 Good morning Discord! Good morning bookmap community! Welcome one, welcome all! Let's dive right in. My name is Charles. I run a community called Pirate Traders. We're focused on the ES, the NQ, and how it moves through the two-way auction process. This morning we've got a lot to talk about because last week was interesting. Obviously we all recall that the market had a massive sell-off on Thursday where the market made a big move to the downside, basically completely engulfing the last few weeks of momentum to the upside. And that left us a big opportunity. It could be an opportunity for the market to go up or the market to go down. So let's start by zooming out a little bit and giving ourselves some perspective to understand what is happening. First things first, let's just talk about the way the market made the move. On that particular day it was rotating in a very tight range and then out of nowhere it wasn't necessarily because of any particular news or any particular reason the market started to sell off. The more that it liquidated, the more that it dropped, the more selling pressure that piled on, the more they squeezed the buyers and the market continued lower and then more sellers and the market continued lower and then more sellers and the market continued lower. So on a longer time frame, on a sort of daily, weekly, monthly time frame, that is what we call a liquidation break. Now intraday it was a liquidation break with new money selling which is something completely different and members of the brigade will remember me talking about that, but on a longer time frame it was a liquidation break and a liquidation break can create one of two things. Either the market liquidates that squeezes out the weak hand buyers and it gives the strong hands a chance to buy at a lower price, to buy the market at discount. If that happens the market will then turn around and start heading up. Once it does that, once it starts heading up, those strong hand buyers have no reason to take profits. They should just stay in their long trades and let new FOMO buyers chase the price up as the market makes its way to new all-time highs. The second alternative that could happen with a liquidation break on a longer time frame is it could change people's minds. All of the people who have been buying over the last few weeks thinking the market is going to continue up, they may have changed their minds and now be looking to sell. So let's zoom out. We'll start by looking at the monthly candlesticks to give us some perspective of what might be happening. So first and foremost, on a monthly time frame, the market is still bullish. It still has momentum to the upside. As you can see, we are still making higher highs and higher lows month after month after month and that has not changed this month. Okay, so the market still has momentum on the monthly. Now, does that mean it has to keep going up? No, of course not. But it just means it could keep going up. It also means if the market were to make its way all the way down below the previous monthly candle's low, that we would be looking for a larger pullback. So I would say if we get below 5065, I would look for a pullback to test the previous all-time highs at 4800. Okay, now that's not something that we need to worry about today. Probably not even this week, but it is just something to be aware of. If we get below that monthly low, we can look for a larger pullback on a monthly time frame. If we don't, the market still has momentum. So now let's zoom in a little bit and take a look at the weekly will clearly on the weekly, the market is running out of momentum, right? We've got a lot of weeks where the market has sort of a channel that is moving up and to the right, but that channel is now rolling over. Okay, so we need to balance off all of this momentum that we have had on the weekly time frame. We need to balance it off. There's two ways we can do it. We can do it with time. Okay, so that the market just goes sideways for a little bit before it heads higher, or we can do it with price. The market can pull back with price. An excellent level to watch this week to figure out which of those two is happening is the weekly low from last week, which is $51.94. Okay, as long as we're above it, we can assume we're heading back up to the all-time highs as we are balancing with time, but if we get below last week's weekly low, that will again likely lead to a further pullback in price. Now let's zoom in and take a look at the daily time frame. So in the daily time frame, we have that channel mapped out here and we have some very interesting information. What is that information? First, the market worked its way to the opposite end of the channel, the lower end of the channel, and it tried to turn that into support. Okay, but it could not. The market then went lower, came back up, turned it into resistance, which is of course bearish to see, and then continued lower. That resistance held on Friday as well. So that's our first indication of what could be happening. The market had the massive liquidation and then it held the resistance of that trend line when it came back up to test it. Okay, so that is the first bearish thing that we see here. Also, while we're looking at the daily candlesticks, let's go ahead and put on the 20, the 50, and the 200 simple moving averages. These are also an excellent set of signals to give you context on a daily time frame. Again, the 20 was acting as support multiple days in a row, but we have now broken below it. We're going to open today literally right on that 20 moving average on the daily. So whichever way it breaks from the open will give us some insights. If it breaks lower, that is telling us that that 20 moving average is now acting as resistance. If the 20 moving average continues to act as resistance on a day time frame, it increases the odds that we need to head down and test the 50 moving average on the daily time frame. If it can hold this support today, if the market continues up above Friday's high and finds new buyers, well then it's bullish. We just came back to test the 20 and we're good to go right back up to all-time highs. Okay, I will point out if you look at the NQ, this has already played out on the NQ. They tried to turn the 20 moving average into support. They failed and on that liquidation day when the market liquidated lower, look exactly where it found support, right on that 50 moving average. The next day when the market rotated inside the previous day's balance, it literally turned the 20 into resistance and the 50 into support. Okay, so if the NQ, same as the ES, if it gets above yesterday's high, that is bullish that it's heading to all-time highs. Now, let's zoom in even more. We'll take a look at the market profile chart for some exact levels to take into consideration. Okay, first things first. Yesterday, Friday's range was what we call an inside day. It was an inside day because the price stayed completely inside the previous day's price. It was also an inside day because the value area, which represents 70% of the day's trade, a very important signal for market profile traders, was also inside the previous day's value area. So what does that tell us, an inside day like that? It tells us don't be bullish or bearish, that you don't have enough new information yet, right? That the market is just balancing. It had this big move. It freaked everyone out. It got a lot of, you know, people short. It got a lot of people long and we just needed a day on Friday to balance that off to kind of just let the froth kind of, you know, foam down a little bit, okay? Well, what did they do in the overnight over the weekend? They just balanced inside yesterday's range, inside the previous day's value area. So what does that tell us about the overnight over the weekend? Further balance, further just absorbing all of the emotions and everything that has happened from the liquidation on Thursday. Okay, great. So what are we going to do this morning once the market opens? How are we going to look at things? Well, first and foremost, we are going to consider it a chop zone basically below this large node right here. So we'll call that 5240 and the overnight high we'll call that 5269. In between those two areas, the market is likely to keep doing what it did on Friday and what it did all weekend long. It is likely to continue to balance, to continue to allow the emotions to play themselves out. So we'll be looking for a lot of rotation and a lot of chop in that area. We'll mark support levels where the market might find support and reverse and turn back around and we'll monitor what happens when we get into those levels. Same thing for resistance. We will watch what happens as the market pushes into resistance. We're going to watch them play tug of war to try to give us an idea of which of these two levels they're going to break. Are they going to break above 69 or are they going to break below 40, right? Once that happens, once the market works its way either up to the overnight high or works its way down below this node right here, we will then monitor for continuation. We assume because the market's been rotating all day on Friday and all weekend long that it's ready to break, right? That they've been pulling that rubber band tighter and tighter and tighter and the market is finally ready to either shoot up or shoot down depending on which of these two we test. However, what do we need to see is a signal that that's happening? It is new buying or new selling. So if we get above the overnight high, we are looking for new buyers above the overnight high. If we get them, we are very, very bullish. Below 5240, we are looking for new sellers. If we get them, we are very bearish. However, in both cases, if we do not, if the market just pokes above the overnight high and comes right back in or just pokes below this node and comes right back up, we need to spend more time going sideways and we'll expect more rotation and more chop, okay? Now, if you were to put a gun to my head and make me decide right now, you know, 20 minutes before the market opens, which way is the market going to break? My instincts tell me that it is going to break higher. My instincts tell me that this liquidation was bought up and that the market, those buyers, are still in the market. They're not taking profits yet and they are not going to take profits at yesterday's high, so that will lead to more new buying and continuation to the upside. However, I will very quickly change my mind this morning if we cannot get above the overnight high and we cannot get above yesterday's high. Any failure to get above the overnight high or the previous day's high is a sign the market is heading lower and that is because of what we talked about looking at that daily chart, right? When we look at this daily chart, we are dancing, sorry, let me get back to the ES. We are dancing right on the razor's edge. Either this resistance from the channel holds, this resistance from the 20 moving average holds, we are looking for a larger pullback, okay? So, if they can't get up there and get new buyers, they're going down, baby. So, that is in my mind the secondary, most likely scenario. However, I will be ready to change my opinion very quickly if that happens, okay? Now, as far as how is it going to happen? Is the market going to open and instantly start to go up straight to the moon? Probably not. Probably, we're going to spend a few hours going sideways before we break either way, but I do believe if we break to the upside, we can get back to the all-time highs very, very quickly, okay? It's a bull market, you know, and one thing I learned in trading bull markets is that if a liquidation break like this gets bought up, it will instantly retrace, I mean just instantaneously. So, we can go back and look at the daily chart from the past and you'll see what I'm talking about. So, you'll see it happened here, here, here, here, here, here, here, again, again, it started to lose steam, but then again and again until we made those all-time highs. Then it stopped working, right? Then they started bouncing and shitting and bouncing and shitting, you know? And that's when we knew we were in a bear market. But as long as we were in the bull market, those liquidations would get bought up and the market would just retrace very quickly, right back up. We are now in a bull market, whether you want to omit it to yourself or not. So, the the probability that this will get bought up and retrace is very high in my mind. And we're going to get another one of those and out of nowhere. But you will just be right back up at all-time highs within a day or two, okay? So, this chop zone, I know I always talk about chop zones, particularly on Mondays. And it seems like it's boring information because I'm always saying the same thing, which is like, let's see what happens with the overnight high, let's see what happens with the overnight low. But I'm telling you, they are important signals. If you see the market get above that overnight high today and it starts getting new buying, you do not want to wait around to get into a long trade. That support is viable because once it starts to create that momentum, you've got a whole weekend, a whole Friday and a whole weekend worth of sellers to squeeze and the market can make a move. And it's the same exact thing at the lows, okay? So, let's see what happens. Real quick, we'll jump over, we'll take a look at the end queue. It's moving very similar to the ES, so the conceptual idea will be exactly the same. But we'll look for some exact levels to take into consideration this morning. Yeah, you could just use overnight high overnight low. They will be good signals. So your overnight high is at 18, 3, 74. Your overnight low is at 18, 250. And it'll basically be look above and fails or look above and go or look below and fails or look below and go. Okay, so if they push above that overnight high and they get new buying, they're heading to test the previous days high and monitor for continuation higher from there. Same thing at the low, new selling, monitor for continuation lower. Okay, in the middle inside this overnight range, chop, uncertainty, balance. But it would not be unreasonable to me if the end queue were to get above yesterday's high, get above Friday's high, that it could easily head right back up to the 18, 5, 80 area. Okay, because that would mean that that liquidation was bought by those stronger hand buyers and they have no reason to take profits here. Right, they'd much rather take profits at a higher price. So the potential for momentum is there. But of course I suspect we'll get some chop first. A little sideways to get short-term traders long, get them short, and squeeze them both sides. Any questions from the chat? Good morning to Will. Good to see you. Cool beans in the house. Who's ready for some pillaging? Tom Gunn is here. Jay in the house. Casino is open. Map is here. Michael, good morning to you. David G. in the house. The demo trader is with us. Good to see you. Debbie B. Sebastian J. Grizzly Bull. Tom Gunn says I hope it crashes right when the eclipse starts. You know, it'd be fun. It'd be interesting to see, but I doubt it. Trevor, good morning to you. Michael, you're welcome. Tony in the house. Oh is the eclipse today? Is today the eclipse day? What time is it happening? I guess it depends where you live. Darren says how can you see the overnight high in trading view? You would just have to separate out your candlesticks. So you just have to look at what is the candlestick for the end of the day on Friday and just kind of map it out yourself visually. So you could say like one hour candlesticks, you could figure out where was the previous day's high, where was the high at the close, previous day's low, low. Yeah and so the overnight range is what traded after here. So you would just be drawing, you'd put in those lines manually and you just draw that box right there. All the market profile software does is make this very, very easy to see. But it's all the same information. Where did price go at what time? So just the market profile, look at that. It's so easy to see where was the overnight high, where was the overnight low, where did the market spend the most time and bring in the most volume. Okay great, that's probably going to be support when we come back, you know, so on and so forth. It just displays the information in a way that's easier to read. But the information is available no matter what you use. Michael says do you use the daily average trading range in your review? Not really. I'm sort of more of the opinion that the market is random and that even if there's an average daily range, that doesn't mean the market has to do that today. Right? It could be a tiny, tight range. We could just rotate all night in the overnight, I mean rotate all day in the overnight range for all we know. It could be a massive short covering day where the market makes a hundred point move to the upside. Anything is possible on any day, so I try to limit the amount of things that could influence the way I read the market. Human beings suffer from something called confirmation bias. Once we believe we understand what's happening, we will ignore information that contradicts what we believe. And so I want to give myself as few market generated signals as possible in order to have some kind of context to trade that day, but I don't want to overdo it. Because if I look at too many things, well then all of a sudden I'm like, but the average range doesn't go that far. It shouldn't keep going up. And then I miss opportunities to make money on a day where the market has a massive big range. And vice versa. But I don't have any problem with somebody using that in their analysis. Sergio, good morning to you. Cool Bean says, did you have a good weekend? Yes, sir. Restful and relaxing. Ready to dive right in this week. DNK says, you can use an overnight high, overnight low indicator. Yeah, knowing trading view, there's somebody that's built an indicator that you could use. Juan, good morning to you. All right guys, we got seven minutes till the market opens. Any questions for the pirate? Let me know. Nirav says, what do you think of swing trading versus day trading? What is ideal for the long term? Oh boy, that's a tricky topic. Get half the chat to hate me. I think both are equally relevant. I do think there's two main factors that go into deciding, do you want to be a day trader versus do you want to be a swing trader? The first is time and money, right? The more money you have, the better off you are as a swing trader because you can handle waiting long periods of time in between entering trades. The less money you have, the more likely you are. You're going to have to be a day trader so that you can look to make a little bit of money every day. You know, even if it's just a few hundred dollars to be able to constantly bring in that income. I'm of course talking about if you want to do this professionally. And then the other idea is just personality, right? To be a swing trader, you have to be extremely patient. You have to sometimes wait for days, even weeks before an opportunity will present itself. Once you get in a trade, you may have to wait for days to find out whether or not that trade is going to work. And if it doesn't, it's like you just waited a week and a half for a trade. You waited three days to find out. You're going to get stopped out on it. And then now you have to wait another week and a half for the next trade. You know what I mean? So it's really just a matter of personality. If you need lots of things happening every day, day trading is probably better for you. If you'd rather just kind of every day, open up the charts, see what's happening and monitor things on a longer, slower timeframe, swing trading is probably better for you. But there's also nothing wrong with doing a little bit of both. You know? Good morning to Percy and Arget. Marco, good morning to you. He says it's my first time here. Well, welcome Marco. Get ready to party. Five minutes to market open. Oh, the last thing I wanted to mention. So last week I announced I am looking for a co-host. I am looking for somebody to start hosting a morning sort of news program. I want to every day start the morning off on the Pirate Traders YouTube channel just talking about any important economic information that came out. Any important highlights about certain stocks. Do a quick review of the indexes and oil and those types of things. Anyone that has been following Future Trader71 and watching his morning bites. This is going to be his last week of doing those. And so I want to kind of try to fill that void because I know there are a lot of traders that like every day watch that and it's kind of how they start their morning. So if anyone is interested in joining me and being my co-host in that adventure, basically you would have to do the work of researching the topics we're going to talk about every day and sort of starting off the stream with going through all of that stuff. And then I would join halfway through to discuss the stuff and then to do some market analysis. If you're interested, just shoot me an email. You can head to piratetraders.io forward slash host if you want to see the listing. And if you're interested, just shoot me an email at ahoyatpiratetraders.io. Send me a resume so I can get an idea of your background. And send me a video, a short video of you, just something that shows your on-camera personality. If you're interested in doing it, you do have to be willing to show your face on camera. You do have to be willing to do the work of preparing for this every day and live streaming every morning. I suspect the stream will be somewhere between 15 minutes and 30 minutes each day. Okay. And what I would give you in return is I'd give you 100% of the revenue from YouTube. So the viewers on YouTube, I get paid for that. And then in the future, if we can grow it into something with a big audience and we can start to get some product placement deals, some sponsorships, I would give you 50% of that as well. And of course, anyone who's interested in growing their own following in the finance trading space, it would be an excellent platform where you could promote yourself every day. And you could promote your own website, your own social media, and sort of get your name out there using Pirate Traders as the channel to do so. So if anybody is interested, shoot me an email or head to piratraters.io forward slash host to find out more. I'm going to be accepting applications until Thursday and then reaching out to people for interviews next weekend. Oh, another thing I wanted to mention, people emailed me this weekend and said they're interested, but they don't feel like they're qualified. If you don't feel like you're qualified, just give it a try. You know, download OBS, record a little video, a little two to three minute video of you talking about some different market news and stuff like that and send it to me. Maybe you've got a great personality and you just never tried. So I'd say no one should be afraid to apply. Tony says I like options for swing trading, specific risk amounts, no stop loss. I can take the draw. I can't take the drawdown in the futures. Stops are tight and always adhered to. Yep, that's a great way to swing trade using options. Right. Let's say you think the market's going to go up. Let's say you're telling yourself that you think today the market's going to break higher and you know that if the market breaks higher within the next few days, we will likely be back up at the all time highs. You could buy a put today. I'm sorry, a call today. And then all you're risking is the price of that call. Right. That's all that the most you can lose is how much you pay for that call. And the most you can make is wherever you take profits. So yeah, that's a that's a great way to swing trade using options. You must of course be aware of the time decay. But as long as you can take that into account. All right, the market is open. We are opening inside the previous day's range inside the overnight range. So you know what that means. It's a chop zone. We are expecting the market to move sideways for at least the first hour or two. And we will monitor if it can break out of that chop zone. Might not be very exciting. But what it will set us up for will be. Because however we break out of this chop zone, we will likely get a large move to the upside or downside. Let's see what happens. It's a chop zone. Well, they'll chop it up. So we do potentially have a little bit of support right here around 52 54. But I'm not really interested in that because we have the volume point of control from yesterday down at 52. So unless the market immediately starts to create momentum to the upside, we are almost certainly going to come back to test 52. So the support that is more interesting to me is just below there at around 52 50. That is the first potential support. The resistance above is going to be this node right here. You can see it in the overnight and in the Friday's range. That is going to be around 52 64. That is the first resistance that I'll be watching. So I'll be watching. Do they bounce at support? Do they bounce at resistance? And do they reverse once they do? Or do they poke right through? Because it's a chop zone. And they'll chop it up. All right. So now that the market is open, I'm just going to zoom out a tad with the book map here. And just see, is there any crazy, funky liquidity anywhere that that's catching my attention? We do have a little bit down there at 51 75. So that is more bearish to see as it increases the odds that even if the market tries to break higher, it'll get pulled back down. But if the market gets above the overnight high and I come back and look again and that liquidity has disappeared at 51 75, well, then I just won't care at all. I will ignore it. Because it's a chop zone. Tape reader five says, do you look at the market profile charts with regular trading hours volume only except for gaps? No, I take the volume in the overnight into account because it often access support or resistance. So yeah, I look at the volume in both the regular trading hours and the overnight, but I do make sure to separate the two. Darren says, I checked your site, Charles. Do you have a discord for ongoing charts? Looks really interesting. So the way I do it, I have a membership group called the pirate traders brigade linked directly above on the banner. Pirate traders.io forward slash join. It costs 10 bucks a month to join. That gives you access to the discord. But to be honest with you, I don't really post in the discord. I just live stream. So what I do is every morning I go live exactly like you're watching right now. I talk about what I'm seeing. I point out the levels and then I just keep my charts up most of the time for most of the day. So you can just see everything I'm looking at all day long rather than, you know, taking screen grabs and posting it in a discord. So if you want to hang out in person, consider joining the brigade $10 a month. 10 big ones. Fred says, I think this co-host thing is really a generous cool idea. Can't wait to see who we end up getting. Me too. Me too. I'm excited. I'm excited both to have a partner to do this with so that it's not just me by myself talking to myself. Well, you know, I can actually have a face to face back and forth every morning with another human being. I'm looking forward to that. And I'm looking forward to sort of creating something for a larger set of traders, right? Right now, pirate traders is completely focused on ES and NQ, right? We're just solely focused on day trading those two markets. But this is going to expand and really be for anyone who's a trader. We'll talk about swing trading concepts. We'll talk about individual companies. We'll talk about commodities, you know, treasuries, everything. So that we can kind of expand the group of people that come to hang out. And I think that'll be fun. Mr. Cage says, what type of bars are these on the left? What type of bars are these on the left? So what you see on your screen right now is two different types of software. The one on the left is market profile software or what are called TPO charts. And then on the right, that's the book map. So what I look at the TPO charts for is to see where the market spends the most time. That will be where you see the biggest chunks of letters. Right? The most letters is the most time. Okay. And where the market traded the most volume. So where, what you see on this chart is actual volume that traded in real time. The book map I use to see liquidity. So liquidity is orders that are sitting in the order book waiting to be traded. And what's cool about book map is that it shows us where the liquidity was through this heat map function. That's all the little yellow and orange bits that you see inside of here. It shows us where the liquidity was. So by combining both those pieces of information where is the liquidity currently and where was it at different changes in market behavior combined with where the market spends the most time and brings in the most volume gives me an edge in understanding who the participants are and what they're likely to do. Speaking of which we just tested that volume point of control. We heard that from the pulse the market pulse on the book map. So we know we are finding support. We just took out a bunch of stops. That is likely a place where the market will reverse. So I'm now looking can the market reverse from here. If it can I will watch the half back which is right here at 52 55 and see if that becomes resistance. So I had to combine the market pulse seeing that all those stops just got taken out and the market profile together to have the edge. All right. So no bounce there is less bullish to see. We are starting to squeeze buyers from the overnight range. That increases the odds that we will test 52 48 which was a weak reference that we left behind on Friday and we'll be looking for support just below around 46 for a bounce there. Are you bearish Charles? Your first support level didn't hold. No, of course not. This is still just chop. We can see all night long overnight traders were buying up this area. So there's no reason at all that there won't be support waiting for a bounce right now. All right. So there's the repair of the weak reference. Mr. Cage says where can I find TPO charts just Google it. You know the name of your profile and or sorry, the name of your broker and market profile and see if they have it. If not, there's a lot of places. I mean, tons and tons of places have market profile now. The one that I use is called the window trader window spelled without a W at the end. But any TPO chart will do. Okay. So we got the bounce on support. Once again, we're now watching the half back which is currently at 52 54. If the half back acts as resistance, it increases the odds of market will head back down for support. If the market pushes right through the half back, that will be heading up to the high and the chop will continue. Let's see what happens. It's worth noting when we're talking about chop that the a period high which is the current high of the day today is very weak. Okay. That means there's a very high probability the market will want to pass through that level at some point today. And the reason is that it reversed exactly one TPO below a weak reference from Friday that makes it weak. And also it has very bad taper. So what we're looking for at a higher or low is taper. You can see taper here, fewer and fewer contracts. You can see taper at the current low fewer and fewer contracts. But at the high, they went from 6,000 to 1000. They didn't taper off. So that increases the odds in my mind that we will continue to chop. But the half back which we are testing right this moment will tell us if we are or aren't. So does the half back hold his resistance? If not, we head back up for the high. If so, we head back down for support. What's it going to be half back? Seven mile reach says the NQ looked under its overnight lows. Take a look. Oh yeah. So look below and fail increases the odds of more rotation but you're right at half back now. If they hold this as resistance that is bearish to see. If they poke through more chop. Poking through more chop. Boy, that was perfect timing. Seven mile reach. Yeah. So that look below and fail of the overnight low increases the odds the market needs to keep going sideways for a bit. And same thing with the ES breaking through the half back increases the odds of the chop will continue. Yay. More chop. Because it's a chop zone. Where they chop it up. They get the buyers long and then they squeeze them. They get the seller short and squeeze them too. Don't let them squeeze you in a chop zone. Where they chop it up. I'm so sorry. I'll stop. I promise. Yeah. I don't know danger zone well enough to be able to swap it but I should. Catherine says I've been listening to you sing for so long. I don't even notice anymore. Listen, that's the goal. Tom Gunn says welcome to the chop zone. Yep. It's a very common market behavior in the first hour of the day. If the market opens inside the previous day's range. In particular inside the previous day's value area which is this blue box. The market loves to just go sideways because they can squeeze a ton of traders. First thing in the morning. And why is that? Why do they want to do that Charles? Why do they want to squeeze everybody first thing in the morning because it gets you emotional right at the beginning of the day. So you take a trade and they stop you out and then you're like oh you start to revenge trade. You're like I'm gonna take another one. And so then you take another trade and they stop you out again. You're like damn it. This is so confusing and you start to get more and more upset. So then later on in the day you know say an hour from now or whatever when the market starts to pick a direction and really trend and give excellent opportunities you're burned out. You're frustrated. Your account size is down. So you just aren't is in as good a position to take advantage of the market moves. And that's what the market loves to do. So the best thing you can do if the market opens inside the previous day's range in particular inside the previous day's value area is to prepare yourself for chop. Psychologically be ready in your headspace for the market to go up and down and reverse and again and again and all these weird places and just when you think it's going to keep going up it reverses down and then just when you think it's going to go down it reverses back up. Oh my god. It's a chop zone. And they'll chop it up. Jay says Bitcoin eyeballs. Let's take a look. The corn also sitting on a very important support resistance level longer time frame. Oh that's bullish. All right. So those that were with me last week remember I talked about this bounce right here. I did not trust. To me that had potential of becoming a dead cap bounce and this what was previous support could become resistance to smack the market down. But that is not what happened. Instead they got one little smack down on that day but then they just balanced it off with time the next day. Now they are breaking higher. So we are once again testing the resistance and it looks like they want to poke through here today if they do new all-time highs to the moon with the Bitcoin I say if they can get through this resistance here today. We should also take a look at those moving averages on the corn. Yeah. So they broke the 20 moving average but they didn't even have to test the 50. That is more bullish to see. Very nice. I like very much. All right back to the ES and the chop zone. Oh okay so they did not test the weak high. Okay that is a little bit less bullish to see. Again it's too early to call it bearish but it is less bullish. They should have been able to poke up and test 61. So there are some sellers piling on in here looking to test the support at 46 once again. Can they hold it? Can they keep the choppa going? Stephen says you're looking at Friday's value area right? Not the overnight correct. When I talk about a chop zone it is Friday's value that I'm focused on and the fact that the overnight basically just traded inside that all night. That is a sign of balance. It seems like an overly simplistic statement but it is true. When the market is balancing it tends to keep balancing until it breaks out. When the market is trending it tends to continue trending until it rolls over and runs out of steam and starts balancing. So if you saw that we balanced on Friday and you saw that we balanced all weekend you might assume we're going to balance this morning. Hyper says is the value area from Friday the pit value area or the hour value area? So it's the value area for the day. So it's 70% of the day's range. So basically don't ask me to tell you how it's calculated how the mathematics work but it essentially figures out where did 70% of the day's trade take place. So if you're looking at Friday that's between 9 30 a.m. and 4 p.m. If you're looking at today it's just from the last you know 23 minutes. What where did 70% of the trade from the last 23 minutes take place that's the blue box for today. So I always go by whatever the value area is today if I'm thinking about today's value and whatever it was on previous days for the regular trading hours. Ah yes 24 was covered up by the little heart in the chat thing. I see that now. Yeah no I use just regular trading hours not 24. Not there's anything wrong with using 24. If that floats your boat go for it. I'm a proponent of the idea the conceptual idea that there is no right or wrong TA. Right? It's all the same information just being presented slightly different ways. And so all I think an individual trader must do is pick the TA they want to use whatever that may be. Just pick what you want to use and just always use it exactly the same way. Where traders go wrong is when they're constantly trying to switch between different things. Ooh let me look at this let me look at that let me look at that. You know one day they're focused on RSI and MACD. The next day they're focused on Bollinger Bands. The next day they're focused on value. The next day they're focused on you know it's like when you're constantly jumping around from thing to thing to thing it seems like TA is bullshit. It seems like it doesn't work because you don't master it. You know it's a complex skill. That would be like trying to learn to play guitar one day and piano the next day and the trombone the next day. It's like of course you would suck at all of them and you would think it's impossible to learn to play a musical instrument. Well it's not if you just pick one and you do use that one instrument every single day you will become a master at reading that instrument and it will give you an edge in your trading. So there's no right or wrong here when you guys hear me talk about the signals that I use those are just the ones I picked but any signals you want are fine as long as you use the same signals every single day for years and years and years and become a master at reading those signals. And so you say to me Charles I don't want to do that. I don't want to spend years developing a complex skill. I just want you to tell me what to do so I can instantly make money and have it be super easy. Sorry can't help you I have no clue how to do that. The only thing that I've ever found that works for me and for other traders that I've helped along the way is developing a complex skill over time like learning to play an instrument or a sport or anything at all you just got to put in the screen time spend the years mastering the skill. This is the way. RP says right just back test using the same way you were going to trade it live. Yeah well that's true and I'm not going to argue with that. The one thing I will say is a disadvantage of back testing is it does not take into account the difficulty that time and emotion plays. So you might come up with a strategy. Okay every time there's a chop zone I'm just going to put I'm going to buy like a broken wing butterfly or an iron condor or something like that right in the options market and I'm just going to throw my orders up here my orders down here and whenever it breaks out I'll get out of that position right and I'll just eat up as much of the time decay as I can while it's chopping the middle. Great that's my strategy and you say to yourself great I'm going to do that and you go back and you back test it and you look and you see wow this is an excellent strategy. This will make tons of money but then you try to trade it in real time right. You try to trade it on actual days where the market is chopping around and suddenly it's very very difficult. It's much more harder to get in it's much more harder to get out once the market starts to trade you often get out too early and then it looks above and fails and pulls back in and goes sideways for another two hours blah blah blah blah so the best way to back test is to test in real time is to just paper trade the live market in real time and then after a month of doing it look at your results because that will give you a much better understanding than purely back testing based on data you know because data just doesn't tell you what it'll feel like on that day in that moment because it'll feel like a chop zone where they'll chop it up or he says tell me about it if you could only stop feeling while trading live I could be a millionaire you and me both brother it's the only problem I have I am a sniper when it comes to recognizing opportunities I'm a cold killer when it comes to recognizing locations to get into trades where I can make a lot of money the only thing that gets in my way is those pesky emotions right the confidence to enter in the moment where I should the confidence to stay in the trade and wait for it to fully play out in order to maximize my gains you know that's those are the emotions baby but through practice you can get better at those too cool bean says smoke weed numb yourself yeah I stopped doing that a long time ago there was a time where I would try that but not anymore I also tried micro dosing mushrooms for a while but I don't see that anymore either now it turns out for me being as clear headed as possible gives me the best edge in my trading if I eat a healthy breakfast if I get some exercise and meditate before the market opens you know if I can if I can suffer through a cold shower for a few minutes makes me feel like I'm king of the world makes me hyper focused ready to crush it once that opening bell rings that's that's the one I do my best boy when they said they were going to take the market nowhere they weren't kidding all right guys well I had hoped that by 10 a.m I would have more information to carry forward I don't I am completely 50 50 on this market so this morning if you'll recall I said I thought the higher probability would be that we'd break out to the upside the fact that we have not once but twice tried to come back for this weak high and we've not been able to get there in a chop zone it should be no problem getting up there twice we failed I would actually say I'm getting a little more bearish so that just brings me completely neutral it just brings me to 50 50 up 50 50 down the area to keep a close eye on at this point is going to be this area between the current low at 46 down to 40 okay this was support again and again and again and again and again all night long all night oh yeah all night long so there's a very good chance it will continue to act as support however if they break below 40 everything gets very bearish very quick okay so look for support assume you're going to get a bounce but if not change your mind very quick and look for new sellers because that would tell us we are rejecting off that trend line on the daily and that the 20 moving average the simple moving average on the daily is now acting as resistance okay and like we talked about what happened when it became resistance on the nq straight down to the 50 the same thing as possible on the es here we can move straight down to the 50 which is currently sitting at about 51 27 okay so monitor that overnight low for resistance and if you get it brother get bearish quick otherwise assume more chop more sideways more balance with that I will say goodbye to the book map community thank you guys so much for hanging out I appreciate you I'll be back next Monday and if you are a member of the brigade let's set sail give me about five minutes and I'll see you in the private stream thank you very much everyone have a great day and a great week