 Hello Traders! Good morning! Welcome again to the Live Advanced Bookmap Webinar. Today we're joined by Scott Pulsini, a Professional Futures Trader. We do this every Thursday at 10am Eastern Time. It forms part of our education here at Bookmap. Usually Bruce, our lead Bookmap Educator, hosts these, but he's away this week. So my name is Sam, I'll be helping Scott today. Bruce should be back with us next week. Before we jump into the Live Analysis with Scott, there's just a couple of things to run through. You can find out more about Scott on his website, www.ScottPulsiniTrader.com You can also connect with him on Twitter at www.ScottPulsiniTR1 and the disclosures here. All Bookmap Limited materials, information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Live Trading is in Simulation demo paper trading moan added strictly for educational purposes. Live Trading executed in Simulation cannot accurately represent realistic trading performance. Trading futures equities and digital currencies involve substantial risk of loss and is not suitable for all investors. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security nor lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Okay, Scott, are you there, sir? You hear me? Yes, I hear you. Every screen. Just give me a second. Okay, you're good to go. Thank you. Watch these equities here. I wanted to potentially buy it down here in this 4,000 area and there's just has not been one signal today, volume-wise, for what I look at for this whole move down and then all today. So I don't want to be at much of these spot gamma levels as well. And I'm just not seeing anything. I don't know anyone else is looking at signals. To my computer, it's kind of weird to see these types of moves without anything. I mean, there was a small stop run up here. I'm getting alerts in other markets. I don't got anything equities. I'm currently in Longgold. I was here a little bit, but... You can see here I got... There was quite a bit of sell ice here earlier. He had 192. Another 150-ish. Another 210. There was a stop run in here. And I was going to actually short this market. And we came back. We were above the yellow lug. We'll blow this in a second. So we were above the yellow lug. I'll show you that here in a second. But I was waiting for our ATR retest failure of this blue zone. Never happened. We got the ATR. And then I ordered to sell it. And I never got down here or ripped through it. And we had more stop runs. That's this yellow zone. And we're above the yellow lug. And my rules are to go along aggressively outside of the setup. And it came back. And I got in here. Which I should have been in originally. And then it did actually come back and retest this zone perfectly. And now it's back to an ATR above there. So... You know, structure-wise... This... There's not a lot here. I can see this... This was an area where this... Did pause. Here a little bit overnight. You can see here overnight. I'm going to break out. We retested this high-volume node and launching. There's just really nothing here structure-wise. So I can see this getting up to 1800 a day, possibly. There was some good volume in here as well. I've been kind of laying off gold lately. It's just been very hard. Gold includes since the Ukraine war started. But... Again, there's not a lot there. As far as structure. And then you can see here there is... There's some good volume here. So I'm willing to get in here. Good volume here. So I'm willing to give this a shot that this thing can roll today. You can see here. Two or three times volume. Just had another spike of volume on this move down back up. So I could see that happening. And again, I come up with my thesis based on the structure, lugs, and then relative volume. And then I wait for real-time volume signals to help me enter the trades, control my risks, etc. So you can see here. So these are a lot of the levels that I use. So these are a lot of the levels that I use. CEL CEL CEL 168 pound grams. Take a look at CEL here. But the first setup was above this lug over here. That's why I was waiting for retest failure. Actually, let's see the exact price here. Basically 63 up to 60 close to 67. Actually, we were bouncing around the ill of lug. That's why I was waiting for retest failure. And we got the... We moved down below that first zone and then came back and went right through it. So now I want it to be aggressive because we're above the allele lug. So my target, hopefully, is up here near this red lug. And I do think we can get up to 1800 based on the volume and the relative volume and the structure stuff that we just talked about. So you can hear very quiet in the equities today. I'm not sure why. I'm hearing anything. So, yes, here, this is a zone that I was interested in buying. I had this drawn from this day here. We had directional conviction straight down here. It was about about a 60 point move straight down. So, this was an important area to watch. And you can see yesterday after the Fed came out, we ripped right through it. So many times when you rip through important zones, that's telling you something first and foremost. And then what should have been resistance is now support. So, I will happily buy in here. If this turns out and rips down back through here, then I'll watch where this whole move started yesterday. And if that can't hold, then it's probably going to get ugly. So, the last two Fed days, I've seen this in a couple of different publications. This is the size for 580, 151 contracts. The last two Fed days, we've given back all the gains from the prior days. You can see here, this is the May FOMC. We're up 3%. The very next day, we gave back 3.5. June FOMC, we're up 9% and a half, gave back double that the next day. Yesterday, we were up 2.6%. That's why it's got this question mark here. So, you know, overall, this market, these equity markets are still long-term bearish, I would say. Intermediate terms are bullish, but this is still here, this is still in a downtrend. Right, so and that's why if you guys remember the last however many years, when we were in an uptrend, every down move was met with this. Now, since we're in a downtrend, every up move is met with that. So, you know, I still play the long side here, if this starts to violate these important areas I just talked about, then this is probably coming back down here and you can see this balance area, multi-week balance area is very important. So, we had balance here, launched here, this should have been current structure, we're talking about this in these days where this should have at least pulled back down here. It held into doing that. So, this is intermediate short-term bullish. So, that's why this should hold. If this doesn't hold, this is last hand, if that doesn't hold, then we're coming back down into this guy. But getting ahead of myself here, I will play the long side. Again, I'm just waiting for some kind of signal that's very strange, there hasn't been one set up in any of these equity markets this morning, especially the day after a Fed. That's when the big money, the big funds, banks, that's when they usually play the day after the Fed. So, I'm very surprised not to see a thing in here as far as my thresholds. So, you remember, I have certain thresholds for each market that I know that I want to see. I don't just play every spike, that's an error that people have when they get this SI indicator, they're playing every spike on this thing, thinking it's relevant, right? So, I'm looking for relevant volume that I know is market moving, a market moving volume of that. So, yes, it's 500 iceberg, or 500 stop runs, 700 icebergs. If I don't see that, I don't trade it. Yeah, I can move around and I may miss some moves, but this is just, when you're not seeing any setups and relative volume is pretty low, that's just algos. So, if you want to try to guess what the algos are doing, good luck. Overall, you're going to have a very, very hard time. That's why I look for the volume of that, because the volume of that is what disrupts the algos. So, when the algos are disrupted, that's when you get more true trade, per se, because these algos are run over by the big money, but there's just been nothing in here today. So, nothing in here, nothing in NASDAQ. A little bit of soil, can work on this. I could draw this, especially a day like today. So, this is 150. It was right at my threshold. So, I will draw this. Get some kind of trade and see. When you're drawing your zones, make sure you incorporate all the price bubbles in this price spike. You know, use your little crosshair guy here. So, that started basically here, and you can see this black line. The iceberg is on chart that's just showing you it's one house, one entity that came in here with this iceberg. You can see the execution of 150 here, and then you see it down here. Yeah, I get questions all the time. Do I trade off of the chart icebergs? I rely on the on the sub chart, because many times you have to be very careful using... cell TCE for 112 contracts. I hear a corn, but I don't know what word that is. I'm in 7 Blur for a couple weeks here. Sorry. So anyway, you know, you want to be careful because many times, you see how this was basically condensed in this area, but many times if it's one house, you'll see, say we're talking cell ice, right, and you see these blue bubbles that keep running into the cell ice, but it could be, it can come up here, transact, I don't know why it's not shown but I might have it turned off. Let's check here. It should be showing me the actual trade. Maybe I'll hold on a point of time. But many times, say an entity has 500 cell ice that they want to sell, right? So the market comes up, it touches it. There's like 80 here, right, and then it comes back later, and say the entity moves it up here, and then they're still not done, and then there's 100, and then the entity moves it up a little further, and now there's 200. Well, you don't have to draw your zone incorporating all of that. You want the area that's the most concentrated volume that is overthreshold for whatever market, and I have certain thresholds for each market. So that's why I don't use this per se. I'll keep an eye on this to help me draw my zones, but if I see, so say this is an execute of 500, but it went from, like I said, there was 80, 100, 200, and it was stretched like 100 points. I don't need to. I'm looking for concentrated volume events. That's the whole idea behind this. So this one actually fell within the parameters, so that's why I drew it. But just be careful using this only. Some people, because traders in my room that have been using it, they're not seeing anything here, and they're seeing on here, and they're drawing zones. You just got to be very careful, because that's not a concentrated event. You want to concentrate an event, because that signifies loaded up traders either way. Either the entity that's taking the trade passively, right, responsively, they call them responsiveness, would be a responsive seller, meaning that they have the passive orders in the order book. Actually, icebergs are not even in the order book, but they're not being aggressive, right? The aggressive buyers are running into this. So the point is, the volume event is what is important. The area is what is important. You just got to make sure it's concentrated at least with threshold, because that's when you get the bigger move away from here as a puke type of loop, right? You guys that are wrong, you have to get out. Alright, so let's see here. ATR right now, 5 minute ATR, is what I use to judge these zones, if the market can get away from these areas. That's how I judge what I have six distinct setups that I trade off these volume setups. You can see the ATR is 34 points, 33.84, so top of this zone was right around 86. This got up to 03, so that got 17 points above here. I don't know what the setup is yet, so this could either be a Titanic setup where the market moves into the cell ice, the buying and fails, or it could be broken ice. Broken ice is when the big house or the entity takes a stand and gets run over, and that looks like what's happening here. So we're getting close to an ATR. So if we get an ATR here, I will play retest failure of this zone, and I'll go along. So again, that was 5, so we need to see what I see. The ATR was 34.4, so 35 points above here puts me at 20, 21 quarter. So I need to see 21 quarter to be a full ATR above here to know what this zone is and to trade off of it. So I did this kind of backwards. I usually know exactly where we are in these bigger picture stuff to know if this is a really good area to trade or not. So you can see here we almost made it back into this directional conviction move yesterday from the Fed. So this isn't a A plus area to be trading. This isn't A plus area to be trading to look for a bounce, and or if it rips through it, that is great information as well. This area is really important for the day trader right now. So if we move a little lower, I will watch for another setup in here. But, again, the real-time volume is possibly giving us a setup here. So I said we had to get to 21. That didn't quite get there yet. I'll still take this trade, but it's not an A plus area as far as I'm concerned. So that's the one thing I look at and then the other thing. So any icebergs sells, he has 801 compress. I'll go ahead and see if it's here in a second. I actually have a position in there as well. Gold, just being gold in Whipsaw City as usual. That's why I've trained that trade lately. Every move just gets batted down. So my rules are below the yellow lug. I will go short aggressively on my setups, meaning aggressively just once it gets an ATR out of there, I will under the trade. This is a different story. One, I know we're coming to that important zone. I just showed where the directional conviction started yesterday and we have blue lug and these blue and red lugs are very strong support and resistance that I don't mess with most times, right? Meaning I won't go short right in front of a blue lug because I know how many times the market will bounce us off these areas, especially when you're extreme standard deviation of VWAP, right? So I would not go short here. So say this zone holds and it turns into a bearish setup. I will not go short unless I see really high relative volume coming in my mind is enough to push through this blue lug, right? So I will take along right here, but I will not take a short until we can bust through that blue lug. You see how we still never got an ATR above here. So what I was trying to say is below the yellow lug I will usually take the short off of this volume event just outside an ATR. This one, I'm not doing it because the blue lug is right here, right? So I will wait for it to bust through make new lugs and again, I'm not real excited about going short yet until this thing can violate this zone. So there are certain instances where you just don't want to mess with it, right? I mean, you can trade these volume setups in a vacuum without even looking at charts. I proved that last December I traded for my trade room. I traded the entire month just trading the volume setups in a vacuum without even looking at charts, right? But there's going to be certain times where you're like, you know what, so you get a bearish setup right above here. Well, do you want to be going short right where this started? No. Once it gets through here, then you can be looking for short. So my point is the blue lug is right here and I know this zone is really important. I will not be going short until we can get through here, draw new lugs, and then I'll happily go short. So right now I'm just basically looking for longs if we get in here and I get a signal, a long signal and then we take a long. And I'll be aggressive long at the blue lug. So that's just a little lower, blue lugs at 12, 4, 34. Again, I call them lugs because I don't want to say a lug with level 500 times in a day. So we call them lugs. lugwithlevels.com. Go on there. You've got a three free day trial. Say you saw it in the book map webinar and she's got special pricing for you guys and as far as you can get more products than normal and so on and so forth. She usually offers, but that's what I use to help me with my day trading and help me with my directional conviction. I use them for support and resistance, but there's other ways you can use these as well. I've done a webinar with her. Most of you guys know all this stuff, but I always got to pretend that there's just brand new traders out here because there is. But when you draw new lugs you can come up with a thesis just on the way these are drawn when these draw new lugs and how the market responds to them and for instance this drew new lugs it should hold prior red directional yellow and then get up here. Well if it breaks back down below the yellow something's up and then you expect blue and that looks like that's exactly what's going to happen. Again I'm just brushing over this. You can watch the webinar I posted it many times if you guys don't have it send me an email and I can share it with you. It's a webinar I did with her that she explains a lot of this thesis stuff behind the lugs just besides the basic support and resistance. So basically I'm waiting for either an ATR retest failure of this zone or I will be looking to buy down at that blue lug. It's horrendous. It's been horrendous. I was on vacation for a week. I come back and it's just been pretty bad these few days. I'm still waiting for any kind of setup in the US. Soybeans. I'm currently long. I was long overnight. I got out and then I got back in. Wish I knew where that alert was coming from. I can't find it. We will draw this in corn though. I don't trade corn a ton. I'm trading it more. It's been actually moving around because usually it's like watching paint dry. But you can see here so my threshold was 300 corn. I've moved up to 400. I just don't want to pay attention unless I see some major volume. But this is decent. This is good volume. This is a 6 cell ice here. Another 245 here. So that's over 700 ice. And you can see on the chart here this is benefit of that. So I have chart as well. You can see this is one entity basically coming in here. At least for this first spike here. So I'm going to draw that. This literally will try. I cannot find where that alert is. I have no idea. There's no way I can listen to that for the next hour. Do you have any questions why I'm trying to find this? Nothing yet. It sounds like the ice cream van's about to arrive. Yeah, it's great. It's great to listen to 5,000 times. Usually it flashes on the window that it's firing off on and I cannot find it. I suppose the lesson so far here is demonstrating patience. The importance of waiting for your setup. We obviously stream for one or two hours and if nothing presents itself in that time you don't want to be forcing anything. You just got to stick to your plan. Be disciplined and accept it's often a kind of boring waiting game. Part of trading is not trading. I know guys are wanting to jump in. They see these moves and they want to see it. I had someone in my trade room who was a couple of months ago. He's not in there anymore. Not surprising. I booted him. He was complaining one afternoon that the volume was horrible and I'm like, I'm not going to trade in this environment. I'm not going to risk my capital in this environment. He got out and chimed in. There's just a 50-point move and you should be trading and doing webinars. It's like, my parameters to trade are not there. I don't trade. This thing can move 100 points. If I don't get what I want to see I'm just playing with the algos and hoping you don't get whipsod by algos. That's not what I look for. If I don't get it, I don't get it. Right now, there's nothing happening. I'm not trading this market. Most traders can't be that patient and that's why most traders lose. If you consider a sniper to talk about every week and wait for your shot, you'll make it as a trader. If you are forcing trades just because you get it, it's not going to happen. You will be the algos out of the game. Algoes are 85% or more of the trade. They are designed to just whipsaw you out of your money. I don't trade unless I see something. This thing can move 100 points. It really sucks on days where I'm expecting something to happen and it happens and I didn't get a setup and that's just the way it is. Most days, 95% of the time I sell my setups. You could also be telling you something. There's nothing behind this move to here as well. That could be a signal. If this thing holds and starts moving higher then you start getting bullish setups. On this move down, there was nothing. You turn around and you start getting actual setups. That's information as well. Again, this market is in an area where this better hold or it's going to get ugly. Let's wait and see here. This was in this area. We talked about this was the sell-off NES. We ripped right through it so this should hold. If this breaks this is the last stand down here right around 3980 to 3970. If that breaks we're going to have another day where we get back the entire move and then some and these equities and you can see I'm still watching this area. So for this zone we never got the ATR above here so I'm not playing this and I'm not playing it to the downside aggressively. So basically what this looks like is going to come down to that blue lug down here at around 35 and if I get a signal that will be going long aggressively. But like I said if it breaks that area then we just talked about it's not going to be pretty near a second. I just want to check this position. It's just doing nothing. I'll go over this here in a second as well. Just trying to find my this is extremely important area and we're about to edit. I will play for that if it gets through here then bye-bye. Bye-bye and cue. So just sit here and wait. Soybeans again that was long overnight got out and then right at the open here you can see the stop run came in this was a stop and hold. 55 stop runs again stop runs are not real and it well not all the time but most times are not real initiative buying or selling right it's just most most time it's the retail trader but so I have two different distinct setups with these stop runs it's either a dumb and or you get the retail trader well that was and then there's no real buying to behind it just fails right that's a dumb and well this one turned out to be a stop and hold and I judged that by it was able to get an ATR at the time the ATR was like three cents it was able to get an ATR above here immediately so this fired off you actually had some cell ice too right at threshold real close so this was potentially a double I mean I didn't draw this up to here because I like to see closer to 200 for my threshold and so it means I just drew this stop zone so I got in actually had a move came back tested the zone and moved back out and over over an ATR that's where I got long and actually looked like it was going to be a nice trade and it's coming back but I still think this thing is going to rip another thing you can use when you're coming up with your thesis for the day right obviously I'm looking for setups but you can see where this liquidity is above so this liquidity is just resting orders in the order book extreme orders and the market will make it there eventually because these are the big players and the big players get what they want so they will get loaded up down here long and then they'll push it right into their orders and the reason I know that because that's the game I used to play all day every day when I was a scalper I would put you know 1000 again this was ES but they'll illustrate I talk about this all the time as well but you know and then I would start accumulating down here and then I would wait and I'd buy some more and see if there's any sellers and anyone pushing it against me now and then as it came close to my orders I would just start to buy like crazy I'd have guys jump on my coattails they'd see the flurry of action here and they would jump on my coattails and it would push it right into my waiting offers and I'd be out of the trade so that's exactly what happens to this day it's all one big game if you can understand the game then you can play play it right you'll talk about all the time guys have been complaining even I used to complain too about you know when I got knocked out of the game as a scalper I would just say all day long you know this is manipulated you can't make money blah blah blah it is 100% manipulated but that is the benefit of having bookmap this is the biggest edge you can possibly have because if you can't beat them join them you can see what they're doing what they're trying to do and then you know so for instance this comes up here and all of a sudden you start seeing by eyes it's like okay now it's got go time they're loading up and we're going to run right in in this liquidity so the first thing you should do is pull up your bookmap condense it and see where all the liquidity is that's the number one thing to get a good idea a very very high percentage of the time almost every time it will come up and hit at least the first first row of liquidity right so that is really important and then when you're looking at your traditional stuff for instance this look at this in a bigger picture this is looking very bullish too so when you get this stuff what I see here is one major balance area alright consolidation whatever you guys want to call it right all it is is back and forth trade and it's just traders getting loaded up placing bets right and whoever's wrong has to puke so you can see we're breaking out of this multi-week balance so that's bullish we had balance last couple days breaking out of that so you had balance on top of balance this is a bullish market you want to watch this area here and it's like this is kind of struggling with a scap down this day I should have a zone around here actually I'll draw that right now so these zones I get questions all the time what are your zones? the zones are based on the four important areas of charting right so it's tops and bottoms of balance areas let me show you this real quick we just talked about this tops and bottoms of balance areas high volume nodes of HV however comb HV ends that's just the middle of a balance area where the most trade occurs usually right makes sense back and forth it's usually in the middle so it's tops and bottoms high volume nodes and then buying and selling tails so this is really important and directional conviction so that's where I draw my zones I don't usually draw at the high volume nodes because it's just something you can eyeball it is an area not at the exact price but when you get direction like this is a really important zone this is the area that this market moved down over a full dollar and then ended up this was this entire move down this is what initiated this whole move down and we've never retested right that's an important area another area I need to draw is this selling tail a tail is just instant rejection that is a zone and then so what I was saying is I didn't draw this this was so this is a regular trading hours chart gaps are directional conviction right so you can see this market close right here on this candle this day a little bit of a tail there so I'm just going to make this one zone this is an important zone if this thing gets rolling up here I will watch this to get out of something so these are what I use for targets as well so I know that's a pretty important zone this one you can draw this is a pretty big zone here if you incorporate this entire tail talking about a 20% so I'm not going to draw that but I will watch intently as it comes up here and you also want to pay attention to too when you get actually what was that setup that was a natural gas over there in a second when you get strong directional conviction moves like this many many many times the market will retrace 50% of it and then die you can see that's exactly what happened here so this obviously had to have been high volume move here we retraced half of it 50% and then you got a selling tail that told you right there something was up it couldn't if this were to retrace the whole thing then you want to be long here retraced half then you get a selling tail so tails are just instant rejection right again this is an hourly chart so it's not quite instant but it's still very important and that led to here so you want to pay attention to these areas when the market gets back up there right those are great areas to short per se or use for targets or if they violate them to the upside in this example that's information as well where you want to turn around and be long these are all things you have to factor in when you're coming up with your thesis for the day so I got on a tangent there but you want to look at the bigger picture and then when you bring up because we are day traders right when you bring up your charts you want to say okay is the volume the rest of the liquidity is that in line with what I think is going to happen today right and then it helps you base your and you could just say I'm only taking longs today based on everything I'm not taking any short even if you get a short set up you just ignore that type of thing right so you know if this does fail I'll stop out on the next one trading is a percentage game and if you think it's anything different then you're in the wrong game alright so let's see any questions on that Sam? No just a new base player just as thank you for sharing your knowledge yeah it's interesting how you kind of plot your zones and levels it's useful to go through that thank you sure you know this is all part of the trading like I say this is the most important you could trade these just based on the volume events and make money I think you can be more successful understanding the bigger picture obviously but like I said earlier I showed my room last December that you guys go to my website you guys should all be using this type of thing there's this and there's a couple other ones this trader sink blows the rest of them out of the water as far as I've seen I'm not sure if I'm using this stuff right but if you go to my website there's banners on my website for everything then I use and you can get discounts for everything so let's restart my computer so I was showing what I wanted to show you was an input in the last couple days of trades and pretty much scratch but yeah so this is last December right this was this entire month was just taking setups and a vacuum where I would wait for the setup like you see me drawing the zones I'd wait for the full ATR I'd wait for the retest, I'd wait for the failure and I would get in same to the upside that's all I would do I wouldn't even look at where we were on the charts and you can see I mean it wasn't a huge month but it's still profitable so my point is this is the most important information like I say every webinar and if you can layer this into your thesis and the bigger picture you'll be even more successful that point is you can just trade these in a vacuum and still be a profitable trader as long as you follow the rules meaning you do the same thing every single time you don't change things up that's one of the keys of being profitable so you can see this started this sold down here and they started to try to pop it back up you see these buying bubbles that's the market buying and they started running right into so nice I don't think that's right so then again you want to incorporate all the bubbles that happen in the spike you see the spike keeps going make this black for sell ice that spike so there's your zone so you can see talk about this all the time as well when you pull up a market and it looks like a Christmas tree it's just Algo City you would think oh I don't want to trade this market because it's Algo City but when the rare times that the big money does come in it disrupts the Algos and that's where you get the big moves so you can see this is just bouncing around this is a pretty big grant it was right after the natural gas number came out today but this is still very very large there's a double threshold that I look for to trade so this area is a tradeable area so that's step one step two is figuring out your ATR so you can see here this is actually another good example this is obviously not a normal ATR for this market the spike up to 83 this just means 83 ticks is the average range right now which is extremely elevated do you have to be risking so back to this zone do I have to risk or say this comes down and I get short well I wait for a full ATR so that means I would be getting in at least 83 ticks below here right in the way I trade these as I put my stop the other way to get myself through right well do I have to risk 83 ticks both ways plus the size of the zone when I know that was like a one time event in the volatility right no so what you can do here very rare but this is like numbers that release and stuff like that you can use instead of using the 5 minute ATR which is obviously not this is incorporating this huge move after the number so this will start to dissipate the real ATR should probably be right around 50 for this market lately so what you can do is take 20% of an hourly ATR you can see the hourly ATR is 240 ticks alright what 40 say 25 so 50 ticks right exactly what I just said so we'll just say it's 250 ticks right take 20% of that 20% of this is 48 so let's just say 48 to 50 ticks is if you're taking 20% of an hourly you can use 20% of an hourly when you get in one time event going back to this you can see what was the ATR before the event it was right around 50 ticks see how that works so you could or you can just eyeball and say hey before this despite it was right around 50 I'm going to use 50 right same thing pretty much but you just want to I would say use 20% of an hour so that's how I do that so my point is I don't have to use 87 ticks I can use 50 ticks as my ATR so that's step 2 now I want to see where we're at in the lugs to judge if I'm going to take this trade aggressively or not so we are below the old lugs so I can take shorts aggressively I just want to be careful if the relative volume isn't elevated I try my best not to be entering especially when I have such big risk you know we saw this the other day in my room there was a natural gas and it was 50 ticks down to the blue lug it was a short setup but I had to risk basically like 180 ticks to take the trade I'm like well I'm not risking 180 ticks to make 50 and it did come down and you can see it down here it was just a couple days ago and it did bounce off of the blue lug so my point is unless I see some high relative volume I don't want a short right in front of the blue lug I'll wait for it to go down and make new lugs and then so this was this day right here so the setup was like right here and I said well do I want to take a short where I'm risking it was like I forgot what it was it was definitely three times what I was going to make and I just didn't take the trade and it did bounce off the blue lug many times and then so this is a good example and then what did it do it finally busted through it had the conditions to build new lugs whatever her magical conditions are they're pretty unbelievable and what you expect is prior red and directional yellow to hold you can see this got a little bit above here but once I went back below here I'll bet you that hit the blue before it hit the red upper red let's see right there sorry you had to sit through that entire thing but it ended up hitting we're still in this condition this is now this is what I was just showing so basically held held out try to get above this is also so what I was getting out of here is once this held and got back below yellow you expect blue we talk about this on the webinar too I was talking about earlier if it keeps coming down and can't tag blue and then ends up getting back above yellow then you expect the other way these are just different scenarios you can come up with for thesis wise of what's going on in the market on top of your longer term stop so let's just see what happened here this was the number so this is you got to remember too even when you're set up so I was just talking about this yesterday into the fed number into Paul speaking if you get volume events say you get a volume event before the number when the number comes out all bets are off for prior stuff so you got to be very careful of using prior zones once new information hits the market so in my room yesterday there was a setup like are you going to trade this I was going to trade it and now I'm not going to trade it because half hour later Paul was speaking so I'm like every word that comes out of his mouth is a new number so you want to be very careful even with this stuff using when I was coming up with the thesis even though neither one of these have been tagged yet once something new comes out then you can start to judge based on after the new information comes out and same with setups just be careful using setups before a market moving event because all bets are off and now you're looking for the new event now we did get a new event it's below the yellow lug so I'm just thinking we can get to the blue lug I was just trying to show you an example of what that wasn't a great event even though this has not been defined either way but this was the number right here so it still didn't it still did not it would try to spike above this prior red couldn't get there now we're bowing I think the odds are we're going to hit this blue finally this is pretty amazing there has not been one thing I'll take that back there's been this NASDAQ but this thing can't even get an ATR above or below the zone this is pathetic this is holding you can see how important these areas are right this is not coincidence this market keeps this is where that stop run was hey look I wonder I wonder where we're going anyone want to guess where the sun's up today anyone want to bet we do this almost every webinar I'll see them it's obviously not rocket science I'll see liquidity and I'll bet that we touch it by the end of the day and 99% of the time at least one of these bands are touched so you can see test it what I'd love now is a new setup where I can add to this trade knowing this is exactly where we're going so let's see if we get that that is now an official ATR above this zone so now if I get a retest failure of this zone I could go along the NASDAQ and here's the other thing people are like well what if you don't get a retest well these are my rules right we're below the olag so I need to see a retest does it mean this market can't just rip off the page no am I going to miss a trade yeah but my rules are if we're below the olag like we are I wait for retest failure of this zone and this is over here tick strike again go to my website you get this account so this as well this is an algorithm showing you the speed of the orders and the size of the orders coming in it goes from one to a 15 so one's the most sensitive 15 is where you have to see some serious buying or selling for these to fire off I put them at 11 because I just want to see the very aggressive buying or selling but it would behoove you to have this information because these are the stock the highest weight of stocks we did this the other day just Google S&P stock weighting or NASDAQ stock weighting I think it was like 24% of the market it was like four stocks it was like Apple, Microsoft, Google I want to say Amazon I can't remember but want to know especially you can use this to your advantage in certain areas say we come up to say there's a prior zone or something that led to a huge move down and we come up here and none of these are firing off right well that's a sign too where it's very likely to fail because you don't have any of the these are the stocks that drive the indices that drive the futures so you would behoove you to know what's going on right so I have the actual futures here and I have the stocks here so you can know many times like even going into spot gamma levels so on and so forth hey is this buying real or is this just a fake move by the algos right so you want to see these stocks participating if you know whatever direction that you're trading alright so I'm just waiting for a retest of the zone or something new it would be nice to get any signal whatsoever and yes you can see this thing has moved 40 points down and I really really wanted to buy in this area we talked about this this was an important zone but I died the way I trade I did not get us up I didn't take it you can see this zone how important you didn't know these areas this was where this started this is where this ripped right through here's your retest and what do you see here now two different buying tails that's bullish so I didn't get my setup here into this zone like I wanted to but the information is important came down here the first time buying tail even a bigger buying tail this time that's instant rejection so now if I get a bullish setup I know I have a very high percentage of this market ripping because of what didn't happen here it wasn't able to get back through here held held and then put a current setup in meaning as far as structure stuff put into buying tails now if I get a bullish setup I really want to be long right if this would have broken down through here then I wanted to be short but that's just part of my equation now I want to see a real-time event volume event if not I'm not trading it that's what's called being disciplined and waiting for your setups but doesn't mean you can't be watching these markets and like okay that's interesting that's interesting okay this zone held it ripped through there yesterday came back held okay now the minute I get a long setup I can get in and then that could also be like we talk about all the time where you know that happened down here you know it held these spot gammas I'm just adding different variables that you can be looking at right you know this held that zone that we just looked at you know there were buying tails you know it held the spot gamma now if you get a buying signal buying setup you could actually why did this now let's see this is a stop that was only 370 so 500 my I know it says 600 but that's combining these two I don't do that you see how these are like two minutes apart let's combine the two and my point is I say it all the time this is the science there's no disputing this was a stop run this was a stop run the way you trade the area that's up to you I highly recommend if you're just learning you kind of follow my rules until you know you watch enough of these you got to remember I've watched thousands and thousands and thousands of these and I've determined the best way to trade them is the way I trade them but you could say after what we just talked about with the thesis hey it held it held the minute I see a setup the minute it breaks out of that zone I'm going long I don't need to see an ATR I don't need to see a retest to see what I'm saying so you could be in immediately that's up to you you can trade these how you want to trade them this is the way I trade them but there's no looking at this at a different viewpoint this is the science there's no disputing what happened here it's how you trade the area that's up to you again I have certain rules that I use because I've watched them for three years so the better you get at them there are exceptions where you can take aggressive entries so on and so forth so all I know right now I still won't be I'll still follow my rules but right now it looks like I want to be long now I'm just waiting for a setup any questions about any of that yeah that's an interesting way to look at it combining the facts and the science what you can see the stop runs on one and then the art of execution if you like that's kind of more up to you and how you want to do that yeah that's the whole point but like I said if you're new to it you probably don't want to be just guessing hey I'm going to get in right in the middle of this zone I am going to get in right when it breaks out I would highly recommend you follow my method until you get comfortable and then you can start to mold it into your own methodology as far as how you trade them we have some great praise from Antonio in the chat he says thanks for the great information it's a pleasure to watch your lessons better than watching a movie so he doesn't say which kind of movie but he's enjoying it I appreciate that some days it feels like a horror show but that's what trading is guys you just got to understand when I went on vacation I listened to the audio book we drove to California and I listened to trading in the zone again really really important stuff from the mental side of things and what to expect and understand that trading is a probability game you just continue to put on the trades and if you have a discernible edge you will make money as long as you follow your rules I use this analogy all the time liken it to a casino it's the best analogy out there because anybody can come in and smoke a casino one day does that mean they change the rules just liken it to trading right a lot of times even with this stuff say someone just gets book mapped and this is their first webinar and they're watching these zones and they're like okay I like that idea and then they see their first setup and they follow my rules and they're getting in and all of a sudden the market does this and stops them out and then it does it again so they have three losers in a row like I'm not doing it okay I'm going to change this I'm not going to look at that and I'm going to do this I'm going to change my rules like this they don't change the rules I mean granted a lot of times they'll kick the guy out of the casino because it's a private establishment I've had that happen to me for counting cards maybe it gets really dead I'll tell this story a little later but the point is they don't change their overall rules they don't change their blackjack say it's a blackjack they don't change the rules of blackjack they know over the long run they have probability percentage because of math they know what their equity curve looks like so tell me they'll come in and big player will smoke them and then they'll make it back big player, big player that's what your equity curve should look like if you have an edge right just showing here this is what an equity curve should look like if you have an edge right so you can see there are plenty of drawdowns in here did I change my system did I say this doesn't work no I know that is an edge I've been watching it for years I even went negative here earlier in the year and this is right around the war I was getting smoked a little bit but you can see this is what I guarantee you if you pull a casino P&L up it looks exactly like this you're going to have drawdowns you just keep taking your trades if you have an edge you got to make sure you have an edge and that could be many things my edge, the ultimate edge in my opinion is the real time volume right and then you can enhance your edge by understanding the bigger picture so on and so forth just waiting for either a retest of this zone it's not like this zone was huge either it was barely threshold but there's been absolutely nothing in these markets today I'm waiting for a retest of this or something new I've got a question on volume can someone explain to me when and how does it look when you see buyers coming in is it the pending liquidity that comes into the book when you see buys yeah basically the different types of volume and the liquidity and the aggressors so liquidity are resting orders we call it liquidity order book that's liquidity you don't want to be trading this type of liquidity that just pops in and out of the order book you want to look for a longer term liquidity as far as I was talking earlier to come up with your thesis that acts as magnets and that's not the opposite most new traders will look at liquidity and this is an example in soybeans this is the kind of liquidity you want to look for that's been in there for hours if not days these are most traders would say wow look at all these offers up here I want to be short because these guys want to sell it's the opposite you want to be long because these guys are going to get their fills because when you get they'll be loading up down here and then as it gets closer they'll step on the gas and they'll push the market right into their orders I told you this was the game I played all day every day when I was a huge scalper so my setups are not based on theory they're based on my actual market experience of watching this stuff millions of contracts me trading personally millions of contracts when I was a scalper I used to average 50,000 rounds turns a day millions of contracts a month so all my setups are based on how I used to respond how the people I was trading against used to respond like I tell you guys all the time you used to be able to see counterparty so the minute I traded with somebody I'd look down and I'd see the exact house 714 was FEMA my nemesis was 990 the guy that manipulated the markets all day every day so on and so forth so I would see how I was trading with so I would see how they would respond to getting loaded up and being wrong, being right and I'd know how I would respond that's what my setups are based off of I can't remember where I went on that tangent but so yeah the liquidity back to what you were asking so liquidity are resting orders so the bubbles are market orders so it's just showing you and then the size of them are if it's bigger or if it's larger orders coming in so I don't trade off the bubbles there's times you want to watch the bubbles in important areas so say you come say for instance you're watching this liquidity you're like okay I'm going to watch this liquidity I'm long from down here I'm watching this liquidity if it struggles at this liquidity I'm away from them they get to fill I'm going to be out where you can watch the bubbles if it comes up here and you see blue and they take out the liquidity and then you start seeing red bubbles we probably want to get out right it's telling you that or say it comes up here and you see nothing but red red red something's up right the buyers aren't winning this is telling you who's winning or trying to win and you can see the buyers are aggressive so that's what these bubbles are showing you liquidity is resting orders in the order book and it's just showing that the darker the red the bigger the sizes relative to the rest of the order book that's all that's showing you right and you can see this this move is being supported by the underlying stocks that's why I call this stuff waterboarding because it gets big time on your nerves you can imagine so say I'm short and I'm watching this that's painful enough and then I got to listen to this it's literally like I've never been water bordered but like it's got the time it's got to be pretty close to the same feeling because you're getting all your senses tickled the wrong way like I'm watching it I'm watching my P&L get smushed and I get to listen to it but this is still very very very important okay so this is a good example that I am long this right so you guys I mean look this is just this is the same pattern every day in these markets right this was the volume event market moved away screwed around Algoville Algoville couldn't penetrate the volume event gone now we have a new volume now what can I do well this market is looking very bullish right but I don't see it though there's something with rhythmic lately so I'm getting these I don't know if you guys are getting this too I know my summer members are getting this shut this for you guys I don't know what's going on here but we just heard that setup and this is what I'm seeing like this was earlier but it's like lost connection lost connection I sent it to developers last night and they said that we're going to be having problems they may still be having problems but anyway you just heard that alert 152 contracts oh you know why because this is why so this is not a problem right now even though that was those signals that I just showed you did happen the reason I'm not seeing it here is because this is the I saw the August contract running this is you know roll you want to roll most volume is in majority of the volume is in December now but I'll take a look at this I thought I exited this actually let's see so I mean you could still trade August let's just take a look so this is how you guys want to judge it's actually crazy I'm really glad I'm not involved in it not over here coming to the CME markets gold get this out of the way quotes and then you want to see where the majority of the volume is you can see like I don't want to be trading August at all 28,000 versus 137,000 in December so if you haven't rolled your gold roll your gold but that's pretty significant there's a threshold volume set up in gold in August when there's no volume in there I'm not going to trade that but you could pay attention to it in the Dease contract you can see that's so let's just draw this again I'm not going to trade this month right now I'm just going to trade Dease but you can see so this is a good example too for what I was telling you guys earlier I'll show this but first of all we want this spike so this spike was 150 my threshold in gold is 150 I have to illustrate in here because nothing is going on as far as my setups so this is a drawable event you can see this is one house see this black line so they were selling here this touched so this is okay to use so here is the market you see this big buying ran into sell ice this was only 100 that's not threshold so I didn't draw the zone came up here again well now there was a little more that's not threshold now that's threshold so in this instance they're all at the same price but there are going to be times where you'll see the sell ice it'll look like this let's just use the colors so it's not confusing it'll be like blue bubble and it'll be less than threshold and then they'll move it up remember ice is hidden just hidden orders in the order books you're not seeing it here they're hidden but the market will move up here then it'll touch it again and you'll see the line go like this and there's a little more that's still not threshold then it'll go up here and then you'll get the threshold well draw the zone for that threshold event you don't have to incorporate even though it was one house there's not loaded up traders per se in this one little event where the most size came in so it's just a way to keep your zones realistic instead of having to draw these huge zones based on buying that wasn't a ton of buying at one price so you'd want to draw that zone so that's feeling there but I'm not going to trade off of that I'm just going to keep it on the D's product the D's month but you can see what's above I wonder where we're going anyone want to guess so this guys this just helps you stay in trades too right I'm staying in this trade regardless until I see an important level or an opposing setup or you could get out of pieces at the liquidity if it can't punch through but the point is these are algos you're going 95% of the time you're going to go this is what traders can't sit through and if you can't sit through it then you're not going to make it because that's all that these markets usually are 85% of the time it's this stuff this could come all the way back and screw with me and for the next four hours but I stand firm in my roles so the point is you see this that's where we're going does it mean it's going to happen right now no that's how she's sitting in the trade as well and especially in gold gold's one of the biggest mine screw jobs there is as far as having to watch the whipsaw nonsense still don't have a setup in there this was close 400 stop runs but I so I will increase my thresholds in a day I never go below meaning if I keep seeing you know 2,000 ice 1,000 ice then I'll be like okay do I want to use 700 today no I probably should be using 1,000 but I never go like today there's been not been one setup in the ES does that mean I'm going to lower my thresholds no I don't go lower than 700 ice 500 stops and my point is I'm not going to draw this on either you could again this is your prerogative but do you want to just roll with it or trust my watching thousands and thousands of these relevant volume and what is not out of this gold contract because beans just won't what you're going to do is sorry beans just do it you heard these things going crazy that led to the sub move but there's just there's no big players playing right now I'm really really surprised like I said the day after the Fed is usually where you're getting you're getting some serious setups but on the flip side this volume is not bad relative this is another thing you want to watch closely on moves because if you're not seeing good relative volume the markets are probably just out of rhythm and it's going to turn around and flip and whipsaw this is not bad volume so I don't know if there's a problem with that in the rhythmic data or what this is very weird to be seeing two times normal volume one and a half times not not getting any setups really odd this whole day has been a pretty decent volume I don't know there could be something with the rhythmic data I know they've been having problems lately but I'm getting setups in other markets I don't know are you guys getting setups if you're getting setups in these markets please post it I'd like to know if it's just my computer or what this is an example of the art science so that was that setup quite get an ATR I don't think this is an ATR this is what we were watching this came close to an ATR but you could have said that's an important zone that you just pointed out this got close enough I'm taking this straight this is the science you can trade this however you want it I waited for a full ATR I missed it by a couple points and I missed this straight but you can see this is not coincidence that's why you want to know where these volume events are I could have used 120 points that would have been nice 140 points try to stay consistent with my rules I do screw up sometimes I come back from vacation both times I broke my rules I'm like I'm going to give this a shot both times I lost on the trade so it's like a slap in the face like stop being a moron follow your rules you do that enough I know traders do this all the time I'm just going to trade one just to get a feel you do that enough over the year it adds up to a lot of money I crossed myself four grand in the last two days just putting on small like history I put on half size you do that you add it up over a year it adds up to some serious money the point is I need to keep following my own rules and my advice so then again the time that I do follow my advice I miss the 140 point trade that's the way trading is sometimes again this ATR has been up there 35 this whole time I was waiting for 35 points out of that zone I just didn't get there from the top of the zone that was at 86 quarter we're looking for 21 50 I think it was and I got up to 15 here so I missed it I missed that ATR retest fail by 4 5 points I missed the trade trust me there's another thousand right behind it so because if I would have taken that trade and got long and it would have ripped down below me which I did think it was going to come down to that blow up I would have been really mad at myself and then that's how you get into slumps you do something that's not your rules and then it's just snowballs and then all of a sudden you look at the end of the week and you add one of your worst weeks ever and it all started because you didn't follow your rules on one stupid trade it's really easy to do trust me I've done to the last two days and I've been doing this for 20 plus years it's easy to do you've got to constantly monitor yourself from being a moron not hard to do anything going on any other questions Sam? just on that note you've got your rules and thresholds for a reason whether it's your own experience or you've back tested them and you've got your numbers and those are the numbers that work best but if you do like do you have a process to kind of update your approach not kind of take little dabbles and punts are in there but update your whole thresholds over time thresholds I had a couple of products I mean it's pretty amazing I made my first course two years ago and it's pretty amazing I increased a couple of them like they can ask that guy I have in there like 110 or 120 that's up to 150 ES is exactly the same the only one that's pretty statistically higher is is our bonds so bonds I think I had it 300 or 200 a camera about stopped my head but you definitely want to use 500 or more in this market if you're trading bonds you can just look at if you pull up a chart and you see so here's for example 350 230 if you see 22 spikes that is not a relevant threshold right you should at most be seeing in your select market maybe 3-5 setups in a day right if you see and this is where 500 if I see 500 today I need to be moving my threshold up 500 there's obviously some serious size coming through here you got to use a little discretion in your trading same with the volatility that's why you use the ATR because there's so many traders I can guarantee you a very high percentage on here like trading the ES I like to put on my trade where I'm risking 3 points and I'm making 5 okay great but guess what when the volatility of the ATR is at 15 or 20 you're just asking to lose your money so you've got to adapt on days when the volatility is higher you've got to adapt when the volume is higher so my point is if you look at a chart and you're seeing 500 you don't need to be using 500 that day it doesn't happen very often but when it does you just need to increase your thresholds so that's where I make adjustments and a single setup in ES could you lower your threshold? you could do I? no because I've just been burned trying to do that so I go minimum this could sit here and do nothing all day if I don't see 700 icebergs I'm not drawing a zone so I don't lower it but I will increase it other than that I haven't really I haven't really changed much since my original course I have a new course coming out I'm almost done with it I need to clear with them because it's so much more involved like this course is my first course on steroids times 10 as far as the setups I talk about the ATR drawing the zones these other I don't have an advancing map but it'll be on chart to sweeps all this it's just very very detailed so that's why it's taking me so long but other than that since my original course everything else is pretty much spot on we actually have a question on your course as well last time you were mentioned releasing a new training video is that now available or maybe you want to update us on that? no that's the course I'm talking about so I'm in the process of finishing up that course if you bought the original course or if you do buy the original course there's going to be a substantial discount for the new course if you're a member of my trading room so say you're in my trading room you buy the old course when I release a new course if you're still a member then you get the new course for free but that's what the training video I think it's referring to it's just the new course that's going to go over all everything I get to ask these questions all the time even in my trade room like about the ATR drawing zones all that stuff will be covered in the new it's just so many hours in the day and I trade all day I do the webinars after the markets close I mentally just beep it's just hard to just hop on and kind of my course a lot of nights but I'm getting there, it'll be out soon alright so once again you can see here though I would have loved to signal down here look at the magical Ludwig levels lugs, blue hell, blue hell go on they're incredible guys I'm telling you this is the second most powerful thing I've seen next to the book and app SI indicator as far as support resistance and then coming up with scenarios based on what they're doing with the lugs and drawing new lugs I was really hoping for this you can see we tag babe we call these baby lugs these are the minor lugs but you can see this work I was really hoping to get one more move down here and get it set up and did not get it still really important to this is one of the things if you watched the webinar I did with her it's actually in this room if you scroll up to probably a month or two ago I posted if not just email and I'll send it to you but he talks about if you come down and you don't tag the blue that's a very important sign especially if you get back above the yellow so now you can expect that so this one talking about coming up with like a thesis based on what happens with the lugs as well if you already want to be long like we've been talking about this is still looking like short term bullish and then you can't tag the blue and then you get above the yellow well you already have the bullish context now you say I think we can get up there and now all I need to see is a volume set up and then that's like an A plus trade I think that's about it there's really nothing going on here we're going down in natural gas again I won't try to do the short side because we're so close to that blue lug but many times what will happen here is we will come down especially in this market this market can move 500 ticks at a time come down, bust through here, build new lugs then it'll come back, retest that that volume set up I just drew then you could go short I will go short if we get new lugs I don't want to be taking shorts if we break this current zone I'm taking a short risking like 100 plus ticks to make this is 100 but I'll just give you an example if I did take the short aggressive link which I should below the yellow lug meaning just outside an ATR we already know ATRs it's still at 76 but we know if we're taking 20% of the hour like we talked about earlier it's about 50 even if I got in say I got in 50 ticks below here just get this loaded up if I wanted to do this I've taken the last two digits, 21 so 30 ticks below here would be 71 83, 71 that's where I would enter if I got filled I would go 50 ticks this zone alone is over 100 ticks wide and then I'd have to risk the way I trade them again my art the way I trade it I would go 50 ticks outside this zone so now I'm at so I'm risking so 858 down to 83 so I'm risking 200 ticks basically on this trade if I take this trade well it's only 100 ticks or less down to the blue lug so do I want to risk 200 to make 100 you're not going to be in trading long if you're trading that way you're not usually going to be in trading long if you're only getting 1 to 1 on your money I would not take this short so what I'm saying is to the long side I'm not going to take it aggressively because we're below the other lug but if we did we end up getting again we're still on this zone and this still could happen but if the scenario unfolds today where you go we do get the 50 ticks we retest we fail I will go along that because there's a long way to the red lug I'm not taking it because the blue lug is right here but like I said say we do do this and we build new lugs and when we come back retest fail then I'll take the trade because now we have brand new lugs and a new lug will be probably 500 ticks away see what I'm saying so that's how I'll trade this current setup I'm just being tortured in soybeans when I know pretty much know where this is going to end up it's just sitting here doing nothing gold is just being gold and every time you think you got it it does its usual algo nonsense I'll probably sit through this for the next 5 hours but long list as well and that is about it guys I did not some days this is how I trade if I don't get my setup I don't trade it you could have potentially taken this if you wanted to be aggressive out of the zone where you said that was close enough to an ATR I followed my rules there it cost me again there's another 10,000 setups right around the corner especially this is another reason you want to be watching multiple markets and nothing is going on some guys and girls traders don't have the bandwidth to watch multiple markets but if you're just looking for distinct things you could watch 3, 5, 10 markets and you're just looking for a certain thing again being a sniper like I said that doesn't happen, you don't trade some areas I'll be watching here NES because I know everyone loves trading ES for reasons I don't really know because the market sucks in my opinion you know red love is all the way up here at 5750 so just check our zones here see what's up there I'll take long like we said this stuff was all screaming long especially when you put in the second buying tail I would have loved to get a setup here didn't get it, this thing is headed up here so this zone see what this zone was so we already know 5750 is the red love this is a really important area right? don't get a much more defined balance area than this puppy here right? this zone was support directional conviction anti-buying tail stop by ES that's something new every time I go to get a webinar I get a signal which is fine but it's just hysterical so anyway this zone is really important this balance and led to this whole down move so really watch if I'm getting long here I'm watching that red love and I'm watching the bottom of the zone right around 66 alright so let's draw this zone just when I think I'm out they pull me back in movie? don't ask me maybe someone in chat can help you don't watch American movies or what it's a class actually it was Godfather 3 pretty embarrassing I expect you to watch all the entire trilogy by the next time you're on with me okay that's my homework I don't think I'm going to talk to you alright so here's your finally we get a volume event only an hour plus into the session alright so here's your stop run you know I am bullish this market does that mean I won't take a short? No but I need to see so what are some of the things we see here first of all there's really nothing what we just did is broke out of this smaller balance area we're breaking out right now so from yesterday and today so yesterday the Fed met pulled back today just built balance breaking out that's very bullish there's nothing here structure wise either until we get to this zone we are above the yellow log so I'm supposed to take this trade aggressively the only thing I'm hesitant about is we're like three standard deviations from VWAP and unless the volume is extreme the volume actually it is so I'm okay with taking that as well I'll show you here in a second so ATR is 7.72 so I will go just outside in ATR so 8 points above here I will take this trade the other issue here is this is the whole reason I didn't take the natural gas trade we know the red lugs at 57.50 so if I'm going 8 points outside of here what I say was 7.75 so I'm getting in at 54 with the red lug right there so this is where you have to make a decision my rule is I don't usually take that trade but this one I will take I'll give it a shot and I'll show you why here in a second so first let's figure out the top of the zone was that there's enough on that we talk about this in my room all the time too there's enough on the bullish scale right so when you're deciding whether you're going to take trades it's like a scale not everything is always going to be in favor of right so you got your short side you got your long side well on the short side is we're extreme standard deviation I'll show you that here in a second we're close to the red lug check check on the long side break it out of major balance hold that major zone the stocks are agreeing with this up move there's high relative volume right now that's the biggest one you can give that a couple checks I'll show you that here in a second so there's enough here while I'll take this trade that's a little risky but I'll take it so 8 points above here top of the zone was 4550 so 5350 I will take this trade we're right into a spot game on level 2 so this is not going to feel very comfortable but I'm willing to take this I know the red lug is right here too at 5750 but the reason I'm going to give this a shot is because so first of all you are not going to make a living taking trades most times at extreme standard deviation so you can see here actually I take that back I'm not going to take this trade I'm going to show you why so where I just talked about the scale well what's another major thing we haven't talked about this say because nothing's been going on and I'm sure my trading room would like to see this because they can't see this screen while I'm on these webinars one of the main things I look at is whether we're over bottom or over sold because it's called The Edge it's a TAS product that's not available to the public right now as far as I know I know he's working on it they're updating it but you can see here this is all 500 stocks in the mini S&P 500 or the S&P 500 323 of them are above their 5 minute TAS boxes so I'll show you that here in a second it's just like mini market profiles but when you get extended that means that 323 are above the boxes they will pull back so I very rarely will buy or sell if you can see the green line it's above the 67% line because the markets pull back all the time doesn't mean this thing can't get up to 90% but do I so again check mark on the bearer side or not on bearer side but do I now want to take this trade because of something that I know this thing is going to pull back right so everything we just talked about I'm getting in right in front of the red log right on top of a spot gamma level or 3 standard deviations from VWAP that's what I was just showing you guys so again all my conditions aren't met it doesn't mean that it can't pull back then I can get long right I'll give you an example out here in a second but I'm telling you right now you are not going to make a living trading here's VWAP this is called daily value area that's 1 standard deviation from VWAP here's 1.5 so that's like 2.5 standard deviations away you get these algos that will kick in and revert it almost always unless big money is coming in so what do we see here I'm just talking about this relative value you can see there's some big money playing right now that is you want to see that especially this time of day that's impressive and this is showing you this exact time period for the last 30 days this is more than 2 times normal volume so these are the times that the market could continue higher even though we're actually standard deviation but like I said I was going to just take this trade until I saw this edge product so this is what I'm talking about doesn't mean what I want to see happen here this is so this market could stop you can see these things are starting to die down so this is over about 75% of the stocks are above their 5 minute test boxes again the test boxes are just these things right here they're just mini market profiles I don't use these to trade off of anymore I used to use them because I use a lot of the levels but you can see this is exactly what it would look like imagine one of the S&P stocks here is a 5 minute box it means they're up here many times the market will revert or draw a new box but either way they'll pull back so I'm not buying this market when we are that extended when you have that many stocks above their test boxes so what does that mean well this is temporary it just means right this second I don't want to be buying this thing will pull back and what's probably going to happen here see what I mean this is exactly why I didn't want to buy I probably would have been filled on that too right that was 53 but what could happen here this is going to go up here that edge is 75% while I wait for it to pull back it will pull back right into this zone then when we come back up this will only be like it's 60% then I can go along see what I'm saying so I use that to help tie my trade there are so many different things again like the VWAT stream standard deviation overbought near the red log is that worth a long not right now I will take it as long as the edge it's still very risky because of the red log in this but if the edge isn't overbought I will give this a shot but right now I was not going to buy that so if you have that information you're not chasing the market you're like okay I'll just wait right so technically this still did not get near above this zone so we don't know what the setup is yet this was at 4550 we needed to see 7.75 was the 7.79 now so I round up so 8 points so we needed to see 5350 so we still don't know this could still be a dumb and dumber so it would be a nice third sell it's a good thing because I'm long I'll just do this quickly so now what I can do hey you guys surprised here what did I say who bet me you bet around the golf that's liquidity number one so here I'll give you an example of how you can use this liquidity as targets so if this can't push up through here and I start seeing the red bubbles I'll get out of a couple this is where you can use your this is where you can use your liquidity even though I think we're coming to this one and this one if this can't just pierce right through here and this starts to sell off this is where you want to use your bubbles so if I start to see red bubbles back below this liquidity I'm going to get out of a couple I'll just put this in right now because I might not be on this screen so that's how you can lose liquidity but like I told you guys these are magnets these manipulators will get the market to their orders eventually does that mean it's going to happen right now I don't know I just sat through this check for two hours and here we go so if this comes back I'll get out of a couple and then quickly and I'll show you because I know the time I think is going as well in the other room means so this is my ultimate goal and you can see right around where that major liquidity is too 5450 and I'll get out of some because this could pull back oh and the other thing I was going to show you this is a brand new volume so actually I don't need to do this right here with this liquidity because I got a new volume setup so this is what I'm going to do here 260 threshold draw this zone I get out of liquidity sometimes if I can't puncture through like I just showed you but my main reasons for getting out are major lugg with levels or an opposing volume setup make sure you get all the bubbles in the spike that's there to there now if this comes back an ATR below this zone I'm out of my full position I'm not, I don't ignore even though I think we're going to go to liquidity I'll get another chance I might pull away back so here's your ATR 3.73 so I round up I go just outside an ATR so let's go four points outside of here so the bottom of this zone 39.50 so 35.50 I will be out of this trade there won't be much of a profit it doesn't matter it doesn't matter what I want right I'm following if this is truly bullish this will hold move higher and then what I can do if this does hold because I'm above the yellow log I can add to this trade so now I'll go just outside an ATR let me say 3.73 so 45.50 I can add to this trade if I don't get stopped out if I get stopped out then I'm out of the trade then I'll just wait for another setup see how that works so I get out again my two major reasons are opposing setups meaning if this turns into a bearer setup or major lugs you could get out of some I'm already getting out of some of this liquidity fails but you could get out of some if you get up to liquidity and it can't puncture through there and fails you can get out of some I was going to get out of two right here but I'll just let him I'll make him come back and try to stop me out there so hopefully that makes sense this didn't chase it I still wouldn't have been filled but I was not going to buy it up there see if this edge pulled back so you can see if this pulls back it moves higher and this thing's below this yellow line then I'll give it a shot I'm not buying when this thing's elevated because I know what it does every single time doesn't mean it stops right at 75% it could get up to I've seen it almost at 100 I only saw that once but it was at 90 the other day you can see it and you can pretty much go back and check this out for yourself to see what happened up here this was 94% of course it's off the screen you can't see the time so I try to post these in my room too so you can go back and see the exact time of day I can't see it so this was obviously this was yesterday this is eastern time so it was just right around 250 255 155 Central so let's just take a quick look to see what happened there and I'm off here we went into the other baton guys time yesterday at 155 we'll see 155 so 155 is that's 1155 my time so this is an example of pull back and then it kept going so this is what I'm kind of looking for now this was right around here you can see it touched 4022 and pulled all the way back down over 10 points back down this is almost 15 point move 14 point move from there this was 1155 my time which was 155 Central that's what I'm talking about but then the thing pulled back and then it resumed its up I just don't chase it when the thing is over about like that any questions before I hop off here yeah just very quickly I think we've got some ES fanboys that you've upset Pegasus has said I would like to hear why Scott thinks ES sucks what do you recommend he respects your opinion I just think when it's moving around it's great but this is the most rotational whipsaw market that very much can trade you know the markets I trade you can watch the Nasdaq, Russell soybeans, gas crude, coal those are the ones I watch and I just look for my specific setups in those markets there's no reason to pitch in the whole yourself because when you're just staring at one market you're going to start forcing trades it's just human nature not many guys consider watching one market all day long not going to set up and say I got to pay my rent if you're watching multiple markets there's a potential setup in natural gas I took the setup in soybeans I took the setup in gold because I got what I wanted to see this way if you're watching multiple markets you can be much more selective and wait for your exact sniper setup alright so that edge is pulling back still doesn't feel good to do this but I'm going to buy it as long as the edge isn't at 70% or higher then the next move up so this is kind of like I said what happened yesterday it pulled back this didn't quite pull back 10 points but it pulled back from the high there when that thing was at 72% pulled back from 52, 52 quarter pulled back almost 8 points alright that's why I don't chase market when things are bought so hopefully we come back up here I'll give this a shot the only reason I'm doing this is this a long setup this spot gamma and a red lug is because this relative volume is extremely elevated and I think it could blow right through that red lug otherwise if this we had just terrible volume here it's already dissipating actually but you did a prior bars I mean you had almost three time volume this is what I'm talking about guys the rest of this afternoon it's probably going to be good trade it looks like they're finally coming out to play remember what I was saying like I couldn't believe the day after a fed right so this is why I'll give this actually that's not even the right market hold on sorry about that looks the same that's why this soybeans by the way so that's good in case you guys want soybeans because you want to see the big volume coming in that's what helps propel the market or else you're going to get algode that's what I was trying to show you guys so I will take that trade it still feels very uncomfortable because I know what happens at these areas but that's okay I'm going to give this a chance to blow through that red look so if I get filled here my stop is going to go 7.45 so I'll go just outside so I'll just go 8 points below so if I get filled on that my stop is going to go at 35 again this is 18 points of risk but the way based on the volatility right I know that if this is correct this thing can go 30-40 points we already know that the zone up here is near the 40-80 I think we can definitely get up there today I think we will get up there today again it doesn't matter what I think I still let the volume tell me but this is the next stop alright so this is worth risking 18 points because I think we can move at least 2 times that maybe more so I will trade that long as long as the edge isn't way overbought it doesn't look like it will be by the time I get there really glad I didn't take this long that needs 200 points not me that's about it long gold we'll trade this set up in natural gas once we move out of here and then let's see if I got stopped out of my beans or if I'm still in beans open this can hold and then move up to oh this is day I'll add to this trade too as long as it doesn't get an ATR I'm pretty sure that's what will happen alright guys hopefully you learned a little bit sorry not a lot of trading but that's the lesson for you as well if you're patient and you just wait you're watching multiple markets you can just wait for your exact set ups instead of forcing trades exactly no thank you Scott I think there was certainly some valuable lessons in there looking over your shoulder hearing your thought process is extremely useful just kind of how selective you are you almost took a trade there but then you saw the TAS boxes I think most traders are doing the opposite they're itching to get into the market where you're kind of demonstrating patience, discipline wide play queen 9 when you can wait for ace king exactly what it is it's like playing a poker game and it's just playing percentages as well taking your trades knowing your areas knowing where your stops are I will see you guys again I do this every day twice a day in my trade room as well so if you like it head over to trade room see you guys next Thursday thank you Scott Scott will be back next Thursday same time if you want guys you can jump over and see Tom now he's streaming live on YouTube and in Discord but that's it from Scott see you next week thank you and by the way I just got filled on that and now there's a new setup now I can trail my stop based on this new setup so I'll draw this zone I'll trade 8 points below there so now I can control my risk you can see this thing going nuts as well there you go filled on that and now I can trail my stop based on this new setup draw the zone basically go down to I'll stop this out at 40 what is it 43 ish now you can trail every time I go to get off just quickly I'm not going to draw this zone but right now there's your new setup trail 8 points below here now it's basically risking total 8 points instead of 18 I think this can go straight to 75 maybe alright guys I will see you next Thursday thanks