almost back to that 300 it didn't quite get to be a true retest in in NQ the fact that it got close is good enough for me with ES I'd like it to get a little bit closer so I probably wouldn't have taken that trade and maybe coming into the German open and knowing how ridiculous the volatile the price action can be I would have been a little bit wary of that but I'm just saying if we had had a retest of this and it had been a nice bit of absorption perhaps into that I would have taken that with a tight stop and by way of tight stop I'm talking about but two two and a quarter points on that one and trying to target this low here but anyway let's keep having a look to see what happened then so we have this following the 300 that we just identified 362 actually maybe we zoom in again 317 okay that is a retest here if we look across at this column we've got some delta positive delta at the top we've got a retest we're right in the supply zone we're right at the at the German open there hasn't been some kind of massive panic buying where it just zooms up five points in 30 seconds so here with some buyers being absorbed and you can see you've got 302 buyers in fact we just drag this one across of it one of the things that I do love about quickly analyzing absorption in bookmap and having these three columns here the delta the cells and the buyers is that I can quickly zoom in and out and drag and look at how many buyers are potentially trapped here if we should go down so if I should take that retest of that 300 trade and take it as a short you've also got this resting buy I speak it's not something I tend to target you'll see me talk much more about the resting cell icebergs above than the resting buyers below but you do have one here and it does get tagged and flushed right okay so I'm saying that that is a valid very small let me get the pen out to work if we even get one R here let's get the pen out so say we get in around about here and say you managed to get in at four three ninety twenty five and you want a tight stop right I think I do not tend to trade with less than a two point stop unless you've got a massive iceberg to hide behind and I talked about that the other day as well so say for example you have a two point stop right and so we're talking up to there you've got some liquidity as a wall there but that's two points there and you've got this as your first target so you've got the buy iceberg as the first target which is at eighty nine so you've got less than a one R so it's not looking like an absolutely great first target as a second target you've got this wing whoops that was a very wobbly straight line let me do that one again you've got a swing low at four three eight seven seventy five so you've got to have some conviction or some rationale behind why you might want to take that rather than this as your target so you've got that then you have two and a half points so as your first target in which case you've got over one R in the trade so you know it's looking like a slightly better trade rationale but again you've got this liquidity up above which is the danger we've got a period where up until the London Open the direction hasn't really been set as no real indication that we're going to go much lower I mean I can't really find any rationale by looking at the liquidity or anything for saying that we are going to go down much so I'm just saying that that again it is technically a valid setup for a retest of a supply zone but yeah I just don't have a target there that I wouldn't necessarily have believed in and I would have strongly believed with the amount of liquidity that was above that at some point we were going to go up okay so the other potential so if we get rid of all of that the other thing to look at here is this spring or I mean we talked about this as C on our supply and demand so we we have this swing low here at 89 and they take it out by one tick right and in so doing they tag the biasberg which they'd advertised and transacted at and then you have a very clear target up there a very nice target up there so that is the kind of thing that you know where even if you're wrong on this trade I mean what are you risking there I mean you could you could say you're risking the two points you could go for aggressive and say I'm risking six ticks because it's this time of the day where the market is not as volatile as the London Open and I'd love to get in because I'd love to target up above at four three nine six 75 four three nine seven you know even if you took your two points there and you got in say around about there which is 89 25 so that's at least seven points seven points and you've got two points so you're saying that the main target there is 3.5 so that is a spring I don't think that's what happened but let us keep having a look at what did happen and again most of our focus will be on the action at the London opens which is at the 3am so this retest of the sell liquidity or the 300 trade again I'd love some way that the absorption indicator did actually I'm pretty sure that would have happened within one second so I'm a bit surprised that we did not get little icon up here saying 300 that would have been a little bit easier to see in hindsight but anyway that looks like that was the trade so even though I like the spring I would have been stopped out there whereas if I'd taken the less obvious trade which is the short at the retest of the supplies end with the 300 trade that would have got to the target which was the first target being there the 438775 if we we've resumed out here the problem with zooming out a little bit on some of these is that when they cluster the volume together and I get a volume of 381 and a volume of 300 that's not necessarily accurate in terms of what were the individual large trades that took place there but you have got essentially a large cluster there and if you look across here you've got some delta at the top so there you could say you did get a nice retest and that went all the way down to the resting liquidity that was sat there at 438175 ok so on this occasion if you've taken the least obvious path on the fork on the road here of taking the shorts and sticking with your process and sticking out with the setups and again with our supply and demand we're looking for factors that help us take those trades so if we have a very large trade and again I keep saying that the probability of a retest of a large individual trade is high that is a confluence factor with a supply zone so you had a large trade there it got retested and then even though it was retested twice once then twice so in fact there were two identical setups here of a retest of a supply zone both in the A zone it didn't quite make it to a double double top so in the A zone or the A variation of the supply and demand test supply and demand setup that was the one that that gave us the big move initially until well before the London Open there's also something that my colleague Tom says which is very very important when you're looking at the supply and demand zone stuff in the ETH session and that is that we often go down to go up and go up to go down so if we have a target which is up here at the 97 4397 to 4400 and zone then the people that really want to go up will make their money twice they'll make money driving us down and they'll make money because people are too keen to go towards the obvious liquidity and then they'll make their money by buying at a much cheaper price and then riding it all the way back up to the top so you've got to be aware of that too that sometimes things are too obvious right let's have a look at the next one then again this is all hindsight so finding these big trades in hindsight and looking for the retests what I stressed and I can pull up the picture again for this time of the day is that if you are looking at this action here on a one minute time frame or a three minute time frame we had the three minute just over here one minute over here sometimes you can't really see the first and second and third retests of in this case a demand zone very clearly you can when you you drill down into book map and you find these big trades and you find out how they retested it so you've got this big liquidity here it smashes through the first liquidity, tags this one you've got this interaction here of 173 not a huge trade how it interacts once we get back above it and that effectively becomes a demand zone and you look at the delta at the bottom there and I'm just saying that if you need to see that on a time frame if you stick with three minutes or even one minutes you might not be able to see what is becoming that demand zone so you might just get let me draw this one again one of the downsides of candle sticks and a footprint might have been useful here and book map does have a footprint that goes on it so you might have where's my pen you would just have one candle here just something like that and then it might just go up and up whereas if you went to a shorter time frame you might well have a candle like that as well or even another one that just pops up like that so where they're rejecting a zone below and they're buying heavily in this zone here so sometimes a short time frame may help you again my drawing is dreadful so apologies with that one I'm just doing a time check 2047 we've got no questions at all on YouTube let's have a look no we don't really have any questions okay let's get into London 13 minutes left so let's zoom along a bit if we go back in our minds to on this chart to the ABC so I'm going to have to draw again on a candle chart this time so you've got you've got your B being here you've got A essentially being around about here this is A and on this one minute chart it does come right back down to that demand zone and then takes off towards that liquidity which we knew was sitting up there at 97 and above so the one minute chart there was useful again 20 seconds would have also been quite useful don't be too regimented or too stuck in your ways at looking at time frame charts you might come across people in this business and say I only have a look at one minute charts I only have a look at one minute charts there is absolutely no harm having a look at things from different angles I think one of the things that I use is a sit stand desk one of the beauties about a standing desk mode is that you do get to look at exactly the same stuff in from different angles in other words I can get away from my desk I can go to the left I can go to the right I can go backwards and look at the same thing from different angles again that applies equally to time frame charts so if you just look at three minute charts do look at some other time frame charts at the end of the day all we are looking at really is where do they want to start buying and drive up in this scenario so it does not matter whether you are always using a one minute chart or a three minute chart that was just my my opinion on that one they managed to get through this liquidity which they in hindsight was where they tried to get price down to and a very very keen area for them to buy it so anywhere on there this was an area that they were very interested to buy could not get back down to do a double bottom or even flush this flush this gets taken off as we approach but if you put yourselves in the heads of some of these algos they managed to get in here so that they would have been selling all the way up and a lot of them would have made their profits or re-bought depending on how far they want to drive this along the way up they may have bought then sold then bought etc we do not know what they do and we can only surmise and the liquidity is a tremendous help or tool in forming our hypothesis suppositions as to what they do do okay we're going to start zooming back in again right okay on the London you've got a clear drive upwards so that's the one thing I want to point out there that is in anybody's language that is now a demand zone area right you don't have any clear drives down even if I change the vertical axis down and said that if you look at this little move here and again we've got a pen so we may as well use the pen may as well use a straight line on this occasion so if you have a look at this move and then you compare that move that's clear demand that is not clear supply so I'm saying that any retag of this zone with liquidity up above 97 to 00 level I'd be very reluctant to treat as a short so just wanted to point out that a lot of this Wycoff supply and demand stuff is on relativity and the relative interest of buyers to go from here to there versus the sellers to go from there to there it's quite a contrast so let us get rid of that let us just drag this on around so we can see what we've got okay what would I do if I wanted to get along here so I've given you one clue that I would be looking at a short time frame chart I would be looking for longs just because of the relativity of the demand to the supply and I would be looking at large trades and large trapped players on this illustrated by these columns here so with large trades I'm looking I'm looking at the big bubbles I've got volume bubbles not delta bubbles represent actual trades delta is just the difference between the buyers and sellers so it doesn't actually tell me how large a trader was I am in this sense a supply and demand trader in the sense that I'm teaching this at this moment and I'm also in practice very often in fact I'd say about 80 to 90% of my time I'm taking supply and demand trades so yes I am a supply and demand trader so I'm looking at this 518 trade I'm marking it come on let's see if it will draw it across yes it will I'm looking for a retest if we go back to this it's a shame when it does that because it moved our line so we have to get rid of it this is also a swing low you've got a really large trade and you've got a swing low and you've got a spring so you've got a little flush underneath it up above you've still got all that liquidity even though they removed it at 97 you can see that they removed it there and then they added it up above in other words they gave you a clue it doesn't necessarily have to be a true clue but the clue that they gave you was that they moved the liquidity which is roughly the same amount from here up above so they're saying we are advertising the fact that we are still likely to be transacting above but perhaps even higher so there was a suggestion that it go further up and also one of the things that we looked at earlier was we looked at the range statistics for the European session that range I tend to start at 2am Eastern so we've had used up some of the range but we have used up nowhere near all of the average range in this session so I'm just saying that statistically speaking they were still a good probability of further range upwards when you put that together with the liquidity and the strength of these demand versus supply I'm still looking for longs so you have a large trade you have a slight breakout failure or spring, you have a large trade there slight breakout failure below that swing point and if you had a 15 or 22nd chart that would be a swing point that would be a clear swing point we've only got about 6 minutes left so I'm not going to drag up that slide again so I'm saying this here, this zone here and ES is often like this treacle where it just goes up and down up and down up and down within a very small range for quite a few minutes that would have been the best potential of any trade that we talked about during this 90 minute session so I'm saying if you could going long where have I got any trap sellers how many sellers are in this kind of region so that I know that say they have a stop of 2.4.5 points, whatever their stop is how far will we be able to take the market based on their stops that's how I use those two columns when I'm looking for a long which is a retag of demand zone or a spring to go up to the liquidity up above and in this case they started advertising that liquidity of 4.405 which we now know that they took out during the hour that I've been speaking so that's how I would have been using these columns looking at the market pulse here and when it's just going jiggly up and down up and down up and down if you get some kind of reading that we're in this red zone of minus 70% that is often a very good trigger to have so you may not what I'm trying to say is you might not have an incredibly clean trigger on the S it is a totally different beast to NQ and if you get a trigger like that on the market that's in a good demand zone where we're retesting volume that is about as good a trigger as you're going to get unfortunately and what is more important is that you've got the direction and the target's above right and that they equate to multiples of our at least one hour preferably scales and multiples of more than one hour we draw this and we just draw this one across there that is a lovely swing point spring on a one minute that drives us up towards the liquidity so if you're using this one minute chart and again I use lots of timeframes in Sierra that I do move around I like different angles on the market and you've got this liquidity up above that is what gets you in when you're looking at book back you're looking at what transacted down here and you're looking in this area to see are they absorbing and trapping sellers further to give us the fuel to get us to go higher and that's what you're really looking at in terms of this spring to get you into the liquidity that did drag us up to the initial target of the 97-98 and then price hovered around there for quite a long time after that 430 mark where we don't stop we don't continue looking at the market anyway I hope that was of some help in terms of looking at supply and demand on a granular basis I've got a question so I will quickly go and read the question in YouTube now so whilst I'm still on air Balian's asking in your observation are there any particular rise in ETH that are most active like I observe 415-430am after UK initial balance being set sometime where heavy activity occurs it depends on what has happened in the various markets that are open during ETH but Balian I mean for example if there was a major economic news release in Japan and China you're going to get lots of price action and volatility in that session if you've got some major European economic releases at 2am Eastern which you often do then that hour I mean I think I covered it from 145am Eastern all the way through to 5-6am Eastern it's going to give you setups and again I'm of the view that it is often better to look at two markets rather than one last week we focused on Q this week we focused on ES but you might get better trades in NQ it depends partly on what you're looking for your style of trading how many trade setups you want if you prefer thicker market action you're going to go more often with the ES but I'm just saying having the ability or the willingness to expose yourself to both of those markets and setups or valid setups that occur in both those markets will help you take those trades the one thing that you do not want to happen is to get frustrated because there was a wonderful setup in ES at whatever it was it was 3.30am whatever time it happened to be right you didn't happen to be at your desk at that moment maybe you had a major phone call maybe you had something else that you had to do the worst thing you can do in this business is to get frustrated and then your mind which is part of your process is lost to you for that little bit of time until your mind is back with you that's not what you want so one of the reasons why I've been talking about small as higher frames and looking at these other markets is to make sure that you have those opportunities or repetitions as the term is sometimes used to get your setups and to get your Rs again if you are taking an equal dollar value risk not an equal point value risk but an equal dollar value risk which is the number of points times the units per dollar that you are risking then it does not matter if you have a wonderful set of an ES which nets you two points or a wonderful set of an ES which nets you ten points but you took a ten point risk on as long as in terms of the R justifies the trade it doesn't matter you'll hear people go on about home runs I'm not into the home runs home runs means you're going to be one of the most frustrated traders around you're going to spend forever missing loads and loads of valid setups because you're waiting for that one home run that's often not what trading is about trading is about being a casino in the same way that the algos are casinos against you it's taking the opportunities when they present themselves accepting that the market can go in both directions you can be wrong just as much as you can be right taking that and moving on and if you never get a home run that week but you make you make what you hope you would make then does that matter and I would respectfully suggest no it does not matter anyway just a thought so thank you very much for darling in I hope it was a value to