 Good morning book map Welcome welcome. Apologies for running late this morning daylight savings has completely thrown me off I forgot to reset the clocks in my apartment. So this morning. I thought I had plenty of time and I did not I was running late. So once again my apologies. All right Well, let's jump right in and talk about the markets and what we are seeing here All right, so let's take a second to just kind of talk about what happened at the end of the week last week It was kind of a bizarre week for the market. So it's worth taking a second to kind of digest what happened Several things of importance took place first and foremost at the beginning of the week We broke out of a balance area Okay, the market had been balancing in this area in here We broke out of that balance Came back in Rotated to the opposite end of the balance where we immediately almost to a tick found support at the balance area low Turned around went straight back up through that balance and then got a breakout That breakout led to continuation, which is what we would expect, right? If the market had tried to break out the week before last and It failed and it came back down to the opposite end That tells us that probably The next breakout will work the next breakout will actually find support and continue higher Which is what it did we broke out We got continuation and then we got continuation at the beginning of the day on Friday When we made a new all-time high and brought in new buyers at the high, but what happened from there? Well, those new buyers got squeezed. So let's just zoom in for a second and we'll take a look at Friday's range So what happened early on in the morning was the market got what Jim Dalton describes is getting overly long Overly fast, right? The market was going straight up in the A&B period. There was no pullbacks Nothing just buying and buying and buying and buying and buying and buying and the problem with that is when people are Chasing price like that. There's only so many traders willing to chase price, right? Most traders the the bigger, you know Traders out there are gonna buy pullbacks. They're gonna buy support. They're not gonna chase price at the all-time high so unfortunately the majority of the buyers up here in the A, B and C period were FOMO buyers, right? They were short-term traders that were hopping into a trade as quickly as they could in case the market continued higher Well, as soon as the market came back through that overnight high Now not only do you squeeze all the overnight traders who are like, oh shit, I got to take profits quick Not only do you squeeze those traders, but you squeeze all these FOMO buyers So that led the market to start to liquidate lower. Well that liquidation brought in new selling, right? Everyone's so nervous when the market is at the all-time high Everyone's so nervous that the market's gonna have some big pullback that they just kept selling and selling and selling and selling Okay, and at the end of the day on Friday it would have got it could have gone either way Right there were signals that the market was gonna head lower because we had pulled the fairest price to do business lower But there were also a lot of signals that it was just a pullback that was looking for a bounce Because once again, we came back almost to the balance area high Which is a place where the buyers start to step in and they stepped in also value That's this blue box that you see right here was just engulfing the previous day's value Now if it had gone just a little bit lower That would have been bearish to see because it would have been overlapping to lower But the fact that the value area high stayed at the value area high the previous day was the signal to be neutral on Friday Well, then over the weekend The bulls showed up once again pushing the market right back up to all-time highs making new all-time highs Once again in the overnight, which means they're weak So the level that we're looking at right here 51 uh, we'll call it 96 That is what we consider a weak high meaning at some point The regular trading hours market needs to come back And pass through that level Okay, so you combine that with the fact that You know, um We we had the pullback that found support. We had the momentum We now got the pullback. It just really increases the odds that there are buyers in this market so This morning as i'm trying to figure out how i'm going to take trades There are several things that i'm keeping in mind One thing that i'm keeping in mind is the contract rollover Okay, so today is the official rollover day Into the m contract So that means there's always price fluctuations between the contracts. They're usually off by 10 points or whatever one from another So that is partially what i'm seeing here Right is just moving from one contract to the next created this big move in price to the upside Okay, the other thing is not everyone rolls over on the first day Some people wait until the liquidity is larger on one contract than the other Some people just wait for whatever positions they're in on the previous contract to take profits on those before they roll over whatever So over the next two days Everyone's got different levels that they're looking at right? Everyone's got trend lines drawn in slightly different places They've got candle highs and lows in slightly different places So I would predict the next two days will be a little bit tricky to kind of get exact entries And things like that. So just purely the fact that we have the contract rollover is a reason to be cautious A reason to be certain that you're buying support or selling resistance before you enter the trade Rather than just blindly you know throwing in trades so The area that i'm going to use Even though technically this whole range is the overnight from the weekend I'm going to just use the profile that you see right here between 51 64 and 51 97 That is going to be the newer contract because my continuous You know ticker here just automatically rolls over on the new day So this just automatically is the new contract the m contract And that is what i'm going to use as an overnight high and an overnight low, okay As always is the case when the market opens inside the previous day's range I'm going to assume chop first thing in the morning I'm going to assume that the market will find support either above This overnight low or it will just look below and fail if the market wants to continue higher So if the market pushes below 51 66 and it starts to get new selling there I would be bearish for a larger pullback towards the fairest price to do business that we left behind on friday Okay, so resistance at the overnight low increases the odds we're heading to the poc from yesterday If the market looks below and fails so if it dips below this overnight low Comes back up into the range. I would assume more chop more sideways Okay, the same thing with the overnight high the high at 97 If the market pushes above that and it fails and it pulls back in I would assume more sideways more chop If the market pushes above that overnight high and comes back down and turns it into support That will be bullish for continuation higher So I am forced to be very cautious this morning Because we're in a chop zone where we are already expecting chop Because the end of the day the fairest price moved lower But yet we're opening up at the upper end of the range is another reason for caution Another reason for less certainty one way or the other And then lastly the resistance in the overnight range This is a 45 degree angle from the high to the point of control from the overnight range That is likely to act as very very strong resistance So even if the market wants to make new all-time highs today Even if it wants to get above 97 it's going to take some serious effort to get there So that means I don't want to go long for example on a look below that fails Go long and fall in love with that trade I want to go ahead and take profits in resistance and look to re-enter Because they may need to just grind and grind and grind and grind today To fight through this 45 degree angle and make those new highs So if you've been following what I've been saying it's a lot of contradictory signals Right, there's a lot of contradiction The weak high tells us we're going to make a new all-time high The 45 degree angle says it's going to be very very hard and it's going to require a lot of chop Right the fact that we closed at the lower end of yesterday's range And we had pulled the fairest price down there increases the odds we need to head back down But the fact that the overnight worked its way all the way back up Even though it's a contract rollover that doesn't matter to me Is bullish, so we've got bullish signals. We've got bearish signals So there is just a lot of reason for caution here today The market is open. We're seeing it as a chop zone So let's see what happens. We're watching support and resistance levels To see how the market behaves at those If the market gets smacked down in resistance, we watch the half back for support If not more chop If it gets support down here near the lows of the overnight low and it comes back up We watch the half back for resistance. If not more chop It's a chop zone They're going to chop it up Chopping broccoli Oops, I don't know So once again with the contract rollover, you know, things might look a little funky In the book map, they might not look the way you're used to seeing them because the liquidity is very very different Right, there's still a lot of liquidity on the old contract And then there's liquidity on the new contract So with the the contracts being split and different traders, you know Entering trades on different contracts, you know, it'll be a little bit harder to read once again Using order flow But this is just the nature of the business Every three months we got to rollover And uh, there's a couple of days where things are a little more tricky. All right, let's see who's hanging out Good morning to will Frito is here. I did not remember to move my clocks forward Bill good to see you dnk um Yeah, we'll correct that the the time change on the book map. I'm here john Email is out now Lara good to see you Danny is here Cool beans. Good morning. Good morning. Good morning Percy in the house sc Ships welcome. He says our clocks don't change for three more weeks Well, don't forget once once the day comes Cool beans says I have no volume I hope you guys can hear me the demo trader in the house. John is here John says I thought the end of the contract was on the 15th. Yeah So this week is the rollover week. You have to be on the new contract by the 15th But you can choose to to switch from trading the one to the other At any time this week and like I said, every trader sort of has their own reason for doing it Some people they say whichever contract has more liquidity. They just automatically start trading that one Some some people if they're in a trade, for example a swing trade to take profits at the all-time high They're going to still be in the older contract waiting to get to the all-time high For me because my software automatically rolls over This contract that you see over here on the the left side of the screen in the market profile That's automatically going to roll on monday. I just start trading the new contract on monday Because I just want to trade what's on my screen I'm keeping the old one here on bookmap just in case I want to poke back and see what's happening Just to see the differences between the two But my focus is on the m At this point. Okay, so we got some support down here around 51 70. We're looking for a bounce there It's chop zone If not just below that at about 67 If both those levels break and we get below the overnight low there is a chance to start getting bearish But in my opinion the higher probability is a bounce and more chop Good morning to Groot Bust move debbie b Shame 2005 He says is the market profile chart part of bookmap. It is separate If you just google, you know, whatever Broker you use and then market profile you'll find out which ones you're able to get access to It is a separate type of software So what book map is showing you is the order flow It's showing you where the liquidity is currently sitting in the order books And and how it changes over time. That's what's called the heat map this sort of uh Dark and bright areas that you see over here On the right side of the screen and then over here on the left side of the screen This is market profile which basically shows you the contracts after they actually trade So this is showing you where the liquidity is before the market trades. This is showing you where it traded afterward the volume profile Which are the little sections with the volume That is showing you where the most contracts traded The tpo's that's where the letters are that is showing you where the market spent the most time And both are very important to understand because price advertises So the market moves to a new location to a new price level Time regulates so if it can spend time there Well, then they can do business obviously if it moves to a new level and it instantly pushes away They can't do business there, right? So the more time the market spends at a certain level the more likely there is to be two-sided trade And then volume measures the success or failure of that trade So if a market moves to a new level and it spends lots of time, but it doesn't bring in volume Well, then it's likely to push away Whereas if it moves to a new level and it does bring in volume Well, then you've got business being had there And that's the whole thesis for how I trade the market intra day every day Is balance and excess right who's in charge are the buyers in charge Are the sellers in charge or are they playing tug of war? Where one side is trying to beat the other? So this morning we see it as a chop zone here in the overnight range That is a form of tug of war that is a form of buyers and sellers competing with one another So if The buyers can get the price above the chop zone high and spend time and bring in volume Well, they're likely to keep it going higher Same thing with the sellers if they get below They get below and they spend time and they bring in volume or what we call resistance, right? They're likely to take the market lower In between the two they're likely to play tug of war So the buyers will push it up as high as they can Then the sellers will come in and push it down as far as they can and then the buyers and then the sellers and then the buyers and then the sellers So for example Something to talk about is we've got this level right here. This is on the older contract on the h contract Right around 5101 Okay, where there is just a large set of orders sitting in the order books No matter what the market's been doing. They've just remained there Often when I see something like this my assumption is it's a computer Right, this computer has got and I can't explain what it's doing Right, don't ask me to explain that but it's hedging something Maybe it's hedging something from the options market. Maybe it's hedging a trade in the futures market Who knows but there's some sort of hedge that's happening here There's some sort of a mechanism at play Well, why is that on the old contract and not on the new contract? Well, because probably it has something to do with contracts on the old contract Right, so somebody bought options on the h contract and the market maker that sold those options is hedging somehow using liquidity Right, this is a much more complicated conversation But that's why it's there on that contract, but not on the other one If we click over here and we look at the m contract, there's nothing So that's what makes these couple of days around the rollover tricky Because people are positioned on both contracts And there's just more games afoot Good morning to matt Chi town says monday morning party time Dude, I haven't even made coffee yet But we'll party soon A demo trader says charles, can you show us your way of reading open interest in the cme website? I don't really look at that to be honest with you But I can take a look Yeah, so this is just a way to see let me get rid of this This is just a way to see which contract has more volume at that particular time So right now the older contract still has more volume on it So a lot of traders won't roll over to the new contract until that one has more liquidity So at the moment, there's probably a lot of people still trading the march But as I said, I always just roll over that first day because my software automatically does and there's plenty of volume You know, I'm trading three es contracts at a time. There's plenty of volume for me to get a fill So that's why I roll over Early Uh pavel, what's the name of the contract? It's m. So es m 2024 Cool bean says don't forget to smack the like button Yeah, I forgot to mention that you should smack the like button. Let's get them likes going Boo boo boo boo It's monday morning We got 135 people hanging out but only 32 thumbs up for the pirate Let's see if we can break 50 here Heck, let's see if we can break 75 likes Nothing else happening market is just chopping anyway Chopping broccoli Shanae says Last question outside this presentation Where can I learn more about the footprint such as the significance of the 45 degree angle? Well, again, that's footprint is different from market profile They're very very similar, but they're not exactly the same thing So as far as the 45 degree angle is concerned that refers to time. So that's the tpo charts Where can you learn about it? Brother? You come to the right place So I've got a e-course available on my website pirate traders.io if you just scroll down on the homepage, you'll see it there That's a great resource. If not, I would recommend Jim Dalton He's the person I learned from His courses cost a lot more money, but you know, you can learn straight from the source There's also tons of books out there like markets in profile that have lots of these insights And of course the number one recommendation I would make And technically this is me just plugging my own service, but the pirate traders brigade I charge $10 a month and I have these conversations all day every day So if you hear me talk about the 45 degree angle and then you watch how it plays out that day And you see, oh man, we really did have to just fight and fight and fight and fight to get through there Then you'll understand better because you'll see it in real time $10 a month for the pirate traders brigade Okay, so we pushed up into some resistance from that overnight range Market came back down found no support at the halfback. So the shop will continue Once again, we got support around 71 and 67 Looking for more chop TV do we roll over to september since it's a leap year? Solid Good morning to nap 777 in the house Happy by the fmp day. What's a p? Should be d Not true says is there a lecture available? Yeah, I got a e-course that's available on the website Pirate traders.io Check it out Check it out now. Education's your brother right about now A demo trader says what is the 45 degree angle never heard of it curious now Yeah, so it's a behavior in the market where if the overnight Creates a 45 degree angle from the high going down Or from the low going up That is a sign that that that the high or the low of that overnight will likely hold That next day It's basically just imagine again, we're talking about the tug of war between buyers and sellers. Let me just get rid of this so, you know The buyers tried to push the market up and the sellers smacked it down and they tried to push it up and it got Smacked down they tried to push up smack down smack down smack down smack down smack down So anybody who was getting short in here They're very strong sellers, right? They do not want to give up on this position They do not want to let the market get back above that high So they will likely keep doing that throughout the regular trading hours as the market pushes up They'll smack it down again and it'll push up and they'll smack it down again So it doesn't mean that you can't get through it and continue higher It just means you have a lesser probability of that And more more so than even the probability of getting through it's the way it would have to get through It would have to like grind and grind and grind probably spending a few hours to get through there So if it's from the high the overnight down its resistance if it's from the low up its support But again, that is based on time not volume. Okay, so we're down here testing the resistance Do we get a bounce If we do the next level we will watch is the half back To see if they turn that into resistance When the market is in a chop zone, it is impossible to know what's going to come next Your guess is as good as mine. And that's all it is a coin flip But the one edge we can have is that if the market pushes down into support and it finds it and it comes back up And then it gets resistance exactly at that half back That increases the odds they'll break lower or vice versa That's really the only reliable insight we have In a chop zone Nando says why is tesla ripping? Is tesla ripping? No, it's just balancing just a bit of balance It'll rip if it can get above friday's high if it can get and it's almost there But if it can get above 82 74 and find new buy 182 74 and find new buying there Then it'll rip. But for now, that's just balance Ain't no thing jellybean Okay, so they got a bounce in support, but they couldn't get back to half back That is bearish to see it increases the odds. We're going to poke below this overnight low Again, this is just me calling this the overnight low 51 66 The question then becomes Does the market look below and fail pulling back up in? Or does it look below and get new selling down there at the lows? Let's find out Okay market creating a poor low here in the b period Increases the odds that we're going to push up get some resistance and then take out that overnight low So we're back to that note of liquidity. We talked about earlier on the h contract Do they spoof it or does it fill? Oh, they're definitely going to spoof that Nope, they let it fill. Wow. Okay All right, so here's our moment of truth again We're talking this is a little complicated because we're talking about different contracts But on the m contract Do they look below 65 and pull back up above or do we start to get new selling down here New selling is bearish for further downside continuation All right, we have new selling below the low that is bearish to see That increases the odds the market needs to head lower Next major support. I see is around 51 57 again. We're here on the m contract 51 57 Looking for a bounce there if not 51 52 And I remain bearish as long as we remain below The half back right now So if the market pulls back up into this overnight range up here And it doesn't get resistance to that half back Meaning it passes back through well, then we just got more chop And the market's probably going to go sideways for hours. I mean maybe even all day But if they hold resistance here at the overnight low At 51 65 or they hold resistance at the half back 51 72 the higher probability is further downside continuation. It's bearish to see People always say to me when we've got these contract rollovers where I'm basically looking at the new contract right here with this profile But I'm using the old contract over here friday's profile as potential support levels Obviously, I'm looking at this node right here as support People say to me, how does that work charles? And the answer is I don't know Okay, don't ask me to explain why it works like that, but it doesn't work So I just always roll over on the day of the rollover and I just always use old levels From the old contract and they just work and don't ask me to explain why okay It is what it is Jay says no falling asleep today at the wheel laugh out loud yet today is going to be a tricky day as we as we discussed Exact levels of where the market will reverse will be very very hard to call So we just got to kind of be in the flow of the market recognize changes as they happen And go with the flow Probably be this way again tomorrow as well Will says does the ems ESM for high of 52 57 on friday mean anything Um, so for me no right because I didn't I didn't care about the m contract until today Right, that's the thing. So until the official first day of rollover, which is today That other contract means nothing to me the information from that contract means nothing to me I'm just focused on the old contract now. I'm worried about the new contract So the overnight high last night that matters Right That's important to me 51 96 The high today, uh, which is our current daily high 51 82 75. That's important to me But anything prior to that from from last week doesn't matter Sevma reach has that last high on the daily was a little telling red candle couldn't reach the top of the channel Let's see what happens at the bottom of the channel. What are your channel levels? Sheena says what's the difference between market profile volume profile tpo chart and footprint? um, so Volume profile and tpo charts combined. That's market profile. It's just Different words for the same thing And footprint chart is very similar. Uh, it just doesn't it just shows you basically volume profile But you can create you can you know create it any way you want um So if you look here, you could see on my book map chart These little bars right here. Actually, you can hardly see them So now you can see those bars. So the way i'm choosing to to organize that Information is based on volume, right? And I want each bar. So each one of these that you see To represent 20 000 contracts Okay, so when so we just finished 20 000 contracts now they've created the new bar here, right? So you just have complete control with footprint as to how you want to organize that data Do you want to use ranges? Do you want to use? Uh time intervals. Do you want to use reversals? And and you can get really specific about how you organize that information and you just figure out what works best for you Right the way volume profile works is it just blatantly shows you where the volume traded So it's just each level along the vertical horizon wherever Um The market traded that amount of volume. It just shows you that exact amount of volume So they're all kind of showing you the same information. It just lets you organize it slightly differently in the end For those of you that are curious my opinion on it There is no one right tool to use And i'm not just saying this because i'm on the book map channel right now But literally book map is the only thing i've seen that is completely unique And that's the heat map feature right being able to see where the liquidity was Where the orders that didn't trade Being able to see where that is on the chart is extremely valuable But book maps the only one i've ever seen that is unique in that way Every other charting tool that exists on planet earth is just organizing the same information In different ways right where does the market go price? How much time does it spend there? Time and how much volume does it bring in volume? So if you look at you know, uh a tpo chart Or a market profile chart it's showing us the volume on individual levels, right? Where did that volume trade? It's showing us the time We have it set in 30 minute candles, but it compresses it so that we can clearly see where the market spends the most time right whereas If you look at a candlestick chart, it's the exact same information Right, it's just displayed differently On the candlestick chart, we can see where price went the the candle high and the candle low Right, we can see where the opening and closing was based on the Um, you know the the stick part not the wick We can see how much volume traded But we can only see how much volume traded in that time period not at that particular level And we can of course change the time period to any amount we want we can do 30 minute candles But we can't compress them on top of each other to very easily see So it's every Charting thing that exists out there is just showing you the same information Price time and volume in different ways Your job as a trader Is to figure out which one works best for your brain Which one when you look at it it makes the most sense to you There are traders that use nothing but naked candlesticks and literally nothing else and they make tons of money There are traders that have 50 000 different things on top of this They got bulger bands and they got rsi and they got mac d and they got You know the v-wap and they got moving out and they got all this stuff built on top and they make a lot of money Right and there are people that trade with nothing but market profile and make a lot of money So It's not the tools that matter. It's how good you get at using those tools So when you're trying to figure out what you want to use in your trading Looking for resistance right now at 51 66 When you're trying to figure out what tools you want to use in your trading just see what works best for you What does your brain look at and understand what it's seen? And then once you've figured that out Just become an expert at that thing And just spend years and years staring at that chart every day the same way and become an expert at it This is the way Okay, so very important here The market needs to turn either the overnight low where we currently are at 66 or the halfback Which is just above us at about 70 It needs to turn one of those two into resistance If not That was the move for the moment and we're likely to pull back up and go sideways for a while So the sellers need to smack the market down Right, yeah Right here right now right here right now All right, we have resistance The bears remain in control So once again talking about the uh m contract I see some support Literally right below the low So in this node right here I would say anything above 53 Look for a move back up to test that overnight low again If the market gets below 53 You're looking for a larger pullback down towards yesterday's point of control Which is down at 51 36 So either they bounce here Or they take the market lower Um As far as beyond 36 goes we just have to wait and see My guess is it probably wouldn't go much further than that It would probably reverse there and we'd go sideways but Anything's possible. So we'd have to take it one take at a time I would say as of now the bears are in control So as long as they can continue to stay in control There's no end to how far down they could push it Time wise in about five minutes We're going to print another tpo If you're looking at candlesticks just you know another 30 minute candlestick From that point from the point that we print the c-period We have to stay below the b-period high to keep that momentum going Okay, and if they take the c-period lower and then we print the d It's the same thing and so on and so forth And we will just monitor for continuation to the downside With that I'm going to say goodbye to the book map. Thank you all kindly for joining me appreciate you If you like what you see you might consider joining the the pirate traders brigade Just head on over to pirate traders dot i o slash join It's 10 bucks a month and we hang out and talk about the markets all day every day Or at least for the first hour every day So we'd love to have you there. If not, we'll see you here next monday Thank you very much members of the brigade give me five minutes to make some coffee and then i'll be live All right. See you guys in a bit. Thanks a lot