 Good morning, traders. Welcome to the live stream. My name is Charles. I run a community called Pyrotraders where we hang out every morning and we talk about the ES, the NQ and how it moves through the two way auction process. Thank you so much for joining me here on the Bookmap channel and a huge thank you to Bookmap the company. Important to note all of the opinions that I share here today are my own personal opinions and not those of Bookmap. So let's get right into it. Today to me is a very important day for the market and the reason today is a very important day for the market is because Friday was a very important day for the market. The market had a move that could only be described as a potential change in momentum yesterday. The market had been stuck inside of a range that it was bouncing around all week long up and down inside what we call a balance area. A balance area is basically just an area where the market can't break out of. It's balancing inside of it over a multiple-day time frame. Well we broke out on Friday. Okay and so that's a really good sign. That's a bullish sign that the market has spent enough time going sideways in here. It doesn't need to spend more time in here. It's ready to make its next move and in this case because it broke to the upside that increases the odds that it wants to make that move up. Okay great so Charles you're bullish. Does that mean I just buy right now? I should just buy buy buy buy buy right? Right? Not quite because there are two steps to breaking out of a balance area. Step one is doing the breakout which we did on Friday but step two is backtesting that breakout making sure that we really do have new buyers to keep the momentum going. So I'm going to zoom out here real quick on the day time frame and just show you there's two different levels that are interesting to me. The first is that balance area so that's the box. The two horizontal lines that you see here that is the balance area so in the overnight we came down and we back tested that balance area low. So if the market were to open from here it would want to come down one more time because it doesn't count as a back test if it happens in the overnight. So we want the market to come one more time down and test that balance low. If it can do the same thing that it did sorry that previous balance area high if it can do the same thing that it did in the overnight if it can come down here and just bounce off of that level well then it's very very bullish to keep going but if not it may need to test back test the balance from this downtrend line. So let me just zoom out the hair here so if you can see this downtrend line that was created up here in the highs of July and August okay that was back tested back tested attempted to break could not break back tested again and it took the market lower. So we are now breaking out once again we're doing this this same thing that we did before. Now what happened when we broke out the last time well we came back to back test it and there was not support there and because there was not support the market headed lower okay this is the exactly the same scenario here as we had here you had balance horizontally this way and you had the breakout of the trend line so it made that break and what did it do came back to back test it okay so that's what I'm looking for here this morning is for the market to try to come back and back test either this previous balance area high or test the the trend line okay so how will that look if I zoom in and I look at it on the market profile chart well the test of the previous balance area high would be a test of the overnight low around 4408 so that would be the market pushing down to the overnight low dipping below it but then turning around and coming back up into the overnight range right if the market dips below the overnight low comes back up and that does not become resistance it's able to pull back up in the overnight range that is bullish that buyers stepped in at that previous balance area high and the market is looking to head up and test Friday's high okay so that is a look below and fail of the or sorry I look below and fail of the overnight low if it looks below and go so if it goes below that overnight low finds resistance and it keeps going well then it's trying to back test that larger trend line and if that's the case I would assume it needs to backfill the single prints right here so the first target for the market is to come down and backfill the first set of single prints at 4400 and then come down and backfill the second set of single prints at 4393 so if either of those things happens and then the market finds support and it turns around and heads higher that is bullish to me like on a daytime frame that is bullish as a back test of that trend okay if it pushes down here and it backfills these and it doesn't turn around and it keeps going lower so we get new selling below 4393 well then I assume the same thing happened today that happened on this day okay I will assume that was a breakout that has failed and we are heading to the balance area low which is 4370 so it's actually really simple today because there is so much opportunity on the day time frame it is pretty much like either the market is going to find support in here and it's going to keep going in which case to the moon baby more short covering more formal buying or it's going to fail and it's going to head back down to Friday's low and then we probably just go sideways the rest of the day down there so let's see what happens that's my prediction for the day now what if the market opens and it just instantly pushes to the overnight high and instantly finds support and keeps going and it doesn't pull back at all well that's bullish and we'll just go with the momentum but I won't really be able to trust it for a larger move to the upside unless we sorry guys I won't really trust it for momentum to the upside unless we come back and test that breakout also wanted to take this opportunity to let everybody know the workshops are back baby due to popular demand y'all have been begging me to get these workshops up and running once again and so I am on December 4th I'll be launching the next workshop if you don't know what the workshop is it's a two-week webinar series where I do four-hour long webinars every day from 11 a.m. to 3 p.m. we talk about a particular subject matter each day we dive in in depth to learn about a particular subject matter and then we spend the rest of the day watching the live market and explaining how you know how to interact with the live market okay just to go over some of the topics that we talk about in the workshop we've got the day one is the tools so that's where I teach you all the things I use market profile book map internals what are all the things what are all the terminologies what's everything you need to know moving forward day two is about the path to profitability that's where I teach the way a trader should act each day in order to get better and better in order to become profitable becoming profitable in trading is not about learning a setup it's not about learning a single thing it's about learning how to be a trader the process of entering trades monitoring trades and then developing trades over time day four we talk about the two-way auction process that's how I interact with the market every day it's how I make sense of the randomness and find opportunities to take trades day five bots weakness trends and rotation again getting much more granular in detail of understanding how to recognize momentum shifts in the two way auction process then day six is developing edge and trading setups so I teach you how to improve upon your system for trading the market and gradually you know one percent a day get a little bit better and slowly develop a skill and then also how to actually figure out a trade setup how do you enter a trade where you put your entry your stop your take profit okay day seven technical versus emotional problems helping you to learn how to differentiate between is the thing that's holding you back right now because of something you don't understand about the market or is it because of something that's going on with you psychologically day eight is habits and routine day nine is mindset and day ten we go over the entire course again to make sure that it's all deeply sunk in and you've learned it so it's a ten days four hours a day all the lessons are recorded so if you can't watch them live you can always go back and watch them later you can watch them for up to two years after the course is over you can go back and rewatch as many times as you'd like there is a discount this week only use promo code early and you'll get that discount so if you're interested in signing up I will post a link in the comments right now I can't because I'm I'm not the host here okay so you guys will have to copy and paste it you can't click on it but there it is markets and mine calm we'd love to see you there in December 20% off discount code early all right commercial over back to the live markets any questions for me we're looking for a back test of the breakout we're looking to see if we can keep the momentum going on the daily any questions at all good morning to Laura welcome to you bust a move is here David V in the house Kevin welcome he says thank God it's Monday and the casino is open Jay's gonna be upset you beat him to that but good morning Kevin Jack in the house welcome Gino J also says thank God it's Monday or the casino is open yes we are all degenerate gamblers here and so excited to start firing off those chemicals in our brain for those of you who trade market profile already you might be asking yourself what effect does the spike play into this we had a spike up on Friday so we have a specific set of rules that we use when we have a spike that we call spike rules spike rules basically tell us that if we open inside the spike that is a bullish signal that the market wants to continue higher if we open above the spike with a gap up that is the most bullish signal that the market wants to continue higher and if we open below the spike that is the least bullish signal now it's important to note I say least bullish not bearish okay because the spike is bullish plain and simple no matter how you look at it it is the market telling you it still has momentum and it wants to continue higher so opening up the next day below which it looks like we will here today is not a sign you don't have the momentum it is just a sign it is the smallest amount the least momentum you could have but it is still bullish to see so I am not bearish because of that at all if anything it increases the odds in my mind that once we test that overnight low we will just look below find buyers and then continue higher spike rules are in play we got 89 people watching 19 likes smash that thumbs up and hit me with the question in the chat we got 15 minutes to mark it open and I have run out of things to talk about help me out here chat I guess I could do NQ we haven't done that all right looking at the NASDAQ it is very very bullish same thing break out of horizontal momentum or sorry balance needs a back test so that would be exactly the same as the ESO if they get to the overnight low you've got this large node of cumulative volume right here around 15500 that should act as support for a look below and fail of the overnight low if you get that look below and fail that is bullish baby for continuation to the upside if the overnight low becomes resistance and the market can't get back up in there then you look to backfill the two sets of single prints three sets of single prints so the first set is at 15 490 then 15 460 then 15 400 okay so if they look below the overnight low and then turn it into resistance you look to test that first set of singles maybe that's all the market needs to turn around and head higher if not you look to fill that second set of singles maybe that's all the market needs if not you look to fill that third set of singles maybe that's all the market needs but if you cannot find support at 15 400 at that last set of single prints well then the market needs to pull back down towards yesterday's low as a failed break yes sir actually all the way down to 15 240 so exactly the same as the ES I am bullish I'm assuming the higher probability is continuation higher I'm assuming we will see that by the market testing the overnight low and then pulling back up that will be the signal and then if not backfilling single prints only if all the single prints fail testing the bounce area low I mean sometimes the market makes it easy it's easy to see what's going to happen it'll probably be grindy and difficult to read in the moment but the levels are there if it's going to keep going higher it's either going to look below and fail here or it's going to bounce off of one of these three do with that what you will cue traders our case says us semi pros don't see it that way it's Monday and business is open turn on the lights make the coffee and have a successful day that's true okay getting all serious with us first thing on a Monday morning things are okay no that's true you should treat it as a job not gambling fair enough Kent says logged in just in time to hear that spike rules are in play can you go over the spike rules again Ken you can just scan back you can scan back and watch again but the long and the short of it is spike rules today tell us that the market is bullish but it is the least bullish scenario because we are opening below the spike so it's the market saying we have momentum but we got to prove it this morning don't get overly excited a bust a move says Friday selling tail looks good but a lot of pink how does that play into tails yeah so that's a sign of business happening up there in the last half an hour that's bullish to see right so whoever those participants were who did business right up here at the very high the day in pretty much the last 10 minutes of the day by the way why didn't they do business anywhere else buyers or sellers why why why not do business down here why not do business here or here why why were they doing all their business up at the high of the day in the last 10 minutes because they were forced to right those were traders that you know or systematic trading that that needed to you know balance off at the end of the day on Friday and so they had no choice and it is bullish that they were at the high of the day and they held it because it means it was more buying up there probably more short covering but it's all just signs of momentum we have momentum so great all we have to worry about this morning when the market opens is do we still have momentum that's it first signal we still have it a look below and fail of the overnight low second signal support at 4400 or 4493 the signal we don't have the momentum and we need to pull back down to the balance area low those single prints failing money pharaoh hunter money says when I put footprint charts on the USA markets it's too fast for me wonder how it used to be when it wasn't fast well you me both but it's always been fast as long as I've been doing it so I'm used to it it is what it is and it's never going to change we can lament the good old days as much as we want but the market is just going to get faster more volatile more difficult to read on a shorter time frame as more and more bots are trading man those bots can think quick six minutes to market open any questions for the pirate we got 33 thumbs up we got 115 people hanging out if you're feeling generous this morning give me the thumbs up I promise it'll be good luck it'll help you with your trading karma baby karma give me them likes give yourself some good karma Shawshank says under what circumstances do we turn our bias bearish all right well we got five minutes let me just go over it one more time sorry to everybody that already heard the spiel but let's zoom out and take a look at the market on the daytime frame okay so this is what I believe is happening I believe the market is breaking out of balance okay trying to begin new momentum to the upside to continue higher so there's two different balance areas I'm looking at one is the larger balance created by this trend line on the daytime frame and the other is the smaller balance area that we created last week so either one of those breaking out of them could lead to a lot of access to the upside however first we got a back test and make sure the market really has successfully broken out so a back test of the smaller balance is testing the overnight low and failing meaning we dip below the overnight low but then we pull back up into the overnight range if that happens that's bullish to move to about 44 60 okay as a break out of this smaller balance area if that doesn't hold though I'm not bearish normally I'd be bearish you guys know that normally if we look above and fail a balance area I'm instantly bearish to go to the opposite end however today I'm not because we might just need to back test the trend line okay so when I zoom in and I look at the levels on the market profile chart these two the base of the g-period single prints and the base of the f-period single prints 4400 to 4393 is likely to be the support if we don't get a look below and fail the overnight low so if we dip below 4409 come back up find resistance then we are going to have to head lower to test the base of these single prints but if we find support there bullish bullish as can be so I only get bearish if we break 4393 and get new selling down here that tells me we're heading to the balance area low which is at Friday's low on the ES 43 67 and at the overnight lows or in the middle of the overnight range from Thursday night on the NQ 15 to 40 okay so on the NQ if the single prints at 1515 390 fail you're heading to 152 40 and on the ES if the singles at 43 93 fail you're heading to 43 67 okay but until that happens you should be bullish the breakout tells you you should be bullish the spike up tells you you should be bullish everything is saying be bullish this morning be aware of the fact that we need to go down first obviously right don't just buy the market willy-nilly wait for support to be confirmed but as soon as you see that confirmation as soon as you see that support those are buyers and they're buying that breakout okay they see this market as trying to go higher and they want to get in as soon as they can the first chance they get the very first dip they buy that is bullish so that's what we're watching for and so you say well Charles let's say the market can't hold support today and it does head down to the balance area low wouldn't you have rather shorted the balance area high to target the balance area low wouldn't that have been a better trade to which I say no any other day that would be the better trade but because we have that trend line to act as support right in the middle not today today I got to see those single prints fail first and the market is open so initially we're looking for chop inside the overnight range resistance at 40 to 21 support at 44 10 and we'll just let the market grind between those two whichever way it breaks will give us insights moving forward all right so we got a week low and a low volume high that tells us we're likely to spend some time chopping going sideways here it's gonna be some indecision this morning for the first half an hour but the move says on bookmap chart the black boxes with numbers are those icebergs current buy orders so the black boxes are just showing the amount of liquidity sitting at that level at that particular moment so at this particular moment there was 390 contracts there at that particular moment 290 at that particular moment 300 so on and so forth the icebergs are the numbers with the little the two little triangle symbols next to it Farrell says after you buy it you are now a seller and after you sell it you are now a buyer my edge yeah no that's that's what I do the two-way auction process recognizing that once everyone that's gotten long is long there's only two things that can happen either those long start taking profits or new sellers enter the market and vice versa good morning nap welcome okay pushing into some support here 44 11 looking for a bounce then for the market to test the half back at 44 16 for resistance if we get a bounce and resistance the next target is the overnight low no resistance the high okay the way there we are technically getting support but the way they're doing it they're setting up to take out the overnight low first so we are looking to test 4408 and that is a very important level there will be some stops down there so we'll get a little bit of a liquidation once we liquidate what comes next tells the tale for the rest of the day sellers at the overnight low is bearish for continuation lower no sellers so a liquidation that pulls back up into the overnight range would be bullish right now my instincts are telling me look below that will fail let's see what happens so keep track of this level right now we're grinding right on 44 10 okay so the market is turning this into support right now at this moment that will be an important level for that look below and fail when they look below and come back up do they turn this support into resistance that's what we will be watching for so it's important to know where that support was right now so we know where to look for resistance when we come back okay the market just created what we call a week low because it stopped a half a point away from the overnight low so once again week high week low increasing the odds of more sideways to come Michael says good morning Charles what was your workshop again head to marketsandmind.com you'll find it there so that is the complete course every single thing that I have to teach all the tools that I use for day trading every single day will be shared there so it's designed both if you are an experienced trader looking to add to your edge or if you're a new trader trying to figure out how the heck do you become a trader all of that is taught in this course marketsandmind.com next workshop starts December 4th this week only discount code early get after it our case says Friday's moody downgrade weighing on the market I did jump in and look at the last time we got downgraded and the stock market shot up through the roof as a result so caution there turns out less trust for you know the Treasury is actually good for the stock market for some reason according to history probably just because the stock market is valued in US dollars okay so book map is showing us something very very important right now it's showing us that the low which we know is a week low is being created by an iceberg we see this green line right here with this little number one so so far this iceberg only got to fill one contract so I'm guessing when we come back down again it's gonna fill even more and even more and even more and we're gonna kind of grind right on this low for a little bit the reason the market is doing that is to convince you to go long it bounces and then you go long it bounces and then you go long it bounces and then you go long but the reason they want you to do that is so you put your stops just below the low giving them a little more momentum when they break so I do believe even though it looks like the market wants to bounce here they are gonna come back for this overnight low and we're gonna get a little bit of a liquidation there when all these stops get taken out so patience this morning okay let them do their thing let them grind and grind okay so there you go bounces again people start buying right now oh my god I gotta get long I gotta get long where are they putting their stops right below the low so here we go round three probably another bounce at the exact same level again there you go so now once again oh my god I gotta buy I gotta go long it's a it's a triple bottom where are they putting their stops they think they're so smart they're like I'm buying the overnight low the market is bullish it's a previous balance area high we're finding support oh my god I'm a genius I'm getting long but they're really just fixing to get themselves squeezed round four ding ding ding we can do this all day guys as long as they keep buying we do this all day keeping an eye on this iceberg right here Keith says first they need to squeeze the shorts to test the VWAP crush both sides yes sir they convince you to go long they squeeze you then they convince you to go short then they squeeze you again I do declare this market is cruel beast mode says you don't use candlesticks I do but just on the day week and month time frame I don't use candlesticks intraday because I just find the market profile chart which is the exact same information as the candlestick right it just gives you more it's just more information so for example if I were to pull up a candlestick right now on a 30 minute chart okay all that this is showing me is where it opened which is the top of the the body of the candle where the high was where it currently is and where the low was okay great I mean that's important information to have and then how much volume traded over this entire 30 minutes okay well that's not nothing that's information but that's very limited information I mean that's all it's showing me the the open the close the you know the high the low and then how much volume traded in that time period if I look at the same 30 minutes in market profile I can see exactly where we brought in the most volume literally to a tick the exact level where the most business was had you know it's just a very different perspective as the day continues I can start to see areas where we spent the most time and that's just more detailed look at the same information it's like a three dimensional look at what candlesticks show you as two dimensions all right so we're getting the bounce I'm looking for resistance at the halfback as I've said I believe this is purely a game they are just getting as many people to go long as they can here to create those stops when they come back down through it so I am now looking for resistance at 4414 to do exactly that come back and take out all those stops nor says q let's take a quick look okay so nq is below the overnight low that is bearish to see you backfilled the first set of single prints so now this is like a pivotal moment the market needs to push back up into the overnight range here in order to keep the momentum going higher if that overnight low which is also the halfback at 15 512 becomes resistance like you can't get back up into that overnight range well then you're heading down for the next set of single prints at 15 450 so this is the moment for the buyers to get back up inside that overnight range on the q beast mode is market profile and indicator on trading view no it is not not any good ones as far as i'm aware i'm sure they're working on it though all right so we're coming back for this iceberg my guess is it's going to disappear this time and we're going to crash through but they could do it again they could keep the market there reverse it at exactly the same level once again trying to get more people long so let's see what happens it's very exciting isn't it come on market do something here we go testing this iceberg do they fill again and bounce or does it disappear and it's gone okay so here's the test of the overnight low we are expecting a little bit of a liquidation here as we take out all those stops that we just built up and now we want to keep a very close eye on what was support okay this area right here this big node where you see the red and the pink that was the support trying to hold the market up so now our question becomes does that become resistance does previous support become resistance if this becomes resistance it is bearish to head down and test the base of the single prints at forty three ninety nine however if not if we're able to push right back through it well that's a look below and fail of the overnight low which is bullish for continuation higher so moment of truth can the sellers hold it all right moment of truth for the sellers they got to smack it down right now or it becomes a look below and fail all right so we got the look below and fail with the overnight low that is bullish to see next thing i'm looking for ticks get back above that zero line man they're going to dance right on this overnight low all right i'm going to hang out for a few more minutes normally the live stream be over now but i'm going to hang out for a few more minutes and see how this plays out because this is going to dictate the rest of the day right here resistance once again man 50 50 could break higher or lower here what's it going to be come on market make a decision okay ticks smacked once again that is bearish to see i'm now bearish to head down and test the support at forty three ninety nine the base of the g-period single prints up the idea was very simple we had momentum for a breakout of balance last week we are now back testing that balance area high but we are not bringing in the buyers if we did those ticks would get back up above the zero but they can't so that means we don't have the buyers up here at forty four oh nine we probably need to pull the market back and look for them at a lower level so i am only bearish to test that next level forty four hundred i don't know beyond that we may bounce right there and then turn around and head back up but it seems to me now we don't have the buyers here at the overnight low so we're going to need a bit of a pullback if i sign off here and then the market is able to turn this into support turn around and head back up through the opening price well then forget what i just said it's extremely bullish as a look below and fail but as long as these ticks remain below the zero line they probably need to test forty four hundred first before they'll really be able to do that so i'm bearish for that test let's see what happens bearish short term intraday bullish bigger picture as i said earlier this morning if they do turn either forty four hundred or forty four or forty three ninety three if they turn either of these levels into support that is bullish to me that the market will continue higher on a daytime frame meaning for the next few days next few weeks the market will continue higher if intraday today they can hold these levels so very important to watch happy trading have a great week everyone i will not be doing this stream next week because i'm taking next week off but i will be back the following monday so if you're purely a bookmap person i won't see you for a couple of weeks i wish you a happy thanksgiving and uh if you're a brigade person head on over to the private stream let's hang out thank you very much everyone and have a great rest of your day oh shan's got a question here if you get a minute mind if you see stops and icebergs on chart settings uh yeah so here are my settings for the icebergs and here are my settings for the stops there you go paul says can you explain what the tick chart is sorry paul gotta run man gotta run but the good news is december fourth i'm teaching a workshop where i will go over that in depth and explain it to you with all the nuances that you could possibly need to know for more information head to marketsandmind.com marketsandmind.com where traders learn to trade profitably all right i'm gonna leave now goodbye