 Good morning book map Welcome welcome. Happy to see you all here on this lovely Monday morning What you are looking at on the screen is two charts The chart on the left is a market profile chart and the chart on the right is a book map chart I use these two charts to give myself an understanding of what the market is doing The market profile gives me an idea of the auction process Who is in charge? Is it buyers? Is it sellers? What are the important levels? Where are they likely to do business? And over here on the right screen, I've got the book map Which basically shows me where the liquidity in the market is And also helps me understand who the participants are When I'm seeing a lot of bot activity in here that tells me it is more machine-based Decision-making which has a very different way of moving the market than more human-based decision-making more emotional decision-making And so the book map helps me to differentiate Who is doing business here? And what are they thinking? Okay? My name is Charles. I run a community called pirate traders We are mainly focused on the es the nq as intraday traders And of course we study the two-way auction process and the way that the market moves through that auction process Okay, so to start off the day today I just want to give myself some perspective on that auction process Right. Who's in charge of the market? Are the buyers trying to take the market higher? Are the sellers trying to take the market lower? Who's in charge and how good of a job are they doing? Are they successful in what they're doing? okay, so Last week the market was pinned I described that behavior as being pinned Because there are two ways that a market can have balance Okay, basically two-sided trade where the market plays tug of war to try to figure out which way it's going to go next One way it can create a balance area That is essentially a range that it kind of bounces from one end to the other Over and over again until it's ready to break out of that range Or very similarly it can get pinned to a specific level Where once it moves to that level it has a very hard time moving away Every attempt that it makes to move away from the level it just gets pulled right back to that pin again and again and again Okay So because of what the overnight did Because of the way that the regular trading hours was able to break away from that pin on friday But then over the weekend those traders brought it right back down in the direction of that pin To me today the highest probability is that the market will at least test 4565 which is that pin okay The fact that there was also a weak reference there on friday just further increases the odds That at some point today the market's going to want to test 65 Now from a position of being pinned Anything can happen once it gets to 65 Okay, once it gets there it may just bounce and turn around and head right back up We may get new selling that takes the market lower or we may just spend the rest of the day grinding around right around 65 okay But let's take a step back And let's do what jim dalton calls the top down approach We'll start by looking at the monthly candlesticks then the weekly then the daily To try to give us some insights of what to expect this week What could the market be doing and depending on what it does how will we know? Which of these things it is doing okay, so starting looking at the es here on the monthly candlesticks Um, this basically just shows us very very long term What is the pattern of the market? What is the market trying to do? So very quickly. I see we made all-time highs We had a pullback In price where we had to balance off some of this excess that we made The market then went sideways for about two years It's crazy. It seems are a little over a year um Balancing okay, it then began the process of big breaking out of this balance area This area where it was having that two-sided trade that tug of war For the year that it took right it finally started to break out of there Well, then the market came back down again. This is on the monthly time frame Came back down and tested that breakout. They found support That is bullish to see so on a monthly time frame moving into december's candle I'm expecting to see one of two things Either this momentum continues to the upside In which case the target becomes the previous all-time highs again on a monthly I'm not saying we're going there tomorrow. I'm just saying on a monthly basis As long as this momentum continues this month. The target is the all-time highs Okay If that we do not get the momentum to continue this month if we start to pull back We'll then guess what this becomes a balance area on the monthly time frame Okay, and just like this balance area here On the monthly time frame if we fail to go higher And we turn around and start heading back down That would be extremely bearish that we need to head all the way down to the 4200 area Looking for buyers there once again. Okay, so basically it would be this right here This month where we looked above the balance and we failed and we couldn't take it lower Well, it may have taken over a month But we got down there to that opposite end of balance right same thing down here Once we looked below that balance area low on the monthly time frame It may have taken three months, but we got back up to that opposite end of balance So that is what I'm saying is we are getting in the beginning of december here If this market wants to keep going if it wants to head up and test those all-time highs It needs to find support and keep going now Okay, because if they start to pull back down It significantly increases the odds that we're going to be in balance Okay, so that's the monthly time frame Let's zoom in and take a look at the weekly and see if there are any other insights that jump out at us The weekly can show us a lot more information than the monthly can so let's look for some more detailed Signals here. Okay so Once again talking about balance and excess If we're looking to balance off the excess on the weekly time frame Instead of the daily time frame. So you can see we have One two three four five weeks in a row where the market has just gone straight up It's made higher highs and higher lows every week for five weeks straight. Okay. That's momentum That's excess the market cannot do that forever It cannot just go straight up and never ever come back down at some point It will need to balance off this excess There are two ways that it could do that One way is it can push to a higher price And then just spend enough time balancing at the higher price to take the market higher that is absolutely possible Right. It is possible that we are forming sort of a channel And building momentum by just bouncing around at higher prices by just spending enough time up here To convince enough people to get bullish to continue the momentum Right. It is certainly possible However, that is only one way to balance off the excess. There is another option Which is pulling back with price. Okay So if price we're going to pull back down to balance off the excess again We're talking about on a weekly time frame. So over the weeks to come Um, they would be heading down to 44 40. So right off the bat I'm thinking to myself There's a lot of pressure on the market to hold this momentum to hold this pin to keep the market up here at these levels Because if it starts to pull back And we make a lower high on the weekly we are almost certainly heading to 44 40, right? But if we do that if on the weekly time frame we head back down to 44 40 Well, then on the monthly time frame We're increasing the odds. We're heading down to 4400 because that is the opposite end on the monthly time frame Okay, or 44 Yeah 4100 Okay, so If the market wants to balance off this excess with time they got to stay up here and use time As soon as they start to pull back it means the market needs that larger pullback. Okay, great Now let's look at the daily time frame Okay, so we can see that channel on the daily time frame We can see that the market has been balancing Up and to the right Using time. This is a this is a version of time. Sometimes they go literally sideways And sometimes they make a channel. It could be a channel down or a channel up Okay, where the market is moving in a balance area. It's just at an angle. It's not a perfectly flat balance area So that's what we have here. That is bullish to see right that is a sign that More and more buyers just keep stepping in Every time the market tries to pull back those buyers are stepping in okay, so On a daily time frame, I would choose to draw a trend line from the low of The 16th to the low of the 30th And the reason is if this is balancing as a channel Okay, if this thing is balancing oops wrong one As a channel that should be where the market looks below and fails, right? It should come down and test that trend line and then boop keep going right if we're going to keep this channel going So that's my deal or no deal level and we can go ahead and call that Around 45 55 Okay, so if they want to keep this momentum going using time I believe they have to find support around 55 and and they can dip below But they got to pull right back up. They can't stay down there Anything below there it starts to get bearish that we need to pull back on the weekly Which gets bearish that we need to pull back on the monthly Okay, so now let's zoom in even more and look at the market profile chart And put that into context. Okay So that area which is where that trend line is waiting Is right at an area that we marked yesterday as a or sorry on friday as a chop zone low Okay, that is this node right here Around 45 55 That should act as support for the market So if this morning I am of the belief that because the market is pinned it is still pinned We're heading to 45 65 jesus. It looks like we're going to get there before the market even opens Bastard so no trade to be taken there But anyway, if I think the market is heading to 45 65 It would make sense to me That that is just a move to test this support at 55 and see if they can hold that trend Can they hold that momentum? Right So let's see what happens Um, I would say yeah to me the highest probability is a test of 45 65 We may just look below and fail. We may turn around and start heading right back up But if not, we're looking to test the 45 50s If that breaks and the market starts to head for thursday's low at 45 43 That would be bearish to see and that would get me bearish If we pushed below that low At at 43 45 and got new selling down there Well, then kids i'm as bearish as can be Right now i'm starting to think about needing to balance off the excess using price So the first target becomes the repair of the weak references down to 4500 Then the backfilling of the gap down to 43 39 Okay So it's all one step at a time If the market can get down there to the pin to 45 65 and then turn around and head back up great I can get bullish again. No problem Right, but first I need to see that happen before it's going to convince me that we're not pinned Okay, then once that if we don't get that support there, we know we got to look for support in here If that changes that doesn't hold. That's what changes my mind and gets me bearish So, okay, that's what we get you bearish. What would get you bullish What would get you thinking we've broke away from the pin to the upside and we're going to continue higher Well, then we'd have to get through this massive node on the cumulative Right here at 4600. Okay, you can see that both the market on friday Completely ran out of momentum there Time and volume just disappeared right there There was no one who wanted to do business up here on friday There was absolutely no one that wanted to do business up here over the weekend Okay, there was just no business to be had up here in the 4600s So for me to get bullish on a daily timeframe to assume we're going to go higher I got to see us get up there and bring in new buyers up at that level Anything other than that today. I assume we're pinned. We're heading right back down to 65 So we push up we come down we push down we push up we push up we come down we push down we come up That's what I think is happening until new buyers up here Or new sellers down here. Okay There it is There it is We will move on to the nq But does anybody have any questions on the es? Before we do Good morning to nap. Good to see you. Welcome bus to move in the house Allios. Good morning to you. David g is here dean in the house Nap says thank you. Well, you're welcome nap. I don't know what I did, but you're welcome ships says You're such a good teacher and I appreciate how you explain things. Thank you ships. I appreciate you That is why I am teaching a workshop today. It starts today If anybody has been considering joining the workshop It's now or never marketsandmine.com Good morning to laura Traitor net in the house All right, so no questions on the es. I take it. Everyone's up to speed Pin to 65 until proven otherwise Fantastic, let's take a look at the nq. What's funny is generally the es Tends to balance sideways Like horizontally and the nq tends to use channels, but I would say it's the opposite I would say this last week it was the es using a channel and the nq using a good old fashion balance area So I basically see this as a balance area on the nq Between this node right here around 16 0 70 and this node. We're actually at it right now this node down here around 15 8 60 So essentially it's actually very easy this morning on the nq Uh, I assume we're testing yesterday's low And that will tell the tale so Chop inside yesterday's range essentially as long as we are still in between 15 9 70 and the low just chop just grind the market just bounces around in there If they can get through this node from the um Overnight it's I can't give any exact level because it's a mess in here But just say this general area If it can get through there and turn it into support then I could get bullish to head back up and test friday's high But as long as that continues to hold as resistance, I would assume chop I would assume the market's just going sideways. Okay, so to the highs. That's the level you're watching The 15 9 60s. Okay to the lows you're watching yesterday's low friday's low at 15 8 60 Okay, if they push below there and they get new selling that is very bearish to see because that is a sign we can't keep balancing with time and we need a pullback with price So let's do our top-down approach. We'll take a look at it on the candlestick chart And map it out a little better Yeah, that's just a straight up balance area. So there it is folks same thing that we talked about with the es okay This is your monthly time frame Okay, um, this is your monthly time frame same exact thing. Where is the nq right now It is sitting pretty right at a high of a balance area So either we open this week and we keep this momentum going again testing all-time highs Or we fail and if we fail on a monthly time frame, we're looking for a pullback all the way down to 1400 Okay Now let's zoom in a little bit and we'll take a look at the weekly chart So same dude, they're almost identical to the es Um, so same thing if they fail on the weekly time frame if this week's low gets below last week's low Which is friday's low actually no, sorry. I misspoke ignore that just below last week's low. We'll look at which day that was um That getting below that low is making a new low on the on the weekly time frame That increases the odds that we're heading down to 1500 So the market failing at at the lows Is bearish for a big pullback? Okay, now let's zoom in on the daily and figure out exactly which day that is Yeah, it's as good as friday's low. It's really thursday's low, but yeah, so if they break below friday's low today And they start to spend time down there that is bearish for a big pullback Now they can look below they can poke down spend a few minutes down here and then pull back up that is okay But if they stay down here if they spend any significant amount of time below friday's low that is bearish for a pullback Okay So both markets it's today is the day the buyers either have to hold this thing up Or we're going to get a bigger pullback in the market And it makes sense right? Last week everybody was waiting to get to friday. They were waiting for those options to expire They're waiting to hear what powell had to say Those options have expired. He said what's going to be said now the market is ready to pick its new direction If they break the lows today and they start to spend time and bring in volume The direction will be down Look at that the overnight already front running it getting below friday's low But but bearish to see But but but bear There they go again, dude liquidating before the market opened beautiful 18 syrian morning to you top gun in the house. Peter is here. Good to see you Nap says this feels news related. No Um, could be I have a feeling they're just trying to front run the open because it's happening five minutes before the market opens They're trying to get everyone emotional and panicking right away Probably to get a bunch of people to short right at the market open Then they create a look below and fail of yesterday's range, right? So the market opens It pushes down there below yesterday's low a bunch of new sellers panic Because it happened so quick. They didn't even have a second to think about it Oh, no lower lows on the daily and they just start to panic. So then those sellers get short And then the market pulls right back up into yesterday's range and squeezes them all And then we get chop so I am not bearish until we see that new selling here in the regular trading hours at yesterday's low at friday's low Because it could all just be a game To get you emotional and take your money Boy, do they love to do that And they're very very good at it Good morning to ken and pavel. Welcome. Welcome We got 104 people hanging out But only 23 thumbs up So You guys hate me You guys hate me That's fine. That's fine. I can take it I don't need your likes to make me feel better about myself Percy says very much like Well, then you got to hit the like button twice. That's the trick That sacks guy says got short at the session open. Well, the session hasn't opened yet. You must be in europe And I would just say if you were an overnight trader Okay Because the market was pinned all last week Because it was stuck to 45 65 The minute these single prints broke From friday's range So if I was an overnight trader when I saw those break and then that resistance build that would be the short To head back to the pin and you can see that's exactly what happened. Let's expand out the overnight Yes, sir. That's exactly what happened, right? They came down to the base of the single prints They fought a good fight to try to turn it into support and when it broke Market went lower. So that would have been the level of interest But I'm not an overnight trader, so I'll wait till the market opens and then I'll make my decisions All right, the market is open. So we are opening inside the previous day's range that increases the odds of chop Meaning the market just goes sideways and grinds around for a few hours trying to decide where it's going to go next For me here on the es that chop zone Is going to be basically from friday's low up to this node at 45 95 And on the nq Uh, basically from the opening price up to 15 9 60s, okay So as long as they're in between there the market will just chop around it'll grind and grind and grind But if they get below friday's low and we get those new sellers, we become bearish If we get above this node right here at 95 and we find new buyers, we get bullish In the middle, I do not dittle. I'll let them chop around And squeeze as many traders as they can And the fact that we just had this big move pre-market tells me they're probably going to do some squeezing here They're probably going to make a five six point move up five six point move down They're going to really rip people up this morning Before they pick their direction So i'm waiting for more information And see us as it in a chop zone In a chop zone like this one of the key ways that I use the book map software Is to recognize if we're getting a lot of stops and icebergs So there's a setting in here for stops and icebergs If you see lots and lots of icebergs at the highs and lows So where the market flips in reverse? If there's an iceberg there and then an iceberg there and then an iceberg there and then an iceberg there You know, it's just chop and they're going to keep chopping and chopping and chopping So when I see that I know to just step aside Give the market some time. Let them play their games Now if we don't see a lot, there's there's one right there So if we don't see a lot of these icebergs if the market starts to move one way or another and there's really No icebergs showing That the market is being controlled. Well, then maybe I can have a little bit of trust I can start to build a little bit of a Opinion but as long as I see nothing but bots on both sides of the market I'm wasting my time trying to predict what's going to happen. It's impossible It's computers trading in fractions of a second trying to take your stops trying to take your money Just let them do their thing. They will they will be done eventually They will have squeezed everyone to the long side squeezed everyone to the short side They will be done eventually and when they're done, then the opportunity is there to make lots and lots of money Okay, Charles. I hear you. I don't want to mess with the computers I don't want to to trade against these high frequency, you know trading in a fraction of a second machines I want to wait until the market gives me a better signal. What is that signal breaking out of the chop zone? That signal is support above here or resistance below here Okay in the middle One will diddle And that is not advisable So what are we saying guys iceberg iceberg iceberg iceberg iceberg iceberg iceberg iceberg iceberg It's a chop zone. They're gonna chop it up It's going to go up really fast. It's going to come right back down really really fast It's going to go up again going to come right back down really really fast So if you don't want to mess with that Put it in context It's a chop zone In the chopping it up Okay, so I'm looking for potential resistance right here around 45 78 and then up around 45 85 I'm seeing some previous resistance on the cumulative right here as well as from friday's range right here And then we just literally just liquidated straight through it Just now in the overnight. So that's not very helpful, but there's some potential resistance there So in a chop zone, I always want to be aware of what is the first spot The market could flip in reverse and come back down Because that'll tell me if we're chopping, right? If we get to the very first spot of resistance and turn around and come right back through the open Well, then it's definitely chop. Okay. If not, we test the next resistance The next resistance is much stronger Because it is a combination of this note of volume from the overnight Okay, and all this time from the overnight And the importance of the fact that that was where the market broke higher on friday So the market got itself overly long on friday and had to come back and fill that in So does that now become resistance for the next move down? Okay, let's wait and see It's a chop zone Is a chop zone Any questions at all for me from the chat We got 147 people hanging out Tony, we're happy to have you welcome buddy. All right, we're getting some resistance here But I do think we need one more pop higher Before we get the real sellers stepping in So I am I am liking this level around 78 for a bounce So we're about to see some shenanigans here from the market You can see the liquidity at 75 has been getting darker and darker. Well now they're disappearing already It's been getting darker and darker and darker. They have been piling in liquidity. They're trying to scare the market away But because it's not working They're going to disappear it. It'll just poof disappear There it goes lighter and lighter and lighter. You can see it turning to orange And soon it'll be completely gone And then we'll get our little pop There it goes So now we'll push up and test that resistance shenanigans Okay, that is an extremely weak high Increasing now as we're coming back for it because they stopped exactly at that level all reminiscent of a chop zone So you say charles, why is it weak? I don't understand. Why do they have to come back to the high? It's it's resistance right now Well, that's the problem every time you get the bounce at this exact level again and again You're convincing short-term traders the scalpers and the like That they should get short the market They're seeing it as a triple top And when they get short they put their stops because their short-term traders very very tight just above the high there So the market knows there's liquidity up there We can't see it in the order book because it stops so they're not in the order book yet But the market knows that there's liquidity up there So when this happens it increases the odds at some point in the day We will come back and visit that level and take out the liquidity that's waiting Michael. Good morning to you. Welcome Super exciting You guys want me to sing to you? Chopping broccoli I'm sorry. I'm sorry. I'll stop. I'm gonna stop. All right. There's the repair of the weak high So now what we're looking for is taper in price and volume We want to see less and less volume The higher the market goes and we want to see it spend less and less time So it barely kind of pokes up and then it comes right back down barely kind of pokes up comes right back down The less volume in the less time the more likely That we're going to get some resistance here and come back down for the opening price Let's see what happens. Okay. So first push very little time very little volume That's a sign that there's resistance waiting. There are sellers waiting up here Allios is saying why am I using best bid ask instead of bubbles? It's a great question. I find the bubbles to be distracting I find it to be confusing so I have my settings set up so that the bubbles only pop up when there's a big imbalance when there's way more buyers or sellers Then I get that bubble Yeah, so The volume's got a cluster above 50 contracts And uh, the minimal amount of volume is 300 So there has to be a lot more buyers than sellers or a lot more sellers than buyers to get one of those green dots And so that really just only shows me it when it's important when I really need to see Oh, wow, there was way more buyers up here. Even though there wasn't liquidity. What could that be? Well, it stops right people they saw the bounce they went short it came back up They got stopped out. There you go again. Just took out some more stops right at resistance Okay, so I I don't use the volume dots I don't have it covering every inch of it because it doesn't give me the data in a way that I can use it Whereas by limiting the information, it's actually more valuable But that's just a preference thing, you know, everyone has their own preference If you like looking at the chart with all the volume dots will then great. That's what you should do Okay, so the first push up into resistance. We got smacked down Spent very little time brought in very little volume. We're now looking for that to happen again So we see the shenanigans are happening here again The icebergs are trying to force the market down at an exact level And they're pulling and pushing liquidity above to try to convince people to go longer short here So this is going to be frustrating for anybody who shorted 78, but I think we need to head up and test 84 The it's it's just I I just can tell the game is still a foot You know what I mean? Like they're just still playing games here It isn't real traders taking over yet. It's computers So it looks like they're going to try to get one more push up there to test this area around 84 85 But I still see it as a chop zone So I still see the further that they push away from the opening price the more likely they're coming back Just not yet Ken says cue please. Let's take a look. Oh bearish bearish guys plain and simple You got lower lows on the daily. You've now got lower lows on the weekly This is that scenario that is a pullback on the weekly time frame. I'm not kidding. That's bearish to see So I'm straight up red banner bearish on the and cue as long as they're below the opening price Now if they can if they're able to pull back up and they don't get resistance I would assume there'd be resistance waiting right here around 60 Okay, if they pull back up and they don't get resistance and they pull back through the opening price Well, then I'm wrong and we're going to go sideways the rest of the day But as long as they are below that opening price This is bearish to see and you're just going to convince more and more and more people To go short the more time you spend below that opening price so I would say any resistance Below the opening price is good for a move to head down and test 15 800s Yeah, like somewhere between 15 8 15 and 15 7 90 That area down in there new selling down there Would be very very bearish as it would get us back into a previous gap But for the moment I'm bearish just to test that area And see what happens. It's a chop zone Oh the bot shenanigans Shenanigans they continue on again So again, I'm just going to repeat this looking at the book map. What are we seeing? All sorts of liquidity Jumping in jumping out jumping in jumping out jumping in jumping out boom boom boom boom boom Lots of icebergs both sides of the market long and short So I do think we need that one more poke up on the es before it breaks lower As the games continue So this is a tale of two markets the es remains neutral and in a chop zone The nq is bearish So as always when the two markets are doing opposite things You want to have a little more caution? Because it means the read will be a little bit harder Again exact same high all machines 230 welcome. Good to see you Floyd says last week it went down on week day four hour and hour with mac d and Sacastics down and then bounced to new highs Um, I would describe last week as a balance Right, so it wasn't momentum. It was just balance So it wasn't that it was like Getting rejected lower like building momentum down and then out of nowhere it bounced It was that it was just balancing It was just pegged to a certain level and when it went down It got pulled back up and when it went up it got pulled back down and so on and so forth That's the way I see it And by the way how I still see it to this very moment I still think as of now we are pinned to 45 65 as I've said to be convinced we're not I either need to see new buying up here above 45 95 Or I need to see new selling down here below 45 60 Um Otherwise I think we're just still pinned And we'll remain so as long as the market needs to be Uh dragon says does book map work on a 15 minute time frame? Yes, sir So book map doesn't use time frames the way candlesticks do It is it is a micro second by micro second feed, right? So it just shows you a constant flow Of fraction of a second by fraction of a second. Where is the market? So if I were to zoom in zoom in and zoom in and zoom in Look at this It literally tells us in each fraction of a second where the market is Right, and so how you interact with it is just merely how zoomed in you are If you zoom way out You can get perspective over what it's been doing over the last few days You know if you zoom in you can get a perspective of what it's been doing over the last few hours Zoom in more over the last few minutes. This is an absolute mess Okay, so now we're going to test the half back to see if it can hold as support The half back is at 45 72 That's essentially a 50 retrace of the range of the day so far That is often a level where if the market wants to break out of chop If it wants to stop doing the grinding around it will find support or resistance at the half back first so If we had Poked up here and tested the resistance beforehand I would have assumed the market was going to sell off and go lower, right? But if we come down and get support right now at this very moment at 45 72 first We first get the support there and then we head up. It is less likely that this resistance will hold So let's see what happens So if the support holds that's a little bit bullish if it breaks more chop Tony says how often do you stream? I stream every single morning for the first hour of the day So from 9 30 to 10 30 every day Monday to friday every day Nor says good morning queue. Please nor you must have joined us late I already did the queue embarrass as can be below the opening price so Zooming out and looking at a weekly basis The nq has been in balance Okay, it's got a balance area Today if it breaks lower the first thing you're doing is testing these lows right here Okay, you could just look below and fail. You might just go boop boop and bounce right back up But if not Guess what that means you need to pull back with price Okay So it's very very bearish From this moment forward as long as we are below the opening price Because that further increases the odds. We're going to test these lows Which further increase the odds? We're going to get back in that gap. Which further increase the odds? We're going to fill that gap so The bulls are not looking good on the queue But right now the es it could go either way. It's still a chop zone So let's wait and see Okay, no support at the halfback on the es that increases the odds that we're heading back through the opening price And that the chop will continue Remember once we push through that opening price. We are then looking to test friday's low Okay 45 61 and then we're looking to see what happens there If it pokes below friday's low and gets new selling that is bearish If it pokes below friday's low and just pulls right back up More chop because it's a chop zone. Do do do do Uh dark slayer says how many trades do you take a day? All right. So dark slayer I'm going to answer your question. But first I'm going to give you some shit for asking it. Okay This is my least favorite question in the world And the reason is because I mistakenly spent years and years and years Trying to find some online fruru who was a profitable trader So that I could just copy whatever they do and trade just like them and then I would be a profitable trader too And what I learned from years and years of trying that and failing is that that doesn't exist No one else Can trade like you trade You must find a system that is custom engineered Custom tailored to your personality your knowledge your experience your strengths and weaknesses It's got to be built for you So when you ask a question like how many trades do you take a day? It sounds like you're looking for me to tell you how many trades you should be taking every day And the fact of the matter is it doesn't matter You should be taking a hundred trades a day if you're a scalper and one trade a day if you're a day trader You know what I mean? It's like what time frame do you operate the best on? Where do you have the most success? Where do you feel the most confidence? That's what you should lean into. So for me most of the time I'm only taking a few trades a day one to three is my average But there are days where the market is doing something that I recognize where it's giving me opportunity after opportunity And I might take 10 trades in a day and there are days I've had a bunch of them last week where I took no trades at all all day because there just was nothing there It was all chop. It was all uncertain. There was no highly probable opportunity Okay, so I'm going to give you the example right now Yesterday's low is one of those highly probable opportunities If the market pokes below yesterday's low, which I now believe it will okay And it comes back up and it turns that into resistance. That is a high probability opportunity Okay, why because the odds are for all the reasons I've talked about today already Right having to do with what the market has been doing over the last few weeks Odds are that if we get below yesterday's low and we get resistance The market is going to go lower. It just is it is the highest probability thing to happen What's cool about that Is it is also an excellent place for a trade because you know immediately if you're wrong If the market pushes below yesterday's low and it comes back up and it's getting resistance And you choose to get short. You can use a very tight stop Right, you don't have to use some big massive stop because you know Instantly you're wrong if the market pulls back up into yesterday's range. Well, then you're wrong It's not getting resistance to yesterday's low So that's what I look for is when does the market give me an opportunity where there is both high probability Of the trade working And a way to enter the trade the way to get into a trade where I'm taking as little risk as possible Where if I'm wrong, I can immediately get taken out of the trade and I don't have to sit in pain While I lose money hoping the market will work for me, right? So I can't predict how many of those opportunities there will be in a day, right? Maybe we push below and we get the resistance. Maybe we don't maybe we look below and fail And I can't get into that trade at all or maybe we just chop for the next few hours and I get so bored I'm like, fuck it and I walk away from the market before it even gets down to yesterday's low, right? Who knows I can't know when the market opens how many opportunities it will give me that day All I can know is what are those opportunities? Where are the places where I have an edge understanding what the market is doing? And I have an edge in entering a trade where I'm taking minimal risk And and maximal Opportunity for gains, right? So again, just to zoom out a little bit and put this into perspective if I was going to short yesterday's low Okay, I could put my stop just above half back So that's going to be about seven points of risk to get into that trade Now again, I'm not saying this is what's going to happen But it is very possible That that could take us all the way down to repair these weak references Okay, so get risking seven points To potentially make a trade of seven d points Or 60 points, right? That is an excellent risk reward So I would rather as a trader sit around all day with nothing to do Waiting and waiting and waiting and waiting for an opportunity like that to come And then that's when I take action And if it happens that I'm wrong and the market dips below and it fails it pulls right back up It comes through it takes out my stop and I lose money. That's fine. That's totally fine I'll still take the trade the next time and the next time and the next time Because even if I have a few of them in a row that lose The one that works the trade where I actually get down there and I make that 60 points of profits Will pay for the two or three or four losers that I had before that But I can never be in that trade for that 60 point move If I can't take action when the opportunity presents itself So that is sort of my trick my trick is doing nothing Until the absolute right moment and then doing everything and then instantly jumping in without hesitation without reservation The moment the market gives me an opportunity that meets my criteria I just get in the trade and so that's the juxtaposition of being a trader is is being able to be patient and wait for that opportunity But then once that opportunity comes not to hesitate to take action to get in the trade to just act When the market tells you to I go over all of this in depth in the mastery of markets and mind workshop Which I began teaching today At 11 a.m. One hour from now So if you're if you've been thinking about joining head to markets of mind dot com and sign up now If not you'll have to wait a few months for the next one. Okay, so I was talking I didn't get to point it out ahead of time But in a chop zone as always the market pushed lower It found support and came back up. So we were looking for resistance at the halfback We did not get it. So that means more chop jumping broccoli And a low volume low so weakness on both sides of the market again just another signal chop And you say charles. Well, how could you have known it was going to chop like this? Was there any signals that you could have got from the market that it was going to be a real pain in the ass this morning? Yes, sir. There was stops and icebergs As I mentioned when you have book map software And you pay that little bit of extra money for the stops and icebergs indicator You have the ability to see when the game is afoot To see is this real buyers and sellers that are trying to move the market higher and lower Or is this just computers playing games? And the gameplay continues In the chop zone Shubham says I saw this random video What kind of trading is this? What we call this? Okay, so In terms of trades, I just am a discretionary trader. So I just trade when I see an opportunity I don't have any exact system for entering trades. I have an exact system for understanding the market For knowing what the market is doing When I feel confident, I know what the market is doing and it gives me an opportunity to enter a trade I enter a trade. So that's just discretion is what I use As far as the system it is called trading the two-way auction process So that is essentially looking at the market Not as fundamental data or as this or that or the other thing But just purely looking at the market as a mechanism for buyers and sellers to compete with one another Okay, and the software that you're seeing on the chart on the left is market profile software Which is basically the same as candlesticks. It just puts the information in three dimensions Right. So if I were to go to a candlestick chart right now For the es And I were to put it in 30 minute candlesticks. Okay All that that can show me Is a few pieces of information. It can show me where the candle opened Where the candle closed What was the highest level during that time period that the market traded and what was the lowest level during that time period That the market traded and then the volume can show me how much volume traded during that time So I know where they started. I know where they ended I know how high they went how low they went and how much volume in that total time period and that's great That's wonderful information to have but it's kind of limited Because I don't really know who's doing what at the different levels within that candle So what market profile does is it allows me to literally see Where did they move within that 30 minutes? Where did they spend the most time? Where did they bring in the most volume? So suddenly individual levels can become very very important Because you can see so much more detail in the information It's just a three-dimensional look at the market And book map does that same thing for liquidity It visualizes the ability to see how they fuck with liquidity So right here, there was a ton of people who wanted to go short Hundreds and hundreds of contracts to go short But as soon as the market reversed and rolled over they all disappeared They just pulled them Nope. Nope. Nope. Nope. Nope. Nope. Nope. Nope. Nope And then right here, they tried to push back up. They put this iceberg in They tried to build support there and they threw some volume up here to be the magnet to tug it But when it didn't work and it pushed away they disappeared it again Right, so that's just information that I can use to understand what's happening The market never really wanted to go short at 45 80 It was all just a game to try to get the market up there The market didn't really want to find support down here at 72 It was just a game to try to get you to go long and so I can understand what's happening in the market Even if I don't know who these bots are or what their plan is I know when they're the ones doing the moving and I know how to trade in those situations Which is often be flat. Let's pop over and look at the queue. We'll see how that resistance is holding. Oh, yeah bearish to see Okay, so the profile looks balanced, right? It looks like we're just in a chop zone grinding up and down But where is most of the volume? Where is the most color on the volume profile? right here even more detailed within that right here and Right here Okay, so what is the market telling us even though it's just going up and down What is it telling us because it's bringing in that volume at or I'm sorry below Friday's low What is it telling us? We do not have buyers here. We cannot get back up into Friday's range So the more time that we spend down here and the more volume we bring in the more likely they're taking this market lower So I'm getting bearish on the queue Like bearish over the next few days on the queue Scoob all in the house. Good to see you Ken says the queue peaked above the opening price Yes, sir But what happened when it did? Did it spend time up there? Was there business up there? Was there volume or did it just barely poke above that opening price and then pull right back down again? That tells you there's sellers waiting at the open. That's resistance The unfortunate thing about the markets these days They didn't used to be like this, but you can no longer count on support and resistance levels to work Exactly anymore. They almost all need to push through first Then they become support or resistance. So like if I was looking for resistance at the half back right now I wouldn't necessarily expect it to just instantly turn around right at the half back I would expect it to go boop boop, then it becomes resistance for that move lower I would look at the opening price of the NQ the same way as that that first little poke-up was just a test to see Can they do business up here? Right and they could not so that's bearish Rando says why do sellers above act as a magnet to go higher? So again, I'm stepping out of school a little bit here. Okay, because this is not my expertise But what you have to understand about algorithmic trading is that they don't have discretion, right? Once an algorithm is is given control over actual money over a real account. It takes Every single trade based on whatever Programming it's been given right so they fuck with each other One bot will throw in a bunch of volume at a certain level and then you know cause a certain Again, I can't tell you how these things are programmed But it just does a certain behavior and then that triggers another bot right some other bot looks for that behavior It looks for support down here With liquidity up here because that bot is taught if it buys support it can take profits into that liquidity, right? So they push and pull this liquidity in fractions of a second I mean just in and out and in and out just watch just watch the colors over here bright yellow Shows up disappears red shows up disappears back to yellow boom boom boom boom boom boom boom that's super fast They're just throwing liquidity and pulling it out pull throwing it and pulling it out They're that's not for humans right like we can't think that quickly that's for the other computers It's to they're they're all just trying to trick one another and trying to compete with one another. It's a mess It's a mess So the best thing for you and me the human to do is to go oh look the bots are playing tug of war They're fucking with one another. They're spoofing all over the place. They're using icebergs. They're stopping out Let me just wait until they're done Because they don't do this forever eventually they you know give up and they let the market make a move So just wait for it. Floyd. What is spoofing? Spoofing is putting volume in the order book not with the intention of letting it fill But with the intention of pulling it So you're basically putting liquidity in the books purely to trick other people not because you really want to trade It is technically illegal, but it's impossible to track on the ES You could figure it out on individual stocks if people are doing it with like individual companies But the ES is just too big of a market. You could never track it There's literally millions of people trading shares of ES every day you just couldn't figure out who's doing what Tom Gunn says what's the drawing tool I use? Epic pen that's what it's called epic pen Dun dun dun dun dun dun dun dun dun dun dun dun dun dun dun dun dun So once again passing through the opening price right now. It's acting as support to a tick of course But passing through that opening price increases the odds. We're heading to Friday's low 4562 and that will be new information when we get there No more chop first Arcade says do you require NQ? Confluence for trades for example the NQ is currently below the open and trending down So if ES follows, it's a short ES if NQ does not Follow ES then no trade. No, I do not I Know what you're talking about. I have tried to use that in the past. I have found it is not statistically viable over a number of trades So today in this moment it might work great right like the the NQ broke yesterday's low first Got resistance and is continuing lower. It's clearly bearish, right? So if the ES pushes below yesterday's low and gets resistance, of course It makes it easier to get bearish on the ES as well But if you tried to use that as a signal to enter a trade Over a series of 20 trades 30 trades 40 trades you would find it's not consistent It's not profitable. The markets are random Sometimes the NQ can be doing one thing and the ES totally another there is a world where the NQ could go could trend down All day today and the ES stays right at 45 65 and just goes nowhere the rest of the day that is totally possible So I don't take it into account in my trading what I have found for me personally It does not help to watch the NQ It if I want to trade the ES the best thing I can do is only look at the ES Because then I become a master at understanding what it is doing, which is all I need to know I'm taking trades on the ES all I need to know is what the ES is doing Okay, there's the pass through the opening price increasing the odds that we're gonna test yesterday's low We are creating a poor low. So we make it one more bounce got to love it But the odds are now much higher that we're gonna test 62. Okay, so there's the test of yesterday's low Friday's low so now we have Lower highs and lower lows on the daily time frame that is bearish to see So now the question becomes we know we're gonna balance off the excess Right. So now because we made the lower low, we know we're either going sideways or we're going down So now we got to figure out which of those two is happening Resistance at yesterday's low tells us the market is going lower a Look below and fail meaning it it dips below and then comes right back up in is a sign of sideways of more chop So I would say I am now bearish on the ES as long as we remain below the halfback As long as we are below 45 70 I assume it's just gonna be new selling and Continuation down to 45 53 45 anywhere between 45 55 and 45 53 This area here was that trend line on the daytime frame. So let's zoom back out and we'll look at the ES on the daytime frame So that's that trend line right there So that's the next opportunity for the market to eat to find support and turn around and head back up If that fails Dun dun dun Down she goes Let's see what happens Matt says earlier. You said you watched the NQ for clues. I guarantee you I did not Not only do I not do that I would Openly profess against it. So I'd rewind the tape and re-listen I must have been talking about using NQ for clues for NQ. Somebody probably asked me to give a read on the NQ So when I'm reading the NQ, I just look at the NQ when I'm reading the ES. I just look at the ES At least certainly to make trade decisions without a doubt. Okay, so we've got a big note of liquidity Waiting right at 45 54, which is right where that trend line on the daytime frame is So what happens to the market as we get closer and closer to that note of liquidity? We'll give us some insights as to what might happen there If it continues to stay dark red like this, which is showing a lot of buyers waiting We're likely to bounce. Okay, but as price gets down closer to it if it disappears If it starts to get lighter and lighter in color like it is back here Well, there goes got a little bit lighter. We moved down a little bit. I got a little bit lighter That increases the odds that this will be a spoof So that's the next thing I'm watching Potential support around 54 Let's see what happens with the liquidity Okay, new selling at the low that is bearish to see what do I mean by new selling at the low? They did not bounce and Come back up and test the overnight low. They just started to bring in new sellers down here So that's that's more bearish than a bounce RK says NQ is in a single print from 1114 could continue to 15 166 area quickly. This is another confluence for me trading es or If just trading NQ So again, like I said to me that differentiate the two if you're seeing single prints that need backfilling on the NQ Just assume the NQ needs to backfill those but that doesn't mean the ES is gonna join right? It might join but I'm saying it's not a reason to enter a trade on the ES Does that make sense? Speaking of single prints, we have just left behind a set and aren't they at the most Gorgeous place for a set of single prints. They are right at Friday's low So we expect the market to try to fill those single prints coming back up to test that low for resistance If not, if we immediately break lower and we leave those single prints behind That's more bearish to see as a sign of momentum if we do pull back up and backfill those single prints We would be looking for resistance at the base and continuation lower So that is an excellent place I'm not trying to tell anybody to get into any trades here, but if I wanted to get short That would be a beautiful place to do it There's lots of resistance waiting and you can know you're wrong right away If the market pulls back up through that opening price food for thought With that, I will say goodbye to everyone. Thank you so much for watching If you like what you see and you want more You could sign up for the course. I'm literally about to start teaching in a half an hour Called mastery of markets and mind. It's a two-week workshop So it goes from 11 a.m. To 3 p.m. For the next two weeks All the lessons are recorded and available to watch later if you can't You know join if you're interested in taking the course you got you literally got to decide right now head to markets and mind calm and then scroll on down and click on this image Where it says December 4th through 15th? Okay, literally for the next half an hour will be your last chance to buy it once the course starts I take it off the site If you're not ready if you're like Charles, I thought what you said was interesting But I'm just not ready to make that kind of commitment right now Well, then you can join the brigade just head on over to pirate traders.io Scroll on down to where it says Join the brigade to start every trading day with Charles You can click on there It only cost ten dollars a month and then you get to listen to me do what I just did for the first hour every day Monday through Friday So, I hope you all join me either in the brigade or in the workshop If not, I'll see you here next Monday morning on the bookmap channel. Thank you so very much and we'll see you next time ooh the ES just created what's called a poor low So that further increases the odds that there will be resistance at the base of the single prints to come back and repair that poor low Making it an even better trade All right guys, have a good day and we will see you next week