How I Map My Trades BEFORE the Market Opens — Transcript
Full transcript
- 0:00Now, I trade futures using orderflow and
- 0:02the resolution model, and I've been able
- 0:04to take thousands of dollars from
- 0:05profirms, consistently doing the same
- 0:08pre-market routine every single morning.
- 0:11And here's what took me years to
- 0:12understand. Most traders will open the
- 0:14chart and then immediately go and hunt
- 0:16for a setup or an entry trigger or some
- 0:18type of entry model and then they try to
- 0:22reverse engineer a reason to take it or
- 0:24to justify that entry. But that is
- 0:27completely backwards. By the time that
- 0:29the market opens, I already have
- 0:32multiple scenarios mapped out and the
- 0:35context that was built pre-market or
- 0:37preession did all of the work before the
- 0:40market even opened. So, in the next few
- 0:42minutes, I'm going to walk you through
- 0:43the exact stack that I build every
- 0:45single morning as my pre-market routine
- 0:47in order and on a real chart. It's four
- 0:51layers of context and they're all mapped
- 0:53before the open before I ever take a
- 0:55trade. It's higher time frame bias and
- 0:57very simple market structure. It's
- 0:59understanding the gamma profile that
- 1:01we're currently sitting in for the day
- 1:03for zero DTE. It's looking at the
- 1:05overnight sessions and what they did
- 1:07during the after hours and then
- 1:09identifying premium and discount. And
- 1:12then only after all four of those have
- 1:13been mapped out, then we look at order
- 1:15flow. And it's not to invent a trade or
- 1:18find a trade through order flow, but
- 1:20it's to tell me which scenario I already
- 1:22drew is actually triggering or actually
- 1:25playing out. By the end, you're going to
- 1:27see all four of these collapse into one
- 1:29location and the one thing that I wait
- 1:31for before I actually click the button
- 1:32to get into a trade. And I'm going to
- 1:34build it from an empty chart so you can
- 1:36see the thought process and see what I
- 1:37do every single morning when I'm sending
- 1:39my daily outlooks in the Discord or I'm
- 1:41just preparing for a session and
- 1:43preparing to actually trade that day.
- 1:45Now, let's take a quick break to talk
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- 2:47code match. Now, let's get back into the
- 2:49video. So layer one, higher time frame
- 2:52bias and just very basic market
- 2:54structure. Before anything else, I need
- 2:56to know the game that I'm actually
- 2:58playing in in which way I'm leaning
- 3:00inside of it. And the purpose of a bias
- 3:03is not necessarily for prediction. I'm
- 3:05not telling the market what it's going
- 3:07to do because bias is conditional. If
- 3:10price does this, I'm looking for longs.
- 3:12If price does that, I stand down. Or
- 3:15maybe I even flip my bias towards shorts
- 3:17and that's it. So, I'm understanding
- 3:19where price is sitting on the higher
- 3:20time frame. understanding the condition
- 3:23or the context of what the market is
- 3:25actually doing and I'm looking at the
- 3:27levels that confirm my bias or confirm
- 3:30my lean in the bias or I'm looking at
- 3:32the levels that kill it. Therefore, I'm
- 3:35walking in already understanding what
- 3:37could potentially make me wrong. And
- 3:39that happens before I ever have to risk
- 3:41a single dollar. And everything that I
- 3:43add on top of this, on top of market
- 3:46structure, on top of higher time frame
- 3:48bias, on top of understanding the
- 3:50auction state, are we balanced? Are we
- 3:51imbalanced? Are we rebalancing? What are
- 3:54we doing? And everything I add on top of
- 3:56that inherits from it. And if you get
- 3:58this layer wrong, then every layer after
- 4:01it is essentially built on sand. Now,
- 4:04layer two is the gamma profile. Now, I
- 4:06lay the dealer landscape over that bias.
- 4:09I want to know, are we in a positive
- 4:10gamma environment? Are we in a negative
- 4:12gamma environment? Where's the call
- 4:14wall? Where's the put wall? Where's the
- 4:15HBO or the gamma flip zone? And I want
- 4:18to understand what the map looks like
- 4:20also in terms of gamma distribution and
- 4:22where any potential zerodt open interest
- 4:25that's actually meaningful is sitting
- 4:27and whether or not it's realistically
- 4:29reachable for the day. And I want to be
- 4:31clear on how I actually read these
- 4:33levels. First, I'm just understanding it
- 4:35as regime. I'm understanding it in terms
- 4:37of environment, in terms of positive
- 4:39gamma environments and negative gamma
- 4:41environments. And yes, I'm looking at
- 4:43the levels in terms of potential
- 4:45location, but these are not being
- 4:47treated as lines that price has to hit
- 4:49or lines that price has to reject from.
- 4:52I look at it more in the sense of
- 4:53acceptance versus rejection in these
- 4:56areas and how they may set the regime
- 4:58for the day ahead of me. But gamma is
- 5:01not my primary framework and I will
- 5:03never take a trade just because price
- 5:05hits a line on my chart. It's
- 5:07environmental context. It tells me what
- 5:09kind of day I'm probably in, but it
- 5:11doesn't pull the trigger for me. Now,
- 5:14layer three is sessions. Before the cash
- 5:16session for New York ever opens, the
- 5:19market has already been trading all
- 5:21night. And more often than not, it's
- 5:22already told me something. So, every
- 5:24single morning, I pay attention to the
- 5:26overnight sessions. I look at their
- 5:28ranges. I look at the extremes of those
- 5:30ranges or their highs and their lows.
- 5:32I'm looking at the Asia range, the
- 5:34London range, and how they actually
- 5:36formed during the overnight session
- 5:38because those levels are potentially
- 5:41where the market has already accepted or
- 5:44rejected value. And that's before I ever
- 5:46show up in the morning to trade the New
- 5:47York session. And when session extremes
- 5:49align or line up with market structure
- 5:53or premium and discount or these gamma
- 5:56levels, that's not a coincidence that I
- 5:59just ignore. That's confluence. And it
- 6:01creates these areas that I care most
- 6:03about once price actually starts to move
- 6:05at the open. And speaking about premium
- 6:08and discount, that's layer four. Layer
- 6:10four is premium and discount. This is
- 6:12the last piece of context, and you'll
- 6:14typically see me draw it out on my
- 6:16charts in terms of fib levels. But
- 6:19realistically, the way that premium and
- 6:21discount is is anything below value area
- 6:24is technically discount. Anything above
- 6:26value area is technically premium. And
- 6:28I'm using FIBS below or above value area
- 6:33fixed ranges to determine where I would
- 6:36like to enter a trade in discount and
- 6:38where I would like to enter a trade in
- 6:39premium. And the rule for this is pretty
- 6:42simple. When I am bullish, I'm looking
- 6:44for discount. And I want to do business
- 6:46in discount. When I'm bearish, I'm
- 6:48looking for premiums. And I want to do
- 6:51business in premiums. I want to trade
- 6:53the premiums. And this right here is why
- 6:55so many valid setups keep failing on
- 6:57people. The setup was fine. The entry
- 6:58model looked good. It all made sense,
- 7:00but the location was wrong. A long taken
- 7:04up in premium is potentially a risky
- 7:06long, even if your entry model looks
- 7:08perfect. And now what do I have? I have
- 7:12four layers stacked and out of them fall
- 7:14my scenarios that I map out pre-market.
- 7:17If price trades up into premium into a
- 7:20call wall, we see failure of buyers to
- 7:23continue higher and potential
- 7:24absorption. And then we see sellers
- 7:26shifting dominance back to the downside.
- 7:28Well, there's my short scenario. If it
- 7:30holds that discount at a session low
- 7:32that lines up with the HVL or a put wall
- 7:36and we see the same thing, then that's
- 7:38my long. I have them both drawn with
- 7:41levels before the open. And it's really
- 7:44important that I create these scenarios
- 7:46pre-market because the moment that you
- 7:48begin to start trading, at least for me,
- 7:50decision-making quality begins to
- 7:52degrade dramatically and very quickly.
- 7:55The moment you start clicking buttons,
- 7:57the moment you start missing out on
- 7:58opportunities or even winning trades or
- 8:00losing trades, it could potentially
- 8:03shift your emotional state or your
- 8:04mindset or the way that you are viewing
- 8:07the markets, whether it's
- 8:09overconfidence, fear, anger, or whatever
- 8:12it might be. And my goal is is to remove
- 8:14as much decision-m as possible before
- 8:17that ever happens. before the market
- 8:19opens and price starts moving a million
- 8:21miles an hour. I'm looking to make about
- 8:2380% of my decision making pre-market
- 8:26before the market ever opens. And the
- 8:28last 20% comes down to execution. And
- 8:31that's layer five. That's where order
- 8:33flow sits. And this is realistically the
- 8:35shortest layer because by now the hard
- 8:38thinking or the scenarios mapping out or
- 8:41whatever it may be is already done.
- 8:43They're already on the chart. I already
- 8:45know what I'm looking for. Orderflow
- 8:47does not go and find or invent trades
- 8:49for me. Everything before this told me
- 8:52where, which direction, and under what
- 8:56condition. Orderflow just tells me when
- 8:58one of my map scenarios are actually
- 9:01playing out or it's actually being
- 9:03confirmed. So, I don't enter just
- 9:05because price reached a level or came in
- 9:07a discount or came in a premium or
- 9:09tapped into a gamma level or hit the
- 9:11call wall or put wall. I enter when
- 9:13order flow confirms acceptance or
- 9:16rejection and it needs to happen at a
- 9:18key level that all the four layers of
- 9:21context before this already mapped out
- 9:23for me beforehand. The context maps the
- 9:26scenario. Order flow is what pulls the
- 9:28trigger. It's in that order every single
- 9:31time. So, let's run through an example
- 9:32of what I do every single morning on the
- 9:35charts when I wake up and I go look to
- 9:37see what it is that I'm looking for and
- 9:39how I map out scenarios and send it over
- 9:41to the Discord. So I prepare for a
- 9:42session and I prepare to actually trade.
- 9:44So here we are on the charts. Now the
- 9:46first thing that I want to look at is I
- 9:48want to look at market structure. So
- 9:50again let's go to the 4 hour. What are
- 9:52we doing? Well, we are potentially again
- 9:55in this range, the 4hour range. We go to
- 9:58a 1 hour. We are making our way down. So
- 10:01we need to be careful about us
- 10:03potentially
- 10:05continuing this move down creating lower
- 10:07lows. This is what I'm thinking in my
- 10:09head in terms of the hourly. when it
- 10:11drops down to a lower time frame, we do
- 10:13see that we are moving higher at least
- 10:15on a 15minute time frame. Now, Asia
- 10:17pushed up, London pushed up, pre-market
- 10:20New York has taken out London highs.
- 10:21We've left London lows, left Asia lows,
- 10:24and we could potentially be looking for
- 10:26a move that could bring us back down to
- 10:28even make another low in terms of the
- 10:30higher time frame market structure. So,
- 10:33what are we going to do here? Now, the
- 10:34first thing we need to do is we need to
- 10:36mark out our gamma levels. Now,
- 10:39typically in the morning, again, we're
- 10:40going to have these already marked out,
- 10:41but let me go ahead and mark them out.
- 10:43All right, so I went and marked all
- 10:45these out. So, what are we looking at
- 10:47here? We're currently sitting in a
- 10:48positive gamma environment. We're in
- 10:50between the HVL and the call wall. Now,
- 10:53something to note about the distribution
- 10:55of this gamma is we have a large node of
- 10:57gamma sitting here. Obviously, it's the
- 10:59call wall. We do have a cluster of
- 11:00gamma, positive gamma sitting here. And
- 11:03then it's kind of a thinner profile in
- 11:05between until we start getting towards
- 11:07the put wall where we start seeing
- 11:08negative gamma. Now when I'm looking at
- 11:10this, I am paying attention to this
- 11:13positive cluster of course and where
- 11:16we're sitting with the call wall, the
- 11:17HVL, and then also the put wall down
- 11:19here, which you can't really see. What I
- 11:21will do is I'm treating this kind of
- 11:24like a zone. Okay? And we're here right
- 11:27before market open. So we're marking
- 11:29this as a zone. In the event, this is
- 11:32what I'm thinking since we're already
- 11:34watching on the other on the higher time
- 11:36frame that we are potentially going
- 11:38lower. In the event that we start
- 11:40getting below this, we could be making
- 11:41our way towards the HVL. We'll keep that
- 11:43in mind. Now, we're going to start
- 11:46understanding premium and discount. Now,
- 11:48in terms of premium, where would I like
- 11:50to actually participate if we were
- 11:52looking for shorts? Now, if we were
- 11:54looking for shorts, I would take the
- 11:56most significant swing high to swing
- 11:59low. You can just understand value area
- 12:01is sitting here because of how the chart
- 12:03looks. But if you want to make sure you
- 12:05can just draw out a volume profile,
- 12:08value area is going to be sitting here.
- 12:09We have internal highs and you have
- 12:12premium sitting above value area. In the
- 12:14event that we come up and we continue
- 12:16this push up towards the call wall, if
- 12:18we start seeing any type of activity in
- 12:21terms of a failed auction higher where
- 12:23we may see us take these highs, take
- 12:25internal highs, come into premium, see
- 12:28buyers getting absorbed, see sellers
- 12:30start stepping in aggressively, then
- 12:32that could potentially be our short.
- 12:33It's right where the call wall is
- 12:34sitting as well. So, we're going to keep
- 12:36our eyes set on this area. If we begin
- 12:38to drop lower, well, we do need to be
- 12:41aware of potentially discount. So, in
- 12:44terms of discount, I would be marking
- 12:45out from this swing low to the high.
- 12:47Now, in the event that we go make
- 12:49another high at the open, well, I am
- 12:51going to have to change where I anchored
- 12:53that point for the high. But what do we
- 12:56notice about where discount is sitting?
- 12:57Discount is sitting right around the
- 13:00HVL. HVL is sitting right around
- 13:02discount. Now, how do we know it's
- 13:03discount? We're going to do the same
- 13:05thing. We're going to mark out our fixed
- 13:07volume range profile from where we
- 13:10anchored our discount fib up to where
- 13:13the highs are up here. And we have value
- 13:16area sitting here. Discount is below
- 13:18value area. Now, a lot of the times you
- 13:20guys may not see the volume profile on
- 13:23my chart, and it's only because I kind
- 13:25of just have been doing this for a
- 13:26while. So, I I can eyeball where it
- 13:29makes sense to draw these uh discount
- 13:31zones and where I think value are
- 13:33actually sitting. So let's just say this
- 13:36is the scenario. Okay, we have premium
- 13:38and we have discount. Here is what I'm
- 13:40thinking. This is how I'd mark out my
- 13:42day. Now that we're here, I would
- 13:44understand that we are currently going
- 13:46lower on higher time frames. The
- 13:49sessions are pushing up from the
- 13:51overnight. In the event that we become
- 13:54bullish at the open and we push up into
- 13:57this area, this is going to be an area
- 13:59where I'm looking for shorts. right
- 14:01around the call wall, right around
- 14:04premium, outside of value area, looking
- 14:07for a failed auction to the upside
- 14:08before we potentially continue the
- 14:11higher time frame trend to the downside
- 14:12and create new lows. Once we do start
- 14:14approaching this area, if we come down
- 14:16here, I need to be careful. We have the
- 14:19HVL here. We are sitting in discount of
- 14:21the current lower time frame range on a
- 14:2315minute. And we got to be aware and be
- 14:26careful of potential support or
- 14:29responsive buying activity that keeps us
- 14:31in this area. Now, we do notice that we
- 14:34have these positive gamma clusters
- 14:36sitting here. So, this is kind of the
- 14:38first area of interest for me. If we
- 14:41begin to accept below this area, I am
- 14:43thinking to myself that there's a pretty
- 14:45good chance we continue lower, take out
- 14:47London lows, take out Asia lows, and
- 14:50start making our way towards the HVO. If
- 14:52we hold above here and we can't accept
- 14:55below this area, then we may be making
- 14:58our way higher. So, I have my areas I'm
- 15:01watching for today. I'm watching this
- 15:03area closest to price. If we get below
- 15:05it, I'm looking for us to come to HVL.
- 15:07If we stay above it, I'm looking for us
- 15:09to come into premium where I could
- 15:11potentially look for shorts. So, if we
- 15:14were to go play this out.
- 15:18Okay, so right at the open, at the open,
- 15:21we push down. and we start pushing up.
- 15:22We're currently above this positive
- 15:24gamma cluster. We're in a positive gamma
- 15:26environment. We may see mean reversion
- 15:28style behavior, but it is a thin
- 15:30profile. So, there is distance between
- 15:34where large positive gamma is sitting
- 15:36from where it is here to up here and
- 15:40where it is here until we start getting
- 15:41towards the HVO. So, I'm watching this.
- 15:44Now, we did go make a new high. So, if I
- 15:46was watching this, I would have to
- 15:48extend this
- 15:50to be up here.
- 15:52Unless we go make another high, then I
- 15:53have to extend it again. Let's go one
- 15:55candle over. Okay, we'll wait for it to
- 15:58actually put in a high.
- 16:00Let's make sure it's the high.
- 16:06Okay, now we're coming down. So, at this
- 16:09point, what am I thinking to myself?
- 16:11Well, first of all, I need to extend
- 16:12this
- 16:14and I need to extend this zone. I'm
- 16:17actually going to draw it again. At this
- 16:18point, we are getting below this cluster
- 16:20of positive gamma. If we can stay below
- 16:23here, then there is a chance that we
- 16:25continue to run this out. We just took
- 16:26London lows. We still have Asia lows
- 16:28sitting here and we have discount of
- 16:30this current range sitting here. We also
- 16:32have HVL. In the event that we stay
- 16:35below here, I am looking for us to
- 16:38continue running this down and we would
- 16:40be looking for us to come down towards
- 16:41the HVO. Now, if there's any type of
- 16:44potential continuation entry to the
- 16:46downside, I may be looking for that to
- 16:48actually go short. If it's not there,
- 16:51then I just can't take a trade. I got to
- 16:53let it go. If there's no entry for me to
- 16:54try and catch this continuation lower,
- 16:56then it is what it is. Now, let's see
- 16:58what happens when we continue going
- 17:01lower. So, we're accepting below. We're
- 17:03pushing lower.
- 17:05And now, we are entering into discount
- 17:08and we are approaching the HVL. Okay. At
- 17:12this point, if I were to be in a short,
- 17:15because it's aligning with the rest of
- 17:17the higher time frame, we're continuing
- 17:19going down. I would be careful of this
- 17:22area and I would be careful of us coming
- 17:25towards the HVL. Now, if we get below
- 17:29the HVL and we start accepting past this
- 17:31886, then of course, we're going to be
- 17:33coming down towards the put wall. We're
- 17:34making our lower low in terms of the
- 17:36higher time frame structure and we're
- 17:38going to be continuing down. Now, if I
- 17:40were to be looking for longs, for
- 17:42whatever reason, I would be looking for
- 17:44it in discount. I'd be looking for it in
- 17:46discount right around after we take Asia
- 17:48lows, right around the HVL. I'm watching
- 17:52this
- 17:54now. In the event that something
- 17:55happens, okay, so we start seeing signs
- 17:58of bullish activity. We probably move
- 18:00down. We're in discount. We push down
- 18:02into the HVL. If there's anything here
- 18:05that makes sense for me to go long in
- 18:07terms of an orderflow confirmation, then
- 18:10I'm going to go long. Okay, so we push
- 18:12back up.
- 18:15So, there may have been an entry to go
- 18:17long with order flow. There may have not
- 18:19been an entry to go long with orderflow.
- 18:21I do not know. That's not necessarily
- 18:23the purpose of this video. We come right
- 18:25back up into that positive gamma cluster
- 18:27and we're catching a little bit of
- 18:28friction. The idea remains the same.
- 18:30Okay, a lot of this decisionmaking
- 18:33is happening pre-market understanding if
- 18:37we stay above if this then that. If we
- 18:39stay above this, we're probably coming
- 18:40here. If we come below here, we're
- 18:42probably coming down here. We're
- 18:43watching down here. We're looking for
- 18:45responsive buying activity. If there's
- 18:46none, we're probably coming down towards
- 18:49the put wall and making another low. If
- 18:51there is responsive buying activity,
- 18:53this is a good area being in discount to
- 18:55look for longs. If we're holding a short
- 18:57into this area, we got to be careful.
- 18:59maybe trail stop, maybe take TP. If
- 19:01we're looking for longs, we're looking
- 19:03for it in here. And if order flow
- 19:05confirms that through some type of entry
- 19:08confirmation, then we could potentially
- 19:10look for longs. So, my morning is
- 19:13structured around what I'm trying to
- 19:16plan pre-market. The goal here is to
- 19:19take away as much decision-making as
- 19:22possible while price is moving like
- 19:24this. I want to just be able to only
- 19:26focus on execution once price starts
- 19:28flying around a million miles an hour.
- 19:30In the event that price goes and does
- 19:32something that I did not plan for or
- 19:35it's out of the area that I was
- 19:38watching, like let's say for example,
- 19:40price then goes and just starts ripping
- 19:43lower. If you notice, I didn't plan for
- 19:45anything premarket for us to start
- 19:47ripping lower past the put wall, past
- 19:48the 886, past the HVO, then I'm done.
- 19:52I'm done. I didn't plan for that. I
- 19:54didn't plan for that. I'm not going to
- 19:56create a plan midsession. I will never
- 19:58create a plan midsession. Why? Because
- 20:00when am I most likely to be on top of my
- 20:04game, fresh mindset, calculated
- 20:07decisionmaking, it's before I ever start
- 20:10watching price move around. It's before
- 20:12I ever take a trade, take a winning
- 20:14trade, or take a losing trade. It's
- 20:16before all of that. Because if you have
- 20:19frustration, let's say from missing this
- 20:22move, let's say you missed this move or
- 20:25you missed this move, okay? And now
- 20:27you're frustrated. You see people
- 20:29posting their P&Ls, you're frustrated,
- 20:31you feel like you sat here, you couldn't
- 20:32participate in the market, and now you
- 20:34want to make a plan. Do you really think
- 20:36that you're going to make the best plan
- 20:38you could possibly make with that type
- 20:39of mindset? Probably not. You might make
- 20:41a plan, you might try and force
- 20:43something. So, I always plan and I try
- 20:45and structure the mornings where I know
- 20:48what I'm looking for. I know the
- 20:49location that I'm looking at and I know
- 20:52where I'm looking to potentially sit up
- 20:54in my chair and start paying attention
- 20:55to order flow to determine where I'm
- 20:57looking to take a trade. And it's
- 20:58incredibly important for me to do this
- 21:00pre-market routine because it takes away
- 21:03a lot of that decision-m that I would
- 21:05have to be doing midsession. And I don't
- 21:07want to do it mid session because things
- 21:09happen midsession that start to
- 21:11deteriorate the decision-making quality
- 21:13that I have. The further I go into the
- 21:15session, the more trades I take, the
- 21:18less likely I am to have just stone cold
- 21:21calculated decision-m. I mean, I'm I'm
- 21:23not going to lie to myself. It's just
- 21:25that's how it is. And I have to
- 21:26recognize that and understand that. So,
- 21:28we got to do the heavy lifting before
- 21:29the session ever opens. Now, I know I
- 21:31kind of went through this pretty
- 21:32quickly. I'm trying not to make this
- 21:34video super long. So hopefully that
- 21:37helps somebody. If you have any
- 21:39questions about anything, you can ask me
- 21:40in the comment section below. And I do
- 21:43this every morning. So if you ever
- 21:44wonder what I'm looking at, how I'm
- 21:45getting these levels, how I'm how I'm
- 21:48making my daily outlooks, why did I post
- 21:50that, why did I take a trade there, it's
- 21:52because of this. I'm doing it every
- 21:54single day and it really doesn't change.
- 21:55It's the same process every single day.
- 21:57And if you don't make a pre-market plan
- 22:00or you don't have any type of structure
- 22:02around your session before you enter and
- 22:04you just hop on the charts, wipe the
- 22:06crust out your eyes and start looking
- 22:08for an entry model and you're not
- 22:10finding success.
- 22:13Think about that for a second. Just
- 22:15think about it for a second. All right.
- 22:17Well, I will catch you guys next time I
- 22:19make a video. Hopefully this helped out.
- 22:21If it didn't, sorry. Peace.
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