 Good morning traders and welcome to the book map live trading webinar. This is Bruce at book map and What we're going to go through is live analysis forward-looking analysis here Tomorrow we'll have J traders stocks trader Wednesdays every Wednesday 10 a.m. East Coast time and we'll go through the tomorrow We'll have J traders stocks trader We'll go through live trading He'll take some positions. It is in demo paper trading mode just so you know So for any sort of compliance reasons And it is to learn about how to peek over the shoulder of a professional trader and how they're using Order flow and reading it for their specific ways of trading. We have scoppel senior futures trader on Thursday doing the same thing All right, so that's our agenda for the week and then I'll be back on Friday To to go through that General disclosure would just go through these quickly and then we're going to jump right into the S&P e-mini or whatever it is you guys want to look at all right So general disclosure all book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor trade recommendations risk disclosure trading futures equities and digital currencies involves substantial risk of loss and is not Suitable for all investors past performance is not necessarily indicative of future results So let me know if you have any questions in here put them in the in the questions We're just going to jump right in here And look at some of the order flow and I also need to go through a few different things And in the bigger picture here. It's quite important that we go through that so We usually just jump in and read the order flow immediately and then get to the bigger picture So what let's let's do that And this is what we're looking at. It's pretty topsy-turvy as you can see Move down in the overnight. We see Some demand down in these areas. They are pulling away from the market though this liquidity down here Before 7 a.m. And then it looks like we found some buyers in here Just after around well around 7 30 or so you can see the buyers start to come in and move price up and through a swing here previous swing right here and Move down swing move down again And we also have V-wap here as well. We're looking at V-wap yesterday And saw some really nice things off of the V-wap And then we see the buyers come in and rather relentless buying back up and they break the swing here And then really right now. It's just a cluster. It's a mess here We see the 930 cash open here high liquidity in the book in these areas here trades into it Looks like trades through it. It looks like they come back in again here at 41 50 Looks like they transacted yet again in here. We see these large transactions at these areas of high liquidity And still more selling pressure They come in and and we see more sellers down at these lower areas here Below the figure hey 41 45 or 42 and a half here to 40 And then we see the buyers coming in yet again And now we have broken the swing high here And let's take a look at these buyers here. This looks great. I don't see a lot of icebergs I'm looking for them to trade up to 68 and 70 here All right, just the knee-jerk reaction read of the order flow here and You know from what we see in here what we're looking at is what we're finding buyers the bid the bid is okay It's not bad and here come the buyers. Okay. We're almost up at our first level here and and still looking for 41 70 though And we see just look at this kind of shelf here and Buyers back again here as some buying some selling. Okay, it's really kind of back and forth here starts to show a little bit different hand We're starting to see more buyers up here. They trade into this high liquidity here More buyers yet again more buyers yet again Okay, we're making slightly higher highs or equal highs here And then in here Well, we see some sellers in here some sellers in here not a whole lot in here And then and then our buyers here, so we got our breakout and now we can see that it's immediately being tested by the by the sellers And we're it's really all over the place here. They they they broke down below this area here But now we're back above it looking for buyers to pound it higher into 70 here. Let's see if they can do it That would be the primary scenario. Here's why Sellers down here Sellers down here. We're already above them We're already back to where there were previously buyers up here So we're looking for buyers to try to take control and and move it away from this area here That's not happening as you guys can see now. This is going to be the the battleground right here Okay at this 64 area as you guys can see look it out. We're below it. We're above it. We're below it And we're looking for some follow-through here Okay, let's see if we get our buyers again. The bid looks pretty good. We're getting our buyers Let's see them follow through now The bid is kind of tenuous in here. It's um, you know, they're pulling as well. There's there's our answer but Let's I'm still looking to see if we can get back up here above it at 64 and three quarters here There they are. All right. There's the bid. Let's see. Let's see it More buyers here that want to see them really take control here and they're simply not in fact It's more sellers below it here right now So scenario number two is sellers now taking this back down to 60 and here they go Okay, the order flow just shifted and changed here and it changed right in here And let's see if they are they've already made it down to the swings here Looking for them to take it down to here 60 boy. Here they come And we're gonna see nice stop runs here And let's see if they can get it back to VWAP here more than more than just what they've already done looking for VWAP And then also 41 50 and see if they can get down into that area here So a very quick shift in the order flow right there And we can also look at a trend line in here just looking at some structure here Market structure putting, you know, just some lines on here and starting to understand some of these levels in here Okay, so we can go through this again here and this shift in this change everything looking good for the breakout looking for 70 68 70 we got the 68 here Found sellers immediately and then this was the battleground Hey sellers below it buyers above it sellers below it Some buyers here they could go for it here. It it it failed Sellers below it here retest sellers again looking for the breakdown Okay, and first areas here the first areas were in general And now we we called out 60 Because that's where the liquidity was but we'll go through it here in a quick review And then we called called for VWAP here, but also this 50 area here because that's where the liquidity is We don't really see it around VWAP right now and there's our move move to 50 right there. All right, so Now and why did this play out so quickly like this? Right, there's a lot of people on the hook up here buying Right, you can see a stop run here to the upside And then look at the stop run here and here all right, so We'll see if we get some buyers now After the stop run and maybe a bounce off of 150 back up to 155 here 41 55 that is All right, so yeah, I would let's see if we can get that. I don't see it yet Wow, the bid is or the offer is really showing some some size here Well, it's not a whole lot of size to be honest now it is there's 400 and We found buyers So it looks like it's gonna be that kind of session here. We're gonna be it's gonna be all over the place This is why right here high liquidity on the offer buyers took them on All right, let's mark up that area as well because this is gonna be kind of an important area Right here. Well, it's right at the figure Okay at 41 50 Above it below it boy the look at the offer here really just following it down here So looking for 44 45 here Yeah, it looks like we're not finding any buyers here, so we're down at 45 here Okay, let's see if I can get down to 40. That's really kind of the the key area here is actually 40 Reason being that is the cash low here To test okay down here at 40 and there's liquidity already there Interestingly enough. I thought we'd get our quick move back up into 55 here Nothing shaking there on just a retest bounce off of 50 back up to here And that is VWAP by the way as well or a little bit lower Another thing we have a lot of data coming out this week. So that is Something else to consider Hey, we have FOMC and we have non-farm that those are just the the biggest events And the market is going to be very Reactive to these events and we're seeing some of that reaction slow computer a minute here I close some instruments and I want to take a look at take our bigger step back here And look at the higher time frame Boy that offers really showing up more here. We're not finding buyers. It's repelling buyers So we're still looking for a 40 level down here lows of the cash session to be tested here All right, let me let me kind of circle back here and to see if there's any questions you guys have Okay. All right MC local. Yeah, you're looking at some specific levels there And let me check in YouTube nothing yet Chillin with Dylan. Good morning as well. So we're good there Interesting interesting move. So there is some demand in here Or we're finding some buyers here. Hey, they want to trade into this guy here. There it is There's the transaction. So, you know here here. This is what the market and this is what the order flow is telling us We found buyers Hey, this is undeniable. This is just fact And we're looking now to see what happens after this big transaction. We're getting buyers back up above it if so The next stop is up here around 54 55 our 55 pullback that we were looking for earlier Now you can see that not not really not getting our buyers up above here at least not yet and see if we get them this time circle back and Let's see it buyers. Let's see if you have any juice in here and then looking for a quick quick move actually Back up in 253 to 55 Okay, a little bit of demand here on the bid I'm starting to find those buyers. See you see how the order book gives us some insight in there Boy, and they went right after it actually the sellers. So this is it's gonna be kind of volatile in here Here they go again. They're still bidding though. We're still finding buyers. So I'm still looking for this higher move here Hey, due to the order flow in here And there we go. We're at 54 ish Okay, there's our move 55. All right now that would be the first target that I would be looking for in here due to this large transaction and or Yeah, large transaction as well as this high liquidity in here At at 55. Okay previously. Okay, they pulled but Boy, you can see we went even above that already right back up into 60 and liquidity there or just shy of it and Now we're now we're starting to find some sellers. All right, so it's gonna be yeah pretty topsy-turvy Day today just by what we're reading in the order flow so far and and it's not so much about projection of Areas here in in in general. We're getting a feel for market Participants and activity in the order flow and this is something bookmap excels at Hey, we're reading the what the reaction to specific areas and we're talking about orders We're talking about transactions We're talking about the way that it is relating to these areas. See how see how volatile this is Come back in and now look at them pound it down below This area but back down to where Where this large trans and now it happens to be the figure as well. Okay, but that's where this transaction took place There's gonna be something interesting happening here All right This is why and this is what we're gauging in here and this is something that bookmap like, you know I don't really mention this too often but we've had lots of old floor traders You know come in and start using bookmap and their Reaction was this is the first time that I've ever been able to kind of read the market like I used to on the floor And being able to understand some of these Just the kind of the feel the tone of the market being down on the field the playing field And the tone of the market and we we're reading it right now okay by the size of these transactions the speed of these moves and Starting to understand The traders the players and by the order behavior in here in the transactions All right, are there any questions on that? Like how you know how to start to read the tone in here? Okay, so for example You know, I know that it was Scott Scott Pulsini actually mentions this quite a bit being able to read the Or no he talks about things that this is you know the fact is the transaction took place that is fact Okay, the tone around this is the art part Okay, so What would I say the tone is right now? I say it's all over the place. I Don't see any edge right now Okay, I see with you know, we were looking for this move back up. We got it Look at the structure here and then what's the reaction around this structure? Well, we're kind of tapering off on some volume right now So I'm not really seeing much a commitment It's just bashing around in here and it's right at VWAP for example Okay, and we're pretty close to a high volume node here at 41 50 due to all these transactions, especially this one here In fact, let's see what that looked like beforehand. Yeah, it was still it was still an important area due to these transactions Okay, so See how we we're not look at look at the Like I'm so bad. What would you say? I mean just look at the kind of reading the tone in here now Starting to see a bit of buying here But it's kind of equal to these sellers over here So who's in control right now and is it you can you give a real definite answer? Yeah, yeah, exactly. It's kind of all over the place. It's like well, I could shoot up here Sellers came in and pounded it away from that area as you can see So they can come in again and do that and and due to light volume that Marcus Brutus is saying like, you know, we can anticipate and expect some chop Exactly That's a great comment there Okay, but we know where the supply is. It's up here at 59 or 58 and a half. I Do have a hero we can turn that on and get some insight on that Okay, I have in the sub chart in the cumulative. I also have it on chart Just not showing it And guys, I mean I have we have so many add-on so many indicators like stops and icebergs and I have it in the sub chart I don't have it on chart at the moment when we find good examples We'll go in there and take a look at it and I'll turn them on but we have a Don't want to gum up the order flow chart right now and just stick with this kind of clarity and this tone right now I think this tone is something that we we don't discuss too often But this is such an edge it can offer such an edge by just kind of understanding like You know how traders feel about an area that you can read in the order flow All right, so that is like what Scott says as the art part but Anyway, so here's how I've got this filtered on chart. Maybe we'll use a thousand Okay, so that's why it doesn't show But yeah, we should see it now Okay, and yeah, here's what we saw we saw some buyers coming in and we were like, ah, you know It was right in here and you know, they they did take control here Hey, well, we didn't really know that right and we did notice This is where the supply is up here and the buyers could go after that and they did now Just it didn't look so great and you know, we were anticipating sellers or There was a scenario for sellers to come in and just pound it away from that area Okay, and let's see if they do it here. See you see how this is a trap here See how we've we've covered this several times and it's even yesterday. We talked about the trap And we look for a stop run after the trap to verify it being a trap. Okay, and it would be this volume here Hey, see how Sierra structure works And this is our pivot line right in here at 57 and a half and there's our move back to VWAP already So this is quick moving But we're we just talked about this scenario here about moving right back down and sellers coming right back in like this now When might they do that? Okay, I'm gonna pose that question. When might they do that? to you guys Not to you guys personally, but posing the question to you and look at them Relentless going for the bottom of the of the range again or You know bottom of the session here Fake breakouts is a good answer MC local Change your icon looks like Yeah, okay Or is that is that you know that maybe it's an imposter Elon tusk, okay got it. I have to be careful these days since I was hacked Yeah, just so you guys know a disclaimer now Yeah, I nor anyone at book map or Associated with book map is gonna reach out to you directly asking for passwords or solicit you for sending money for some sort of crazy service with a amazing results or performance Okay, we will not do that So don't fall for it Yeah, I mean look at the volatility just just right around even here And we don't know that this is gonna happen either sellers come in like this I'm looking at it's kind of over under here or under over Again another kind of pivot just like up here now the answer to the question is yeah, the false breakout Is a good one the fake breakout and but You got to think about it, too about think about When and this is gonna be I mean You could build so many strategies out of this knowledge and it's it's really I really You know take a look at it do your studying do you do do diligence and study these kinds of a potential setups here, okay Think about it up here Would if you're a seller or you're a range bound trader or let's say you Are a market even a market maker like you know or you know a stat Arb trader something like this You're gonna wait until it's away from the average and then trade it back to that average Okay, so the opportunity is not really in here to trade it back to the average In fact the opportunity is to try to look for volume trading it away from the average and then get back up in here and then this beautiful trap set here Now see see there see now there and then they trade it back to the average and even below it Let's see them try to move it away again now from the average Okay, let's see if they can do it Looking for buyers to try to stretch it back up to here again 160 no there they're not in fact Back to VWAP Okay, now. Let's see if we get sellers in here looking for large red dots here 52 and a half Because we didn't find buyers Willing to go for 60 at least not yet now here. Here they go All right, so here's what happened now now. Let's watch because here We're looking for another This is where there's an opportunity for those sellers to trade it back to VWAP here. Okay, maybe they'll go one more here to 65 Yep looks like it looks like the buyers are coming in hand over fist So looking for them to take it higher here trading away from VWAP Look at them on the bid here. We're getting our green dots looking for them to trade it higher here Okay, not getting our green dots Still could be this could be a bear trap though or Yeah bear trap Okay, let's see if we get our buyers One more leg just looking for one more leg here up to 65 We might get to 70 if there's enough here. There's enough sellers in here trapped Definitely okay, so Just about at 65 looking for a pretty quick move through 65 I think we can get to 70 on this one. Let's just step back though and take a look That'll be the kind of high of the day here at 70 if we can get up there So it's kind of struggling up here at 65 as you guys can see and and this is where we do our line in earlier It's going to be an important Level here. Okay now think about it if you are You know a mean reversion trader And you have a lot of possibilities today to trade it right back down you can be extremely profitable With this kind of volatility back and forth You can trade it back up you can trade it back down etc And and when we saw this in here, we were looking to see if we got Buyers in here to take it they didn't then we're looking for sellers here for them to take it back down What do we do we bounced off of you what we found our buyers here now? We know now we're looking for 60 and 65 like one leg to up to 65 and Lots of selling up here Still looking for it to stretch higher here, and I want to see a big stop run Okay, anyway, that's primary scenario secondary scenario here What if we get our big red dots down here around 61? Okay, then we're looking for a return back Okay, first stop would be here at 57 and then our second stop would be at VWAP And this kind of high volume node or this this area in here And we could even get down to the other side back down to our 50 level Okay, here's our here's our move guys There's our stop run already into 65 still looking for them to press this higher if they can Boy, they're already right back here And testing it where it broke out from I Still think it's got some juice here to the upside But that was that was a nice little stop run there All right secondary scenario though, and we're looking for it because it might shift here Okay looking for Maybe a skew in the auction on the on the offer more more supply here and then red dots down here and And yeah We're actually still bullish here. Here's why we're still above where it broke out from Right now look at look at the demand come in and then look how you can read the order book in here and the pressures Okay, so they started to show more demand in here and we got the skew in the auction and the reaction was buyers Okay, so we're up at liquidity here at 67 still haven't gotten to 70 Okay, and they actually pulled at 67 Okay, now careful very careful here We're looking for the potential shift in the order flow here and sellers to hit 59 here that we're down below our level or these this area here And we're looking for it so Yeah, you know the looking for those mean reversion sellers to wait until They can kind of get a shift in the order flow and also like it's away further enough That they can get a nice move back down So in here they go, and this is what we're looking for this is the scenario here. We covered secondary scenario We're already here at 59 and we're looking for lower. Hey, we're looking for 56 Hey, and then back down to VWAP maybe to the other side here It's a lot of selling a lot of selling just came in Okay, we have already gotten the pullback here And and what are we getting we're getting buyers above it? Interesting so this is turned into now the new battleground right here Hey Right there where they dropped it down and now they're back up above it here. Okay at this point It could go either way so You know We're looking for this. We're looking for a follow-through in one of these scenarios here And you can see who won and now it's a bit late now on that here's the beat beautiful big stop run We were looking for up into 70 Okay, so here's what happened In the order flow and we were looking for that scenario because this was a lot of selling and And looking for the move back down lower We've got back up above it This line and we see our buyers and even with this buying in here. I'm still not really looking at it at this point Hey, we are back up above it and they got these guys on the hook here, and then there's the stop run It's really where they picked it up in here Where we're looking for the continuation Back up into this liquidity here at 68 and then 70 All right, so it was kind of tricky, but you'll see this move again and again and again Get the trap set set the trap and look for the stop run on the other side Okay volume at the extremes like this Okay, now Let's see if we get our mean reversion traders in here They just made higher highs for the day And let's see if we can Wins wins an opportunity for them Hey, well when there's a lack of buying in here, they'll take command We start to maybe see structural change first And then we're looking for that potential move back down into 54 Okay. All right, so you're looking for the overnight low Overnight high. I'm sorry MC local. Yeah, and just a note on Again, some of these that some of the terminology Why is it important? Because that's all of yesterday's action Okay, that was the range yesterday And we need to it's just like any other range it's fractal in that in that regard Okay, and just like this range in here. This was a previous high here There's a breakout above it. Look where it pulled back to Top of the range here and continued on Okay, now, let's see if these sellers come in and are relentless to trade it right back down to 65 and then maybe back down to 60 maybe down to 54 VWAP here Hey, we're looking for that scenario here. And when is it opportunity for them to come in? The hero indicator is h i r o it means hedge impact in real-time options Okay, here come the sellers. Let's see if they can really move this now and just pound it back down to 65 Okay, just about there already And I want to see them pound it through this this our line here See if they can do that And we look we'd be looking for an order flow shift in here Here they come leg one now looking for leg two. There it is. Okay, they at least they traded it back down here Now let's see if we can trade through it though Not really seen an appetite for that selling yet. All right. Let's see if they come in right here at 66 And let's see if we get the offer here to show some size. Maybe they pull at 63 There we go Looking for them to pound it down to 63 and maybe 60 here Okay, pretty critical line here as you can see the breakout the structure All right, sellers. Let's see what you got. Let's see if you can do it or is it going to be a false breakdown here I'm looking for them to take it down to 60. Okay. It's not a trade recommendation It's just reading the order flow. Okay, we got a little insight here We found some buyers here. See how see how we can we can gauge the testing of the market here We're still below it on sell side. So looking for them to take it lower still That s&p is moving really nicely here We've we've seen some some nice moves here and you know, these are like 10-point moves So and pretty pretty quickly so it's some nice volatility for sure I love it when the s&p is like this And when it's not it is really enduring the rotations are just so enduring and Yeah, it's like watching paint dry. I Can't imagine bonds but you got some bonds traders in here one thing about bonds boy. You can get your size on that's for sure Large large players trading the bonds in here. All right sellers. Let's see you try to pound it yet again Looking for it seeing some buying in here, but boy, they're gonna be on the hook if we get and look for a stop run to the downside here Just looking for some sellers at 61 There they are. Let's see if they can push it through There's 60. Wow. Okay. Let's check out 60 hasn't quite traded yet has not traded yet But look at there's some icebergs in front of it absorbing Interesting this good. This might be a really important level here. Look at look at now. They're defending it here 135 contracts. I think we're still gonna trade it and Looking for them to kind of pound through it here, but we do see see the icebergs coming in Let's let's turn our icebergs on chart. Do you use the automatic threshold? There we go All right, so there there is our icebergs. There's our answer. There's the move It was 1480 icebergs and they canceled too. Look at that. Interesting. So they have more They're just gonna cancel and look for a different level Looks like Beautiful stuff. God Amazing amazing stuff amazing transparency That's just amazing to me. This iceberg had been in here since back here. In fact This player here Started to transact back here Around 1037 and 30 seconds then pulled it added it lower here And then stayed in the book here and then ended up cancelling after getting filled for almost 1500 contracts here And look how he's getting filled here. This you'll see this trick again and again And it makes really good sense. I think it's very intelligent They're getting filled in front of high liquidity so This is front-running and they might even be front-running their own liquidity They're definitely front-running somebody's And they got filled and not entirely too, which also gives a little bit of insight there All right, so what we talked about this they pounded it through They didn't really pound it through but we're looking for the VWAP 55 now it's at 55 was at 54 Do you guys have any questions on that like, you know, how to understand like when this environment that we're in here? Is this really back and forth and we're seeing these these pretty big swings and able to understand when it might be an opportunity to trade it back to the mean and Here it is and we talked about this one as well. They can come back down to 50 here And they've already gotten it to the mean All right, so we're gonna get some some profit-taking most likely here. We'll probably get a bounce back to 60 I don't know. We'll see we'll see we're looking for our stop run. We got one or a couple in here. They're not that big. I Should say I should take that back. They're pretty big Well, let's just turn it on on chart instead of try to do the math, okay? Yeah, 293 and 267 Not the not the biggest but not bad Not bad No questions on that. No questions to win when to start to understand when there might be an order flow shift When other traders might want to engage to trade it back to the mean Okay, we're talking about sentiment here. We're not talking about technicals here necessarily. We're talking about order flow and opportunities And then we're look we're in anticipating that behavior from traders And then looking for that behavior to unfold Alan I can't agree with you more like looking at well at the notes or the bonds That really good to show Auction market theory and understanding How that works, I totally agree with you because it's so slow moving And and really understand Because it's only moving a few a few ticks or so Yeah, no, I totally agree with you. Yeah, it's a great. That's a great suggestion Okay, because what we can't I mean we can zoom in here and we can look at this and read, you know And and think okay. Well some buyers higher highs. All right. Let's see if they can reach 55 You know that they're they're on the move here. They're they're transacting up here So, you know look for it. But then, you know, we're it's moving and it's just volatile in here So now we're back down to the low and finding sellers. We're gonna look for them to trade it down to 50 Okay, so this this is kind of like the trap that we just talked about on much higher time Well, not much higher but higher time frame and then here's the move to 50 Right. We they had the opportunity here to move it back up. This is where the sellers came in They already auctioned here earlier. We're looking for the move down Okay, we got it and then some All right, and then that what we just went through very quickly we went through up here as well And on this higher time frame And we can do that on the monthly Chart or a daily chart. In fact, I want to show you guys the We haven't even gotten to a higher time frame. I just kind of went on a rant here We're back down at 41 50 Okay, well that was a 20-point move So nice nice movements here really nice moves. All right Back down to these areas here 41 50 I Don't I don't really see anything now. I'm starting to see some buyers come in but likely just kind of hacking around in here between The low here on this swing And back up to you know, 53 or so so 48 to 53 Or maybe 55 EWAP We'll see if there's enough sellers back down here Then we're going to read we're looking to revisit the lows here. Okay 45 and then 40 Okay, back to 40 again Okay, which is the low the cash cash session Yeah, it looks like sellers are going to go for it. Okay, so they still have some juice in here It looks like so looking for them to take it back down to First stop here 45 liquidity and then 40. All right, no questions on this no no questions on the understanding like These areas it's really the same thing that we're looking for when is it an opportunity? Well here trap volume trap volume Back up into these areas in here and here's where they started to move it Away they couldn't get back up into 75 And then we're looking for that continuation here Okay, let me I'm going to take the hero off here One in just one insight on the hero indicator. These are pretty large transactions here From options real-time options 3k another 3k here and they are buying so the hedge impact is to buy Futures, so you'd be looking for the move higher, right? Now one of the things like When you're up at highs already and you start to see this be Be careful look in fact look for it to go maybe the opposite direction When you get maybe something that's going the to the downside up here, that's can be insightful This is something to boy you really take that as a grain of salt This is something to consider and to study and to take a look at But we're not you know looking for This to give insight to the upside at this point up here at highs Hey, if this was You know negative 3k or you know red then we'd be looking that might give us some insight back down in here Anyway All right. Well, so yeah, let's let's take a step back Let's take a look at our bigger picture here, and I'm gonna have to go beyond the rhythmic Our trader pro charts here because we're in new ranges here Hey, we were looking at the daily here in the recent action over, you know, like what is this? Three-month look back We're beyond that now, so we got to look back further We spiked yesterday below this swing here at What is it 41? 100 basically And then back up in the range here. Okay, nice little squeeze back up into the range here end of the day Guys and then look at how they just kind of tapped above the swing high here today From from yesterday's Hi, this was around 41 65 Okay, so we just saw that now Right, and this is Getting back to someone else Okay, Doug Doug I need to reach out to you later today I'm sorry about that That's my fault Anyway, Doug's saying that traders are selling calls and puts in SPY Doug enlighten us And Doug's got some great strategies with options And he's using the hero indicator and he's looking at SPY He's looking at the cues as well ETFs combined with the E-mini products All right Okay, so anyway Let's go beyond this this chart for a moment here and let's get into This one here and this is just the S&P futures Over it's a day. It's a daily chart. All right, and just looking at kind of the bigger bigger picture here Maybe it's better to go to a weekly But this is the recent action that we were just looking at okay over Three months was it? Yeah Yeah, okay, so this is as far as we got here. All right, and and what I was just showing And you can see we spiked down below it. Where is the next area? Okay, where would you guys look? For the next area okay once it starts to break into through some of these areas in here Okay, where would you look? What do you think? 4,000 okay going with the big figure Yeah No, and we're talking about order flow here. We're not talking about I mean it might be the bigger figure, but No, we're talking about the kind of a clue here is market structure Yeah, I'm not sure if I'm explaining it right MC loco, but I'm looking I mean where do we look for areas in here for it to test for example We're just gonna take that and and Expand that to the higher time frame Right, so we were talking up in here if we can get sellers back down through here. There's it's pretty You know easy for them to cut back down to the lows here. We mentioned that several weeks ago Okay, so and we'd be looking for it down to here So now if this is the as far back as we can go where might we think it might go the next next area? That's the question All right, so I'm getting a lot of 41 40s 42 plus 43 kind of there's a lot of answers in here We're looking for these other wicks down in here Okay, where where buyers came in previously And it's here, you know, there's one here and there's several a few days in here, let's just zoom into that area Okay, so there's a few days of activity here on the daily right in here All right, so here's one two and three three days. So it's a zone But somewhere around in here and let's put in a horizontal line here Somewhere around in there, right? So that would be yeah 40 40 basically So I don't know if anyone put that in I don't see 40 40. Let's check out our YouTube No All right, so now let's zoom out and we can we can raise this a little higher here You know, I mean we're looking You saw what we did. Okay, and why we put it down here Okay, right here, right? There's another one right here. All right, if we just move that up Okay, and then let's let's go back and take a look now. So it's a zone All right, and you'll see That's what we tagged yesterday. Okay, right to it All right, so and and we're looking at these areas here because that's where We saw there was a move to the downside and a move back up Hey now the move back up here Nice, you know nice kind of grinding move definitely bullish There's no question about that, but look at the way that is grinding higher Okay, so it's not like these big green candles moving away from an area It's kind of like inching higher engine higher engine higher and then boom pullback Pretty deep pullback and then it comes back up and breaks out here Here's your you know kind of a structural break and and now buyers above it and then inches higher and then boom pullback Okay, so, you know, it's not too convincing this this kind of move here It's kind of nervous Bullish action basically and you know, we're looking for an understanding the buyers down in here and them and they're them moving it away okay, so Kind of understanding this order flow or this behavior in the candlesticks just by looking at the size of the candles in here Okay, this one is better like this is where it breaks out in here or here some of these swings Because we know they're buyers down here and we know that there was a nice move away from that area So that's where we look for Pullbacks or tests for the downside when the sellers come in and we're looking for it That's where we want to go and you can see This one it blaze through it in here And there was actually in the daily like there's there's a big candle that had a wick here So it did it did pull back here and then it then it went through it And it came back up and look where it retested here this swing not these swing so much Hey, but this swing up here Tapt it above here Hey, here's your false breakout And then you move back down Hey now, I know that's just really in general here the same concepts though You know we can see in the order flow and you're gonna see in the order flow Okay, by looking at and covering it in book map. This is a nice one here. I like this one better Because there's some pretty strong buying off of that and then they they really kind of moved it here Here it went back and forth for a while before it moved Okay, so I like this one here better and we got some really nice action off of that one in here Okay, we see the move down below it, but it came shot back right back up And then back down and then you can see we were all over this last Some months ago Okay, and then all over it on the on the way back down here as well so a little bit tricky on some some days in here for sure There's one in particular I recall The order flows just didn't look very good and yet they just kept on it just kept on dropping Anyway, point is you know starting to understand some of these areas in here previous activity And then looking for Tests into those areas here And see how the market reacts to those areas in here same idea as In any of these areas here Okay, that we're looking at on smaller time frames. Here's a here. We're back to VWAP and above it Okay, so this this has obviously been an important level here today And here's look at look at the breakout above it here You know we we've been covering higher time frame when we miss this here Okay, but we can see that the breakout above it stop run as well and They have been buying off of it and here they are again. Look at that relentless Okay, so you can see the shift Now that was hard to see that they just came in and started buying handover fist And we're gonna see some stop runs in that for sure and they're still buying Right. Well, let's let's watch this here because like we have the potential again for They're moving it away, so still I'm still looking for it to come up to 65 It's pretty pretty nice strong buying here And but we may see like that dry up and we may see the sellers and they're gonna move it right back down to 55 And now how much were they're gonna get out of that though five points? You know, it's not much of an opportunity. Maybe 50, you know, you can get it through and push it down through VWAP Down to 50. It's a little bit better. Okay, that would be kind of the bottom of our line here And we see liquidity down there as well Yeah Cyprian you're so you're you are you were saying the 42 20. Okay, our 40 20 Yeah, I mean Yeah, you know and and because of a gap Yeah Is it clear my answer and what? You know to consider Looking for understanding and order flow on the higher timeframes Because what I want to get at here is is understanding what gap the gap means in Terms of concept and and also in terms of order flow Just because it gapped and we read about gaps in books and I and I don't mean to beat up on you at all That is not my intent and No offense at all I want to just get at concepts of order flow and what the meaning is of some of these things Okay, a gap means that Basically, there was strong buying or selling away from a previous area that it when it when the market opened up There was a huge gap It already had moved basically or buyers and sellers are already thought of something different Then a previous range and it gapped and it usually gaps and goes And then you'd be looking for the gap to fill later because it didn't auction quite properly but It depends if it's a gap to the upside and you see more buying pressure look out. They're gonna go higher All right, and then then you'd look for sellers later to trade it back down to that gap and have it auction there All right, so just just kind just understanding what the concept is Okay, and instead of just going. Oh, it's a you know value value area high value area low It's a low volume node. Well, what does it mean? and And then taking it from there Okay, and what does a gap mean? Well, it just means like let's say let's suppose there's a gap in here Let's let's just go through a scenario here Okay, so let's suppose this is a gap and that price Came out and opened up here. Okay above 62 or 61 whatever it is here. All right, so now Did they gap and go? No, I'd be looking it's already partially filled here Okay, well, all right Well, then if if if they're not gonna buy in I'm looking for them to trade it right back down to the gap here And it is exactly the same concept here. This is where buyers took it and immediately moved it away All right, so this would be the fill down here All right, and this would be the kind of we talked about these kind of pivot points in here And now we're getting a double top. They're retesting it back up here to see if there's any more buying pressure up here Is there? Yeah, a little bit. Yeah. Yeah, there are. All right, so this this still has the potential to run Back up into 67 and 70 maybe our 75 And now we just need to read the order flow up here. Did we get our buyers? No Right. Did we make a higher high? Yeah, slightly slightly Okay, that's not bad. How many buyers did we get up here a little bit? Are they trapped? Not really? Okay, so yeah, I'm actually Kind of curious to see I don't think it's high probability But yeah that we get this this breakout here and there we go All right. Now this could be trapped volume And we need to be careful here, okay, and is this an opportunity now for sellers? Not yet. They're not really stepping in so we're still going higher Okay, nice nice trap set here now We'd be looking for Like we can go through that same concept again here on a gap. This is where it kind of gapped and and went So and it's here that we want to look at right here 64 Okay, so Now let's see if we get Does the buying start to wane up here? No, it's still auctioning still going higher still going higher. There's 70 looking for 75 This could be a nice. There's gonna be that's gonna be a nice stop run It is all right So now we got another level to take a look at here for sellers to take control below it That would be here Okay, great opportunity for the sellers to trade it back to VWAP if they can And now we have made a Lower high here as well Compared to previously Seeing see the sellers testing this area here. Let's see if we get them here if we do I'm looking for a quick Move to 65 We're getting our answer here They're coming in with more demand here and we're finding buyers See how the buyers came in here Hey on the bid and we found aggressive buyers Reaction to this liquidity in here and now we found some sellers Looking for them to trade it right back down to 68 and this is turning to a battleground here buyers and sellers All right sellers. Let's see what you got. You got these guys on the hook as well Let's I'm looking to see if these sellers come in and trade it right back down to 70 here There they go. They at least took see how they took them on here At 72 and a half so we know we found some sellers here And we still still going higher still going higher. Wow. All right. Let's let's take a step back here and look at the bigger picture, so we are breaking out and Wants to go to 80 here and that liquidity up here What about the figure? 4200 yeah, let's take a look here as well higher time frame our hourly chart here We're up at this important level. We had to mark this up the other day at 80 And we're way up here at 80 right now 82 Yeah, I don't know what I think of it yet up here You know pretty we look at the I mean these candles in here like these strong moves strong momentum But we're up at a level here Yeah, I would look for a quick pullback to probably the top of these ranges in here somewhere between 75 and 73 But we're just seeing buyers and buyers and buyers There's some selling in here. So what do we say? 73 or so somewhere around in here 75 to 73. Let's take a look. There's some at 70 here on the on the bid The large transaction in the breakout took here at 70 took place here at 75 Okay, so now now we're getting some exhaustion here Looking for these sellers to come in and try to pound it now back down to first 79 Okay, and then yeah, I like this area here at 75 Now they have an opportunity here. This has been a nice move to the upside. Let's see them commit There they go Okay, see them pound it move it away quickly That's how you do it Let's see if they can continue one. We've moved it away. We've trapped this area Here. Let's see if we get more here. So we already traded to 79 looking for our 75 level down here Hey more liquidity coming in at 77, but we really like 70 75 Look at this. It's just this wicked stuff You know It's just wicked stuff. Look at this offer come in like this And we kind of I mean You know, we anticipated some of this like the offer to be lowered here But this is just this is just being a bully here This is a larger player is the same player that did it is has enough liquidity to do it on two different price levels here 500 so a thousand contracts basically to skew the auction here and show a ton of supply here On two different price levels. So, you know, they've got enough to you know show a Lot of supply and we saw sellers moving in a way We've already traded our 75 that was the target and I'm surprised to see buyers interested to trade it back toward this liquidity here very surprised Here they go nonetheless See if this guy has would test his metal here if he's gonna stay in the book or not We're gonna see a battle here between 80 and 81 Yep buyers did take them on at 80. There they go And let's see if they take them on at 81. Oh, okay, David You're talking about how to get the the volume dots here a solid color. Yeah All right, so there's a couple different ways to get there One is you can right click on them here and go to volume dot settings That's pretty quick and easy way. Another way is to click on studies configuration up here Let's do that and then click on volume dots here And then you have it on total volume right now. So it shows the pie display Okay, as you can see the pie display here that has buying and selling in but it's it's total volume here It's not total volume. It's volume Delta So you're looking at by minus cell All right, so click on that And I think if you know you have 70 7.3, okay, you got it or above. I might I think it might be in 7.2 as well Carol did I Answer your question about the small red dots. I hope oh No, I didn't um what small red dots where these ones in here. These are sellers aggressive sellers So these are market sell orders hitting the bid taking price lower Okay, green dots are market buy orders with numbers Here yeah, these are stop runs. This is a stop run. Okay And the the beauty on this indicator of the stops and icebergs We know exactly when it took place and where It it the stop run actually took place here, it's only one price level Okay, it didn't sweep the order book Lower or anything like that. It wasn't like a stop run It was just stops at one level here Okay retested 75 and we're back and forth in here Whoa, look at that buyers up and through 80 here now See see how we're getting a feel though for this auction in here We were looking for the sellers to push it through right down to 75 But look at this Look out set look out this this area here became the battlefield right here and it's due to this activity here Right. This is how you can start to read and understand order flow Okay, now look at the buyers back up above that area this pivot We were talking about these pivots looking for pullbacks to these areas in here and none of them unfolded It was here. It's up here and and You know, we already knew this is going to be kind of volatile section session due to the back and forth that we saw And and this is showing that as well. They're still doing that you know, it's You know buyers above it sellers below it This kind of selling in here Someone had talked about how do you know it's profit-taking? Okay, this looks or at least by price structure in here This looks like profit-taking on this up on the on the buy side. Okay, so these these sell dots in here It doesn't look like New selling coming in now it might be wrong on that Because there's some pretty good selling in here the size is not bad Right. So, you know, it might be positioning But in general just because of the structure not let's suppose these were smaller dots in here And let's suppose these dots green or the green dots in here were bigger This would be a beautiful example of some profit-taking Okay Buyers moving away. They're moving the market profit-taking slow dribble kind of back down And then looking for buyers to come in again and take this higher Okay, now we know what happened already so there's this seller that that we've seen these actions to kind of move away very very quickly And this is a larger player You know coming in and just moving price very very quickly And we do have a stop run in here as well but Not much it didn't even make it on our radar here for stops which is Just a threshold of 27 I couldn't even do it Okay, so it didn't make it so then then we would Assume this is a larger player quickly moving the market and shifting it away from the top And now we've seen that behavior multiple times in this session here and look what they were able to do kind of trap Buyers up in these areas and and look at the see the move through our Level here our battleground level See where the sellers came in look where they pounded it down to Okay down to this area here 75 back to 75 Now we're getting a pullback to that battleground So this let's draw in the horse or yeah horizontal line here and buyers buyers are above it buyers back up above it All right, well, let's see if they're gonna tangle with this where this seller came in Which is kind of highs of the day here Yeah, they're gonna go for it They're gonna it's gonna we're gonna see another battle probably up in this area here around 86 87 AJ nice. Thank you. I really appreciate You appreciate what we're doing over here Yeah, you know the The education that book map is very very different than your kind of typical education Since we're talking about really From we're taking Market activity at the at a very basic low level here or binary level I should say and Understanding like what makes the market move and that is part one of our the market mechanics as part one of our education Okay, look for book map education on YouTube and you'll see And understanding like you know back and forth and then see how the buyers moved it away Okay, what is the order book telling us? Well, they're pulling up here. You see that Hey, they're adding up here Or down here on the bid All right, so let's see if they can move it to 81 and a quarter and 82 maybe 83 More buying. Okay, great. We already made target one or area one Okay, they're still doing it is still pulling not as not as decisive in here now Hey, I'm not seeing buyers here. I'm seeing sellers here. Well, maybe they'll retest back To this area here where they broke out from Okay, no the auction down here. I Still don't see buyers up here at 81 and a half Hey, I see some at 81 and a quarter and I see some down at 80 81 Okay, here's a little bit of buying but immediately selling more selling here All right. Yeah, I'd be looking for a move back down into into like 80 and a quarter more selling There we go Okay, same principles Okay, and look at the order book shift in here now, too Okay, now the order book shift Coincides here is actually the selling came in a little bit before but then just reaction to this liquidity in here Right, if there's enough sellers and they're pulling down here, then we'd be looking for even potentially lower You know, maybe 79 and a half maybe 79 Well more more liquidity here. What's the reaction? What's the reaction of traders? Oh, look at that more here sellers Okay, back down to 79 and three quarters and then we got a shift here Okay, buyers came in moved it higher This was you know, and this kind of happened out of the blue and we've seen that a bunch of times today and it kind of You know kind of wicked They came in buying through orders underneath here 261 And upended all those sellers looking for that lower Area to trade Okay, so there you go. There's a microcosm Understanding now what we're talking about in here though. So we're talking about Understanding market mechanics and what really makes the market move in here and then Looking at that for all time frames Okay, as well as candlesticks right So we were looking on you know and going through a scenario on the higher time frame here of looking for a move back to 73 or 75 here That is already unfolded and Look at there's still buying pressure above it now So interesting stuff Okay, so are we going to continue to find buyers if we do where might they go? Well, we'd be looking at market structure in this case because that's all we have on the candlesticks is market structure We do have volume in the sub chart, but we don't know where it traded on the candlestick so Mostly we're looking at market structure and you know, maybe around someone had mentioned 4200 that's right here and there is some market structure there Maybe that's where we're headed Hey, or maybe you can get up a little bit higher and into maybe 4210 Okay, these levels in here. I'm kind of squinting at the market structure in here on the hourly All right, but we're also open to this being Potential false breakout and a move back in and then a move back down into some of these other lower wicks down here on the 15-minute chart All right. Okay guys Let me let me get two questions in here in YouTube since I'm on that page and I don't mean to ignore you and discord there Just a moment Yeah, the thinkorswim version of bookmap is more basic That's that's true Vicki Yeah, if you want, you know All the the all these different add-ons and additional features you will need to get the bookmap Desktop version yeah, AJ nice nice. Thank you for that comment The way that we simplify the order or starting to understand supply and demand in here And it's really a tricky one for a lot of traders even veteran traders because they've never really seen it before They've never had access to it so they might have been studying for years just volume and structure Or an indicator And throwing an indicator in there But really understanding what makes the market move. Well, here it is right in front of us. Look at that shift Why did why all of a sudden did you get stopped out or why all of a sudden did this market like, you know Bolster higher here. It's because of this This is what was the root cause and Let's see look we see and we've been seeing this The sellers took them on they traded into them here Didn't trade through them here, right? Totally absorbed. This is the The technical definition of absorption right here They could not trade through this demand down here at 80 and a half Okay, so hi high liquidity in here Sellers came in hit the bid Let's see how much traded here 52 contracts in here But there's still 200 more in the order book. They can't trade through it Totally absorbed all the selling pressure in here. Sellers tried again here and here. No one's interested No one's interested now. We're getting buyers back up here And let's see them push it back up into maybe 82 There you go right, so understanding these concepts in here, this is if you don't have that understanding of The the order book and the supply and the demand in here and this is what it looks like You don't know What happened here? Why wasn't able price able to go lower? You know starting to understand these areas in here And with just volume and structure which is is really good volume and structure is very good But this this adds another dimension here of insight All right, so I think I've gotten through all of the questions in YouTube. Let me see here and A jump back to and let's go back to current price here and see where where are we here? All right. Yeah. All right looking for these sellers in here See how they're coming in at 80 88 87 looking for them to drop it again down to 83 You know drop it down to these lower areas here where there's liquidity where there is demand Pulling away from this at this battleground here at 88 Hey, same same concept again Right up here back down into here Bottom of the range liquidity down here. Okay pull back already This is where we got to be careful Okay, so pull back already, but it's on lower volume a lot lower volume Okay, even though there's lower volume. What if we get buyers back up above 88 then look out You know, we're coming back up to point of control and other side of the range up here We'd be looking for that scenario Instead we're looking to see what primary scenario is sellers moved it We're looking for them to support that move And come in and and sell hand or fist again and and get it back down to some of these lower levels here That's the primary scenario. Let's see I Sturman you can watch this all day. Yeah, I know I know it's it's nice It's it's it's really nice when that, you know, the the markets Have some interesting stuff going on in it. It's fascinating Yeah, there's our move guys. So that was what the primary scenario. Okay back down to this 80 well 84 basically is what it is. We said 83, but it's it's We zoom in here. It's 84 Okay, it went a little bit lower the three and a half it looks like okay, I'm way behind my god. Sorry guys, um Sam Pan this this is the the These are the sessions here you're in the right area for for um, oh Okay, no, you're you're from Doug Doug P. You're talking about Value areas Yeah, thanks Doug for the updates Leo trader love it. Love your high time Higher time frame levels here overnight high taken out see if we get back into yesterday's range perfect So you look at the buyers trying to pull it back right pull it back away here And let's see if they can get back up to the critical value area or out area here 88 And now through it back to 89 and a half And let's see it that are is there enough buying pressure here Looking for it. Okay. Now can they if they can do that can they get through the high volume node here at 89 and a half? not yet and Look at the volume up here on the buy side And we haven't gotten I mean they we still might come revisit it And then we'd be looking if we get our buyers up here at 89 we'd be looking for the move to 92 All right buyers. Let's see it. Let's see it. There's look at the here's some supply Or some demand here on the bid there. They are okay. They're trying they're really they're trying and look at the battle Okay, so sellers buyers come right back again I'm pulling for the buyers here looking for 91 and 92 here I don't I don't have much of an insight on it to be honest. I'm pulling for them, but I don't really see much here It's not that decisive here Okay, we'll see if it gets decisive now. Let's see if we see some selling came came in here All right, if we get buyers back up above 89 and a half here, I'm looking for a quick move to 92 Yeah, let's see it. Let's see it quick move to 92 cannot Sellers it's a battle Look at look at that. We've been seeing this kind of activity again and again and again Right, so we're right battling at this small point of control of this range up here This is this is a great battle. Actually. I like it Hey buyers back up. All right quick move 92. We should get the quick move here The one caveat is this player in here who I don't know if he's capitulating or not yet Not yet. I mean like we see it here and here quick quick selling so You know, does he give up? Yeah, he didn't he didn't come in again He'll he'll come in probably higher here, but you can see our move to 92 now that didn't unfold quickly And I think it's because of this guy here Came in so here's our move to 92 here. Oh Yeah, MC local. I mean if there's some headline news in here Then yeah, that's something to look out for all right. Look at this 28k on hero 28k That's a huge huge options purchase in here or futures purchase in here is what his hero is saying And they're the hedge impact now is on the sell side Okay, now we're not seeing it yet, but this is not a signal. It's just insight Okay, this is huge. There's another one here right, but the order flow regardless of what this says here or what? CVD or what? Stops an iceberg say order flow rules This is just giving us some insight of like wow, okay, you know, they're Look at look at this. I mean, we've got some interesting stuff happening up here. This has been a pretty good day Look at this iceberg all of a sudden that was in the order book from way down here moved on up To here and is in the book now here at 90 and down here at 88 Yeah Yeah, they moved right right on up from 75 on up What do you guys think do you think this guy's a buying here to? To cover or is he buying to initiate I would imagine this guy stuck and he's out now But yeah, he's probably getting really nervous up here Well, here we go. Now we have a little bit of confluence. We have some trap volume up here We have some selling coming in. We've made highs of the day. Look at the selling. We have some other confluences in here All right. Well, can we get more sellers here? Then then we're looking for 85 and we're looking for 80 and then maybe 75 Okay, first first stop would probably be Yeah, 85 here. I know that's just a few points But you know bottom of the range here, maybe maybe a little bit lower 83 and a half I don't see much liquidity down here. That's why I pointed to 85 because of this liquidity here And the higher liquid is down here at 80 Okay, let's I'm I'd be looking for sellers here 86 and then a drop down to Yeah, 80 basically And that has not unfolded. No no scenario here. No sellers down here In fact some buying All right, here we go looking for sellers and looking for them to drop it down to liquidity Okay, bottom of the range 85 still kind of in there. It's a little bit lower. It's I don't know. It's kind of this bluish area in here Not too tangible right now But 80 looks better, but that's a you know further away and then 75 Okay, now we have some nice confluences we have our stop runs up here We have some buying up here into high liquidity. We're at highs of the day and we have the options in here as well boy, I almost want to turn on the Maybe I'll talk to you about that dug we can turn on the mic for you And have you come in and say a few words what you see with this options activity in here Give some additional insight. Oh, yeah, I'll talk to you about that guys. Okay. We're gonna wrap it up here And and call it a day. 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