 You open to share my screen. Oh, yeah, hold on just a minute here. Good morning, everybody So yeah, I'll just go through the intro Tyler and then we'll get we'll get started here Yeah, you can share your screen right now and then I'll get to it All right. Good morning everybody. So Yeah, welcome to the protrader webinar series for today Tuesday 10 a.m. Today. We have Tyler Wilson This is his first time here. So welcome and he's gonna go be going through stocks and options and how he uses book map To optimize his trading within some of his levels that he's looking at here. So a Little bit of a background. He's been investing for the past five years He started trading in futures and crypto and is slowly moved over to equities his specific field is options trading and for the past two years He's focused on growth stocks, but now shifted toward commodities He he studied finance at Bauer business school at the University of Houston He has 30,000 traders following him on YouTube and roughly 10,000 on Twitter He's also built a self-sustaining discord community of 4,000 investors I have his contact information here if you guys are interested I will be placing this into the chat so you can use the links directly there But you have a podcast his Twitter and his YouTube Got to go through the disclosures and then we'll turn it right over to Tyler general disclosure all book map limited materials information and Presentations are for educational purposes only and should not be considered specific investment advice nor recommendations Risk disclosure trading futures equities and digital currencies Involves the substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of future results All right, so let me Get going here with Tyler and Get his screen popped out and ready to go here Okay, I think you're good. Can everyone see? Tyler screen there Yeah, looks good. Okay All right So basically when when Bruce approached me, I've been using I've used book map in the past primarily in all trading futures and Just commodities and futures and then I made this switch over about two years ago into options Just so I had a healthier schedule because if you trade futures and commodities you understand those markets are a lot more time-consuming Specifically because you're trading more hours of the day So the structure of how I use book map a lot people use price action or the word price action I throw that out there loosely but I like to say it's more based on reactions and if you're using Book map in my opinion, it's a great tool to find those reaction levels, right? So basically in simple terms, it's I'm using price action to locate those key supplied demands We're gonna go over in two trades that I use and this is the past Literally seven days that I've been trading side one was yesterday. I'm a dinner and then the other two will be lucid But those are two trades literally just took I actually posted them on Twitter as well the other so lucid so there's no like BS or anything there and so it's How I'm choosing these plays and doesn't necessarily have to do with book map but I find my plays based on either fundamental viewpoints or Some sort of shift in the way the market's moving and then I use book map to narrow down and Really zone in on the best entry and exit for that trade. I think that's where book map really Separates itself, right? It's not gonna tell you really what to buy, but it's gonna just tell you Kind of a good time to sell and a good time to buy it That's how I use it, right? And so it's gonna show you that strength and the overall weakness of key zones and the for continuation or just getting out for targets Right, so the first one we're gonna use is gonna be lucid and so I used This is gonna be a chart for the first one because it's gonna be hard to follow for I'm just using the book map chart And so I'll show you what I was looking at so if we come in you can see you should be able to see my mouth So I wish I could highlight it a little bit But you I got in right here this red line which represents the monthly level for lucid and what lucid had going on They had a recall in their vehicles They're already a small production as it is So they already had a recall and then they also had a pretty bad earnings So they already had a pretty nasty drop and I was looking for a continuation to the downside But I was just waiting for this to play out. They're making higher lows. They broke below and they broke that monthly So that's when I started to enter was roughly 2450 And then I go over to book map and this is where you really start to see kind of what's going on with The the tool book map gives you so you can see going back here. You have that straight this it's the same chart It's just gonna be again. It's gonna be a little bit rougher to look at just because it's not as It's all there's a lot more going on with the book map So when you come over you can see you're still making those higher lows, right? But then you start to break you start to break back down and when you start breaking down You can see you come and test that that zone once at the 24 23 you see 2398 right there Roughly it might be able to zoom out of cans So you can see 2398 right there and you see it test and it bounce and so when you come back I'm going to keep coming back and forth. So it's going to give you just the overall best way to look at this So you saw that first one was right here This is where you get that first bounce and you came back up and then you came back down, right? And so when you come back down, I'm already I'm still in this trade at this time just because I have Very great confidence one that you haven't got back above 24 five And you have come down and retested it and so you also will see When you're coming down it will start to eliminate those zones And once it really starts to eliminate those zones of support that really makes you start moving on to the next key zones So the ones I was looking for and I'll kind of ignore these smaller levels here unless I'm Really getting into scalping which isn't necessarily how I focus on I'm looking for more, you know, maybe one maybe two trades a day I'm not looking to over trade or anything like that. So when you're you're coming down to the downside You're you're I'm targeting this 23 7 6, but ultimately the goal is going to be about 23 6 to 23 5 And you'll also notice a book map when you're coming to those key zones You might get a touch a little bit above it So they'll they'll pull you down to that liquidity, but they won't necessarily let you hit it And this is just something personally that I've noticed So I'll have a loose target, right? And so when we come back over to The next the the slide that's we always see me marking out zones So if you ever if you follow me if you've seen any of my stuff, you always see I'm talking about Blocks instead of a specific line. So very rarely am I going to set this a specific line target like this, right? So this is just an overall key low that I had for months back That's what I'm watching there for just a massive break to the downside. I'd immediately get out there But going here. So you have to kind of price that out for yourself. And I think that's where a lot of traders get dumped at Is they they have a key range rule if it hits 23 5 8 That's where the liquidity is that's where I'm going to get out But in reality, you're going to have mix ups and there's going to be a lot of times when you look at charts You're like, well, I hit 23 like 6 right 2 cents off and it will miss your overall level So I'm pretty conservative when it comes to taking profits and getting out of trades as well So I'm never to the point where I am like it has to hit this zone specifically I'm monitoring how much I'm gaining how much I'm losing and then the overall flow of what's going on here And you'll see these absorption Indicators here, which I don't want to go into yet. I'll use them the other trade But for lucid it wasn't a key factor for me And so when you go over you can see you started to lose and those levels started to break down, right? So we can see that that 23 7 ended up moving that liquidity all down to that 23 5 range And this is another thing you'll start to see is when you're looking at the order books And this is something that me and bruce have talked about specifically That you'll see whenever they'll have a level and they'll just start moving that level down to the next one And it'll kind of show you the significance of where those levels are And another thing you can look for too is when those levels you can come back and see how long they've been there So we can see this level of 23 5 has been here since you were above 24 50 Before we even got into this trade, right? So before we got into this trade You had a level already at 24 and you're 23 5 23 48 range So that's going to tell us that this is a very valid level These are going to be buffer zones where you might get a bounce, but ultimately that's not Really what we're looking for right? This is this is just an area of kind of smooth settling to the downside Kind of like what you saw right here from 24 5 down to 24 Almost in a flash right in a matter of two three minutes just straight down to $24 So that's what's going to play out there and it's just going to start pushing pushing pushing And so we had that zone about 24 9 and then like I said about 23 6 to 23 5 23 6 Coming over where I started to get out of it was right here You see that flash crashed literally right above 23 5, which is something I mentioned You'll see that you'll start just crashing quickly down You won't necessarily make a perfect double bottom But in my opinion, this is forming a Double bottom if you if you're going to get one right? I think people you know They try to make these perfect drawings and cup and handles and head and shoulders and that's just a lot of I don't trade based on those type of patterns. It's more of like I said reacting to how the market is Creating the stock and what they're going to give us right? So if they're giving us that downside push that downside break I mean what really more is another one to send drop to that 23 5 level You know what I mean? So you can either start trimming Or you start getting out once you start getting really close to that range because you're sitting in an option That's one week out or you know two weeks out on this trade You're making anywhere from 60 to 70 percent because you're getting such a volatile push to the downside And we're grabbing in the money contracts I don't want to go into the flow of options or you know How to buy those set options because that's where it's going to get confusing for some people But when you're just looking at the chart, this is how I'm using it So Bruce you have any questions specifically about this one? Yeah, yeah, I mean no, this is great. I mean so um, this is a day trade. This is um, you're holding it for Not not long Just looks like You know, well basically until it hits your your target But how yeah, what is your holding time? Basically because this one played out pretty pretty quickly Yeah, so that's a that's a really so this is a five minute chart So you'll see when you broke below 24 5 if you're counting the candles over I wish I had a better I wish I gave you a better time frame on here So that was about for market open literally within the first 15 minutes of market open that retest is when I got in And then so that was about an hour and a half hour and 45 minutes But it comes back down to is something that I'm like just like preaching every day right now is You're kind of adjusting with the market right now to the certain extent of You're not in 2021 anymore So 2021 you could you could write a lot of swings because we were in a clear trend of a market, right? It was you know, we were just going up and up and up and you occasionally had your down day or a down week But overall you were just gaining and gaining I think I don't think we had over like five red days in a row in 2021 Which is kind of insane to think about we had no real downside But now as you shift I would say the difference really happened at the end of november once pal um Basically got you know, re upped for his position He changed his stance on the fed rates and things like that And obviously the market's been taking a downturn since russia things like that And so you're getting into this period of you In my opinion have to take More in and out trades one because you're getting more volatility Which is good because if you're getting more ups and downs quicker You're obviously those those contracts are gonna move quicker But two you just don't know what's gonna happen the next day and I think that's proven, right? For example, uh sunday night or going into friday the market kind of had a little bit of a bounce and then sunday night We were futures opened up fine and then breaking news hits You have russia attacking a nuclear power plant in ukraine, right? And the market reacts very negatively to that and you start just dropping you open up monday morning Just with a free fall and these are just things you can't really predict So for me right now, I have had to shift my plan from swinging like I said growth like clean energy and you know Things like paypal square some of these big names that have huge 2021 2020s And I've had to move more into catching downside catching up side So what you're gonna see in these past two trades, right? And like I told you it was like unfortunately I couldn't get anything to the call side because one I just didn't feel comfortable playing against the market And then two it's just me adjusting and like I said reacting to how the market's Moving and what it's giving us right now So unfortunately right now I've had to shift more to One to two hour trades which have played out great and if you've been trading commodities They've played out great too, but even trading something like oil if you're really swinging it you have to have Pretty good mental standing I like to say because if you're swinging those you might open up one day down 10 on your options depending on how much money you have in that the next day open up 20 higher You know what I mean? So it's it's just a constant seahorse up and down So that's really where that comes in and I think a lot of guys that I In women that I come across in the trading space right now They're more on A lot of day traders don't have that mentality of willing to hold through a loss if that makes sense So if they get down five to six percent, they're like, okay, this is turning bad I don't know what to do and so on and they start to panic sale And we see it time and time again with book map is if you just watch those levels And it's hard to look at big book map on a longer period of time frame. It's more of a day time frame It's a day tool for me Like a day by day base to see how you're moving throughout the day But coming into to that it's just you're gonna get affected by that and again It's just so much uncertainty and something that I always am telling everyone too is the the War may be bad for the market in the short term or you know We may have some good news in the short term for the market, right? But the worst possible thing for the market is uncertainty That's what's going to guarantee us Downside in my opinion is every time you you hit those levels You're going to hit these levels of downside every time more and more uncertainty comes out into the market And unfortunately that's just where we're at right now So to answer that these lately have been and you were from 30 minutes To two hour long trades. I typically have not been going Longer than that for the since the beginning roughly of 20 22 Okay, and then before that you were you were holding for like multiple days Uh, yes, so another thing that comes in with that is What is your your risk tolerance and Where do you kind of draw the line for profits? Because like I was saying with growth you were seeing massive levels of Of gains and right in a day I mean you you could get into a square and they could just have a 20 dollar day, which is kind of insane But they were just running like madmen or you you get into a great example in 2021 if anyone knows about neo You bought the stock. It was at four dollars peak 2021 peak 2022 or yeah 2020 2021 you reached, you know, 65 dollars on neo, right? So you ran from four dollars to 65 dollars in a matter of years an incredible run And this was kind of just a story of the market and so when you're having options specifically on these You kind of have to be disciplined enough where you're like, well, am I am I willing to take a loss here? Am I willing to you know, spread it out more? How am I willing to really look at this and that's where it kind of comes down to each trader? So for me specifically when I say once I start getting up a Specific amount I start trimming that position every time whether it be by 10 percent 20 percent half the whole trade Whatever it may be. I have to start securing those profits for myself Understood Yeah, interesting. I mean interesting A transition and are you leveraging a little bit more now due to the the holding period being less So I would say I would say not Really, it's totally dependent as well on on the trade. So for instance this first trade would be a Higher risk trade in my opinion. Yes, I was I'm still confident on was was confident on lucid dropping But on this next trade, I was extremely confident just because The fundamental research that I've done on the company and how they're moving forward, right? And so that's another level that comes into it is in this quarter So I'm always talking about trades that we're talking about, you know For instance in a few minutes, you're gonna have biden talking about russia, right? And so when that happens, they're saying they're gonna be banning russian oil And for the past two or three months, I've been extremely extremely bullish on oil So I've been willing to over extend my portfolio heavily into oil natural gas Any commodities wheat uranium palladium anything like that because I understand That those are gonna have great returns most likely and the lowest amount of risk But whereas something like lucid and growth like I was used to trading, you know But last year those have a lot more risk if that makes sense So those I'm I'm putting it almost like not when I say the minimum. I don't mean I'm putting in Little amounts of money But as far as my risk tolerance goes it might only be 5% of the portfolio into some of these trades comparative to You know 20% that I might be putting in oil and gas and another thing I want to like Really focus on is when I'm looking at options, I have a separate portfolio for options trading Then I do from long-term investments. Those are two separate different accounts I don't look at my long-term stuff if I'm buying it. I buy it. I make a decision Maybe once a month, I'll go check it out and just adjust those positions But as far as options, that's more of how I'm paying myself monthly and things like that Okay, yeah understood So, yeah, I mean basically kind of in a nutshell it looks like I mean your style here is You're looking and reading about the fundamentals You're looking at the the stock you're looking at higher time frame levels here And then you're looking for your entry and then Well based on then you look at book map and look for not only entry To support this this view But then looking at the the heat map as well to understand like where you might start taking some profits Exactly exactly. Yeah, I think that's where book map really shows the value. You know what I mean is when it comes to Because if we're looking at this and we can see just on my screen right you have your higher lows and you break But but you don't really know where you should be getting in where you should be getting out So for example, you break below this you come in you test $24 Everything tells you that you have a bottom there and maybe you should be getting out But you come back up and you can see the liquidity zones once again on book map And they'll show you that you're getting large sellers at this level about 23 24 3 and you're pushing back down and then those levels are to disappear Which shows you more downside is coming and that's something that you're not going to see on these normal charts, right? and so that's where I think The real help comes in from book map like we you know like we looked back here You can just see those levels just start to just disappear, right? And they start to come back down to those key levels around 23 7 25 23 5 And that's where you start to see the value of book map because it gives you just more confidence into those trades to see Okay, I it's moving the way I wanted it to it's you have sellers sellers are stepping in and that's where it really comes in I think you can be a little bit overwhelming at first But once you just start to notice And use the information of okay sellers are stepping in buyers are stepping in that's the big part there Yeah, yeah, no, no, I mean it I love it. I mean the simplicity and the clarity You know exactly what you're looking for and what you're doing and Where to get in and where to get out And just that kind of having that kind of clarity. I mean, you know, we have advanced webinars every day In our in our education But just trying to keep it simple like don't be overwhelmed by it. Um, and And You know just a few different things and you're looking at and you're looking for this to play out in a specific way Yeah, exactly. And I'll say that too is I think people They start to put too many indicators and they start using too many different tools when it comes to that and You know, if you look at my chart, honestly, honestly, there's no way I mean, I have the view up and I have the the aid ma. That's it. There's there's nothing really in the The daily monthly and weekly opens, but those aren't really indicated That just shows me where price opened up for the day And so I think less can really be more when it comes to this and especially if you're using book map If you're using book map, I don't think you should be using 30 different other indicators You know what I mean? Because it's really gonna sort of cloud your judgment and you're gonna miss Things that are right in front of you. You know what I mean? So when we come back to this again, it's It's just openly clear that when you you're getting that bounce on 24 dollars that you are getting constant rejection right here at 23 24 35 you see what I mean 1 2 3 4 5 all within a span of 7 to 10 minutes, right? And so what that's telling you is that This is going to continue down unless you you know what I mean? And you don't even have A level of resistance there. So that just shows you how weak it is. You know what I mean? And I think when you You have you know, you're looking at your mac d your rsi or all these other indicators It can just may you're like you just start leaning towards Things that kind of don't matter. I'm not saying those indicators are bad I'm just saying you start to cloud your judgment of well like well You start taking in factors that maybe aren't as important when really the price is telling you exactly what is happening You know what I mean? Yeah, absolutely. I mean, I we it's it's kind of repetitive in essence like a We keep kind of saying the same things like the the things that are on the book map chart are very very simple and straightforward And it's and that's what most traders like about it is it looks overwhelming like you said But all it is is is showing you price action with best bid and offer The the transactions on that best bid and offer with the volume dots And then the the heat map is just showing you the the evolution of the supply and demand where they want to deal And that's it You know, I mean there are other indicators on there, but you know For you know optimizing some of that but it's very straightforward and and and that's kind of the beauty of it. It's not trying to tell you Over bot or over soul just look at it Yeah, no, exactly and in the next one I I do use absorption and I've used I've used the uh What's the other one called the sweeps? Yeah, I haven't really Use the sweeps as much the absorption is the really big one because for example Like looking at lucid right here typically absorption would pop up because you'd be getting some bigger Orders at this level, but for some reason on lucid is you just weren't getting those a different type of trade I guess but like when you come over to madurna, right and Looking at madurna. This was this this was eye candy to me. This is something I've been looking at for weeks I've been waiting for it and it's got the perfect example of an entry If you don't know white house to downgraded degraded downgraded. Sorry Covid from I guess like The highest level of a national emergency. They downgraded at like a one level So and that was over the weekend and it was kind of shoved underneath the rug that no one's been talking about And you've seen insiders on madurna selling non-stop. You've seen The earnings weren't good. They did have like some buyback, which in my opinion did nothing for the stock But now you're finally getting that break below 138, which was a key level and then this is where things got interesting So looking at that entry at 138, right? So we come over and this is where I love absorption So I hate that I can't zoom in on when I'm using their presentation They're right, right? Yeah, but you can see so I said it for about 10,000 And you you'll have to tinker with with absorption because sometimes you'll have to like zoom in or zoom out and it'll just make them disappear Or it'll lump them in so like right here. I think I put it to like 5,000 But when I zoom in It's like three different orders, right? So that's we get to look at there But how you're moving is again, you can see this 138 level and so everything tells you is that yeah You dipped that morning because if you come back to that chart you can see You this is how you opened up for the day and this is where the weekly was so you closed friday right here at about 137 And then you opened up really low about 135 And you trended up for the first I guess what is that like 10 minutes of trading right there to 138 And so If you're looking at this you would think wow, Madonna is moving good at it open This is it might be a bullish day But when you come over to book map you show the clear Rejection of that 138 level which we already know is a major level You have a liquidity zone here which gets hit once but it disappears So this might tell you might continue But then you see another absorption level hit here and when that hit I was like oh It's this is this is an entry. This is an obvious entry because typically it's only to like a reversal right And so you hit there so I entered right there and so when you come back again It's just very clear to look at when you look at the chart You can see you hit it a few times So that's the first one here the second one's right here and then boom you just get rejected Extremely hard and this is a one-minute time frame So you're saying one two three four five minutes within five minutes You're down from 138 all the way down roughly to 134 $4 drop And when you come in here, you can really start to see those levels once again with book map And with absorption too This is one thing you kind of have to start training yourself to you for myself personally is You'll start to see when you start free falling You'll start to see a lot of those come in because at that moment It's just sellers either coming in or trying to buy it up and right here sellers They're just getting out of the stock as it starts to begin to start triggering all their cells As you come in and your first level is going to be that 130 Some mental level you come down you hit that green level by which signals typically a little bit of a balance But then once you hit that level again of that, you know You start flatlining and then boom another cellular which indicates just more downside and from there it's just a stair step just boom boom boom to the downside and One thing I will say with absorption too is I mentioned that sometimes you won't come down to those levels you're watching out for right and Absorption will do a really good job of this and so I minimize the level of What it's going to signal to me so I put again I put it at 5000 So you're going to see more orders typically if you do the average it'll give you a higher number Like it'll tell you the average of the day of how many are being traded So this might have been closer to 10,000 But right here so I wanted that so I could really signal when the bottom was going to come in for the day And so what happened here is you started to see all these buys and not that many sales Right. So you started to see all these orders coming in right here, but literally in one two three four five six seven eight Eight orders came in before one major, you know Reversal signal and that to me was a signal was like I need to just get the hell out of this right now And so when I started to get out of that it was just easy pickings from there but a key thing too is I know a lot of people like to get I personally for myself if I trade something I try not to trade it again For the same day. That's just rule of thumb for myself But you'll you'll come in and see that these levels will continue to be respected Even sometimes when there isn't necessarily a level there. So 130 So just remember that 130 marker here and as you come over you can see we just extended that 130 level Right here. And so you started again, you broke you broke down below You came down to that 126 127 which already had marked out got bought up and you came back up to that 130 And again, you broke below it later throughout the day And that would have been your entry to get back in once you broke below it again And once you broke below it again, you retested 126 Do you have the opportunity to continue to trade this right if you're watching those key levels? so that's things you've got to be paying attention to and Again, that's just something I I hate retraiting the same trade multiple times the other day because it just it leads Just bad things for myself But ultimately that's another key thing that I'm watching there as well But this gave a really good example of that absorption indicator And I think that's that's my favorite one for sure is the absorption Just because it's going to really help you out to whenever levels may start to disappear. So like right here If I'm just going by how I typically use book map This is going to tell me that you're probably going to continue up to like the next zone of 130 9 5 maybe 140 However, in hindsight, you see the absorption kick in and boom, you're double topping and then you're hitting back down So that's what I was looking at and you weren't getting any big buys at that level either Which is a very important thing to realize as well Yeah, beautiful. Tyler. I mean like, uh, yeah, I mean, here's what you got, you know, you have fundamentals You have a move up to up to the upside there into high liquidity. Here's a retest and they can't even break it You know exactly exactly So, uh, yeah, no beautiful beautiful stuff I love it And then so Basically the main points that I will say for anyone that I'm obviously if everyone here has book map So if you're using book map I because a lot of people in my discord as well, they're using it through their to s or whatever platform I don't know what they're using at the room I just I just stream what I'm using and they just do whatever they want And so but I'm getting a lot of people, you know, sending me screenshots of it And basically where I've come to the point I'm using it is one the historical importance Which we mentioned in maderna, right? So if you want to get back into a trade, so let's say I missed out on maderna Let's say that I I didn't catch this first drop here And I and I wasn't trading it, right? So I didn't get in up here And I wanted to just re get in this because one we knew the the volatility was good The liquidity levels were being respected. Um, just looking at that, you know, book map levels We already saw that so if I wanted to get back in once you started to break below this 130 129 three level it would have told us based on those historical levels That you're basically having just free falls all the way back down to 126 127 That's why you're not getting any bounces here This is going to be an easier chart to look at compared to book map because it's a one minute time frame But you're seeing just it's just clear shots of liquidity straight down to that support. You're not really getting any love and this is One of the big values of it. So even if you're missing out on that, you know, this was the trade of the day Right, you know catching here to here. It doesn't get much better than that But this is still a great trade if you're trading options to get in and out because you're literally moving within 15 to 30 minutes From 130 down to 127 and if you trade in madurna, you know, this the stock moves great with options specifically And then going into the second, I would have to see the absorption indicator if you're Treating it somewhat to key levels Again, it'll trigger that reversal like we mentioned in madurna, right? So just going back here so Even if like I said, if you're looking at this without the indicator, it might tell you, okay, we're probably going to continue up It's not maybe the best trade and we shouldn't step out But if you keep watching again that absorption is going to step in and almost react At the same level of that indicator and that's things that I have to be watching and Yes, it's going to be meticulous It's going to be you're watching the same thing over and over but then again You get to realize this is happening within a matter of minutes You know what I mean? So this is happening very quickly So that's the big thing there is learning to just adjust that and you also have to recognize the difference of Sometimes you this might hit and you might continue up a little bit It's it's going to happen But more times than not statistically speaking I I believe it respects it and starts to push back down and you also need to make sure that your order your Absorption indicator is set to the right standards. So if I'm setting is that 500 lots Obviously, that's not going to be as respectable On something like this doc because it's I mean, I bet all these are about 500 lots, you know I mean, so those are things you got to be looking at make sure it's not overvalued or over Overly used throughout the chart, right? Yeah. Yeah, there's the automatic You know standard deviation setting in there that you can use and then and then you can play around with the you know The multiplier on that standard deviation So I mean that one gave you just a beautiful reading there Not only did the the top there like You can obviously it's going to be absorption there because of the the heat map, right the second one though High absorption and you know, probably an iceberg or something else in there Because you have another pretty pretty high reading on the absorption And there's not much liquidity there, you know So there's yeah, I mean just it's a beautiful reading right there. Uh, double top Yeah, anyway Yeah, so that's that's the really big thing there and it takes some time to get used to and like I said with absorption Sometimes you'll you'll go to the average and it just won't show you enough sometimes So you'll have to tinker and just you know, nodge it down just a little bit to see where you are But you have to make sure you're not Pushing it to give you the data you wanted to give you if that makes sense Um, and that's why I like to write here, right? So like yeah, you're getting a lot of information here This is a lot the comparative right to the beginning of the day There's four here and then within this time frame, obviously you're getting massive amounts of this But I was setting this up to see when a when a large sum of those buyers are to take place So I can signal that bottom for myself, right? And that's where I got that signal right there It is like it's time to start cutting this trading getting out of it just based on the amount of people stepping in right now Wow So that's the problem using that specifically and then obviously this is where it comes in again with using absorption I think it helps you out tremendously With learning to start taking or cutting those profits, right? And so when I say right here and if you breach your prior level the trade is most likely over So for example, this is going to give you just give you such a good viewpoint of Just how you're moving back. So if we're looking here, you have that that obviously that double bottom made there I didn't have a picture made you can see how it starts breaking back above 128 So you have this region here about 128.5 But this is an old level and you can see that you're just moving up even without the absorption you're moving just Clearly to the upside through that level. So in my opinion, that's telling me This trade most likely is flipping the overall trend in the shorter time frame And if you're in options, you know time is really not your friend So once you start making money on a trade or anything like that You need to start making your decisions soon because implied volatility starts stepping in theta starts stepping in And that's going to really start hurting the value of those contracts where if you get up 60% You know five minutes draws out or 20 minutes draws out and you say the same price You might move down to a 50% profit instead of a 60% on that trade So these are things that have to take into place And again, this is why you're getting into such low time frames on book map and it's telling you Okay, this is what's happening in the levels to where buyers are stepping in you might trend sideways You might start pressing back up And so once you start breaking back above that level I'm just like it's for me. It's just it's just over for me So you come to the chart you can see you start breaking back above and guess what happens You push back to 132 at that point you're profit to be cut in half and then you trend sideways as well You know what I mean? Now, I couldn't have predicted with book map that you would get rejected this many times And go down here But I could have gotten a reaction from book map once you started breaking back below the vwap and breaking back below 129 130 to say okay. This is a good time to maybe play the trade once again That's how I'm looking at it. Right, right. No, it's it's funny. That's kind of a uh It's a funny thing. So once you make your money in one like you you You don't go back to that stock again. You move on to another one Yes, I try I really try to to not repeat Unless maybe it's a spy unless I'm doing that But I don't even like to use book map with the spy Like I said es I think me and bruise have talked about this as well is es is going to give you a better viewpoint than I think the spy And the cues will cues cues are okay on on it But you're seeing a lot of algorithmic trading going on with The spy and cues and that really hurts the data you're giving but es is really where that's beautiful for trading those Yeah, yeah, I agree. I agree with you on that Um interesting, uh, so so uh, and it's mostly I mean you're not getting into the um, The underline is it's mostly options that you're trading here Yes, so yeah for right now. That's what it is again because for me Yeah, you're getting value on some of these stocks like if we look at for instance The the big statement I've been telling everyone is If you look at your your gross stocks from the peaks of 2021, you know, for instance Netflix was at $800. Netflix is now Around 350, you know the high 300s range. I believe it could be even lower square was at three I think 311 paypal was at 390. Those are both near 90 to bucks each So you're seeing these high gross stocks get pushed down almost 60 roughly But if you look at the indexes like spy and nasdaq from their highs for some reason Those are only down 10 and I get it's accumulative of more than just four stocks But if you look at the whole market, everything's getting hurt The only stocks that really aren't getting quote-unquote hurt is going to be apple and maybe to a certain extent amazon You have tesla down from 1200 and 1250 actually down to sub 800 right now Again, that's a that's over a 30 drop right there. You have Facebook obviously we all heard about that facebook drop down immensely as well You have all these major stocks down but Buy and nasdaq are showing that the market hasn't pulled back that much though in my opinion what that's telling me is that One you probably haven't found the bottom Two interest rates probably aren't necessarily fully priced in which is as much as we like to say that And so and then also we have russia ukraine going on which Lord knows what that leads to and so this just tells me one There's uncertainty and two it's probably not the best time for buying on value Now is it good to start your positions longer term? Yes, maybe you got to make that decision for yourself. What stocks you like things like that, but ultimately it comes back down to My risk tolerance in the market and do I believe there's more downside and Do I want to be cheap and do I want to wait for a better bottom? Yeah, yeah, yeah makes sense makes sense So and so as you had said this is your Investing what there's a difference between your trading portfolio and your investing portfolio Yes, so when it comes to longer-term investments, I do not treat them at all as Options or anything like that. So if I'm looking at for example, um, I um, I bought the let's say I bought the facebook dip, right facebook It dropped down from What was facebook? I can't even tell you what facebook was that it had to been It had a massive drop. We all know what it dropped. They look really quick on my phone that I was I did I did buy the dip on facebook. So facebook dropped from on its earnings from 324 bucks down to roughly 240 And so I needed to buying some around the 218 mark now when I start adding it to my long-term portfolio Because it's down from 218 down to 188 right now I'm putting that in the portfolio and i'm not looking at it. I'm not i'm not worrying about more drops I'm not looking how much i'm down on it because I own that stock It's not like options where I have a date that it's not mine anymore or I have to exercise or I have to do this or that It's not a long-term It's it's not a long-term position, right? Um, it's a total it's it's like I need to make that money right now That's for the foreseeable future. That's just down the road Whereas options if I'm buying a moderna position or if I'm buying a lucid position I have for instance two weeks on those positions and it's it's I have to make a decision What what do you know what I mean? And so it's like you have to look at how much you're up and also I'm not gaining or losing 100% on A stock play and a matter of a day or two So those are things you have to look at and that's the difference And I think that's the hardest part when it comes to trading is the emotional aspect Uh and and being able to really control those emotions in trading And when it comes to long term, you can't have any emotions You have to just have your facts and what you like or what you what you don't like, you know what I mean Hmm. So and and and most of the I mean these options trades like these are all directional trades Or are you doing any sort of spreads or any any kind of uh, uh, you know, I don't know anything else So I'm not doing any spreads or anything like that. I will have hedges on my position So if I'm going heavy into um for instance during 2021 if I was going heavy on growth I would have hedges with maybe I didn't love spy puts, but I had uvxy calls It was coming to a a sketchy your time Um, and I think that's what you're seeing really from funds right now if you look at the flow of money I like I use personally I use uh, I use a Service for some of the options flow and I don't trade based on that But I think it gives you a good sentiment of how The market's viewing the mark the the overall economy. So going into friday we saw An absurd amount of calls coming in on vixx The volatility index basically moves counter to the to the economy right so spy goes down vixx goes up So you saw them just a crazy amount of buyers coming in for vixx and I think that Funds now are heavily extended into vixx and spy puts To kind of mitigate their positions right now and in But in all fairness We were told going to the beginning of the year by morgan sanley jp morgan as well That the most traded Index or stock or whatever it was going to be was going to be these index the the volatility indexes And if you look at what's happening The vixx uvxy Or vxx whatever you want to call them. Those are your most traded Options basically on the year. I mean there is thousands of them coming in every single day And that's why vixx is sitting currently above 30 bucks right now and it's absurd to see but That's how I think big money is adjusting and mitigating positions to the long side Because I think they always have to be adjusting long positions and they're just buying dips You you just have to as a long-term investor But I think that's how they're making money somewhat in the short term as well on these dips because if you think that Some of these funds are just completely losing money on on this free falls and I think you're sadly mistaken Unfortunately, I just think that's just the way the market works is they're uh, they're they're a hedged either way you go And I think that's how they're hedging personally But no for me. I'm not doing spreads Because it's so volatile as well So if I'm doing a spread and I'm trying to you know I estimate where they're going to hold that price at or something like that It's not likely going to happen because if we're looking at any chart, you're getting huge pumps up or massive drops to the downside And again with all the uncertainty, it's just not worth it in my opinion right now. Yeah And again, you see these trades are so I just minimize the amount of time I'm putting into these as well So it's not like I'm holding them overnight or losing sleep over them. You know what I mean? I'm making the decision every single day to get in or get out Yeah, how many how many trades do you take a day in in general? Do you think? Yeah, so that also will That's that's probably one of the biggest questions I get and it's very relative to the market and I would say that as of recently Tops to I'm usually not going over two trades a day Um, and people were like, well, how are you making money with that? I'm like, well, if you're One of my if I'm putting Minimum I'm putting into a trade is about 2,000 usually for myself So if I'm making anywhere from 10 to 30 percent on a trade, that's Perfectly fine for me. Um, but then you have your your big place something like, you know oil or Your commodities like wheat or you saw nickel today go just absurd Nickel just went mad today because you're having These decrease in productions and all this stuff going on and you're having these large runs You don't have the need to over trade. I think over trading really too. You're statistically When you come in You're you're probably gonna lose you're gonna lose trades and I if I'm winning I don't it's not like it's the the gambler's fallacy of oh, I'm hot I'm not gonna lose the next trade because I kept I won the past three That's not how it really works and chances are if you keep coming back to the table and keep taking more hands or keep taking more trades you're Getting a higher Margin of error because you're just opening yourself up to more risk and more trades off the day So if I come into the day and I usually will map out what I like coming in today So yesterday I came into the day. I was like, look, I'm only trading these four commodities And Moderna those are the only things I like that's all I like And I ended up why it's ended up taking I believe a wheat position w at and then I ended up taking The Moderna position early in the morning and then today I came into the market and I was again I was like commodities are on the table again because they're dipping and then also I like apple because they have the apple event today at 10 45 or I think maybe it's um 12 eastern So that's another thing because apples need to get high call volume So if I'm interested in the spy starts to bounce apple's gonna be my go-to play because apple's clearly getting at that volume Because they have an event going on and that's going to be the only type of you know Equity that I really like in the market right now. So that's how I look at it there And you should have to recognize that you're not in the same market that you were Six months ago. It's a total it's you went from a permable market to you hate to say it Technically speaking you're in a bear market. You're in a type of quote-unquote recession Just that's not me saying it. It's the that's the the hedge funds coming out with the data saying Technically since the nasaic's dipped 10 in two months You're hitting that you're hitting that level, you know what I mean? And I think that just comes the point of recognizing where you're at Uh In kind of the cycle. Yeah. Yeah. Yeah. No, it makes makes good sense. I mean like uh um, I love the uh You know the fundamental work that you're doing um and then looking at your bigger picture on the chart there Or just on the on the day in general and then looking at book map For the really kind of slicing into the uh position You know, it's simple and and straightforward and highly effective Yeah, and again, like I said too, I I think the biggest thing even with myself because I I It took a long time for me to to mentally come to the place of making a decision Being firm in that decision and being confident In the trades too is you you try to use too many things at once you try to use too many indicators too many different It's like having a whole bunch of voices You telling you what to do because sometimes those indicators might contradict each other or they might contradict The the worst-case scenario is they have an indicator that contradicts your price action So the end of day for me price action is End all be all I'm looking at how buyers and sellers are adjusting their prices every day That's the the biggest thing for me. Nothing else is really that important for me That's going to be the key signal for me to buy or get out of a trade Um, and so that's what I think the other ones come into play of they can kind of start hurting you now Do I have the MACD? I have it. Yes. So when I'm looking at smaller time frames, I use it occasionally But they have their place and you also have to know where you know They don't have their place if you will right. Yeah. No, absolutely. I mean like we try to kind of Say the same thing in our education that Really what matters is understanding exactly what that indicator is doing But look at the price action. Look at the order flow if the indicator supports this direction great it's a confluence, but Looking for signals off of an indicator like that is very dangerous I you know we feel but Um, I have a question for you about your settings that you might be using on your absorption indicator how you kind of fiddle with that and find a proper setting for it Okay, so if I come over like for example with the apple Um, I was looking at this morning. And so again, that's This is the part where I think it really comes down to hold on a minute. It looks like it looks like we're not I'm not able to see Okay, let's say let me adjust On on discord you have to Adjust the screen one sec change windows so it's It's not going to let me give you the access to the book map screen and the add-ons Um, so you won't be able to see them both at the same time. I could probably show mine here. Um, so And maybe you can you can go through. Yeah, I can I can just guide you through it. How I look at mine Okay, so, uh, yeah, uh, anything in particular you want to look at Maybe apple Uh, yeah, we can get apple. Okay. So, uh, yeah, uh, hold on a minute here. Let me uh Yeah We had the Brent, uh, kachuba. He's an you know options expert. Um, and I want to show you this indicator Tyler So it's the hero indicator also some levels That you might be really interested in. I I've kind of shied away so far on it But um, uh, yeah, I'm looking forward to showing that to you. Um, the um, uh, let's go to absorption indicator and Take a look here. All right. So um Yeah, you can see they're all over the place in here. They're you're getting a lot of different signals in here right now So, uh, what what is it that do you typically kind of look at here? So let me pull up your screen real quick Okay, um, the full screen Hey, so um It's like the settings a little bit there goes to clear it up. So I'll go up to the top I really won't mess with anything except the greater than or equal to uh, x amount of shares Okay, that's 72 18. So I'll I'll go to automatic and see what it gives me. So if you click automatic real quick Okay, so if you zoom exit out really quick or remove the the The add-on screen to the right if you don't mind Uh, the add-on screen to the right. Um, oh, okay this way So if you zoom into that top level, uh, right when the trading day started you can zoom in just a little bit. Yes. Okay Well, and I'll allow you to give your add-ons I don't know if it'll let you Um, I'm sorry It the the the high here in apple for the day, uh, right at the bottom liquidity zone Right below that doesn't no Right there, right? Yes, all right So if you're looking at that, it gives you kind of a lot. Can you zoom in just a little bit or no? Sure so it's If you you can see that one that zones are it's it's very similar to moderna Extremely similar to how moderna ended up playing out So you can see that you're getting those those orbs Right there at that level right you go through that resistance that big liquidity zone block, right? As you scroll to your right a little bit So apple's giving you great in my opinion great. I might I would probably up the amount Once it starts giving you that many because I want to start seeing the bigger orders So who's taking sides on that position if it's either buyers or sellers or dominating if that makes sense at those highs So would it automatic real quick will automatic adjust it or no? Yeah I mean it it it's already kind of done it with the standard deviation here What we can we can bump it up here the um multiplier Yeah, so you want to make it less so we're less Yeah, yeah, right understood okay Maybe that's yeah, and so that in my opinion that's just telling you that sellers see and then as you get into that range You're seeing the sellers are just winning out this position here, but that's where it comes back down to sometimes You have to be looking at it's so because there's so much that goes into it as well as far as looking at spy and looking at how the indexes are moving and in fundamental news as well and Like right here This is showing you because I was looking at this more before I even came into the live I was watching apple and I had spy pulled up even with spy dipping You're seeing a lot of strength on apple and I think like even with right now. You may see. Yes, you're getting um Some sideways action and you're seeing more sells in my opinion here than you're seeing buys Which will side with the downside um I think that you're still pretty bullish that you're holding about this resistance But again, you're seeing that absorption level will start to really maintain Even if it's a little bit below that key liquidity zone you have on your left where that first 89 thousand order was yeah At like 159 yeah right there You're still seeing that the next one at 13 6 pop up on your right hand side a little bit below You know what I mean? And so you're seeing those big orders still coming in right at that range And so scroll to your right just a little bit more And so this is where you start to lose it in my opinion And so when you see that next order you start to see the that green buy I believe it's someone but i'm filling up one of those sell orders. So basically it's a just a It's a fill on someone's position So you get that little bit of a bounce But you're just not getting any follow through and those bubbles You see the size of them that are on the bounce that you saw from the green from the green dot Right on that yeah that small balance you get from basically 159 to right there right above your your ticker It's so small you're getting no actual volume And that's just to indicate to me that it's just you're not getting it and it's just going to continue coming down So it's you're also looking at The absorption is going to tell you the key spots to look at And then watching how you're moving from that key spot that if if you're following So i'm looking at that key spot where you bounce at that 10,353 buy right there And you're for the next 30 seconds right there's no additional volume There's no additional buyer stepping in with you right and that's just telling me and then as you start moving down Look more sellers start taking place And then from your next one you the next buy 11,000 you start to get some help But then as soon as you start to top off and move sideways here another seller takes in and boom You just keep pushing down and it's just and then at that point you have to say Well, you're probably gonna come down to that next liquidity zone 158 and Look what happens your big more of your big order start to take place after that And then it's just downhill from there if you're following the spy as well the spy was just this whole morning was bleeding I mean you got some balances, but it was just It was just brutal this morning watching it. Yeah. Yeah. No, great great stuff. Tyler. I mean, I love it I mean it makes total sense the clarity in it Understanding the volume context here Uh after the the absorption event up here, um, you know, uh, you're reading in the weakness Just looking for these, uh, you know, bigger liquidity areas to test Yeah, and again like They're not necessarily a buy or sell signal looking at the absorption It's just an indicator of you need to be looking at these zones and what's happening and what's taking place If you're following there, you know what I mean? Absolutely. I mean that that's the key. I mean it it's just understanding the context Uh instead of like, oh, you know, this is a signal. It's like well Here you see 10,300 here But what was the reaction? What's the context to it here? Right, uh, it was it was totally muted. Uh, so, uh, we see the move to the upside here Correct. Yeah Okay, um, all right, so it looks like uh, uh, uh Yeah, Tyler's got to go here. Um, it's in just about an hour. Uh, and um, uh, you know, thank you everybody for coming This was a really great tyler. I mean, uh, we'll we'll do more of these in the future. I hope hope you're interested We'll do some work with you. It's people have questions specifically on anything Um, they can just tag me in the discord just at me and in the bookmark discord If I don't answer immediately, I'm probably just caught up with something Uh, but I'm usually pretty good at getting back to it and I don't mind Okay, and and uh, yeah tyler's uh information Is all in the description there, uh on the youtube channel or on the youtube video So you'll see it in there if you want to if you're interested in following tyler And reaching out to him. Uh, so, uh, uh, yeah, uh, this was this was excellent tyler very very very good. Um, thank you very much Awesome. Yeah, it was good talking to you guys. Okay. All right. Take care. Have a good one. Bye You