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Trading LIVE with TWO World Class Order Flow Scalpers (FT Fabio Valentini & Carmine Rosato) — Transcript

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0:00Now, this kind of setup, I'm making
0:01$2,000 in 600. So, I will trail my
0:04stop-loss because this one can get to a
0:063-4,000 position.
0:08>> Those are my best setups, especially for
0:09continuation. Like you said, I don't
0:11know if today's really a continuation
0:12type of session.
0:13>> But, engaging in this cage, it's really
0:14a suicide for a scalper.
0:16>> Are we going to scalp today?
0:17>> I don't know, let's see.
0:18>> We have two world-class scalpers, Fabio
0:21Valentini and Carmine Rizzo. For the
0:23first time ever, we have two
0:25hyper-profitable traders who both trade
0:28order flow trading live in the New York
0:30session.
0:31>> Putting my risk at zero with this
0:32absorption of the top was really smart
0:34because I would have give $1,000 to the
0:36market without a reason.
0:37>> I won't take anything under two to one,
0:39but majority of my trades are four to
0:40one, three and a half to one. It really
0:42depends on my entry and my target.
0:44>> I think it's smart what you are doing.
0:45You are waiting for the cage to be
0:47clean, so you have really clean price
0:48action.
0:48>> I rarely move my target.
0:50>> Because in this special episode on Chart
0:52Fanatics, [music] you will see their
0:54step-by-step process and inside the mind
0:57in real time their decision-making when
0:59it's time to step in and execute.
1:01>> I like trading where there's not a lot
1:03of liquidity because that is where, in
1:04my opinion, a lot of the edge comes
1:06from.
1:06>> I agree.
1:06>> So, this goes to show you two different
1:08positions. We have the same analysis of
1:09this moving up. You taking it because of
1:11the volatility on the Nasdaq and you not
1:13putting any influence on the previous
1:14structure that I have.
1:15>> Because Nasdaq is usually a driver
1:17because it's less liquid.
1:19>> But, how to manage a [music] trade, when
1:21to take a step back, and understanding,
1:23most of all, market conditions. All this
1:26and more, only for the first time on
1:28Chart Fanatics.
1:29>> The volume is really low for the
1:30session, [music] so I'm lowering the
1:32sensibility of the big trades to 40.
1:35>> That's interesting you do that.
1:36>> I I never do this in New York session,
1:38but uh
1:41>> Hey guys, it's February 13th. I'm with
1:43Fabio here in Dubai, and we're going to
1:45be trading the New York stock open live
1:47here, the 9:30 open. Uh hopefully we can
1:49see some good setups. Yesterday,
1:51Thursday, February 12th, was a crazy
1:54session in both the Nasdaq and the S&P.
1:57Uh so, it's going to be interesting to
1:58see the opportunities that come today.
2:00There's some levels that formed from the
2:01previous day's session that I know both
2:03Fabio and I are watching. So, it's going
2:05to be interesting to watch how the
2:06market reacts. You'll be able to hear be
2:08able to hear our insight about what
2:09we're observing and and looking for in
2:11the order flow. Uh, and it should be
2:12very insightful both psychologically and
2:15both technically going over the order
2:16flow because I know me and Fabio trade
2:18the same way. Uh, he mainly trades the
2:20Nasdaq and I mainly trade the S&P, but
2:22it's interesting to see the similarities
2:24uh, between both of our trading
2:25strategies. So, it'll be a pretty
2:26insightful session.
2:27>> I'm looking forward to it.
2:28>> How are you guys? So, yesterday was uh,
2:30an incredible short session.
2:33Usually when we are on Friday and we
2:36have an explosive session, I expect
2:38choppy.
2:38>> Right.
2:39>> But, we need to do this together. We
2:41trade this choppy session live and uh,
2:44let's see how it goes and uh, I
2:47I checked the the method of Carmine
2:49because I follow him on and I saw that
2:51we have almost the same trigger. So,
2:53probably we will take really similar
2:55setups. I trade on the better sister of
2:57yes, Nasdaq, and
3:00uh, let's see how it goes.
3:01>> For sure. Yeah, so usually after an
3:03extended day like yesterday, do you
3:04usually look for continuation of that
3:06day?
3:06>> Yes, I usually make the most amount of
3:08return when I have an explosive day. So,
3:10I don't like balance phase. Uh, I don't
3:13like going in reverting. I go trend
3:15following. And
3:16um, from a statistical perspective, when
3:18you have two directional days like this
3:20week, then the market wants to breathe
3:22and rebalance. So, today I expect a
3:24balance session, but uh, let's see.
3:27>> I think that's important to note, too,
3:28because Monday the market is closed.
3:30There's a half day, I believe.
3:32Um, holiday. It's President's Day. So,
3:34uh, and now we have Friday after a big
3:36move and CPI data just came out about 45
3:38minutes ago. So,
3:39>> Yeah.
3:40>> Market really is not doing much at this
3:42moment. We're coming into our levels,
3:43though. I know we're spotting some
3:45things brewing on the order flow a
3:46little bit.
3:46>> Uh, it's it's building the
3:50the pre-session battle. In 9 minutes we
3:52open and already I can see a huge amount
3:55of volume. A lot of sellers
3:57aggressive on this horizontal level that
4:0024,740
4:02and buyers trying to hold level. Usually
4:05when you have this fight,
4:06the first level that break out, you have
4:08an explosion. And this is some setups
4:10that I like to do during the opening.
4:12And I mark the green level because this
4:15is where I expect to to be a potential
4:19good level to start again long. The
4:21point is that I will not load contract
4:23because during the opening you usually
4:24can get some heavy slippage. So, it's
4:27it's not smart to trade. I will just
4:28observe the price. And I want to check
4:31how they behave in the next
4:339 minutes because if the sellers gets
4:36absorbed here on this horizontal level
4:39and we go up, I have a setup but I will
4:41wait. Usually I wait 15 minutes after
4:44the opening to not get the explosion of
4:46volatility.
4:47>> You let it digest. It's always crazy in
4:49the first few minutes.
4:50>> Yeah, you you trade the opening.
4:51>> Very rarely will I trade the open. Very,
4:53very rarely. I like letting it digest.
4:55You know, I we trade you have your
4:57levels of interest and you observe price
4:59action around your levels of interest.
5:00And usually when the market's opening
5:01right at my level of interest, I kind of
5:03want to see how it reacts to that level
5:05of interest first and how price action's
5:07responding to it instead of just blindly
5:09getting in cuz it's at my level and it's
5:10at the open.
5:12>> We were charting before and we expected
5:14a reaction up from the bottom. So, after
5:17the the CPI news, we expected an
5:20explosion up and
5:24I never trade before the opening but
5:26actually that's the Monday to also
5:27Carmine marked was the the best of the
5:30day. So, if we can get back to rebalance
5:32there,
5:33I think also from a balance profile
5:34perspective, it's interesting.
5:36>> Well, the market moves from balance to
5:37imbalance, balance to imbalance. So,
5:40it's it's interesting to see it revisit.
5:42So, I have 6830 on the S&P as an area of
5:44low volume from February 6th.
5:48Um for me, just zooming into yesterday's
5:50price action, and I know you're probably
5:51going to disagree with this. This area,
5:53this consolidation range, for me, I
5:56consider that balance and I have a hard
5:58time finding continuation inside of the
6:01balanced range. Once once revisits that
6:03range, uh now there's hopefully going to
6:05be opportunities that come out of that,
6:07but for me I really don't want to get
6:09caught really trading inside of this
6:11tight consolidation range because even
6:14looking at the volume profile
6:16here on on Bookmap from yesterday's drop
6:19and the market began to consolidate, you
6:21see all this volume built here from
6:2368.95 to like 68.80
6:25>> the profile
6:26>> On the profile right here, yeah. So
6:27that's the level that I had marked.
6:29There's so much volume there. So there's
6:30a lot of acceptance of that. There's a
6:32lot of volume being built. There's a lot
6:33of traders who are long there, short
6:35there, underwater, in profit right now.
6:37So if the market revisits that, it's
6:39kind of like a sit on my hands type of
6:41area. I would love for it to get above
6:43it and find acceptance and then I may
6:45look for that continuation setup that
6:46you were looking for.
6:47>> No.
6:48>> Um because there's unfilled levels 69.17
6:51on ES and 69.14. They're what I call
6:54zero prints where there's zero volume on
6:56one side of the market.
6:57>> Yeah.
6:57>> Uh and in this case the market
6:58aggressively sold off and trades were
7:01aggressively hitting the bid and at
7:02these prices no trades hit the offer and
7:04the market likes to revisit them. I
7:06don't know when it's going to revisit
7:07them.
7:08Um but they're usually very strong
7:10magnetic forces the market likes to to
7:12revisit at some point. Um and yesterday,
7:15so unfortunately I did not trade
7:17yesterday here in Dubai. Uh it's going
7:19to be actually my first session this
7:20week.
7:20>> Mhm.
7:21>> But yesterday's large sell-off filled
7:24the term zero prints that formed on the
7:26previous Friday that I tried shorting
7:28into. So yesterday's setup would have
7:30been ideal for a day like today because
7:32I know the levels that form. As soon as
7:34they form I mark them because the
7:35chances of them being revisited are very
7:37very high. Some days in the same
7:39session, some days it takes a week or
7:40maybe even a month, but they're just
7:42important to monitor.
7:42>> So they are inefficiency.
7:43>> Very inefficient because it didn't give
7:45a fair chance of one side of the market
7:47to trade at. So the market likes to be
7:49very efficient.
7:50>> And you notice that when it reached this
7:51level it just get aggressive on the
7:54level break and continue or it's
7:56reversal play.
7:57>> I mainly use it as a target. So if the
7:59market, let's just say gets back above
8:00this balanced range, this consolidation
8:02range, I would say it's my line of least
8:04resistance, meaning if the market
8:06accepts above this 6895 range, 6880,
8:09that my line of least resistance
8:11basically terms that if we can get above
8:13this area of significantly high volume,
8:15there should be very minimal resistance
8:17for the market to then go trigger those
8:20So it's like a line of least resistance
8:21meaning if the buying is strong above
8:23the 6895s,
8:24it should, you know, everything we could
8:26come down and say we want this to
8:27happen, but that's where we observe the
8:29order flow around
8:30move up with ease as long as the buying
8:32is significant there. So I will
8:33absolutely look for a continuation move
8:35if we could accept above 6895.
8:38>> I agree with you. We have a huge
8:40inefficiency of the top. Also the the
8:43profile it's empty and there is a lot of
8:46void in the middle. And today the news
8:49of the CPI pushed the price above on our
8:51accumulation area. It's not so smart to
8:54to trade in a range like we are now and
8:56I I don't know if we can consider that
8:57Monday's closed. So
8:59it's really difficult that they managed
9:01to break this level today. If they
9:02break, we have a beautiful
9:04>> I'm guessing that's a
9:05>> And I think today it's a day digestion
9:07day for the the short that we had.
9:09>> Maybe the people on Wall Street are
9:10taking a long weekend.
9:12>> Yeah, also the the 4 minutes before the
9:15opening I'm used to see the price
9:17already starting to fight. Today it's
9:18closing a really small range.
9:20>> Fighting to close.
9:21>> Yeah, it's uh
9:22>> You're seeing signs of a possible range.
9:24>> I see it. If I need to choose a
9:26direction from this current order flow
9:28setups, I see that the sellers are
9:31having less result on this movement. In
9:33the CPI got digested on the upside, we
9:36have a lot of lever to rebalance. So I
9:38will choose to revisit the level that
9:40you also marked, but I'm pretty sure
9:42that it will not be able to break it. So
9:44probably it's a reversal play from that
9:45level back into balance. It's not the
9:48kind of day that I like, but the the the
9:51bulls are in control on the on the
9:53possession like the first the first the
9:55last 3 minutes and then we see who wins
9:57this battle. I
9:59I like to create my own version of
10:02opening range breakouts. So I just
10:04create the battle based on big
10:07aggression because the first side to win
10:09the battle is the one that squeeze.
10:11>> That's going to squeeze them.
10:12>> Okay. So, it's it's a good momentum play
10:14with a good risk reward. But, as of now,
10:16I cannot decide what I want to do
10:17because they are really close tied
10:19inside this range. And from the CPI
10:22explosion that we had, we have a lot of
10:24level that from profile perspective,
10:26they still didn't revisit. I use a lot
10:28the fixed range. Fixed range. To see how
10:30they are fighting and I see this
10:32aggressive buyers here that didn't got
10:34revisit and we have a huge delta here.
10:36So, probably
10:38>> Yeah. So, probably they have unfilled
10:40level on this side because there was a
10:42big bullish and the movement was
10:43explosive.
10:44>> Explosive.
10:44>> So, it's possible that the buyers will
10:46get back aggressive when we get to this
10:48level. Here, as you can see, we have a
10:50huge sell delta, huge buy delta. It's
10:52just a mess. It's a mess. Like, it's
10:54really difficult to have an edge here.
10:56This area still didn't got broken. They
10:58just tried to fake the low and they
11:00really like to see the aggression of the
11:03participants in the week.
11:05>> Right.
11:05>> Because like 700 contracts on Nasdaq,
11:08it's a lot. And so, you have a lot
11:10and seeing that they started this
11:11movement here, we have a total of 1,250
11:14contracts on notional value of hundreds
11:17and hundreds of millions without result.
11:20This one is typically an accumulation.
11:22>> Right.
11:22>> Yeah. So, I have my conservative level.
11:25I have my aggressive level and they
11:27expect a squeeze on the upside during
11:28the opening. Let's see how it goes.
11:30>> Let's see how
11:30>> 1 minute.
11:31>> It's a big battleground right now.
11:35So, it's important to have similar to
11:36how I look at the market
11:37>> levels and then observe the price action
11:39around the levels.
11:40>> Yeah.
11:40>> You put any influence on levels that
11:42formed maybe a week ago, two two weeks
11:44ago for a revisit?
11:45>> I was doing this before, but from a data
11:48perspective,
11:49the most recent order flow interaction
11:52holds more value for me.
11:53>> So, like if I need to check a view up
11:55point of 1 month ago or a profile level
11:58of 3 weeks ago, is not as important as
12:01the battle right now I'm watching now
12:02because this is actual order entering
12:04the market.
12:05>> Right.
12:05>> [snorts]
12:05>> Let's see what happens here.
12:07>> Let's see if these bull takes control
12:09and they squeeze the hell out of these
12:10aggressive sellers.
12:11>> On the S&P as well, we have that
12:13aggressive seller stepping in. You see
12:15the negative delta and the cumulative
12:16delta also building.
12:18>> Let's see what they do.
12:19>> I like resetting my depth of market, my
12:21volume profile at the market open.
12:28>> Sellers tried on the same horizontal
12:30level to take control. They got absorbed
12:32again, and now I think they will try
12:34again to move according to the going to
12:37the aggressive delta level of
12:39conservative buy.
12:42Now, you can see during the opening you
12:43have swings so big that it's almost
12:45impossible to make a good sniper. All
12:47right, cuz if you are buy, if you are
12:49sell, you get taken out from this week.
12:52>> It's also very important that you sit on
12:53your hands and just observe and wait for
12:55a proper setup and a pattern to appear.
12:56It's the most amount of money is made
12:58when you just wait. All right.
13:02Trading is is is very boring and it's
13:04Look look look at this rejection on the
13:06horizontal level.
13:07>> On the horizontal level, yeah.
13:08>> Okay. Now, this rejection
13:10>> holds
13:11>> the freaking sellers.
13:12>> Sellers absorbed on the bottom and the
13:13buyers reloaded. So, I expect this to be
13:15probably the bottom of the movement. The
13:18squeeze will happen when we will get
13:19aggressive here.
13:21Unfortunately, this is
13:23as the opening, otherwise this will be
13:25an amazing
13:27risk to reward setup.
13:32It's not this kind of opening where you
13:33have one side controlling. It's more
13:35that like, let's finish the
13:37accumulation.
13:38It's directly on the view up.
13:39>> Yes, directly on view up.
13:40>> Beautiful.
13:41>> And there's also a massive sell
13:42imbalance down here at the low on the
13:44ES. The same exact level as the Nasdaq.
13:46>> Well, look, if I need to choose a
13:48direction, I choose buyers, huh?
13:50>> I would agree.
13:51But, that's not a valid reason to to
13:53place a decision off of.
13:55>> Yeah.
13:56What's the main confluence that you use
13:57for execution framing? Like uh
14:00>> I'm looking for trapped participants.
14:01I'm looking for traders who are just
14:02going to get, you know, in trouble, I
14:04guess. They're they're showing massive
14:05aggression towards one side, and if the
14:07market moves against them, they're going
14:08to have to get out of their trade,
14:09losing a bigger domino effect.
14:11>> Yeah.
14:11>> You as well?
14:12>> Yeah, this is one of the setup. I also
14:14use initiative candle. So, when I have a
14:17clean win of the battle, that for you
14:19it's an aggressive battle, breaking one
14:21important level, for me it's a
14:23continuation play because as you were
14:24saying the path of least resistance now
14:26it's on the other side, right? So, I go
14:28to the next level of liquidity.
14:30>> My best setups are when the next level
14:32of liquidity has a very high probability
14:34of triggering. And the market breaks,
14:36let's just say a strong level with
14:38aggression, and it should move up to the
14:40next level with ease. Those are my best
14:42setups, especially for continuation.
14:44But like like you said, I don't know if
14:45today's really a continuation type of
14:47session.
14:47>> Mhm.
14:48You You prefer the balance, right?
14:50>> I prefer reversals and I prefer balance.
14:52Yeah.
14:53>> Makes sense.
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16:48>> But we trade the most liquid markets in
16:49the world. So, I mean
16:51especially the S&P ES,
16:53it's one of the most liquid markets and
16:55it usually reverts always back to the
16:57mean. Very frequent infrequently is it
16:59going to have a trending day. And most
17:01frequently it it it balances.
17:02>> Yeah, it's just nature. That's why it's
17:04a little bit different.
17:05>> Right.
17:06Yeah, so right now on the S&P we see at
17:086860 we see a wall of 663 sellers
17:11sitting in 6860. And the market's trying
17:13to rally and we see the buyers really
17:15trying to hit it hard and break above
17:17this level. So, let's watch the real
17:19>> Actually, the first battle of the
17:20session got win by buyers. So, I expect
17:22that they can challenge this liquidity
17:24level.
17:25Like this is really precise. When when
17:27you have a profile and you have a level,
17:30now unfortunately I didn't want to risk
17:32slippage, but
17:34I noticed that
17:35if you get a fixed profile and you have
17:37a really strong level without a doubt of
17:40control of the buyers, this level cuz
17:43they also reloaded back down, can be a
17:46continuation setup. This is what I mean
17:48when I say that I prefer directional day
17:50because every time I have a news wing, I
17:52can get a fixed profile and I can load
17:54in the direction putting the first
17:56position at risk free. So, the first
17:58position of the day capitalize the
18:00second. The second capitalize the third.
18:01>> The domino effect.
18:02>> Yeah, and when you have a directional
18:04day Like Like you make Yeah, you make
18:06>> Like yesterday.
18:07>> Yeah, like yesterday.
18:09>> Yeah, so we're having trouble at the
18:106860 level.
18:11>> Yeah, they they rejected.
18:13>> They rejected pretty well.
18:18What's interesting and I think
18:20the way that you talk about that is so
18:23important is because you're going with
18:24the most recent activity in your order
18:26flow. So drawing a fixed volume profile
18:28is significant because if the market's
18:30moving up and we say that we're seeing
18:32strong buyers, the market revisits those
18:34buyers like you just had saw,
18:37those buyers need to defend price. They
18:38don't want the market to come against
18:40them. So they're going to reload and
18:41defend price and absorb like we just
18:42saw.
18:45>> It's like also if you think about news,
18:46no? The most recent release of
18:49information, if it's strong information,
18:51it's able to to move the market
18:53stronger, most aggressive because it's
18:54recent. It's an information that you
18:56need to price now. The order flow is the
18:58same like I will never, if I see
19:00aggression of the sellers, I will never
19:02go long because one month ago there is
19:04one level. That's what I mean. Like I
19:06prefer the right the live interaction
19:08bottle. They rejected the top at the
19:10liquidity level in an amazing way.
19:11>> Yeah.
19:12It's pretty interesting to see it. See,
19:14when I trade, I don't really look at the
19:15Nasdaq, but sitting next to you and
19:17seeing how you're observing the same
19:18thing that I'm seeing on the S&P is
19:20pretty strong and powerful.
19:22>> I noticed that also the Nasdaq it's
19:25being more aggressive a lot of times
19:27leads the right level. So if we have a
19:29breakout on the Nasdaq, maybe it takes
19:31some minutes before the ES follow up
19:34because it's more liquid and being more
19:35liquid is more slow.
19:37>> Think about this, right? If you're in
19:38the position and you're looking to get
19:40into a really large buy position and
19:41you're expecting the market to move up,
19:43whether it's institutional, whether it's
19:44a big bank, whoever, right? But somebody
19:46that's looking to buy a big position, if
19:48you move the market up and then the
19:49market come back, comes back to where
19:51you bought price at, you're going to do
19:54everything to really support the market.
19:55And other people are going to notice
19:56this and also follow the footsteps of
19:58you buying as well, which is where the
20:00power, the strategy so powerful.
20:02>> Mhm. You use market maker hedging
20:04mechanics.
20:05>> Correct.
20:07>> Sometimes you see big players stepping
20:10in at options level like the pool wall,
20:13the coal wall, and these used in
20:16in frame with the profile area.
20:19Because always start of week is marking
20:21the most sensitive level on the volume
20:23profile. I don't know if you use for the
20:25long-term logic like I like the below
20:26volume node. I like the
20:30>> [snorts]
20:30>> I like when you have clean level of
20:33not acceptance of price because I
20:34noticed that when it revisit the low
20:36volume node, you have the most
20:37aggressive movement
20:39>> Right.
20:39>> the of the week. That's how I use
20:41long-term analysis.
20:44>> So, you mark long-term like deltas and
20:46and and buying profile structure.
20:47>> Yeah. Yeah. Or we say that it's is the
20:50most choppy opening we had this week.
20:56>> Here's the thing, right? Is that we
20:57could come up with all this and that for
20:58for me at least, I could come up with
21:00all this analysis, see the buyers get
21:01absorbed, see the sellers get absorbed.
21:03But for me, if it's not at my level of
21:05interest, I have no You know, it's it's
21:07not
21:08My objective is to not catch every
21:10single move in the market. I don't look
21:11at the market moving down or up as me
21:13missing it. I just look at it as me not
21:14participating in that move because I've
21:16no reason to participate in it. If it's
21:18not part of my system and my strategy,
21:20I've no business transacting.
21:21>> Of course.
21:22>> And I feel like uh you know, it's a
21:23massive issue with a lot of traders is
21:25they plan so much before the market
21:27opens.
21:27>> They have an easy click.
21:28>> As soon as the market opens, they see a
21:29move up, down, I got to get in it cuz if
21:31I don't get in it, I'm going to miss it.
21:33>> Yeah. Yeah.
21:34And this is the reason a lot of people
21:35have an edge, but they cannot make the
21:37edge work because 90% of the trades they
21:40take are not following the edge.
21:41>> Right.
21:42>> And that's that's the main problem you
21:43see in the industry.
21:46>> It's harder to sit on your hands and not
21:47trade than it is to click the buy or
21:49sell button.
21:52>> The sellers are protecting, but also the
21:54buyers on this level. I see that they
21:56are really trying their best. You You
21:58have a liquidity level on uh
22:01on on the S.
22:02>> On the S, I have no
22:03>> Only in the top, maybe. The next one is
22:0633, 833 that it just reached.
22:09>> Yeah. The sellers are really trying
22:11here.
22:11>> Mhm. They are getting aggressive to
22:13break it.
22:19>> Another thing that I like looking for is
22:21if the market is trying to balance and
22:23buyers are in control and holding the
22:24absorption levels, I like to look for
22:27bids step in like really large buyers.
22:29This is not a good example of it. That
22:31continue to support the market because
22:32that could be a really large
22:34>> sitting reloading reloading reloading.
22:36>> This is one
22:37When when you see it I trade trapped, I
22:39also like trapped it but the most high
22:42win rate setup is when I see a reload on
22:44a sensitive level. Yeah, because you can
22:45put the stop loss below high and it it's
22:48really high probability that continues
22:50and you go break even in two or three
22:51candles. So it's it's nice. Which time
22:53frame you like to use the one minute?
22:55>> On candle chart or or like a
22:57candle? I go to one minute or five
22:59minute. Just I like seeing the different
23:00structure in the market.
23:01>> Really good at this same stuff.
23:03>> Yeah, I I constantly go back and forth.
23:04>> to one minute.
23:06>> Yeah.
23:06>> Have you ever tried range charts?
23:08>> So my footprint chart that we have on
23:10the screen over there, I use a 20 tick
23:12range on ES. Tick footprint.
23:15Um I like looking at 20 tick footprint
23:17and really just absorbing or or looking
23:20at the shape of the volume distribution
23:21and the volume pattern
23:23um on the footprint chart. And
23:26if the market's coming down into let's
23:27just say a support level or I like
23:29looking for large accumulation at the
23:31low of that footprint bar to indicate
23:33absorption and accumulation.
23:34>> Of course. And and you like for example
23:36to watch also the total participation
23:38total volume.
23:39>> Oh yeah.
23:39>> Mhm.
23:41>> Think about it. If a lot of volume's
23:42coming into the market and there's no
23:43movement in the market, that's a sign of
23:45absorption and accumulation.
23:47>> This for example it's a reload setup
23:49that I have. Right, when you have a
23:50clean absorption at a static level in
23:53the direction of the main aggression
23:54that we have, this is something that I
23:56can take but it's small scalps that
23:59don't make sense when you have this
24:00volatility because
24:02you go to break even too often then and
24:04you pay a lot of commission. So
24:06>> All right.
24:06>> what I prefer is to clean this range. At
24:08least the beginning of the session range
24:10I prefer to be clean and then take a
24:12directional setup.
24:16Yeah, but going back to your demand.
24:18>> Yeah, so for me right looking at the
24:20volume profile
24:21>> Mhm.
24:22>> You see how there's just so much volume
24:23built here? If we were to add this
24:25volume with the volume that we're seeing
24:26both in the overnight session and now
24:28the intraday session. This just range
24:30right here is a little bit of a chop,
24:32not a chop fest, but a little bit of too
24:34much liquidity for me. I like trading
24:36where there's not a lot of liquidity
24:37because that is where, in my opinion, a
24:38lot of the edge comes from.
24:40>> Yeah, I agree.
24:41This is like fair value for them, so
24:43they transact really efficiently there
24:45and you have a choppy face.
24:47>> I'm looking and I'm sure you could agree
24:48we're looking for inefficiencies in the
24:49market, not efficiencies.
24:51>> Of course.
24:51>> Yeah.
24:52>> They are challenging the low of the CPI.
24:57>> Yeah, so let's see the pre-market lows
24:58break here.
25:00Personally speaking, I I have no
25:02business transacting and and playing a a
25:04short position for a continuation still
25:06above the levels of
25:07>> Yeah, because you you or you don't play
25:10what when the move already happened, you
25:12don't try to chase the price.
25:14>> I would rather wait for the reload setup
25:16like you just said.
25:16>> Of course.
25:21>> So you see here on my screen, there's
25:22two zero prints. You see a price 6828,
25:24there's no volume on the right side
25:26where my cursor's at, there's 75 volume
25:28on the bid and zero on the offer. And
25:30then below that, 6827 and 3/4 is 18 on
25:33the bid and zero on the offer.
25:35>> Yeah.
25:35>> These are what I call zero prints and
25:37the likelihood of the market revisiting
25:38them at some point is is pretty high.
25:40>> Mhm.
25:41>> Um so now I'll just mark these as levels
25:43and at some point, probably when the
25:44pre-market lows break to pick up the
25:46liquidity,
25:46>> Mhm.
25:46>> um just be expecting a quick little
25:48bounce back up into 6828.
25:50>> You are considering loading uh on the
25:53test on the short?
25:54>> Potentially using this as a level as a
25:56magnet for where the market could
25:57revisit it possibly and yeah, I would
25:59use this as a target for a long.
26:01>> But would you not consider maybe to
26:03visit after it fill at next liquid level
26:05or you just uh it's enough for you?
26:07>> For this type of setup specifically,
26:09it's mainly just saying that hey, we
26:10have zero prints on the chart and the
26:12likelihood of them filling is pretty
26:14high, the market revisiting them is
26:15significant. So kind of what Right, and
26:17then that's it. That's the idea.
26:18>> Mhm.
26:26>> And we actually have more
26:296020 formed.
26:38Do you see anything significant?
26:40>> I'm loading now the
26:43the cash profile that I like to use to
26:46to frame because if I need to short
26:48today, I would like to see
26:50the high of the cash revisit.
26:53So,
26:54around
26:55the 25,041
26:57shorting the price when it didn't
26:59revisit even the POC.
27:03It's really chasing like we were saying
27:04and also we are still in the demand. So,
27:07chasing the price down in this case it's
27:10it's not my triple A setup. So, I just
27:12wait.
27:13>> Yeah, so the likelihood of having a loss
27:14filling a zero print which were right
27:16there. We have one at 6820 on ES.
27:18>> Yeah.
27:18>> And then we have another at 6827. Um the
27:21likelihood of them filling I mean the
27:22the first one just filled.
27:24It's just an important level to mark and
27:26and watch for potential in this case
27:28long
27:28>> Mhm.
27:29>> for the revisit of it because the
27:30chances of the market
27:32creating a fair opportunity for the
27:33other side to trade at it is very high.
27:36Uh so, we did just fill the first one at
27:386820 and now we're going for the 6827.
27:41So, this could have been a fantastic
27:43long opportunity.
27:44Um
27:45>> How you trade also on the mean reverting
27:47side like from the
27:49>> Yeah, yeah. So, this is a setup that I
27:50would look for a long and both of them
27:52filled right there. Boom.
27:53Could have been a good trade?
27:55And it happened in 30 seconds, you know?
27:57Mhm.
27:58So, it's just marking out levels where
28:00not one side trades specific volume,
28:03marking it and then looking for a
28:04potential mean reversion or reversal
28:06back into those levels and we just saw
28:07that bounce. So, we have a lower wick
28:09there. I wonder
28:10see if there's anything significant here
28:12on the footprint chart as well.
28:13>> If I need to take a reversal play, I
28:15like to take from the the rejection of
28:17the cash session the previous cash
28:19session.
28:20>> Close?
28:20>> Yeah.
28:21>> Yeah, yeah, yeah. For sure.
28:23Look at this right at the low of the day
28:24on the footprint chart 335 positive
28:27delta at 6810 at
28:30aggressive buying stepping in and
28:32putting the brakes on the down.
28:33>> same trick like it's the initiative
28:35candle when you have delta price
28:37coherence with a lot of aggression. I
28:39think it's also on balance.
28:40>> Look at that. Inside the level of
28:41interest.
28:42>> Mhm.
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30:34today.
30:35Let's go back to the episode.
30:37>> I have a rule, it's called the CLC rule.
30:39The context, the location, and the
30:40confirmation. When all three align,
30:42context to the market fitting, who's
30:43aggressive, who's trapped, location at a
30:45good level of interest, and with valid
30:47confirmation, when all my three pillars
30:49appear in alignment, that's when I get
30:51set up that, you know, needs to have
30:53risk put on.
30:54>> Mhm.
30:55>> But that's a nice balance. I I wonder on
30:56the Nasdaq, is there anything
30:57significant at the low that may have
30:59>> now they are revisiting the value area
31:01low, and this is a level because if the
31:03value area low gets rejected, you have
31:04the mean reverting set up, and we just
31:06rejected from the
31:08from from the demands of the CPI. So now
31:11I'm considering considering that the
31:13cash session didn't got accepted in the
31:15first minute, and usually I watch the
31:17first 15 minutes to 30 minutes of
31:19rebalance, I can consider a long set up
31:22in this case, but I don't want to buy
31:24the top. I want to see a little bit of
31:26rebalance on this one. Acceptance. Yeah.
31:30I want to see if it mark above the 4 24
31:32700.
31:34And I usually used used the
31:37deep trades. The bottom of the Nasdaq
31:40was amazing. You have a clean aggression
31:42and absorption at the bottom.
31:44And a lot of contract to be Nasdaq.
31:50So you always trade on horizontal
31:54area,
31:56but never momentum. Like you never trade
31:58trend following explore Look at this
32:00movement.
32:01Crazy.
32:02>> I got a little FOMO, I can't lie here.
32:04>> That's not easy. Are you You entered?
32:06No, no, no, no. That's not easy to
32:08monetize.
32:09>> It happened in 30 seconds. So I mean, if
32:11you look at the low, significant buying
32:13volume at the low.
32:14>> Yeah.
32:16>> With the zero prints there, you know,
32:17makes it the cherry on the top.
32:24It's a V-shape reversal.
32:26It could get pretty aggressive if it
32:28continues.
32:28>> They they are getting to the
32:31to the liquidity level.
32:32>> Yeah, 6860.
32:34>> The problem with this is that
32:37I don't have any confluence to add
32:39because it only made explosion
32:41aggression one after the other.
32:43And my risk to reward is not enough
32:45because what I cover below the V-shape.
32:48>> Mhm.
32:48>> So it's uh
33:00I also like to use the speed of tape.
33:02Oh, yeah. You use it?
33:04>> I So I don't look at a formal indicator
33:06for the speed of the tape.
33:07>> Mhm.
33:08>> I mainly watch the depth of market for
33:09the
33:09>> Okay.
33:10>> It's a massive indication for me.
33:13>> Like
33:14in in the reversal candle you can see
33:16the speed of tape building. You can see
33:18how they are getting more and more
33:19aggressive and you can see that for the
33:21first time now buyers are getting
33:22rejected and the sellers are in control.
33:25Like the week is giving you a frame to
33:27say this candle
33:30saw only aggressive buyers and never saw
33:32a retracement. Wow. So they they only
33:34bought aggressively. They never
33:36let the price retrace. This one is a
33:38potential continuation and I can
33:40consider loading the first setup here.
33:43Just waiting for this candle to close.
34:04It didn't It didn't even came to
34:06retrace. Just an explosion. Like this
34:08one I want to two, one to three and I
34:10take the momentum phase. If it comes
34:12back in the candle and I see another
34:14absorption I will consider loading.
34:17Like if you think about it, if you have
34:19speed, if you have momentum and if you
34:20have direction
34:22there is more probability that the the
34:23price will push you in profit fast.
34:27>> Right.
34:27>> And it's enough to put the position to
34:28break even.
34:29>> So my best trades work out like that.
34:31>> Yeah.
34:32>> The trades that hang out they spend too
34:34much time
34:35>> Yeah.
34:35>> usually the trades that don't work out
34:37too well.
34:39>> If this candle keep holding the level, I
34:42will consider
34:47loading here on the long side.
34:49It's rejecting.
34:55Also, when you have full-body candle
34:57and you have
34:59sellers stuck in the middle. Okay, so
35:02let's say that this candle close full
35:03green and they have sellers absorbed
35:06like the buyers are rising in
35:08absorption. I have a momentum setup.
35:10This one it's reversal.
35:11>> Mhm.
35:13>> [snorts]
35:14>> Ah, when when sellers come in the middle
35:16of the wick?
35:16>> Yeah.
35:17>> And it's a 1-minute chart?
35:18>> It's 519 absorption. I can consider
35:21loading. This is a 1-minute chart, yeah.
35:29It's a new level of skill trading and
35:31explaining what you are doing while
35:33watching at the camera.
35:37>> For Italian, we could do all right.
35:38>> Yeah. Olive oil in the veins. That's the
35:40ghost.
35:46They are failing.
35:48I need to
35:52I need to wait them. The absorption of
35:54the 520 contracts of the top would have
35:56been amazing for a continuation setup.
36:00But they got
36:01They got rewarded. So, they are going
36:05to visit this level.
36:06>> were looking for the market to bounce to
36:09for these buy potential passive buyers
36:10to support.
36:11>> I saw I saw this revisit, no? They
36:12loaded another 519. On Nasdaq, it's a
36:15huge amount of volume. If they reject
36:17this and the candle close here, okay, I
36:20can load one contract here and one
36:22contract here with the stop loss below
36:24this one and capitalize on the squeeze
36:26momentum.
36:26>> All right. I'll go to the sellers really
36:27stepping in now.
36:28>> Yeah. I want to see the speed of tape
36:30here.
36:31>> Now, would you draw a a
36:33volume profile for that? You'll go I
36:34>> That's That's exactly what I was doing
36:36next.
36:37>> So, on my screen, I have a CVP column
36:40and this shows me the volume profile
36:41specifically for the specific move that
36:43I'm watching, you know?
36:47>> You see this one way I will not
36:48consider. It's really empty.
36:50>> Right.
36:50>> This is pretty the buyers got on the
36:52top, so they got absorbed and you have
36:54aggressive sellers protecting the level.
36:56So, I don't think we will stop here. I
36:58think we can have another carry out. So,
37:05the continuation set up of the the
37:07sellers as of now
37:09because this is dynamic now. Also,
37:10buyers can get really aggressive in one
37:12candle and it print the delta level
37:14where I want to reload.
37:16>> I would normally look for a low volume
37:18node here, but even on ES there's
37:19there's nothing significant on the rally
37:22up. It's only buyers.
37:23>> Yes.
37:25There is no low volume node. There is
37:27only high volume node of buyers.
37:32>> The best set up that I saw was the zero
37:34prints filling uh on the deep charts. I
37:36mean, that would have been a What's the
37:37risk to reward on that?
37:39>> It's crazy and you have aggressive
37:40sellers stop on the bottom, so it's like
37:43this is the top of it.
37:44>> Yeah, it's it but it happens so fast.
37:46>> It's a 1 to 2.35 risk to reward.
37:51But it it depends if you enter at the
37:52close of the candle or in the middle.
37:54>> So, for me I don't I don't wait for a
37:56close of a candle. For me that tells me
37:58not much information.
37:59>> Mhm.
38:04You see something.
38:06I I was like
38:08You know, when you are live you want to
38:10execute to make people happy.
38:11>> Yeah.
38:11>> problem is that I need the level and I
38:14need a clean battle between buyers and
38:17sellers and I want to be in the
38:19direction of the winner. As of now, I
38:20have sell aggression with buy
38:23absorption, so I have mixed information
38:26and
38:33we are going to revisit the origin of
38:34the move.
38:36>> The selling is really trying here.
38:37>> Yeah, they they are trying their best.
38:39See the speed of tape.
38:43The value area low of the cash session
38:45got already rejected. And it's
38:49>> So, for me this is a potential reversal
38:51a bounce here. So, the market is
38:52breaking under this little consolidation
38:54range right here.
38:55>> Mhm.
38:55>> And as we tried to break, I mean looking
38:57at the tape right here at 9:52 we tried
38:59so hard.
39:00>> I see I see the same from the
39:01>> Look at the bounce, you know.
39:03>> From the aggressive so and also the
39:04speed of tape. They are loading the
39:06speed that buyers used to load.
39:10Yeah, this would have been a nice I will
39:12consider this one, you know.
39:14>> See, for me that's too late to enter
39:16now. That the entry was at
39:17>> not not now. Not now. I mean uh
39:20covering myself above the big absorption
39:22and loading two levels of entry. The
39:24first one
39:25it's at the breakout of the range
39:27because this one is like if you have a
39:28small balance here, you know.
39:29>> Okay.
39:30>> And
39:31sometimes when you have a momentum I get
39:33two contracts filled and then I explode
39:35and I'm really fast in loading other
39:37contract when it goes. Or if the setup
39:39fail,
39:40it's possible that I see this rejection
39:42it brings me back into profit.
39:44>> Okay.
39:44>> Okay, so now we we go up again and I
39:46have time. For example, this is a failed
39:47auction for me.
39:48>> Mhm.
39:48>> Okay. So, I need to cover my risk as
39:50fast as possible.
39:51>> Right.
39:52>> So, if we go above here and it gives me
39:55the opportunity, I will close the
39:56position to mitigate the total risk of
39:58the setup.
40:01>> It looks good.
40:01>> Yeah, I closed because this rejection
40:04for me it's a sign and I stole $400 from
40:07the market.
40:09If we manage to break the stop
40:12and I have a a continuation of the
40:13reload, I want to see population of
40:15aggression on the way up.
40:28Uh that's that's it. That's it. They
40:30they are getting aggressive now. So, if
40:32this is coherent with the speed of tape,
40:35a momentum setup it's another one that I
40:37can load.
40:43How do you see it?
40:45>> [sighs]
40:45>> For me the entry was in the when the
40:46balance range broke this one. Yeah.
40:49Yeah, yeah, yeah.
40:50>> You You just enter, for example, the
40:53choice that I take off
40:55putting my risk at zero with this
40:57absorption of the top was really smart,
40:59because I wouldn't have give $1,000 to
41:01the market without a reason.
41:08I also I categorize the coherence of the
41:11absorption of the speed. So, for
41:13example, let's say that this candle you
41:15see this aggressive buyers, no? Entering
41:16really fast. If this candle closed with
41:18a big wick and buyers at the top
41:20absorbed, is more strong than as a
41:24simple absorption.
41:25>> Uh we're going to probably go break the
41:27high of the day here.
41:36Nearby buyers were absorbed. Aggressive
41:39buying stepped in after.
41:43>> How was it looking? Yes, already on the
41:44liquidity level.
41:46>> Yeah, so similar how you to mark that
41:47balance range. To me, I consider this
41:48market structure demand. This to me is
41:50signs of accumulation and absorption
41:52here.
41:55>> So, your setup was break and test on or
41:58or directly
41:59buy limit. Like when you break it, you
42:01are into.
42:02>> As soon as it So, here we see the
42:03balance, right? You see the market
42:04making this balance. If I go here,
42:07tools.
42:09And if I put a horizontal line here, we
42:10have the balance range. Market broke the
42:12balance range right there.
42:13>> Yeah, yeah, yeah.
42:14>> And as it broke in real time, it looked
42:15like the sellers were really really
42:17coming in and aggressive. And if you
42:18look at the delta here,
42:19>> A lot of passive absorption last of
42:21absorption.
42:22>> And then this bar closed near the high
42:23on the 20-tick range, and these sellers
42:26got absorbed and the buyers aggressively
42:28stepped in. Watch the next bar. Next
42:30bar, aggressive buying. Next bar,
42:32aggressive buying. Really aggressive
42:34buying. And this was the setup down
42:36here, because this offers the the the
42:38least amount of risk here.
42:40Might be the lowest probability, but the
42:41least amount of risk for the highest
42:42amount of reward.
42:43>> love it. Unfortunately, you need to be
42:45crazy fast.
42:46>> to be like this.
42:46>> Yeah, yeah, yeah.
42:48>> And bouncing back and forth between
42:49applications,
42:51you know?
42:52>> Sellers took a crazy control back on
42:54this.
42:54>> So, now we're retesting that balance low
42:56right here.
42:56>> No,
42:57that's the point. And now I see buyers
42:58absorb like sellers going down in
43:01absorption of the buyers. I really like
43:03it.
43:05Let me see if I can play a little bit
43:06with this one.
43:08Now, my top setup will be the balance
43:10got broken on the downside. The speed of
43:13tape is is there. I have already
43:14absorption. If I go up and they see
43:16absorption of the buyers on this candle.
43:18Yeah.
43:20>> This could be a liquidity trap, pick up
43:21liquidity, bring it down for somebody to
43:23buy.
43:25Especially when the 1-minute candle
43:27looks like that, you know?
43:35Yeah, we're testing the balance low
43:36here. Massive volume coming in.
43:38>> Now, you watch your horizontal volume.
43:40>> Oh, yeah.
43:42I know sometimes pull up the cumulative
43:43delta.
43:44>> You You use sometimes the relationship
43:46between volume and movement of price to
43:49to understand how much result they had
43:51with a certain effort?
43:53>> Yeah, so massive effort with no result
43:55and no reward is a good reversal signal.
43:58>> We almost the same stuff, brother.
44:04>> Maybe you're my brother from another
44:06mother. Yeah, I don't know about
44:07Who knows?
44:09So, now we're reclaiming back into the
44:10balance. Let's see if this holds.
44:24>> Pretty choppy for an opening.
44:26>> Yeah, so the first 30 minutes for me
44:28first 30 minutes to an hour kind of sets
44:29the tone for the day.
44:31>> Yeah, that's what they was expecting.
44:32The problem is that they didn't set
44:35a clear tone because buyers absorbed at
44:37the top, sellers absorbed at the bottom.
44:38We are still in the same range where we
44:40open, so
44:42Also, for model like the opening range
44:44breakout or the IVB,
44:46today there was no setup
44:48as of now.
44:56This is your favorite to market
44:57scenario, the balance. Take the ping
44:59pong.
45:00>> If there was a level of interest for me,
45:01my low volume note at 6830 because of
45:03how deep we moved into it is is is not
45:06it's done, right? The best setup that I
45:08saw which I hesitated to execute on was
45:10when them pre-market lows broke.
45:12>> Mhm.
45:12>> We had the zero prints that formed
45:14>> Mhm.
45:14>> and the massive absorption at the low.
45:15>> No, this one
45:16>> Massive absorption. That's a that's a A+
45:18perfect setup.
45:19>> And the really low risk.
45:21>> Very low risk.
45:22>> You think that
45:23the only fear I have on this setup is
45:26being slipped. If you have a huge
45:28aggression, maybe they stole some some
45:31ticks because you get filled lower than
45:33your original stop loss.
45:34>> Right. Well, in the Nasdaq that's very
45:36possible. The ES because it
45:38it'll different, you know? For you to
45:40>> We have different risks.
45:41>> Yeah, this there's more slippage in in
45:43the Nasdaq, especially with larger size.
45:44>> Yeah, yeah.
45:46>> I mean, right now with the volatility on
45:48the ES, the book thickness is between
45:49like 40-50 contracts. So, if you have
45:51the market order 20 contracts in, it's
45:53not going to make it you get filled, you
45:54know? Yeah, yeah.
45:57But Nasdaq, I don't know how thick the
45:58book is, you know, market ordering 10
46:00contracts, let's just say. Look at this.
46:02What's going on?
46:11>> Let me blow up the speed of tape.
46:14>> I got to use the speed of tape on
46:16on deep chart.
46:17>> It's really powerful. Like if you have
46:19coherence of speed of the aggression
46:23on a sensitive level, it's an amazing
46:24trigger. Yeah, it's really an amazing
46:26trigger.
46:29Buyers looking really aggressively on
46:31this one.
46:32>> Was there data or news at 10:00 a.m.?
46:34Cuz that happened right at 10:00 a.m.
46:39>> I don't think so.
46:52Did you started immediately with order
46:54flow or you had a price action moment in
46:56your career.
46:57>> Well, with futures order flow
46:58immediately. So, I have a little family
47:01background on Wall Street.
47:02>> Mhm.
47:02>> And they don't look at candles for
47:05short-term trading, you know? They don't
47:07look at candles
47:07>> They don't look at algorithm and
47:09>> They love ICT on on Wall Street. That's
47:11their best friend.
47:12>> Let's take a break for a minute there
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48:42today.
48:43Now, let's get back to the episode.
48:46>> You walk into their office, you see
48:4830 depth of markets on one screen. Yeah,
48:50yeah, yeah. You don't You don't see
48:51anything else.
48:51>> Yeah, yeah, yeah, I know.
48:55They work with data. They cannot
48:59have a discretionary view based on guess
49:01what there is inside a candle.
49:03>> Correct. But everybody needs to have
49:05some sort of discretion with a
49:07systematic approach, right? I mean, you
49:08have patterns that you look for.
49:09>> Yeah, yeah, yeah.
49:10>> It's a systematic approach to it.
49:11>> And this not Yeah, it's not It's not
49:13discretionary at all because the the
49:14patterns are not back tested or whatever
49:16you want to call them, right?
49:19>> But you know, also with price action and
49:20candle I find some really good. For
49:22example, one is the opening range
49:23breakout. Like the the breakout of the
49:25candle of the first 15 minutes of the
49:28session is
49:29have a really smooth equity curve, but
49:31then you need to add on top of it some
49:32timing tools.
49:38>> I always think about before I take a
49:40trade, if I can't tell myself the trade
49:42that I'm taking and I can't give it a
49:43label or I can't say, "Okay, this is a
49:46a zero print trader. This is a market
49:48structure demand trader or a specific
49:49playbook." I have no business taking it.
49:51>> Yeah, I I have a rule. If you cannot
49:53journal immediately and you need to
49:54think why you are taking it later, don't
49:56take it because there is
49:57>> There's no reason.
49:58>> Yeah.
49:58>> Yeah.
49:59I'm sure if everybody watching this had
50:01Fabio and Carmine next to them and they
50:03could tell us why they're taking the
50:04trade, they would receive a lot of
50:05trades that they should not be
50:07>> make 1/3 of the execution.
50:08>> Yeah.
50:12>> But I think this is also because people
50:13approach trading as an income method, so
50:15they they just need to pay the bills at
50:17the end of the month, so they force
50:19themselves to find opportunity that ends
50:21up in losing money because they are not
50:23respecting a model, so they are just
50:25gambling.
50:25>> Yeah, you're Key word, gambling.
50:27Correct.
50:30>> The volume is really low for the
50:31session, so I'm lowering the sensibility
50:33of the big trades to 40.
50:36>> That is rare on thing you do that.
50:38>> I I never do this in New York session if
50:41it's not a super choppy day, but as we
50:43said in the beginning
50:44two days of directional collapse, today
50:47I expect the market to be choppy, okay?
50:50So,
50:51if I don't see a clean breakout of the
50:54the top or the bottom, I will prefer to
50:56stay out. And they have the top of the
50:58cash session that is exactly marked with
51:00the top that you were waiting the
51:01>> Yeah, 60s. Yeah. And it's where I should
51:04consider engaging in an opportunity.
51:08>> out or continuation?
51:09>> A fake out.
51:09>> Fake out, yeah.
51:14See now for me
51:16because of there being significant
51:18volume directly above the high of day
51:19from previous session, I can't consider
51:22that move just because of tons of
51:24liquidity there.
51:25>> Mhm.
51:26I don't consider the long because as you
51:28see the delta it's empty.
51:31>> Yeah, it's like there is no clean
51:33>> direction. We have buyers at the top
51:36completely absorbed, sellers at the
51:37bottom completely absorbed. I have a
51:39cage.
51:40And this is the reason why
51:42the breakout of the first 30 minutes or
51:4415 of the session works because the side
51:46that win decide the direction for the
51:48day and finally I can load a lot of
51:50trend following setup and I have
51:52>> Can you move this volume profile to the
51:55one candle before that drop?
51:57Right there. Right yeah. Now if you
51:59extend that to the right this volume
52:00build under here. Yeah. So if that to
52:03me, see how volume's building and
52:04expanding there? To me that's a little
52:06bit of a red flag to transact around
52:08there. I understand. You know.
52:10>> I understand. In in this area anything
52:12that I see in this area as it as it is
52:14developing now
52:15if I really wants to anticipate a
52:17breakout, I will do this at the
52:19acceptance of the value area high of the
52:22>> Of the specific move?
52:23>> Yeah.
52:24If I want to anticipate the squeeze like
52:26I do the
52:27this one, it's at the clean breakout of
52:30this level.
52:31But engaging in this cage it's it's
52:33really a suicide for a scalper.
52:36>> Are we going to have squeeze today?
52:38>> I don't know, let's see. If I see enough
52:39volume building I will try to make the
52:41sound that will have some contracting
52:43and we see if we squeeze.
52:44>> I think you need that sound in the
52:45charts when someone clicks buy.
52:47>> We will make it.
52:48>> Okay.
52:48>> We will put
52:50>> I will be a customer.
52:52>> [laughter]
52:54>> We need to put also your sound. You have
52:56something with the community that is
52:57really peculiar that you do.
52:58>> Yeah, we can yeah, we do.
53:05This is just a definition of balance.
53:07>> This is just a definition of boring.
53:11Like imagine the traders at home. How
53:13many traders will not sit on their hands
53:15and take 20 stop loss in this range?
53:18>> Now, I'm going to agree and disagree
53:19with that.
53:20>> Mhm. You You think they can stop?
53:22>> An experienced trader may strive in
53:25these conditions, right? And if an
53:26experienced trader may take may have
53:28taken six setups right now, but each
53:30trade might have been three points or
53:31five points.
53:32>> Ah, like really
53:33>> very small. And I think having that
53:35mentality in a balanced market is the
53:37right approach instead of going for a
53:3920-point move or a large move one time.
53:42>> Yeah.
53:43That this is something that they post in
53:44the in the first podcast of reach, but
53:46makes sense on the ES. If I need to take
53:48three ticks and there if there is a risk
53:50of this squeeze five ticks on the Nasdaq
53:52>> Right.
53:52>> on the ES, yes, on Nasdaq I never do
53:54this. Yeah.
53:55Only at least
53:5720 30 points of multiple.
53:59>> Okay.
54:00Yeah, on ES I go for at least 12 to 15
54:02points. And usually it's about three
54:03points of risk.
54:04>> You have a minimum risk reward that you
54:06accept?
54:07>> I won't take anything under two to one,
54:08but majority of my trades are four to
54:10one, three and a half to one. It really
54:12depends on my entry and my target. In
54:13volatile days like this,
54:17honestly in volatile days like this, my
54:18risk to reward tends to be a little
54:20lower
54:21>> Mhm.
54:21>> because of where my entry is in relation
54:23to the order flow because of how fast it
54:25moves.
54:25>> Mhm.
54:26>> On balanced sessions when it moves a
54:28little slower and I'm catching a nice
54:29mean reversal against some buying
54:31activity coming in.
54:32>> I see the speed of tape loading
54:34>> Yeah.
54:35>> and the big trades loading, I will just
54:37mark one level and see how it engage it.
54:40Because seems like an anticipation of
54:42the
54:44>> And I see a rebid also forming on ES
54:46here as well.
54:47The bids down here filling, broke under,
54:49reclaimed, and now we're rebidding.
54:51>> Mhm.
54:51>> 6839
54:55>> This is super important for me. Like the
54:59interest of the buyers
55:01got 50% lower in three seconds.
55:04>> Mhm.
55:05>> I can see this as a a lose of interest
55:08in going up in the market.
55:20>> See, I would love to add that speed of
55:21tape to to my trading because I look at
55:24the speed of the tape on the depth of
55:25market.
55:25>> Yeah.
55:26>> And if I miss it, if I wasn't watching
55:28that, I would have missed what happened
55:29there, you know?
55:30>> They rejected in a crazy way the level,
55:32the horizontal level that I put, and
55:34they the buyers took again a situation.
55:37>> And and look at my screen, they're
55:38re-bidding at 6839.
55:39>> Yeah.
55:41This is not a bad setup.
55:43It's not a bad setup at all.
55:46>> Aggressive buyers coming in, re-bidding
55:476839.
55:50>> You're still inside the cage.
55:51>> The problem that I have is we're in the
55:52cage.
56:01That's a re-perfect re-bid at 6839, and
56:03at the same level you have
56:06>> It's funny that we see
56:08It's just off in a different way, but
56:10it's still the same level.
56:11>> It's the same that level you have, yeah.
56:12It's the same exact level.
56:156839, look at that massive bid.
56:17>> Yeah, filled.
56:19>> [snorts]
56:21>> Let's see if we can anticipate a good
56:22squeeze.
56:24>> Is the value area high?
56:26>> They are doing it. I want to see some
56:28aggression.
56:42>> The delta's really building. We will
56:43mark
56:44>> also the 520,
56:46that is 500 and 20 executed contract
56:50horizontal level.
56:52>> I look at the speed of the
56:53>> Wow, yeah.
56:55That's probably a strong buyer coming
56:57in.
56:57>> Yeah.
56:57>> Yeah, yeah, yeah. Absorbing all the
56:59selling volume.
57:01>> And this one could be something.
57:08Yeah, I got a strong buy.
57:10Rejected on the 520.
57:12>> You are considering a setup?
57:15>> See, for me, my target would be above
57:16the high of day. So, if I'm entering
57:18here, having a six-point five-point
57:20target is no bueno.
57:21>> It's not even one to two.
57:22>> It's not good. It's not good.
57:23>> Yeah. Yeah, yeah.
57:25>> But I see buyers getting aggressive,
57:27absorbing
57:31I kind of like this one.
57:43Possible absorption, too.
57:51I see also these 11197
57:54contract absorbed at top.
57:57You see why is is good not to have a
57:58trigger finger. Yeah, yeah, yeah. The
58:00520 rejected perfectly the 77. The
58:04squeeze, it's possible to happen when we
58:06break this level.
58:11Being so fast Being so fast with a
58:12track, but it's not easy at all.
58:14>> Yeah, it's not easy at all.
58:16>> It It's master level challenge.
58:20>> I think you may get it here.
58:21>> I I'm seeing the side of lions either
58:23buying
58:24at the explosion of the top, reloading
58:26here,
58:27and having an exit position here.
58:35And trying to anticipate the squeeze.
58:40I will go for
58:42>> It looks good, Fabio.
58:44>> It looks good, but we are on the
58:45horizontal level that I fear, huh?
58:48>> At least they go break the high of day,
58:49you got here.
58:50>> Let's see. I have a target that is above
58:52the high of the day. The speed of tape
58:53is amazing.
58:54>> Right.
58:54>> Speed of tape is crazy aggressive. You
58:56are in tooth?
58:56>> No, but I'm seeing the massive buy
58:58absorption. The problem with entering at
58:59the high is where am I putting my
59:00target?
59:01>> If If this candle close red, it's a
59:04field auction, and they will take out
59:05the position manually.
59:09Now, the speed of tape is getting super
59:10low. You can see here, this invalidate
59:13my setup.
59:15And then waiting for a clean breakout to
59:19re-evaluate the situation. I got 104
59:22contract absorbed at the top.
59:24And if they can run over it,
59:27I can consider reloading on the 250.
59:30Expect them to take back again this low.
59:33And they will build
59:37a position on the way down. Now, they
59:39are exactly at the level where they got
59:41absorbed before.
59:42You see this huge delta horizontally is
59:45where they got absorbed here.
59:48So, that they are not having an easy
59:49time breaking through.
59:51I would like to revisit this huge delta
59:54candle.
59:57Here they go.
1:00:00One here.
1:00:02Another one I load here.
1:00:06I cover myself below the low.
1:00:09And we try again the squeeze.
1:00:15>> It's a nice dip.
1:00:18>> It's a nice
1:00:20It's a nice impulsive dip.
1:00:22>> Yeah.
1:00:24>> Now, the the position management is the
1:00:26one that is not
1:00:29Let's see if they can reload.
1:00:35Beautiful buyers.
1:00:37I'm at risk free.
1:00:43>> [snorts]
1:00:46>> Like I really value the speed of
1:00:49taking your position to risk free more
1:00:51than
1:00:53risk reward. Like even if I get a one of
1:00:56one of one constantly and with
1:00:59few seconds of putting risk free, it's a
1:01:01free shot for me.
1:01:07I pay out for my commission on this one.
1:01:09So, now we have two scenario. Either
1:01:11it's a failed auction and I lose zero
1:01:13money to monetize it, either even it
1:01:15shoot up and I make
1:01:17$3,000 risking $700.
1:01:20Now,
1:01:21>> my argument to that would be what if the
1:01:23market pulls back to where you
1:01:24originally entered and it still
1:01:26validates your real reason for entering
1:01:28to begin with? Would you then look for a
1:01:30re-entry?
1:01:30>> No, if it's if it's invalidated, no, I
1:01:32will not look for re-entry. Like and
1:01:34every time I have an aggression, you
1:01:36might raise my level. First of all, to
1:01:38avoid a squeeze. Second of all, to pay
1:01:42with break even plus
1:01:44two, three, four ticks for all the break
1:01:46even I take during the day. So, you see,
1:01:48we we took break even, but we are
1:01:50building $740 for the day. Yeah.
1:01:52>> So, but my argument to that would be if
1:01:54the market pulls back and moves to the
1:01:56same price where essentially you entered
1:01:57at and you're seeing the same
1:01:59confirmation at where you entered at
1:02:01originally, you'll re-enter, yeah?
1:02:03Because some of my best trades are
1:02:04exactly what you do right there and I'll
1:02:06re-enter, but maybe I'm still a little
1:02:08too early to it.
1:02:08>> This one I will give that give back
1:02:10money to the market on this one. So, it
1:02:12was And you know what I don't like,
1:02:14Carmen? If we had an acceptance and
1:02:16aggression above this one, I will still
1:02:18consider a long, okay? And as you can
1:02:20see, sellers are taking aggressive
1:02:22>> It's a balanced day, so we can't really
1:02:23expect a lot of continuation.
1:02:31For me, my rules, middle of balance,
1:02:34>> No, no, but you're right. You're right.
1:02:36I wasn't I like this one.
1:02:38>> [laughter]
1:02:39>> You're right.
1:02:41Click.
1:02:43I like this absorption on the day.
1:02:44>> Yeah, there's massive absorption here.
1:02:46And yes, it's the same exact thing.
1:02:52>> I will say that we have one of really
1:02:54boring the day.
1:02:55>> We're good.
1:02:56>> Oh, oh, of the session.
1:02:57>> That's The best thing that I saw was at
1:02:59the low of the day. Yeah.
1:03:01And then on balanced sessions, trading
1:03:03around the lows and the highs is where
1:03:04the edge is, not in the middle for me.
1:03:05>> Yeah, I agree. Or the breakout of one
1:03:08side.
1:03:08>> Yeah, you're correct.
1:03:13>> Would you consider a fake out of this
1:03:15high to go down?
1:03:16>> I would, but the fake out would be
1:03:17better
1:03:18if there was a level of interest above
1:03:20this, you know, for me.
1:03:22>> We missed the level of the CLC.
1:03:24>> We missed the level of the CLC, right? I
1:03:25mean, looking at the volume profile,
1:03:26there's just significant volume there.
1:03:28And if you look at what happens in this
1:03:30area of high volume yesterday, it was
1:03:32just sideways.
1:03:33You know, so
1:03:36for me, it's just transacting in area
1:03:37where there's a lot of efficiency, you
1:03:39know.
1:03:43The market can't stay in a balance
1:03:44forever.
1:03:45>> It's going to want to move.
1:03:58I will consider a load of this one if we
1:04:00break out back inside the value area
1:04:03high.
1:04:03>> Mhm.
1:04:03>> When accumulation, but I didn't open
1:04:06anything because sellers are still in
1:04:07control.
1:04:14Now, now I want to see if we printed the
1:04:16level on the
1:04:18fixed range. Oh, now the fixed range is
1:04:21populated.
1:04:24They are building.
1:04:24>> And I have a lot
1:04:25>> Building guys at the top of the range,
1:04:26yeah.
1:04:27>> So, for me, I mean, if the market was
1:04:28not in balance, a setup would be to long
1:04:30a strong break under that.
1:04:32>> Yeah.
1:04:56Do you trade the London government?
1:04:58>> On what session?
1:05:00>> London?
1:05:01>> Mhm.
1:05:02No, not really.
1:05:04Very, very rarely.
1:05:06>> And um
1:05:07you ever tried to bring your position
1:05:09overnight?
1:05:10>> No, never.
1:05:11>> Never. So, you are intraday.
1:05:13>> The only way I will hold something
1:05:14overnight is if I'm trading the option
1:05:16on it.
1:05:17>> Oh, you also trade options?
1:05:18>> Very rarely.
1:05:20Um last maybe a month ago I traded There
1:05:23was a zero print setup and I longed the
1:05:25market. It was a really strong sell-off
1:05:27day similar yesterday longed the market
1:05:29and the contracts went up 500% in like 2
1:05:31hours. And it was a lotto. I was risking
1:05:33zero. If it went to zero I was happy
1:05:35with it.
1:05:36>> I'm not an expert in options but I see a
1:05:38lot of potentials.
1:05:39>> For sure.
1:05:41But yeah, mainly mainly just the
1:05:43futures.
1:05:47I like being in and out. You know,
1:05:48usually in the first 2 hours that's
1:05:50that's my window.
1:05:51>> So you have a family history of Wall
1:05:53Street trading?
1:05:54>> Yeah.
1:05:55>> Nice.
1:05:57>> My cousin, my uncle.
1:05:59They're all my best friends.
1:06:01Yeah.
1:06:01>> But for institutions or like they Now
1:06:04they are retired and
1:06:05>> A real a real prop firm.
1:06:07>> A real I like a real Now you need to
1:06:09specify a real people.
1:06:10>> Yeah, you hear the word prop firm and
1:06:11you think it's, you know, funny company.
1:06:13>> a fake. Yeah.
1:06:14>> Yeah.
1:06:15A real prop firm that gives them their
1:06:17own money and when they make money
1:06:18others the firm makes money.
1:06:20>> You know, the first time that I tried to
1:06:21explain how a prop firm operate to an
1:06:24institution I was like, "So you need to
1:06:25pay them?"
1:06:27To to to make you So So they have a
1:06:28really a different concept of prop firm
1:06:30in the professional space.
1:06:38Today it's an educational sale.
1:06:40>> I was going to say 50 minutes the
1:06:41market's been open.
1:06:42>> 50 minutes and it's not moving.
1:06:47It's why you choose today.
1:06:49>> [laughter]
1:06:54>> We'll find something.
1:06:55>> Oh yes yesterday yesterday the
1:06:57volatility
1:06:57>> I was at dinner yesterday seeing the
1:06:59market collapse and I was I was not
1:07:02doing good.
1:07:03>> But this is not the day that you like to
1:07:05trade, right?
1:07:07>> In a different structure, yes, but with
1:07:09this structure my main setup for a day
1:07:11like today would be looking for a long
1:07:13above that consolidation range from
1:07:14yesterday. But we're just so far under
1:07:16that. Um
1:07:18Another setup would have been the long
1:07:19at the low but
1:07:20>> This liquidation on the bottom is
1:07:21>> Yeah, it's it's We can't say we can't
1:07:24talk about trades that we didn't take,
1:07:25you know, we were watching it, we didn't
1:07:26take it.
1:07:30>> You know that they see that we can
1:07:31already visit this uh
1:07:35this blue level. And this is what I'm
1:07:37waiting to get
1:07:39uh value area low long to keep for the
1:07:42day.
1:07:45>> All right, you could see the value area
1:07:46developing in real time. You just see
1:07:48the cage like you refer, you just see
1:07:49the massive volume.
1:07:50>> A breakout of the cage that goes back up
1:07:53will be a triple A for me.
1:07:55>> Yeah, I would not mind an imbalance, a
1:07:57break under 6830s. An impulsive move
1:08:00down, hold the low volume node, hold the
1:08:02strong buyers from earlier. It's an
1:08:03existing level of interest 6830 as well.
1:08:06I wouldn't mind that.
1:08:16>> Look at these buyers, the speed of the
1:08:18tape.
1:08:19The speed of the rejection tape.
1:08:24They attempt another time. Let's
1:08:26>> This is your value area high.
1:08:28>> Let's see they attempt to break.
1:08:31They have this wall that is crazy.
1:08:42I can also cancel the
1:08:44fixed profile and only watch the
1:08:47the cage. This one for me it's a
1:08:49squeeze, Carmen.
1:08:51This momentum trade for me it's a
1:08:54squeeze. If I can get a good absorption
1:08:56of the sellers, I can do the same that I
1:08:58did before
1:08:59with an asymmetrical risk to reward even
1:09:01that goes to one to five.
1:09:04>> So, is the main thing you're looking for
1:09:05right now is aggressive buying coming
1:09:08above that?
1:09:08>> I have two setups. One is conservative,
1:09:10I go here and I want to see trapped.
1:09:12>> Right.
1:09:12>> I want to see trapped sellers. And then
1:09:13I want to see that speed of tape going
1:09:15aggressively up. The momentum setup that
1:09:18I have is a clean breakout of the of the
1:09:20cage with acceptance above with
1:09:23aggressive buyers and I can take all the
1:09:26run up for a day because if we break the
1:09:28cage and I really don't think we will
1:09:29revisit the low.
1:09:37>> For me, I like your conservative level
1:09:39over the upside scenario.
1:09:52>> Do you ever do intermarket analysis?
1:09:55>> With other instruments?
1:09:56>> Yes.
1:09:57>> No.
1:09:58No, because like you said earlier, I
1:09:59care about the order flow that's
1:10:00happening right now and that's it.
1:10:02>> Mhm.
1:10:03I I use when I have for example a clean
1:10:05balance area.
1:10:06>> Okay.
1:10:07>> And I see the NASDAQ breaking
1:10:08aggressively one side of the area. I
1:10:12I was fading the ES breakout
1:10:15because NASDAQ is usually a driver
1:10:17because it's less liquid but gives you a
1:10:20bias for the day and with additional
1:10:23confluence is working really amazingly.
1:10:25I'm not doing this now because I only
1:10:26trade NASDAQ or even us with the
1:10:28intermarket analysis it's on the driver
1:10:30of NASDAQ but
1:10:32>> The only intermarket analysis I would do
1:10:34is if there's a significant outlier.
1:10:36Let's just say the NASDAQ is up
1:10:37significantly and the ES is doing
1:10:39nothing.
1:10:40I'll then look at the NASDAQ. I'll look
1:10:41at the stronger name either reject
1:10:43support, reject resistance and then
1:10:45maybe play the opposite
1:10:47from that.
1:10:48Um
1:10:49but when they move in sync with each
1:10:50other, I don't really see an edge in
1:10:51that.
1:10:52>> Mhm.
1:10:53It's building the liquidity level that
1:10:54we are waiting.
1:10:56>> You know what it's doing, right? It's
1:10:57trapping traders right now. Everybody's
1:10:59longing this, shorting this.
1:11:02Yeah, yeah. A setup that I would look
1:11:04for is if the speed of the tape really
1:11:05picks up under the 6830 under that
1:11:07balance range low.
1:11:08>> With a flush.
1:11:09>> And it flushes down impulsively and
1:11:11aggressively, that's that's something
1:11:12that I would look to transact on.
1:11:14>> Yeah. Yeah, yeah, I get with you.
1:11:16>> But if this bounces without us without
1:11:18pulling back to the conservative level
1:11:20for me, I can't off my system.
1:11:26The NASDAQ's a little easier because you
1:11:27get the 10, 20, 30 point moves like
1:11:29this, you know? The S&P might take a few
1:11:32minutes depending on the volatility to
1:11:34move up the 10, 12 points that I need.
1:11:42>> It's It's nice to see that when you plot
1:11:44the last distribution profile, you see
1:11:46buyers getting more aggressive on the
1:11:48delta as you go up, and this is a
1:11:51typical breakout setup because the delta
1:11:54is building more aggressive 1 2 3.
1:11:57This stairs is the one I used to
1:11:59anticipate the future.
1:12:03>> [snorts]
1:12:03>> So, for me, a clean acceptance here is a
1:12:05momentum trade, but the flash of the
1:12:07buyers and then starting to go back
1:12:09again up is the triple A.
1:12:11>> Right.
1:12:13Another setup that I look for is let's
1:12:15just say this is at a level of
1:12:16resistance, right? And you see 104
1:12:18contracts there on your big bubbles.
1:12:20If there's 104 there, but maybe only 40
1:12:23here, and I see more size here, and it
1:12:25puts in a higher low, that to me is a
1:12:26little bit of a divergence that says
1:12:28that, you know, the absorption is there,
1:12:29and a quick reversal to go for.
1:12:31>> Yeah, yeah. Hey, what do you mean for a
1:12:33quick reversal?
1:12:34>> Like just a quick little pullback down.
1:12:35This wouldn't be for all-day trends.
1:12:37This wouldn't be for calling a high of
1:12:38day. It would just be for a quick little
1:12:39relief sell-off.
1:12:40>> And you cover yourself above the
1:12:42absorption, or you give a little bit of
1:12:43room?
1:12:44>> I would cover myself above the
1:12:45absorption with the potential to
1:12:47re-enter if I just have mistimed it.
1:12:49A lot of my trades are entering Here we
1:12:51go, you're value area high.
1:12:52>> They are preparing to lift off. Maybe we
1:12:55get a shh.
1:12:56Maybe we get
1:12:58>> [snorts]
1:12:58>> But we need to get cleanly above 24,824,
1:13:04and
1:13:06my little friend speed of tape needs to
1:13:07kick in because it's boring.
1:13:11And you know what's funny that the
1:13:12target is on the balance of the other
1:13:14day, so it's really good risk reward for
1:13:17As of now, it's dead, the speed of tape.
1:13:19>> It's dead.
1:13:20>> It's There is no aggression on the
1:13:22>> How come there's a gap? There's no speed
1:13:24of tape. Is that just a data?
1:13:25>> Since that is not relevant. So, it's
1:13:28really low, and you can put a filter.
1:13:32I use a lot this
1:13:33gap between two candles as I load like
1:13:36imagine the buy pressure when two
1:13:38candles gap in 1 minute. Okay, this one
1:13:40is usually sell candle, okay? And then
1:13:44if the candle close by above the gap,
1:13:46you have a push candle.
1:13:49And this one can be the candle that
1:13:51slides through. You see that if buyers
1:13:53absorb this aggressive sellers on the
1:13:55way up, they are preparing. So you have
1:13:57a gap, you have an absorption of the
1:13:58sellers, they are preparing for the ch-
1:14:03Can I get it?
1:14:05It's going, yeah?
1:14:06It's going, yeah?
1:14:09This is laughing, but
1:14:17It's funny because when you have a
1:14:19squeeze, you see speed of tape with a
1:14:22massive candle. You see buyers
1:14:24aggressive on the top.
1:14:27Now, I play the trade I can make it's
1:14:30a buy stop above the area with a stop
1:14:32loss below. I think that's what I will
1:14:33do.
1:14:38I'm reload here, another one reload
1:14:40here.
1:14:42Another one reload here.
1:14:44And we cover ourselves below
1:14:47the big aggression.
1:14:48Let's try this fake setup.
1:14:52This one is the anticipation of the
1:14:53squeeze. So is the momentum move.
1:14:59If we have a breakout,
1:15:01one candle and I'm risk free. If we have
1:15:03a failed auction,
1:15:07It's almost going. Okay, cover the risk.
1:15:10Now, either they fail the top and I'm
1:15:14out with risk free, or I take all the
1:15:17squeeze on the way up.
1:15:25Let's do a little bit with
1:15:26>> One, two, three. Squeeze in your big
1:15:27trades.
1:15:29>> Here we go.
1:15:30Speed of tape loading, so I have the
1:15:32confirmation.
1:15:37Aggressive sellers entering.
1:15:39Buyers reloading at the level.
1:15:42I steal more money from this market.
1:15:48Now, we take the momentum up.
1:15:55Aggressive buyers are coming in.
1:15:57Go, bro.
1:16:00I didn't load enough size because we
1:16:02didn't have the retracement, but it's
1:16:03still crazy risk to reward.
1:16:09Look at the speed of tape. I will take
1:16:10it up, yeah.
1:16:13Here you go.
1:16:25Now, this kind of setup I'm making
1:16:26$2,000 risk in 600. I
1:16:29will be
1:16:31taking out the position. The point is
1:16:33that we broke the cage. Right. So, it's
1:16:35really possible that we have a
1:16:36continuation. So, I will trail my stop
1:16:39loss because this one can get to a 3
1:16:414,000 position. You will Yes, let it
1:16:42run. Yeah.
1:16:54I remove the speed of tape because now
1:16:55the squeeze is done and I don't need it
1:16:57anymore.
1:17:13Now, in choppy days when you have really
1:17:15deep retracement,
1:17:18this model is not performing. Now, you
1:17:20understand why any directional day.
1:17:22Yeah.
1:17:24I will cover below in 191.
1:17:29Let's [snorts] see if we pick up the
1:17:30momentum.
1:17:34How does it look on the S? On the S,
1:17:36looks pretty good because it could it
1:17:37could potentially turn into a trend, you
1:17:39know, from balance comes the imbalance.
1:17:41So, maybe this is the start of the
1:17:42imbalance.
1:17:43Which is why you're going to start
1:17:44trailing to to speculate that the
1:17:45imbalance is coming.
1:17:46>> Yeah.
1:17:49And all the sellers needs to close all
1:17:51their so it's possible that we have a
1:17:53really good move up.
1:17:58Okay, it's already 1 to 5.
1:18:01I will take the top of the squeeze and
1:18:03take it out.
1:18:05We risk 600 to make 3,000.
1:18:09Now I start to play with the profit that
1:18:12I have to build to Yeah.
1:18:39I'm surprised I wouldn't expect that
1:18:41they would revisit the
1:18:44the low level before.
1:18:46>> The explosion, yeah?
1:18:47>> Yes. That's what I usually see. It's not
1:18:49common on the Nasdaq that you have uh
1:18:52specifically after the day of yesterday.
1:18:54>> Right. To see an impulsive move up.
1:18:56>> And I still if all this it's
1:18:59an attempt to start at the upper trend
1:19:01that gets absorbed really aggressively,
1:19:02still the fake out setup it's there.
1:19:05Imagine if this candle prints a week,
1:19:07no? And you go back inside the balance.
1:19:09>> Yeah.
1:19:12So, for me now what I look for is the
1:19:14volume to build outside of the cage,
1:19:16right? To see the
1:19:16>> volume breaking out of it if it can
1:19:18continue to build.
1:19:18>> You'll still take another break and
1:19:20test.
1:19:20>> Yes, it could be a break and test. Yeah,
1:19:21exactly.
1:19:23But like I said earlier, the problem
1:19:25with this is we're revisiting back into
1:19:27the range that we consolidated at
1:19:29yesterday.
1:19:29>> I love this cluster of liquidity above.
1:19:33>> So, you wouldn't mind looking for a
1:19:34breakout inside of all of this liquidity
1:19:36here?
1:19:36>> No.
1:19:37>> Huh.
1:19:41But I know that the behavior of the
1:19:42market change. Now, we did this move
1:19:44because the market it's illiquid in this
1:19:45area. As soon as we go to the fair value
1:19:48area, it start to do this dance of
1:19:50consolidation again. Like we don't have
1:19:52the condition to hold a 1:20.
1:19:54>> No.
1:19:55>> We don't have the condition today to
1:19:56hold the 1:20. So, it's better to build
1:19:58profit 1:3, 1:4. And then use the risk
1:20:01on this to make another 1:3 and rise at
1:20:0310,000 and that's it.
1:20:10>> I'm very surprised you don't use a depth
1:20:11of market to execute off of.
1:20:13>> No.
1:20:14>> Yeah.
1:20:15>> I I only use these and speed of tape
1:20:18because my setup is more statistical
1:20:21than immediate order flow.
1:20:24>> Okay.
1:20:24>> So, I enter the majority of time with a
1:20:26limit on the absorption.
1:20:27>> Right.
1:20:33Massive buying speed of tape picking
1:20:35>> They are going to the fair value they
1:20:37reach now
1:20:38the liquidity level.
1:20:46Now, if this candle managed to print all
1:20:49red.
1:20:50Okay. If this is an absorption and we
1:20:52are the previous day fair value
1:20:55>> [snorts]
1:20:56>> I consider when we have the condition
1:20:57that today we don't have a mean
1:20:59reverting setup.
1:21:00>> A mean reverting setup. Like I tell you,
1:21:02for me on ES right now, there's a zero
1:21:03print.
1:21:04>> Ah, you consider a mean reverting setup.
1:21:06>> At the 76.50s.
1:21:08>> No.
1:21:08>> You know, the further it moves away from
1:21:10this, the better the trade will be.
1:21:11>> I don't have the fixed profile, you
1:21:13know. I think we will squeeze to the
1:21:1425,000 another move up and then I can
1:21:16consider the mean reverting.
1:21:19I have only one of the three confluence
1:21:21that I'm looting looking for reverting.
1:21:23They are absorbing the sellers as they
1:21:25go up.
1:21:27This is a block of orders that will
1:21:30an order block.
1:21:31>> An order block?
1:21:33>> An order block.
1:21:34It's a block of order flow orders
1:21:37trying to protect the price.
1:21:52Damn I zero point filled.
1:21:53>> Filled you took it.
1:21:54>> No I filled. It was it was
1:21:57entering with a three point target is no
1:21:59no good on the S.
1:22:02>> It was a beautiful reversal.
1:22:06>> On the NASDAQ you could get those moves,
1:22:08you know the 10 20 30 points. On the S
1:22:10having a three point target is no good
1:22:11for me. It's
1:22:12>> not enough for this reward.
1:22:18>> But you see how the shape of this
1:22:20profile is starting to develop into a P?
1:22:23How it kind of looks like a P shape
1:22:25right here?
1:22:25>> Yeah I like it. And this what I was
1:22:26saying like if you break this one on the
1:22:28downside and this is an absorption you
1:22:30have a mean reverting setup.
1:22:32I think we will go to challenge the
1:22:33first aggression. The point is that
1:22:35going short on a momentum like this on
1:22:38NASDAQ at least you really risk to be
1:22:40squeezed out.
1:22:41>> On the S&P as well.
1:22:44>> I think we will go back to the main
1:22:45activity.
1:22:47And this one is my
1:22:49reload setup.
1:22:52This one all this fight
1:22:54is the acceptance area and the main
1:22:56fight and it's the reload logic for me.
1:23:03>> I could tell you what if this structure
1:23:04wasn't like this on ES where we have the
1:23:06consolidation from yesterday I would be
1:23:08looking for a pullback into this
1:23:10breakout range around the 6870s 6865s
1:23:14where the aggressive buyers really
1:23:15stepped in.
1:23:16>> It sounds
1:23:17>> Um but like I said with this
1:23:19consolidation above the high here it's
1:23:20kind of like a ceiling where we're we're
1:23:21trying to jump but we're hitting our
1:23:23head on the ceiling.
1:23:24>> I mean I'm anticipating another squeeze.
1:23:27Second one.
1:23:33They are accepting the area.
1:23:37This one they will try to go above the
1:23:39high.
1:23:50>> Now we are in a balanced situation and
1:23:53when you have this stuff and you flash
1:23:56the top, you get an aggressive by candle
1:23:58that create an amazing momentum on the
1:24:00side.
1:24:02Let's see if we can have it. The only
1:24:03fear I have when the when you have this
1:24:05momentum is that the market can collapse
1:24:07and not give you the feeling level that
1:24:10you want and it takes more money
1:24:12than what you can give it to it.
1:24:14>> But consolidation near the highs are
1:24:16typically a bullish sign.
1:24:18>> Yeah, you know, but I I like
1:24:20the recovery of the aggression that we
1:24:22had was was incredible, really.
1:24:24>> Right.
1:24:33>> Oh, we have the round at 24 900.
1:24:36I tried to take the round one.
1:24:39They are confused. This one will go. I'm
1:24:41thinking about covering because this one
1:24:43it's probable that goes short. We have a
1:24:44lot of aggression now. Buyers are trying
1:24:46to hold it.
1:24:49Doesn't look good
1:24:51on the buy side.
1:25:05Ultra balance area.
1:25:24This choppiness of Nasdaq after breakout
1:25:27volume on Friday we can have.
1:25:43So this one took 1,300 for me. You see
1:25:48what's the risk?
1:25:49>> These massive candle
1:25:51>> Yeah.
1:25:51>> are the ones that they take can take.
1:25:54>> Took $300 more. So, now we are going in
1:25:56the first balance level.
1:26:00Still I think we are going to break the
1:26:02top.
1:26:03So, now I have a better risk to reward.
1:26:04So, the final target I have is this one.
1:26:07I'm watching the same thing.
1:26:09So, let me check the risk to reward is
1:26:11massive. I can get
1:26:142995
1:26:16squeezing to the 997.
1:26:19Let me check if I have
1:26:24What a sell candle.
1:26:26>> Massive sell candle, but on ES where the
1:26:28selling's building, we're coming into
1:26:296865.
1:26:32Um this was the previous breakout level.
1:26:34>> Yeah.
1:26:40>> [clears throat]
1:26:43>> Now, we are in the box, but with this
1:26:44aggression on the short side I will not
1:26:46feel so confident to buy. You are
1:26:48considering a buy setup.
1:26:49>> Potentially.
1:26:51How many shares were in the cage?
1:26:55>> No, we are out of the cage.
1:26:56>> For me, my cage is from yesterday's
1:26:57consolidation.
1:26:59>> Ah.
1:27:05>> So, I like how this delta right here.
1:27:07You see 6865 there's a minus 704 at
1:27:106865.
1:27:12The selling's really trying to step in
1:27:13here. So, only the potential setup would
1:27:15be if this breaks and we reclaim back
1:27:16above 6865, but until then uh and I
1:27:20would be going for a higher day target.
1:27:21>> Mhm. All of the day.
1:27:23>> Yeah, but if it doesn't hold
1:27:27it's an invalid setup.
1:27:29I think creating if then statements, if
1:27:31it if this holds and then that breaks
1:27:33>> Mhm.
1:27:34>> that's a potential entry. For me, that's
1:27:36nothing now.
1:27:37That's it.
1:27:40Really strong selling.
1:27:41>> They didn't even stopped at not You had
1:27:44the rejection candle here, but then it
1:27:46got eaten back by the sellers. So, even
1:27:48my potential buy, it's a crazy risk
1:27:51reward, but I will not take it now.
1:27:53>> Mhm.
1:27:54>> Cuz I can see some absorption, but it
1:27:56it's total control of the sellers.
1:27:59>> See, that's the difference, right? So,
1:28:00this goes to show you two different
1:28:01positions. We have the same analysis of
1:28:02this moving up, right?
1:28:04>> Yeah.
1:28:04>> You taking it because of the volatility
1:28:06on the Nasdaq and you not putting any
1:28:07influence on the previous structure that
1:28:09I have versus me not trusting the
1:28:11breakout, right? Because I would be
1:28:12going for a larger move to then if I was
1:28:14in a position going for a larger move
1:28:16being in this now drawdown.
1:28:18So, it goes to show you two traders that
1:28:20have the same analysis but different
1:28:22asset and different perspective on that
1:28:24trade.
1:28:24>> Yeah.
1:28:25>> You know?
1:28:27>> For the first time after all these moves
1:28:29is starting to build a little bit of
1:28:31interest of the buyers in the speed of
1:28:32tape.
1:28:35And we are at the previous departure of
1:28:37the market.
1:28:38>> Right, the previous higher day.
1:28:39>> Yeah.
1:29:00Ooh, it's looking nice. It's looking
1:29:02really good.
1:29:05>> So, now I can say this market structure
1:29:07demand potentially forming here.
1:29:09>> Yeah, I like it.
1:29:12I really like it.
1:29:27Still the sellers don't uh
1:29:28>> Yeah, I know.
1:29:29>> Don't give room for movement.
1:29:40I will consider risking the initial
1:29:42profit of the day
1:29:44to have an extension set up covering
1:29:48and trailing the risk as it goes, but if
1:29:50I don't see speed of tape
1:29:53for me speed of tape is so important
1:29:54because it's showing you initiative.
1:30:04Would you consider this day if you were
1:30:06at home alone and if you didn't have to
1:30:09to do the live, would you trade or would
1:30:10you already walk out from your laptop
1:30:12now?
1:30:13>> It's easy for me to say after the fact.
1:30:15The only setup that I really saw was at
1:30:16the low of the day.
1:30:17>> Mhm.
1:30:19>> Uh that's a perfect
1:30:21setup at the low with the zero prints.
1:30:23For me now with the balance like this
1:30:25and kind of moving back into the range,
1:30:26pretty big bid 6860.
1:30:28>> Do you see any absorption on there,
1:30:29yeah?
1:30:31>> I see
1:30:33that they are challenging the low of the
1:30:35cage that I made and if the sellers get
1:30:38absorbed
1:30:58is through you don't have the risk of
1:30:59getting squeezed with yes, but you needs
1:31:01to frame more long-term setup.
1:31:03Otherwise, it's not worth paying
1:31:04commission to open a my fast move.
1:31:10I don't like the direction here. It's
1:31:12nothing interesting for me.
1:31:16>> Speed of tape is leaping. Big orders is
1:31:19leaping.
1:31:21I think sellers will get aggressive on
1:31:22this area and collapse it to the down.
1:31:25If you get another big candle.
1:31:29>> Yeah.
1:31:30And now we're moving back into the
1:31:31range.
1:31:34See now you would trade something back
1:31:35into the range here?
1:31:37>> I don't like it.
1:31:37>> I don't like it either.
1:31:38>> I don't see anything that would add
1:31:40value to the money that they already
1:31:42made and it's uh
1:31:46>> See what the difference of your
1:31:47execution and why that was successful
1:31:49was because of your time framing your
1:31:50perspective on the move. You were just
1:31:51going for a quick squeeze. You weren't
1:31:53going for a home run. You were going for
1:31:54a quick squeeze, which is a huge
1:31:56difference of you could have the wrong
1:31:57right analysis but lose money on it if
1:31:59you were going for a different type of
1:32:01setup.
1:32:04>> But I trade both of them, like the long
1:32:06and the conditions. The long-term long
1:32:08is still here.
1:32:09I still cannot believe that they make
1:32:11this big movement without taking the
1:32:14the bottom of the range.
1:32:23And here they would alien.
1:32:26Wow, beautiful.
1:32:29It's looking really good.
1:32:31You took a short on this candle.
1:32:32>> No, no, no.
1:32:45>> And for position management, how you
1:32:47usually do? Like you leave your full
1:32:49target or you consider maybe taking some
1:32:51partial or
1:32:52>> I rarely move my target. So when I enter
1:32:55the setup, like let's just say I was
1:32:56left for a long year, that's my target.
1:32:57And what I'll do is on the S&P if it
1:32:59moves up, let's just say seven, 10
1:33:01points in my favor immediately, I'll
1:33:03then adjust my stop loss to break even.
1:33:04That's kind of trade management that
1:33:05I'll do.
1:33:06Uh but it needs to move in my favor
1:33:08relatively quickly.
1:33:09>> Mhm. And the um stopping profit you put
1:33:12or you keep stop loss to break even?
1:33:14>> Usually break even. I don't like to pay
1:33:16myself along the way. And the reason why
1:33:17I do it that way is I have the ability
1:33:19to reenter. If I didn't If If I threw
1:33:20out the analysis and didn't reenter,
1:33:22maybe I would pay myself along the way.
1:33:25Um but like I said, some of my best
1:33:26trades are the reentries. Sometimes I'm
1:33:28a little early to the party.
1:33:29>> Mhm.
1:33:32Another deep down and we are at daily
1:33:34view up.
1:33:41>> It's important to just trade your
1:33:42setups. Is this fear of the tape picking
1:33:44up for you or no?
1:33:45>> No, it's nothing good for me. Like
1:33:48that's the reason I'm asking you stuff
1:33:49about
1:33:50management because I don't see anything
1:33:52that I can execute now.
1:33:55And also the level I don't I don't like
1:33:57the level, no.
1:34:00Like if I if I need to choose an
1:34:01execution here,
1:34:03would be
1:34:05the selling absorption of these buyers
1:34:07for a continuation move that brings me
1:34:10bring us back to the the heat rate.
1:34:12>> There he did it.
1:34:13>> He did it. Followed by speed of tape.
1:34:15This one is a move back to the range
1:34:17because they accepted now back inside.
1:34:19So this one, beautiful trade this one.
1:34:22This one followed by the speed of tape.
1:34:24It's early
1:34:26one to four with the stop loss not even
1:34:28above the candle, above the absorbed by.
1:34:33>> [snorts]
1:34:37>> The sellers are really piling in now.
1:34:38>> They are strong now.
1:34:41>> So now would this be something you're
1:34:42looking to short a pop or a reload setup
1:34:44and target the balance range low that
1:34:46formed?
1:34:47>> You know that this is one of my favorite
1:34:48setup. My problem is that we are back
1:34:50inside this area and we have uh nothing.
1:34:53We have a consolidation range for
1:34:55another two hours and it's
1:34:59But yes, if I need to take one target, I
1:35:01will take
1:35:02>> The lower that balance, yeah.
1:35:03>> Yeah, that's my target for
1:35:13>> I think they [snorts] go for that
1:35:14balance low.
1:35:28>> The fact that on Monday we have an early
1:35:30close of the market is not helping us in
1:35:32volatility because no one will engage
1:35:34with big capital on a Friday.
1:35:50I like how you you you use the
1:35:51footprint. I like the the visual that
1:35:54you have.
1:35:55>> Yeah, because I can see the delta.
1:35:56>> Yeah, you can see the shape, you can see
1:35:58the total volume.
1:35:59>> I can see the total volume.
1:36:00>> I can see where the bar opens and
1:36:02closes.
1:36:02>> Mhm.
1:36:03>> You know.
1:36:04>> It's beautiful.
1:36:07>> The NASDAQ footprint moves too fast.
1:36:09>> You cannot like I put bubbles because to
1:36:11scalp with the
1:36:14with the execution that I have and bring
1:36:17if I need to read also numbers, it's
1:36:19really difficult. But if I was trading
1:36:21the S, I would use the same one.
1:36:23>> Yes has no bubbles that are significant
1:36:25here, which is interesting to say.
1:36:27>> Mhm.
1:36:28>> There's nothing large.
1:36:29>> something small but nothing interesting.
1:36:31But still it's coherent because it's a
1:36:33seller aggression.
1:36:33>> So that pop right there was a nice
1:36:35little reload and a setup.
1:36:36>> was a was a reload setup.
1:36:38>> It's popped. As it popped, the
1:36:39aggressive seller stepped in.
1:36:41And now we come down. So let's see if
1:36:43these sellers get rewarded or if they
1:36:45continue to
1:36:47Is this at the low? Where's the low? Oh,
1:36:48low's here.
1:37:06>> They are challenging the low that we are
1:37:07watching, yeah?
1:37:10>> [snorts]
1:37:11>> Now I usually expect an acceleration.
1:37:13Now there is an opposite squeeze.
1:37:30You see how I identify the best candle?
1:37:32You see that this candle here
1:37:35and this candle here have more than 70%
1:37:38of the body and really small wick.
1:37:40This is the typical aggression candle
1:37:42that frame my reload area.
1:37:46And this is the low that I expect them
1:37:48to
1:37:48>> to break.
1:37:49>> Yeah.
1:37:53I will not consider a short if we break
1:37:54this one, yeah?
1:37:55>> No, no, no.
1:38:05>> It's the same thing on ES. On ES we have
1:38:06the really big green bubbles as it
1:38:08initiated up. As the market pulls back,
1:38:10it's support, support.
1:38:13And then we continue to move up. So that
1:38:156830 is going to be a key level for me
1:38:17as well, but trading above that is is
1:38:18difficult.
1:38:20So 6830 on ES, and then what is it on?
1:38:22>> 24,680.
1:38:25At the end of the day we watch different
1:38:26instruments, but order flow is order
1:38:28flow. It's reflected on the big trades
1:38:30is reflected on the heat map, it's
1:38:31reflected on
1:38:33on everything.
1:38:34Look at this speed of tape here.
1:38:36>> It's picking up.
1:38:37>> It's It's I think the highest that I've
1:38:39seen during the day.
1:38:43Because we are on the warp.
1:38:47>> What is the warp?
1:38:48>> Yeah, because we are on the warp.
1:38:52>> Okay, so.
1:39:18>> Beautiful.
1:39:25It's one of those really beautiful.
1:39:46I have something interesting here. But
1:39:48not enough speed with this truck, but to
1:39:52So this one inside the range, it's our
1:39:54load of the sellers.
1:39:56Even if the speed of tape is so high,
1:39:58oh, so beautiful one.
1:40:03Considering it one.
1:40:08Okay, we bought here.
1:40:13Put on the top.
1:40:15>> Short now?
1:40:16>> Yeah, yeah, yeah, yeah. Because we are
1:40:17back inside the range. I'm reloading. We
1:40:19are reloading, yes.
1:40:36The cage rejection for the third that
1:40:38time of the day with the speed of tape
1:40:41not following in a breakout for me. It's
1:40:43like a failed auction logic.
1:40:45>> Mhm.
1:40:54It's here in the engaged daily.
1:40:55>> Yeah, I want to see this.
1:41:11>> They are rejecting the eye. Promise that
1:41:13they spike up on Nasdaq.
1:41:16And they took me out. And this is when
1:41:18the position is still valid.
1:41:20But you are with a tight stop loss.
1:41:28>> A potential re-entry would you look for?
1:41:30>> I don't like
1:41:32like now the interaction is getting
1:41:34really choppy.
1:41:35And
1:41:36the speed of tape is not there. The
1:41:38aggressive participants are not there.
1:41:40And you see that they spike the top and
1:41:41reject.
1:41:42>> Mhm.
1:41:43>> So it's um
1:41:54Today we are really working with bad
1:41:56market condition.
1:41:58>> I wouldn't mind a reload set up here at
1:42:00the 68.
1:42:01>> To to go short again, I wouldn't mind
1:42:02it.
1:42:04>> Uh because zooming out potential failed
1:42:07breakout.
1:42:07>> Yeah, yeah, yeah. That's what I will
1:42:09see.
1:42:09>> What we see at the highs and now this is
1:42:10just a pop for a potential reload. And
1:42:13then maybe we could target that balance
1:42:14range low. I know it's a little further
1:42:16out.
1:42:16>> But this is the play that I was
1:42:18as the play that I was trying to
1:42:20anticipate. The problem is that
1:42:23you get aggressive on the bottom and now
1:42:25it's
1:42:26again reloading up.
1:42:30Oh, I like this gap.
1:42:31>> I want to see a break of this little
1:42:33consolidation high here at the 64s 65s.
1:42:36>> To pick a reload the
1:42:37>> long or potentially?
1:42:38>> Potentially, yeah. I mean, we have a
1:42:39nice little rejection one-minute wick
1:42:40here from the 65s all the way up to the
1:42:4367s.
1:42:45I would need to see trap buyers here.
1:42:46This would be a trap buyer reload
1:42:48setup. Buyers buying this breakout.
1:42:51Let's see. Here's the 65s filling.
1:42:55Strong bubble coming in.
1:42:57Let's see if this fails.
1:43:03Uh delta's getting hit.
1:43:17>> You are still considering the short?
1:43:19>> I am.
1:43:20>> [snorts]
1:43:23>> You know, it's beautiful from a price
1:43:25perspective, but the auction it's really
1:43:27strong on the upside.
1:43:30They are gapping.
1:43:40What do you coffee a big that also on
1:43:41your trade?
1:43:42>> Like your coffee? You think that you've
1:43:43been drinking that thing like it's It's
1:43:45water.
1:43:45>> Oh, it's tasty.
1:43:47>> Making the old grandpa today. But yes,
1:43:49I'm caffeine and tannin addicted.
1:43:51>> Yeah, the problem is is when I drink
1:43:53caffeine
1:43:54>> You get the narwhals?
1:43:55>> No, not nervous. It's
1:43:57I I do too many things, you know?
1:43:59>> Wow, it started before us.
1:44:05I'm still considering this one, huh?
1:44:08>> I am.
1:44:10Maybe I move back into 64 65 again, but
1:44:13that was my entry there.
1:44:16>> Do you have enough to fill you out?
1:44:19>> See, like you, I don't place limit
1:44:20orders at my prices. When I see my ex my
1:44:22entry, I hit it. I step in.
1:44:27>> Ah, look at the seller stepping in. So,
1:44:29this is a good beautiful example of a
1:44:31previous rejection and a seller reload.
1:44:33We rejected on the 1-minute 68 65 from
1:44:37the original sell-off, right? If I zoom
1:44:38out here, we see the massive cells, we
1:44:41see the move back up here, and the pop
1:44:43into this. So, to me, this is seller
1:44:45that was sitting at the 65s. And then
1:44:47the market comes back up and pops into
1:44:48this.
1:44:50Could look at the footprint.
1:44:51It looks like a P-shape on the footprint
1:44:53chart.
1:44:53>> Mhm.
1:44:54>> To me, that's a
1:44:56a good indication for a quick little
1:44:58scalp down. I mean, that lasted 10
1:45:00points.
1:45:03>> I would not be keen to the top of the
1:45:04distribution because I still think we
1:45:06can challenge another time the high top
1:45:08into this liquidity and reject like
1:45:10crazy on the short side.
1:45:12>> [snorts]
1:45:30>> You take the same size of on all your
1:45:32trades or
1:45:34>> I'll adjust according to my risk. So, I
1:45:35standardize my risk, keep my risk the
1:45:37same dollar amount, and then I'll adjust
1:45:39my position size. So, if my stop loss is
1:45:40two points away, I could go in more
1:45:42position size.
1:45:43>> Okay.
1:45:43>> stop loss is four points, let's just say
1:45:45it's double, I'll cut my size in half.
1:45:48>> Um
1:45:50And you have a like a ranking for your
1:45:52setup, like you have really rare triple
1:45:54A setup that only appear two times per
1:45:56week, and you take a little bit more
1:45:57risk on those, or all the
1:45:59>> Every trade I take has to be a triple A
1:46:00A+ 10 out of 10 setup.
1:46:02>> Even if they are super rare, even only
1:46:04two or three trades per week.
1:46:06>> Yeah.
1:46:07Yeah.
1:46:09Because I have multiple playbooks.
1:46:11>> Okay, I understand.
1:46:12>> So, maybe a setup that I take today is I
1:46:14see it once a week, but I know it's one
1:46:17out of the seven playbooks.
1:46:18>> Okay. Ah, you have all these
1:46:20>> Yeah, yeah, yeah, yeah. The one playbook
1:46:23today was the zero print. That's the
1:46:24main thing I saw today. You know,
1:46:25anything else right now is kind of
1:46:28>> Yeah, not forcing execution.
1:46:31>> But, here's where we're reloading the
1:46:3264s again, so
1:46:34>> Mhm.
1:46:35>> this could potentially be brewing. I
1:46:36mean, we're seeing the absorption and
1:46:38the selling at the 6865s. We're seeing
1:46:41delta building.
1:46:41>> It's beautiful.
1:46:42>> We're seeing the speed of the tape pick
1:46:43up.
1:46:46We're seeing the sellers reload and
1:46:47defend price here, so
1:46:50it's a clear rejection of the 6865s on
1:46:53the ES.
1:46:54And that's that's a low volume node, no?
1:46:56>> Yeah. That that that level is super
1:46:58strong, but I don't see you know, Nasdaq
1:47:01is more aggressive than ES. So, when
1:47:03when they take a decision on the
1:47:04direction, you can see this from the
1:47:05order flow.
1:47:06Nasdaq is super slow and stable now, so
1:47:08it's I can expect that they they want to
1:47:11make another push.
1:47:12>> Mhm.
1:47:13>> And then starting a movement that makes
1:47:14sense for me.
1:47:17>> My my real rules right now would be to
1:47:20not trade in the middle of this, you
1:47:21know, but
1:47:22>> Of course, course.
1:47:27No, I was I was early to the party here.
1:47:30>> Yeah.
1:47:31Yeah, the right idea.
1:47:36You drink caffeine when you trade?
1:47:39>> Coffee or tea, specifically if I have a
1:47:42long session like
1:47:446 hours when I am because I need to
1:47:46follow the position. So, like in the
1:47:47session of yesterday where the market
1:47:49collapse and you reload,
1:47:51you can stay 6 hours in front of the
1:47:52charts, so I I need to keep me awake.
1:47:55But, sometimes I just stay 3 hours doing
1:47:57nothing, just putting stop loss in
1:47:58profit and it continue to collapse.
1:48:00>> Yeah.
1:48:03>> Do you ever do position that last for
1:48:05multiple hours or you are more in and
1:48:07out in
1:48:08>> My best trades work out right away. So,
1:48:10usually when I enter, if I look at my
1:48:11best trades compared to the worst
1:48:12trades, the best trades work out last
1:48:14like minutes, minutes, 7 minutes.
1:48:16>> sense.
1:48:16>> My worst trades I'm in this trade for an
1:48:18hour, 2 hours, and it stops me out.
1:48:20>> Yeah, yeah, yeah.
1:48:23>> And an edge could be adjusting my stop
1:48:25loss to break even immediately, you
1:48:26know, if that's a statistic that I found
1:48:29found to be valid of best trades work
1:48:30out right away, maybe moving to break
1:48:32even right away.
1:48:33>> Mhm.
1:48:34>> You know, is
1:48:36is appropriate. But that's where looking
1:48:38at your data and adjusting accordingly
1:48:39is is appropriate.
1:48:42>> Look what a mess here. Buyers, sellers,
1:48:45aggressive multiple levels. We are
1:48:46really in a a tight range.
1:48:51For example, you see this aggression,
1:48:52and now everything is
1:48:54stable, calm. The next six candle you
1:48:57don't have anyone getting really
1:48:59aggressive.
1:49:01>> So, one thing that I look for and why I
1:49:02love using a range footprint chart is I
1:49:04like looking at the time the bar opens.
1:49:06So, if the bars open relatively quickly,
1:49:09you see here at 11:03, we have a bar,
1:49:11and the next bar opens up 30 seconds
1:49:13later at 11:00 11:00 11:40. If I see a
1:49:17bar maybe take 20 minutes to open and
1:49:19move a 5-point range, that tells me that
1:49:21it's very choppy or there's not a lot of
1:49:22volatility.
1:49:23>> Nothing interesting. I never think about
1:49:24>> So, I like looking, and you know, if I
1:49:26had more screen real estate, I would
1:49:27have another indication down here that
1:49:29tells me how long it takes for the next
1:49:30bar opens. And when more bars open more
1:49:33frequently, I know that the speed of the
1:49:35tape is, you know, increasing as well.
1:49:36>> Nice one.
1:49:39They did it. They tap into the level.
1:49:44>> It's still brewing for a short for me,
1:49:46Fabio.
1:49:47>> Yeah, yeah, but also for me. I mean,
1:49:48they tap into the level and rejected,
1:49:50but still another push I want.
1:49:52>> The problem that I have is if we zoom
1:49:54out, it's in the middle of the range. I
1:49:55and
1:49:56>> I don't know, from the top to here for
1:49:59me still a really good setup.
1:50:05You know what's my real problem?
1:50:06Cuz there is no sellers
1:50:09aggressive on this one, and I have
1:50:11really a low filter. Let's say I have a
1:50:1340
1:50:14on the big tick.
1:50:15>> lowering your filter as well?
1:50:16>> all the filters, but you see nothing.
1:50:41>> Is there delta divergence here?
1:50:44>> Oh, you use also the delta divergence.
1:50:47>> A massive delta divergence.
1:50:51>> From the first peak to the second thing,
1:50:53right?
1:50:53>> From this peak to this peak, we can see
1:50:55the selling and the buying was nowhere
1:50:56near the previous high, and on the
1:50:58footprint chart, we see the delta here
1:51:00at the bottom, right? You see this wick,
1:51:02and then you see this one.
1:51:03This was like more like a hammer candle
1:51:05versus this one kind of got
1:51:06>> Aha.
1:51:07>> bought up.
1:51:07>> Like an exhaustion.
1:51:09>> Yeah.
1:51:11If this was at a level of resistance or
1:51:12something and it wasn't in the middle of
1:51:13the range, this is a A+ setup.
1:51:17It's almost trusting the market, right?
1:51:19It's kind of like
1:51:20you know, if if
1:51:22if it's acting up, you know when it's
1:51:24acting up, and you know if it's in a bad
1:51:25mood, you maybe you shouldn't poke at
1:51:26it. That's kind of the way I look at it,
1:51:28you know? If your girlfriend's in a bad
1:51:29mood, you're not going to
1:51:30>> Leave that alone.
1:51:31>> Exactly.
1:51:32>> Oh, now we have something interesting.
1:51:34>> What do you see?
1:51:35>> I see that they are really aggressive on
1:51:37the top and they are getting absorbed.
1:51:39Yeah, this is a strongly and you can see
1:51:40also from there that it's a strongly
1:51:42liquidity level.
1:51:43>> And but another push up and
1:51:45>> one steal.
1:51:46>> So, to me, this how I'm viewing it is
1:51:47that these moves up is somebody
1:51:48absorbing and accumulating for
1:51:50potentially a move down.
1:51:51>> Yeah.
1:51:53Totally agree with you.
1:51:55>> And we have a low volume node on ES as
1:51:57well.
1:51:58>> Beautiful.
1:52:22Do you trade alone or you trade with
1:52:24your family member? Like the ask manager
1:52:26sometimes. I trade alone.
1:52:29>> I don't like other people's
1:52:31>> Yeah, they can interfere with your
1:52:32opinion.
1:52:33>> For sure.
1:52:35I see you getting long and I want to be
1:52:36short. You lose I I or I lose you win.
1:52:40>> Yeah, yeah, yeah.
1:52:41Yeah, it's counter intuitive.
1:52:44>> But they in the in their office setting
1:52:46they all help each other. I've seen them
1:52:48you know shout out.
1:52:50Look at this aggression here.
1:52:52>> Well, I mean it was counter intuitive
1:52:53because you think that more head and
1:52:55it's always better. It's not like this
1:52:56because they can also
1:52:59>> The best analysis is your own analysis.
1:53:02A lot of aggression coming in here
1:53:03Fabio.
1:53:05>> But they don't have still my execution
1:53:07trigger.
1:53:14I want this push up and rejection.
1:53:20They are almost reaching the level.
1:53:26Here they go. Touched.
1:53:29Two times, three times.
1:53:31Look at the Look at the Look at the
1:53:32speed of tape. Look at the speed of
1:53:33tape.
1:53:36>> How big is that order?
1:53:38>> I cannot It's like
1:53:41300 contracts on the
1:53:48No, they got absorbed.
1:53:51They got absorbed.
1:53:51>> You going for a short?
1:53:53>> No.
1:53:54>> You are going?
1:53:54>> No, no.
1:53:56Not going.
1:53:58I was searching for a short to be
1:53:59honest.
1:53:59>> Yeah, I'm looking for a continuation.
1:54:01>> But they they are too aggressive on this
1:54:03leg.
1:54:04>> for me is now no short no more. This is
1:54:06I am short on my hands and I don't do
1:54:07anything.
1:54:09>> I think it's also important and I feel
1:54:11like you're the same way as there's many
1:54:12different analysis you come up with in a
1:54:14day. Could be 10 different ideas, 20
1:54:15different ideas. And maybe you only act
1:54:17on three of them or four of them.
1:54:19>> You know, I mean it needs to have
1:54:20everything aligned.
1:54:21>> Right.
1:54:21>> You know, like uh
1:54:23>> If then statements, if this happens,
1:54:24this rejects and buying comes in and the
1:54:26speed of the tape increases, I'm in it.
1:54:30>> It's kind of like this beautiful.
1:54:32A huge jump on top of absorbed sellers
1:54:34speed of tape. This one for me.
1:54:36It's a setup, you know.
1:54:38Loading here, loading here. This one is
1:54:40a good momentum setup for me.
1:54:44I'm cover below this huge absorption.
1:54:48And as they reject, I load.
1:54:52This one is, for example, is not a level
1:54:55and reload, but it's a speed of tape
1:54:58aggression and absorption coherence in
1:55:00one candle.
1:55:01I have all of three all all of three in
1:55:03this 1-minute candle of Nasdaq.
1:55:10And they are above the cage again.
1:55:15And if this candle fail,
1:55:17for me it's a short. Because it means
1:55:19that the auction flip.
1:55:21So, I have an asymmetrical risk to
1:55:22reward to go to the bottom of the
1:55:23balance.
1:55:24>> So, if you're short three contracts,
1:55:26would you or if you're long three
1:55:28contracts, would you then
1:55:30um
1:55:32put a sell signal for six contracts to
1:55:34go to reverse or no?
1:55:36>> No, because if I put six contracts, it's
1:55:37like uh martingale.
1:55:39>> Uh I reverse.
1:55:40>> You mean the
1:55:42the stop limit.
1:55:42>> Yeah, yeah.
1:55:43>> Yeah, no, I don't do this. I wait always
1:55:45for the candle to close because
1:55:46sometimes it's an effort without result.
1:55:50I'm reducing my risk as it goes and I'm
1:55:52anticipating the squeeze, I'm risk-free.
1:55:55Let's see if it's
1:55:56start, they are pumping.
1:55:59Expect
1:56:01a flip of the auction again.
1:56:05Okay, they are going.
1:56:07Second time that we attempt a squeeze.
1:56:08If it's another fake out
1:56:10>> I'm looking for a long here for the
1:56:11higher day as well.
1:56:12>> You took it?
1:56:13>> No, not yet. I'm looking for an entry.
1:56:17>> Again, again fake out.
1:56:19>> [laughter]
1:56:19>> No, no, this is they're buying.
1:56:22They're buying.
1:56:24>> Considering adding
1:56:26>> Yeah, they're this.
1:56:51>> I don't see a lot of coherence in the
1:56:53buyers. They did a huge candle of the
1:56:55speed of tape in direction of the you
1:56:57have a follow through on Nasdaq and you
1:56:59don't have only the way of putting stop
1:57:01loss to risk free, but you have also
1:57:03room to put stop is profit and now it's
1:57:05coming back to balance. Back to balance.
1:57:16Something good on yes?
1:57:19>> Yeah.
1:57:20And this pullback is passive buying to
1:57:22me.
1:57:26>> On the 70. You still in long or no?
1:57:29>> I'm considering one on the 79, one on
1:57:32the 101 and one to load
1:57:34here. I think they're buying this move.
1:57:37Let's see.
1:57:37>> Unless news is coming out and somebody
1:57:39knows something right now.
1:57:40>> Let's see. Let's see.
1:57:43I I got filled at good level, but if
1:57:45this is all a fake fake auction we go
1:57:47back in saying the range and we dance
1:57:49for other hours.
1:57:51>> Unless somebody knows something and news
1:57:53is news coming out.
1:57:54>> They took me out on this one.
1:57:59Let's see.
1:58:06You have a really long
1:58:07uh
1:58:08stop loss?
1:58:09>> I'm not in yet.
1:58:15So, the main thing I look for now is the
1:58:17delta to build.
1:58:18>> Mhm.
1:58:19>> And if we could hold these 65s from
1:58:21earlier.
1:58:22>> Well, to be honest this one seems a
1:58:23short now to me.
1:58:36>> I have hope that we are going to revisit
1:58:39our beautiful down level.
1:58:40>> Yeah.
1:58:42>> I see sellers getting crazy aggressive
1:58:44and they rejected the day top of the
1:58:46bounce that we saw before.
1:59:04>> That's insane how much volume just came
1:59:05in there so randomly, right? We were
1:59:07waiting for that.
1:59:08>> That's insane how much Nasdaq is not
1:59:10moving.
1:59:12>> [laughter]
1:59:17[snorts]
1:59:20>> In which minute candle you see a lot of
1:59:22movement in in the
1:59:2606 minutes.
1:59:29>> 1 minute is 1
1:59:30>> Oh, let me see.
1:59:33In what in uh
1:59:34>> Uh
1:59:35in
1:59:36uh
1:59:37Hold on.
1:59:41>> You're still considering a long?
1:59:46>> It's tough to say. I like I I always go
1:59:48back to what I started with earlier.
1:59:49It's we're in the middle of the range,
1:59:50right? As you melt
1:59:52Look how much volume is building here.
1:59:54>> Uh that's what I do this uh
1:59:55>> Today and from yesterday. The real The
1:59:57result from yesterday was it moved
1:59:58sideways when the volume built. Today
2:00:00we're doing the same exact thing.
2:00:01>> Yeah.
2:00:06>> No, so I
2:00:07>> But it's beautiful to see a little bit
2:00:08of volatility.
2:00:09>> I for sure hope it continues.
2:00:10>> No, I I told you if they break this
2:00:12candle I will flip. I will still looking
2:00:14but this one for me it's like
2:00:16you challenge a wall. If you break you
2:00:18squeeze, if you fail you go to the other
2:00:20side.
2:00:43>> Mhm.
2:01:05So for me, what I like right now
2:01:07and this is another one of those 20
2:01:08scenarios that I said we can make on a
2:01:10daily basis. How can you remember all
2:01:11these scenarios?
2:01:13Is that we're revisiting
2:01:15the 68 65 level.
2:01:16>> Mhm.
2:01:17>> 68 65 68 63 that we rejected earlier on
2:01:20that reload. Remember how we were
2:01:22looking for another reload over here?
2:01:24And it rejected? Well, now that we're
2:01:25above this level
2:01:2768 65
2:01:28>> Mhm.
2:01:29>> we're beginning to support it.
2:01:30>> Make sense.
2:01:31>> And now as we're supporting it, we're
2:01:32seeing aggressive buying coming in.
2:01:34>> Yeah, yeah, makes sense.
2:01:34>> And if I were to look on the footprint
2:01:35chart now, we've seen the terms of the
2:01:36delta, we see a little bit of a lower
2:01:38wick indicating the selling really tried
2:01:39and now the buying is stepping in.
2:01:42So if this can pull back and hold the 68
2:01:4465s again, 68 62s as support, I would
2:01:47look for an entry targeting the high of
2:01:48day at the 68 80s.
2:01:50>> Mhm.
2:01:52>> Another potential if then statement,
2:01:54right? If it comes under this and the
2:01:55selling builds, it's a control
2:01:57>> Yeah, yeah.
2:01:57>> That's it. It's not a setup that you
2:01:59would watch.
2:02:00>> It's important for you how it arrives.
2:02:01Like if it start to get aggressive in
2:02:03your level, you still consider a long or
2:02:05>> I love the quicker the move and the more
2:02:07of the impulse it takes, the better it
2:02:09is. So when it moves down quickly, I
2:02:12love to see that.
2:02:12>> Mhm.
2:02:13>> So now we're coming into it and now
2:02:14we're trying to bounce.
2:02:21Considering a possible entry here.
2:02:25>> I think it's beautiful this one.
2:02:27I don't have my confluence of
2:02:28>> It's beautiful.
2:02:29>> In a split second like that, right?
2:02:30>> You enter already.
2:02:31>> No, it moves See how it moves up four
2:02:32points like that? In a split second, a
2:02:34four-point move do the you will destroy
2:02:36your risk to reward. So, in a move like
2:02:38this, the way I look at it is if I want
2:02:40to buy the 65s and I see this start
2:02:42bidding up to the 70s, I feel like I am
2:02:44not paying a good price at the 70s,
2:02:46whereas if I had an opportunity at the
2:02:4765s, it's not a good of a deal as it was
2:02:49back in the
2:02:50two seconds ago.
2:02:51>> I understand.
2:02:52>> And that's with the way that we trade,
2:02:54you have to be very fast. You know,
2:02:55there can't be
2:02:57any hesitation or any
2:03:00uh
2:03:01The more The more you think, the less
2:03:03money you make. The less you think, the
2:03:05more money you'll make.
2:03:07The more fear you have, the less money
2:03:08you'll make.
2:03:09>> Yeah, well, when you take an
2:03:11unconscious execution because you made
2:03:13this 1,000 time without reasoning on it,
2:03:17usually you have always a better
2:03:19positioning on it.
2:03:22>> If I could get a little
2:03:22>> your setup, though.
2:03:23>> I know. If I could get a little pull
2:03:24back to give me a little better of a
2:03:26risk to reward on the 67, 66
2:03:28>> Watching a crazy absorption of the
2:03:29sellers on this candle.
2:03:30>> Are you? It's really beautiful.
2:03:35My setup is a little bit more
2:03:37aggressive.
2:03:40I like this.
2:03:43I need to accept this. I
2:03:53It's holding the old rejection level now
2:03:54as support.
2:03:57Oh, bids stepping in.
2:03:58>> [sighs]
2:04:03>> See, where where I would get this wrong
2:04:04now would be me chasing this, buying the
2:04:0671s, having a target at the 80s, and
2:04:08putting my stop loss under the 62s.
2:04:10>> aggressive than you, and they didn't
2:04:12even filled me because it was super
2:04:14aggressive on the on the risk to reward
2:04:15this On this one. But, if they
2:04:18come back down,
2:04:19>> It offers a better risk to reward.
2:04:20>> Still considering it.
2:04:47>> You see anything on the Nasdaq?
2:04:48>> Yeah, I see I see a beautiful long bill.
2:04:50>> Yeah.
2:04:51>> I see really a beautiful long building.
2:04:53The problem is that if I need to put my
2:04:56out position at this low, it's too much
2:04:58risk. It's just stupid because the
2:05:01movement in this choppy day is not
2:05:03so explosive, so
2:05:06I will leave this one to you.
2:05:10>> Look at that large aggressive bubble.
2:05:12>> Absorbed. Absorbed.
2:05:15Do we need to get a here?
2:05:17>> They're not going.
2:05:18>> Yeah, I think they are they are loading.
2:05:21They are loading.
2:05:22>> No, they are in the
2:05:23absorption right there.
2:05:35>> I don't have the call the confluence of
2:05:36the speed of tape on this wall.
2:05:41>> I wonder what the speed of tape on ES
2:05:42would look like here.
2:05:46>> If you start to use it, you will fall in
2:05:47love with it.
2:05:58>> Okay, so what I watch here now?
2:06:04Watch for a pullback into 68 68
2:06:07>> Mhm.
2:06:07>> to 68 62 for a long target in the high
2:06:10of day.
2:06:13My invalidation point is under 68 63, 68
2:06:1762.
2:06:17>> Mhm.
2:06:19>> If we're observing this price action and
2:06:21we're seeing the buyers really to be
2:06:22strong and true here, if the market
2:06:23pulls back, they should defend these
2:06:24prices. If we're reading this
2:06:26incorrectly and the market moves down,
2:06:27we may not get confirmation, but it
2:06:29avoids an early long.
2:06:32>> It's always the the balance between the
2:06:36the probability and the risk to reward.
2:06:59>> So, what I like looking for is in my
2:07:00footprint chart, I like seeing delta. I
2:07:02like seeing an outlier in the delta.
2:07:04And when the volume's a little thinner,
2:07:06there's not as many significant delta
2:07:07outliers because of how fast the market
2:07:09moves, but I like seeing I have it
2:07:12I have it highlight I have it highlight
2:07:14in the delta column when there's a
2:07:16significant outlier in the delta. When
2:07:17there's something different than the
2:07:18normal volume coming in.
2:07:19>> Color different.
2:07:20>> If we were to look at the low of the day
2:07:21for today, right? When the market came
2:07:23down into the low,
2:07:24directly at the low of the day, if we
2:07:26see what happened down there.
2:07:27Where is it?
2:07:30Uh
2:07:32Directly at the low of the day, a
2:07:33massive delta outlier, 330 contracts.
2:07:36Watch this.
2:07:37Right at the low,
2:07:40hit the low of the day, 335 contracts
2:07:42when the market came into our support
2:07:43level.
2:07:44>> Mhm.
2:07:44>> So, I like looking for outliers when I'm
2:07:46getting confirmation to kind of confirm
2:07:47that significant activity, similar to
2:07:49your big bubbles, is confirming the move
2:07:51that I'm looking for.
2:07:54>> And you have the size of the bubbles,
2:07:55the more interesting the outlier, the
2:07:58the biggest the
2:07:59>> the bigger the bigger the bubble, yeah.
2:08:02Same information, different visual.
2:08:06And to me, this looks like hands off.
2:08:08>> Yeah, because the sellers are in
2:08:10control.
2:08:10>> Sellers are in control. So, why bother?
2:08:12>> I was waiting for a potential filled
2:08:14auction, but sellers are in control, and
2:08:16now I don't touch anything.
2:08:21There are so many pieces of the puzzle
2:08:23more than getting a level.
2:08:27>> So, my CLC rule's important for me.
2:08:36Let me guess, you're considering a
2:08:37short?
2:08:37>> No, no, no, no, not touching anything
2:08:39now. We are too far from the first level
2:08:41of aggression, but um
2:08:45like if you zoom out,
2:08:48it's really
2:08:50crazy this action that we got. Like,
2:08:52Nasdaq like this, it's one time per
2:08:55week.
2:08:57>> Of course, it's the week that we're in
2:08:58the studio.
2:08:59>> But, it's okay. Yesterday the collapsed
2:09:02without retracing, today they need to
2:09:03breathe.
2:09:05>> I wish we had a day like yesterday
2:09:06today.
2:09:07>> I wish the market maker are like
2:09:09don't move.
2:09:12>> I was waiting for yesterday's setup all
2:09:13week. I took
2:09:15four trades on last Friday
2:09:17with the same analysis of the dump. Of
2:09:19course, we get the dump a week later.
2:09:28>> The flip after the absorption of the
2:09:31buyers would have been
2:09:35really good.
2:09:37I still think we go here, huh?
2:09:38>> Yeah.
2:09:38>> From how it is developing, it's
2:09:42like the idea of the buy here that I
2:09:44had, it's not valid anymore.
2:09:51>> If you look at the volume profile on
2:09:52Yest, same thing as the Nasdaq. The
2:09:54volume profile completely just a cage.
2:09:57>> Just balance. Yeah, yeah, yeah.
2:09:59>> Do you look at the shape of the volume
2:10:01distribution throughout the day? Like,
2:10:02you look at how it's developing.
2:10:03>> When it's I I I know that when it's
2:10:05balanced,
2:10:06I lose money because I anticipate
2:10:08squeeze. So, I need to keep my loss
2:10:11small. And when I have a skew up P or a
2:10:15B, I have a trend directional day, so I
2:10:17can let it run a little bit more and I
2:10:19can run.
2:10:20>> Mhm.
2:10:20>> That's the reason I always draw the cage
2:10:22and wait for the cage to be broken like
2:10:24we did, but today it broke the cage,
2:10:26went back inside. Second time broke the
2:10:28cage, went back inside. This is the day
2:10:29where I lose money.
2:10:30>> Mhm.
2:10:34Have you ever tried trading the S&P?
2:10:36>> I tried trading the S&P, but
2:10:39I I will trade S&P with a mean the
2:10:41model, not with a trend following model
2:10:43because also when you get super trendy
2:10:46on Nasdaq S&P is always giving you my
2:10:49You know, you notice that S&P does push
2:10:52rebalance, push. Nasdaq does push,
2:10:55stable, push.
2:10:56>> Push, yeah.
2:10:56>> So, it lets me build better.
2:10:58>> Right.
2:11:01It's amazing how we trade very similarly
2:11:03on completely different instruments.
2:11:05>> Yeah.
2:11:08Uh it's going to our level.
2:11:09>> Yeah.
2:11:20I would like this here. Let's see how
2:11:21it's holding.
2:11:22>> Mhm.
2:11:24>> This aggressive buy now is support.
2:11:27We might get our moment to break the
2:11:29high of the day.
2:11:32>> I had my confluence.
2:11:35At this level and this aggression
2:11:39but now I don't have a risk a model to
2:11:42jump in now.
2:11:43>> Yeah.
2:11:43>> Even if it seems good, I don't have um
2:11:51Look at this Look at this market.
2:11:52>> Yeah, the speed of the tape is pretty
2:11:53good. Yeah, you can see it on on here.
2:11:58>> [clears throat]
2:12:18>> You like it?
2:12:19>> I like it.
2:12:22But I'm going against my rules, Fabio.
2:12:24>> I don't know. Not for execution. I mean,
2:12:26you like the the directional of the
2:12:28long.
2:12:28>> I do.
2:12:30>> [snorts]
2:12:31>> He's giving me on this level
2:12:34an absorption of the sellers
2:12:38a potential squeeze with a really small
2:12:39stop loss.
2:12:46Let's see if they break.
2:12:48>> Mhm.
2:12:50>> No.
2:12:50>> Wow.
2:12:51>> Oh, look at the sellers.
2:12:57They are saying like
2:12:59we don't go to to your top of the day.
2:13:01We go to the bottom to reload.
2:13:23>> Wow.
2:13:24>> I I like it now.
2:13:26>> Yeah.
2:13:26>> I really like it.
2:13:28Now is the
2:13:30time.
2:13:32>> [snorts]
2:13:32>> We reclaim that range. We could get a
2:13:34pullback into the 69s on on yes. I don't
2:13:37know what that is on Nasdaq.
2:13:38>> Nasdaq is not showing any interesting
2:13:41activity in the last two candle, but
2:13:44this rejection
2:13:45at the sensitive level that
2:13:49we marked the 75 and this aggression
2:13:51level, it's
2:13:52it's really beautiful.
2:13:54>> And there it goes. Here they go.
2:13:55>> Here they go.
2:13:56>> Here they go.
2:14:20>> Here they go.
2:14:26On Nasdaq it's moving quicker.
2:14:28>> Mhm.
2:14:30But it's not giving me the the
2:14:31opportunity to join the movement,
2:14:33unfortunately.
2:14:49>> [snorts]
2:14:49>> I will use the 40 range.
2:14:52When it's so
2:14:53choppy
2:14:55I usually switch on the range, not on
2:14:57the tick, but on the range.
2:15:04Speed of tape here
2:15:06is not bad.
2:15:08It's not bad at all.
2:15:12If this
2:15:13absorb sellers with this aggression
2:15:18Speed of the tape. Speed of the tape is
2:15:20there.
2:15:24And also it's more.
2:15:27Wow.
2:15:30Sellers again.
2:15:37Choppy.
2:15:39It's choppy again.
2:15:43Wow, it's big size at the high.
2:15:45>> Yeah, so big.
2:15:47>> You see that, too?
2:15:48>> [snorts]
2:15:48>> I see the huge absorption of the buyers.
2:15:51>> But look at this clear now level of
2:15:53resistance. I mean, now it's coming so
2:15:55clear. I feel like it's going to they're
2:15:56going to break that.
2:15:58It would be probably inevitable to be
2:15:59broken because of how clear that level
2:16:01of resistance is now.
2:16:06>> Sellers speaking out.
2:16:38>> [snorts]
2:17:00>> But you have to still keep them.
2:17:31Getting completely absorbed sellers.
2:17:33>> Yeah, this is this is going to go break
2:17:34the high.
2:17:38>> 128
2:17:49>> Oh, miss.
2:17:58>> See if we can take a moment to settle.
2:18:04So, they printed the aggression.
2:18:07So messy there. The deepest order there.
2:18:09This is the
2:18:11>> [snorts]
2:18:11>> the path of listed systems from an order
2:18:13flow perspective. And you see it's level
2:18:15on top of the level on top of the the
2:18:16level on top of the level.
2:18:25Let me try to go to the protection level
2:18:29of the IVB.
2:18:33That's
2:18:37It's a volume here.
2:18:41I'm on contract here. I'm anticipating
2:18:43the squeeze. I saw what I wanted to see.
2:18:54Cool.
2:19:05Feel on all three contracts.
2:19:09>> How much you know it goes back inside?
2:19:10Another failed auction.
2:19:11>> No, no, I think it it you're good.
2:19:14I see a lot of aggression. I think they
2:19:15are going to take the low again.
2:19:18The area failed.
2:19:20And they are going down again.
2:19:26Now should print a sell aggression here.
2:19:42Still bought it.
2:19:58What a fight inside this year.
2:19:59>> Yeah.
2:20:00Uh part of me wants to try this long
2:20:02just to speculate they're going to go
2:20:04break out.
2:20:04>> That's what they trying, but it's really
2:20:06choppy also in the breaking out.
2:20:08It's not a behavior of Nasdaq.
2:20:10>> This is also not a breakout market.
2:20:13>> [sighs]
2:20:13>> A breakout day.
2:20:21This is the type of a day where you have
2:20:22to enter where you would for me normally
2:20:24stop out at.
2:20:25Here it comes.
2:20:26They might get our now because it's
2:20:28going to go
2:20:28>> Yeah, that's that's what they are
2:20:29building. Like imagine they took me out
2:20:32at this low.
2:20:32>> Yeah.
2:20:33>> And now they are building. I have a
2:20:34reload level on the Nasdaq effort.
2:20:38Let's see
2:20:39if they come back.
2:20:59>> We should trade more often with you when
2:21:01you come to
2:21:03to Dubai.
2:21:03>> I might try a quick little two two to
2:21:05one risk to reward, but
2:21:08>> I might set up.
2:21:12>> Potentially.
2:21:13>> You you don't wait that they clean the
2:21:16high?
2:21:16>> No. No, cuz I would my target would be a
2:21:18high day break.
2:21:19>> Uh so you want to like to anticipate the
2:21:21squeeze me or the area that you just
2:21:26going
2:21:27>> And here's the high day break.
2:21:33>> Holding one contract here.
2:21:39Loading with five.
2:21:44I'm loading on this
2:21:46area and then is the maximum point of
2:21:48aggression of the buyers. I like the
2:21:49accumulation and they see that they take
2:21:52space. They take really good space to
2:21:54make.
2:21:58>> S&P still has not taken out its high, so
2:21:59you're likely to go over you visit that
2:22:01at least, which will help bring the
2:22:02NASDAQ. Has it taken out its high?
2:22:06Let's see.
2:22:07>> There we go.
2:22:08Here's a pump right here.
2:22:09>> I bought it didn't fill me now on this
2:22:11one with the contract size that I
2:22:12wanted.
2:22:16To call only the first one because when
2:22:18you have a momentum market
2:22:21like you you enter full size in one
2:22:23and that's it.
2:22:24When you have a momentum market, I needs
2:22:26to get a better positioning price, so I
2:22:30fractionalize my entry.
2:22:31>> Right.
2:22:33On the on an instrument like the NASDAQ,
2:22:35it's very appropriate.
2:22:37>> [snorts]
2:22:39>> Let's see if they revisit back.
2:22:45>> This to me has the potential for a trend
2:22:47later in the session.
2:22:49>> I hope.
2:22:53Yeah, coming back to fill.
2:22:56Let's see.
2:22:58If we get a nice feel
2:23:06Is your performance related to the
2:23:08market condition or you have so many
2:23:10models that this doesn't affect you?
2:23:13>> So I have so many different models that
2:23:14if a market's balanced, I have different
2:23:17setups. If the market's trending, I have
2:23:18different setups. Um when I trade a
2:23:20balanced setup in a trending market,
2:23:22that's when I struggle.
2:23:23>> Mhm.
2:23:23>> So you can almost trade any kind of
2:23:25market environment.
2:23:26>> Right.
2:23:27>> Yeah, amazing.
2:23:28>> I prefer a balance.
2:23:31>> Today?
2:23:32>> Yes, but today's different because today
2:23:34we're in a higher time frame balance.
2:23:35We're not in an intraday balance. The
2:23:37higher time frame is we're coming back
2:23:39into this range, right? If I pull up the
2:23:40volume profile,
2:23:42this is extended
2:23:44today's session into yesterday's
2:23:45session. We're long-term balancing. So
2:23:47for me to even participate in a move to
2:23:49the upside a high probability, I would
2:23:51need to see it the 6895s on ES above the
2:23:54balance high.
2:23:55>> I understand. I go feel
2:23:56>> another
2:23:57>> second one, but the buyers look really
2:23:59exhausted.
2:24:01See if we can have a nice push on this
2:24:03one.
2:24:15If [snorts] we can have a breakout again
2:24:18of the top of the range,
2:24:20I will consider adding.
2:24:32I don't like it.
2:25:01Let's see if they catch up.
2:25:05The ES order flow looks very good for a
2:25:07high day break.
2:25:10That's too brutal.
2:25:11>> You're good.
2:25:14>> Took a nice sniper with a really limited
2:25:16risk for an $11,000 of profit, but
2:25:20>> We are still inside this range.
2:25:22Like it's
2:25:22>> You're in full size, no?
2:25:24>> No, no, no, no, full size.
2:25:26I don't have the market condition to go
2:25:28full size. Yesterday I went full size.
2:25:30When I went full size is 1520 mini of
2:25:34the Nasdaq.
2:26:04The aggression of today it's
2:26:06>> I think your position looks great.
2:26:08>> The position looks great for a one to
2:26:10one, but they will revisit this this
2:26:13level.
2:26:14>> So now, would you adjust your stop loss
2:26:15to break even? Or not yet?
2:26:19>> It's It's too tight. I I risk of getting
2:26:21taken out before the real move up here,
2:26:23and I did something really stupid
2:26:25because still it's a one to 10 risk to
2:26:27reward. I'm risking 1,000 to make
2:26:2911,000.
2:26:30So it it's
2:26:32It's an anticipation of a potential
2:26:33>> There you go.
2:26:34>> of the day.
2:26:36>> There you go.
2:26:43Let's see if they can catch up. I have a
2:26:45really high
2:26:46targets.
2:26:48They took the high? Yes.
2:26:50>> Okay.
2:26:50>> No, they didn't took the high. They are
2:26:51still inside this range.
2:26:57If they make another break, I can put my
2:26:59position to risk free.
2:27:06>> Okay. Let's see.
2:27:08What a day you choose for me, it's
2:27:11What a day.
2:27:13It's not in a good way, huh?
2:27:15It's a It's a master level consolidation
2:27:18day.
2:27:22>> I'm going to tell you, I think you're
2:27:23going to turn into a trend here.
2:27:27>> What is this problem on the left?
2:27:30What is this problem on the left? I will
2:27:32trade
2:27:33I will trail my stop loss
2:27:36in a smart way to recover
2:27:41the first
2:27:43risk of the day because we are covered
2:27:45by this cluster aggression of the
2:27:47buyers.
2:27:48And let's see
2:27:50if we go back to break even.
2:27:55>> My deep chart froze.
2:27:58>> Deep chart [snorts] froze?
2:27:59>> Yeah.
2:28:01Oh, yeah.
2:28:02>> It's not even going.
2:28:03>> Try to refresh.
2:28:05>> I will refresh.
2:28:06>> Uh right click.
2:28:12Ah, it's It's data that is not
2:28:14receiving. It's not just the
2:28:16Okay.
2:28:17Try to disconnect and reconnect this
2:28:19feed.
2:28:20Failed auction again, huh?
2:28:22Failed auction again. It's coming to the
2:28:24stop in profit.
2:28:33Let's nail a little bit more of profit
2:28:36the market.
2:28:48Out stop in profit and it reversed
2:28:50again.
2:28:53We recover the
2:28:55the stop loss that we took before, but
2:28:56still not catching up a trend.
2:28:59I can load again on this cluster of
2:29:01aggressive buyers.
2:29:07If we see an absorption
2:29:12seems that now it's building the
2:29:14condition to go long.
2:29:21Not from this level.
2:29:26>> My long comes above 6895.
2:29:30>> [snorts]
2:29:30>> Which we're 10 points away.
2:29:34>> I think it's not what you are doing. You
2:29:36are waiting for the cage to be clean. So
2:29:37you have really clean price action.
2:29:39>> clean price action.
2:29:40>> Yeah, yeah, yeah. And then my trade will
2:29:41work out right away.
2:29:42You see when we were in the range
2:29:44I took execution on the long side. I
2:29:46took the first squeeze. When it goes
2:29:47back into the range
2:29:50I trail. I always pay
2:29:52my stop loss with but I don't build
2:29:54profit. So it's it's not the condition
2:29:57that
2:29:58>> This is a condition where you need to
2:29:59have a wider stop loss and just let the
2:30:01trade do its thing and kind of hands
2:30:03off. You know, this is not a trade to
2:30:05>> But this is not what I like on
2:30:06>> No, no, no.
2:30:07>> the Nasdaq behavior. The Nasdaq it's I
2:30:09take a direction and start to pump like
2:30:11yesterday.
2:30:16Oh.
2:30:18Building again the buy.
2:30:22On fixed profile.
2:30:26This one is beautiful.
2:30:29All this aggression level is beautiful.
2:30:33They are not managing to
2:31:01>> See, to me I don't look at this as me
2:31:02missing the move up or move down.
2:31:04>> No, it's I don't need to participate.
2:31:07>> Are you kidding? It is only us taking
2:31:09unnecessary position if I load again
2:31:11because they are still in the range.
2:31:13>> It's range, yeah.
2:31:19In my opinion, I think knowing when not
2:31:21to trade is more important than knowing
2:31:22when to trade.
2:31:23>> Yeah.
2:31:24>> Right?
2:31:26You could trade every move if you would
2:31:28really want to. It's easy.
2:31:29>> Let's see Let's see that for me taking a
2:31:31risk of $1,000 to cover 11 if it catch
2:31:34up.
2:31:34>> It's worth the risk. It's worth the
2:31:35>> It's worth the risk.
2:31:36>> Yeah.
2:31:36>> Yeah.
2:31:39It's also worth the risk when you're in
2:31:41profits as well.
2:31:42>> Yeah.
2:31:42>> You know, to have a little bit of a
2:31:43cushion.
2:31:48>> They went back to the original area
2:31:51aggression.
2:31:57Now it's catching up again.
2:32:01And now it's catching up again.
2:32:10Give me a retracement.
2:32:16I didn't have the time to load. This was
2:32:18my level.
2:32:19>> Mhm.
2:32:20>> Waiting for those purple boxes.
2:32:22>> The purple boxes are areas where the
2:32:24aggressive sellers are dominance. It's
2:32:26an indicator that is plotting the path
2:32:28of least resistance.
2:32:29>> Mhm.
2:32:30>> And
2:32:30>> [clears throat]
2:32:30>> it's giving you areas to
2:32:32manage your trade while it's running.
2:32:35So, this is amazing when you have a
2:32:36buyer. And you need to understand where
2:32:39you have control of the buyer so you can
2:32:41trade, no? You see now the price is
2:32:43stuck on this area and they have this
2:32:45one as a revisit level to potentially
2:32:47add.
2:32:48>> So, did you draw your box because of the
2:32:49green box?
2:32:50>> Yes.
2:32:50>> You did.
2:32:51>> Yes. I just extended it.
2:32:54>> [snorts]
2:32:54>> Because on this one with a week, the
2:32:56level gets invalidated, but it is not
2:32:58broken. Still there. The price is still
2:33:00accumulating on the level. And you see
2:33:01now they start to do ping pong between
2:33:03these two area. When they clean, you
2:33:05have the squeeze.
2:33:05>> Right.
2:33:06>> Mhm.
2:33:12They're challenging the eye.
2:33:29The local's beautiful on the level.
2:33:41Okay, the first level of aggressive
2:33:43sellers puts him validated.
2:33:46But only this resistance is getting long
2:33:47again.
2:34:15You have months where you don't trade.
2:34:17Like August or Christmas.
2:34:19>> No, you do?
2:34:21>> Like the last weeks of December, I
2:34:22usually don't trade. The market
2:34:24condition gets a little bit better.
2:34:26>> Christmas and New Year, yeah.
2:34:27>> Yeah. Last August was beautiful. Seems
2:34:29like crazy volatility, so
2:34:37>> What do you think is the number one
2:34:38thing that someone should
2:34:41know with order flow?
2:34:43>> I think the most important thing it's
2:34:45the relationship between volume and
2:34:48price because the volume I see like the
2:34:50gas pedal of the car and the price is
2:34:54the direction. So, the price is telling
2:34:56you the result this impact of volume is
2:34:58having. So, I had my
2:35:02great results in the trading career when
2:35:04I merge them. When I was using only one
2:35:07kind of information, but also if I watch
2:35:08only order flow and I don't watch the
2:35:11interaction between areas, your level,
2:35:14your CLC and order flow. I take average
2:35:16at because I only take momentum entry,
2:35:18but the risk to reward is not amazing.
2:35:20This is the most important thing for me,
2:35:22and the second most important thing
2:35:23sitting on your hands or lowering the
2:35:26side. If you want to take a 1 to 10
2:35:29anticipating a breakout, it's good
2:35:31because the risk it's worth it. But when
2:35:35you have the wrong market condition or
2:35:37you want to buy a choppy range,
2:35:41this one is when you usually eat the
2:35:43profit of the day before. So
2:35:46the the most difficult part in my career
2:35:48was sitting on my hands, and only for
2:35:51example, I don't have 720 models. I had
2:35:53one model which with execution.
2:35:56And this keeps me keeps me accountable
2:35:58to not be creative in the
2:36:03in the in the position I take. If I use
2:36:06only price or when I was using only
2:36:08price,
2:36:09you see stuff that is not numbers or
2:36:12actual result. You see candles, no? And
2:36:14the candles can be misleading. You can
2:36:16create setups
2:36:18that you only can see. But an aggression
2:36:20in order flow, it's an aggression in
2:36:22order. Okay. An absorption on an
2:36:24horizontal it not level is this. They
2:36:26are pumping up. It's going.
2:36:31And for you, which one was the most
2:36:32important moment of your career?
2:36:35>> To
2:36:36you know, not treat every move the same
2:36:39and to like you said, sit on your hands.
2:36:40To be able to say journal the trade
2:36:42right away and be able to say this is
2:36:44the trade I'm taking and this is this is
2:36:45why I'm taking it and having a reason
2:36:47other than oh, cuz it's going up or it's
2:36:49pumping or it's dumping, you know?
2:36:51I think yeah, using the word I think
2:36:53should not be in the vocabulary, you
2:36:54know? It's it's natural for us to say I
2:36:56think, but thinking gets you nowhere,
2:36:59you know? Thinking is not going to move
2:37:00the market up or down. Improvising and
2:37:02thinking are always
2:37:04And I think a lot of traders
2:37:07look at order flow every second, every
2:37:08minute of the day. It should be around
2:37:09your key levels. Yeah, it should be
2:37:11around your key levels, you know? If
2:37:13your system says 20 trades in a day,
2:37:15take the 20 trades. If your system says
2:37:17one trade or no trades, you know, so
2:37:20uh watching price action around key
2:37:21inflection points. The way I look at the
2:37:22market is that it's an advertising
2:37:24mechanism, right? So, like if you're
2:37:25looking to buy anything,
2:37:27you want to buy it on discount, right?
2:37:28You don't know if a lot of people are
2:37:30going to buy it on discount, you're not
2:37:31going to know if that discount is even a
2:37:33discount.
2:37:34>> have an area, you don't have a
2:37:35direction, you're just buying in the
2:37:36middle hoping something
2:37:37>> Hoping it's going to go up, exactly.
2:37:39Order flow tells us, "Okay, when this
2:37:41goes on discount, are people also buying
2:37:43the item on discount because they think
2:37:45it is worth that price." And if that's
2:37:47the case, then buying and following the
2:37:49footsteps is a good point. But, if the
2:37:51market's on sale and nobody's buying it,
2:37:54why should we buy it if nobody's buying
2:37:55it?
2:37:56It's pumping.
2:37:59All right, this is good because this is
2:38:00developing for me.
2:38:01>> Yeah, no, no, it's amazing. Just it was
2:38:03one candle of
2:38:06and didn't gave me an area to join the
2:38:09movement.
2:38:10>> This is developing for me.
2:38:212 0 or 3 0 print 68 87.
2:38:28Zero volume on the bid side as the
2:38:31market's moving up, there's zero volume
2:38:33on the bid, 37 on the ask, 65 on the
2:38:35ask, 27 on the ask. So, I mean, the
2:38:38market's right here.
2:38:40They both filled. We got one more that's
2:38:42unfilled.
2:38:45The further it moves away from the zero
2:38:46prints, the better the setup is, right?
2:38:48>> Mhm.
2:38:48>> It it hangs out there and it fills it
2:38:50immediately, it's it's not even a setup.
2:38:53We have one that is unfilled, 68 86.75.
2:38:58I'm going to label this as a zero print.
2:39:10Crap.
2:39:17>> Looks sexy the longer.
2:39:19>> Huh?
2:39:20Look sexy the longer. Yeah.
2:39:24>> The longer it's looking sexy for me, but
2:39:25not here.
2:39:28We're almost there.
2:39:2960 95
2:39:31>> Yeah, you have the NASDAQ with the your
2:39:33level.
2:39:34>> My level 60 95 on ES. As soon as it
2:39:36breaks above this consolidation
2:39:38>> Yes, because you have this huge gap.
2:39:39>> huge balance, right? Look at this. It's
2:39:41a line of least resistance.
2:39:42>> Yeah, yeah, yeah.
2:40:13>> Wow, look at all the absorption
2:40:16on the D charts.
2:40:17>> Yeah, yeah.
2:40:17>> The reason why I'm not considering long
2:40:19and waiting it's it strike the top, got
2:40:21absorbed.
2:40:39And here we go back inside the range.
2:40:44What a situation.
2:40:53Nearly filled.
2:40:55Oh, it's printing sell areas now.
2:40:57>> Mhm.
2:40:59>> It's printing sell areas.
2:41:01Now the top of the range with this huge
2:41:03aggressive buyers absorbed.
2:41:36>> Here we go back inside.
2:41:47>> I learned my lesson of not being
2:41:49patient, you know?
2:41:51Of course.
2:41:52Impatience is a killer.
2:41:53>> I learned the same lesson was
2:41:56considering buying now, but you see I
2:41:58don't have a green area. So, I don't
2:41:59have a position of control of the
2:42:01buyers. I have only a speed of tape that
2:42:03got completely absorbed here, the top.
2:42:06I have sellers that have the upper hand
2:42:08on this.
2:42:10The Fabio of 5 years ago will say, "Oh,
2:42:12let's join because the buyers is long.
2:42:14We have a breakout. Let's put a stop
2:42:15loss below here and try in 10 times."
2:42:17>> Now, would you say that your losses in
2:42:19your earlier stages pre- shape to who
2:42:21you are right now? Like, old 5-years
2:42:23Fabio would enter this and 5-years Fabio
2:42:25would lose on this. And is that making
2:42:26you better?
2:42:27>> Because what like no, we took
2:42:29two break even, one take pro- two take
2:42:31profit, and three stop loss. Okay.
2:42:35The Fabio of 5 years ago will not have
2:42:37taken the take profit because he will
2:42:39wait for a retracement. So, he will not
2:42:41join momentum. And he will lose. And he
2:42:43will take way more stop loss in this
2:42:44area, no? I will join before because I
2:42:46say it's a clean direction.
2:42:49But the price you pay on big account,
2:42:51it's worth enough to create a trauma in
2:42:53you right to make sure that Now, we have
2:42:56a green area. Okay. Now, buyers are
2:42:58control this one.
2:42:59If I ever revisit here, I have a long.
2:43:03You see, it's really systematic. It's
2:43:05two models, one big trades, one deep
2:43:08effort, and that's it.
2:43:45>> Now you have a cage that they like.
2:43:47>> And I have a sell signal on a
2:43:50>> No, no. I never go against the pressure.
2:43:53>> I mean I have a cage because these
2:43:54buyers are in control at the moment.
2:43:57And when I see the price breaking out
2:44:01this one, this one disappear. So it's
2:44:02like you have a clean direction now. You
2:44:04don't have an aggressive sellers on the
2:44:06side. And I go back in the second one I
2:44:08can
2:44:09I can consider.
2:44:11If I get an aggressive seller absorbed
2:44:15here, this is a triple A for me.
2:44:18>> [snorts]
2:44:42>> This is another one to 10.
2:44:45This is the setup I'm waiting.
2:44:49I'm on the area.
2:44:53How is it going on ES?
2:44:56>> I see the same thing you're seeing on
2:44:57ES. I see
2:44:59that massive sell order that now
2:45:02potentially lines up with your
2:45:03>> Yeah, yeah. That's a
2:45:06huge absorption.
2:45:08They tested the uh they rejected on the
2:45:10upper area.
2:45:12You see it's it printed another area
2:45:14here. They are challenging this one.
2:45:19If this one break
2:45:21and I test this one, I have a setup.
2:45:29Okay. done.
2:45:31One contract I put here.
2:45:34Two contract I put in a discount.
2:45:39Let's join this move.
2:45:47It's really high profit target. I hope
2:45:49to get filled on both the position.
2:46:04I filled on the first one.
2:46:07>> [snorts]
2:46:48>> I have to give you a bad news. I think
2:46:50there is the possibility that
2:46:53today is not only that we don't go up
2:46:55about we go back inside the range and we
2:46:57stop there.
2:46:58I think we're going to go up or go up
2:46:59very slow. The I'm inside the long
2:47:01position. It rejected amazingly on my
2:47:03level, but uh
2:47:07I know like when you take 100 setups
2:47:09that look all the same, no? Per month,
2:47:12you know how they look. You know that
2:47:13the price action catch up really fast.
2:47:16When you start to
2:47:1820 minutes in the area.
2:47:23A momentum can build here.
2:47:27>> [snorts]
2:47:31>> Fill me only one contract.
2:47:38>> See to me this is moving way too slow.
2:47:40It's going up and down like zigzagging.
2:47:42It's up trending but zigzagging.
2:47:44To me that's just
2:47:45>> I'm executing a quantitative model. It's
2:47:48an area it's based on research.
2:47:49>> It's risk.
2:47:50>> And
2:47:51uh
2:47:52>> The greatest [snorts] risk is no risk,
2:47:53right?
2:47:54>> Yeah.
2:48:35>> So now it's really warming up to me.
2:48:40I think your position looks beautiful.
2:48:45>> You know that the
2:48:48First of all, only one contract filled.
2:48:51It didn't tested the the real souls of
2:48:54the area.
2:48:55Second of all, I know how this setup
2:48:57works. If they engage the eye and they
2:49:00fail.
2:49:01>> Coming back down.
2:49:02>> Yeah.
2:49:05I'm forced to take
2:49:06one decision and to remove the position
2:49:09because look what it did. Look as soon
2:49:11as I remove a position what it did.
2:49:13>> That's good.
2:49:15>> That's active management of the
2:49:17position. And now you see if they
2:49:20really break on the downside or if it
2:49:23catch up you can still take other
2:49:24position.
2:49:26So they rejected in my green area.
2:49:43>> See, for me, I would approach a day like
2:49:44today where when you're in a position,
2:49:47let's just say that position,
2:49:48>> Mhm.
2:49:48>> I would have a little bit of a wider
2:49:49stop loss to give this a little more
2:49:51breathing room. You see how it was just
2:49:52zigzagging up and down, right? We're The
2:49:54pullbacks are normal on these uptrends.
2:49:56So, for me, if I was entering long the
2:49:58same time you entered long, I would
2:49:59personally have a little bit of a wider
2:50:00stop loss to adjust for these pullbacks
2:50:03because every single pullback, if I go
2:50:05to a 1-minute chart, right? Every single
2:50:07pullback on a 1-minute chart within the
2:50:09past hour was bought up. In fact, every
2:50:11pullback since the morning opened was
2:50:13bought up, you know? And ever since
2:50:14then, the market's putting in
2:50:16maybe not higher highs, but it's
2:50:18definitely putting in higher lows. And
2:50:19every single pullback is an opportunity
2:50:21today for buyers to get filled. So, if I
2:50:22was trading this long, let's just say
2:50:24the same entry as you were,
2:50:26>> Mhm.
2:50:26>> me, I would have I know you were in one
2:50:28contract. What lighter stop um lighter
2:50:31position size and a wider stop loss
2:50:33because
2:50:34the dips are good opportunities for
2:50:35buyers to get in in and accumulate on
2:50:38these moves up.
2:50:39>> Mhm.
2:50:39>> That's how I view it. If I was going for
2:50:41a bigger move, I would have a wider stop
2:50:43loss instead of trying to scalp this
2:50:45move. That's how I would approach it. I
2:50:47I call it being more positioned in the
2:50:49market rather than scalping. You know,
2:50:51different conditions present conditions
2:50:52to scalp. Different conditions present
2:50:55different opportunities to be
2:50:56positioned. In a market for me like
2:50:58this, I I need to be positioned until
2:50:59the volatility picks up.
2:51:01>> Okay.
2:51:01>> If you look at the volume, it it
2:51:02completely died out horizontally.
2:51:04>> Yeah, it's not moving anything.
2:51:06>> Yeah, it's died out.
2:51:08Like, I think you have the completely
2:51:09right idea.
2:51:11I know your model may not
2:51:12say that.
2:51:13>> You You know, I
2:51:16I am backing what I see with a lot of
2:51:18execution, no? If this one gives me an
2:51:21area, it's a skew on the buyers. It's a
2:51:23control area, and you see it's
2:51:24rejecting. But, if it failed to break
2:51:26the high, they come to revisit the area
2:51:27down. So, if I have two areas stacked,
2:51:29>> Right.
2:51:29>> yes, I can take a higher risk, but if
2:51:32six times out of 10, it goes back to the
2:51:34lower area, it's not worth for me.
2:51:36>> But you could also re-enter lower as
2:51:37well. So you just get out right now and
2:51:38then maybe re-enter lower.
2:51:39>> You know when I will consider a
2:51:41long-term position like you're saying if
2:51:42we took the bottom like like the one
2:51:44that could If we took this I will keep
2:51:46for all the day the position.
2:51:47>> See that on the opposite because on a
2:51:49position like that I would look to scalp
2:51:50it because I know that's going to be a
2:51:51quick increase in the volatility. Versus
2:51:53trading like this, I would then do what
2:51:55I'm saying be more positioned.
2:51:56>> Yeah, but we we are on the value area
2:51:58low. If we
2:51:59>> That's from yesterday.
2:52:01>> Yeah.
2:52:01>> Yeah, yeah, yeah.
2:52:02>> This one for me it's a long-term
2:52:03reversal.
2:52:16If you see this behavior of price action
2:52:18you would stop charting.
2:52:20>> Yeah.
2:52:22>> Same.
2:52:28>> But a setup for me is above the 95s
2:52:30which were
2:52:31>> Yeah, yeah, one I I know what you we
2:52:33want to get the acceleration after the
2:52:35fair value surpass because we have the
2:52:37imbalance reload.
2:52:39>> Yeah.
2:52:41Why is this?
2:52:50I'm going to change my profile to a
2:52:51two-day and I'm going to show
2:52:53>> Mhm.
2:52:53>> today's action with yesterday's action
2:52:55and see
2:52:56how the volume really is built
2:52:58which is
2:53:00no good.
2:53:01Uh
2:53:03>> You ever merge profile?
2:53:05>> A month profile?
2:53:06>> Mhm.
2:53:07>> Yeah.
2:53:07>> On a merge profile like
2:53:08>> Oh, yeah, yeah, yeah, yeah, yeah. My
2:53:10Sierra on my laptop's not set up to do
2:53:12that. And I don't know how to do that on
2:53:14TOS right now. But yeah, at home what I
2:53:15would do is I would add today's profile
2:53:17with yesterday's profile.
2:53:18>> Yeah, that's what I do also.
2:53:20>> Um and then you know, it would just be
2:53:21consolidated in this range.
2:53:23>> And you use the full volume or only cash
2:53:25session volume?
2:53:25>> I use full for this type of analysis.
2:53:27You?
2:53:28>> Only cash session.
2:53:29>> You use cash session, yeah. I separate
2:53:30mine. I'll have two profiles. One just
2:53:32cash and one RTH and full session.
2:53:35>> Mhm.
2:53:36>> I I run statistical model on this like I
2:53:38checked if it's more sensitive the
2:53:41levels on the cash session or on the
2:53:43full volume volume. And I noticed that
2:53:45the area if you take only the cash
2:53:47session, the areas are way more
2:53:48sensitive. Way more area value area and
2:53:50value area. So if I want to have a
2:53:53long-term picture more inclusive of what
2:53:55the market is doing, I use the full
2:53:57volume. But if I want to have my areas
2:53:59to engage me too, I use the cash.
2:54:02>> That's why I reset my depth of market at
2:54:04the market open cuz I need to see the
2:54:05set the cash session volume profile. I
2:54:08make all my analysis off that. When
2:54:10doing higher time frame analysis, I do
2:54:11what you said and merge the profiles uh
2:54:15for the full session.
2:54:16But yeah, I think it the intraday
2:54:18session is more important, you know.
2:54:21>> They are engaging the top again. Let's
2:54:22see if we have a a nice squeeze or it's
2:54:24another fail.
2:54:26>> I'm telling you this thing is going to
2:54:27move up, but it's just going to move up
2:54:28very slowly. Yeah.
2:54:31Which is not good for us.
2:54:34How long have you been trading for?
2:54:37>> The order flow or generally? I had the
2:54:39the the in general it's around 10 years,
2:54:42but remember that I started with binary
2:54:44options, huh? You you know how how they
2:54:46were binary option. A binary option you
2:54:48you needed to see if the market was up
2:54:50or down.
2:54:51Then I was a really early adopter of
2:54:53Bitcoin, even if now
2:54:56the Epstein email are creating a little
2:54:58bit of strange situation in the history
2:55:01of the asset, huh?
2:55:02>> You're on email list?
2:55:03>> No, I'm not in the on the email list. I
2:55:05think Reese is there.
2:55:06>> Reese is on it.
2:55:08>> I But I noticed Jeffrey Epstein was an
2:55:11option trader. It was crazy. I wrote
2:55:14read this email because I was curious
2:55:15about the model and they were like doing
2:55:17something with the shipping futures.
2:55:19Nice one.
2:55:20And um
2:55:23No, I didn't join any party. I was
2:55:25trading when they were parting.
2:55:27Unfortunately.
2:55:29>> So now we're testing the highs, which is
2:55:32a really good sign to see.
2:55:34So now what I look for is seeing if this
2:55:35is going to be a failed breakout or if
2:55:37this is going to continue.
2:55:38>> Mhm.
2:55:41Ooh, look at the speed of tape now.
2:55:43Beautiful.
2:56:03And here it goes, the real movement of
2:56:04the day.
2:56:05>> That's good.
2:56:12Okay.
2:56:16>> We are reaching your final year level
2:56:17now.
2:56:17>> Yeah, so now we're final year, 3 hours
2:56:19in.
2:56:23>> Waiting for a nice area.
2:56:29Um
2:56:30Should this up the trust candle.
2:56:37There is still a lot there.
2:56:50>> So now what I look for is if the market
2:56:51can break above it, I like
2:56:53>> No, this is the real move.
2:56:54>> Yeah, I like to see now does a low
2:56:56volume lower form. Do we accept the
2:56:58higher prices? How is the delta looking?
2:57:00>> Yeah.
2:57:01>> That's I want to make sure the buyers
2:57:03are willing to buy higher prices.
2:57:07If the market breaks it, buyers not
2:57:08willing to buy higher prices, then this
2:57:10could be the potential of a fake out.
2:57:13And then balance for the rest of the day
2:57:15on a Friday.
2:57:19>> You saw this remote.
2:57:21>> Yeah.
2:57:21>> Like this aggressive sellers completely
2:57:23absorbed on the way down.
2:57:28It's interesting that the effort is not
2:57:30giving me any
2:57:32in buyers control area. No buyers
2:57:34control area.
2:57:40Look at the speed of tape.
2:57:44Crazy.
2:57:46Crazy.
2:57:49It's one each other load. One, two
2:57:52and three.
2:57:56This is the candle that hold everything
2:57:58for me. You have aggressive volume.
2:58:01You have
2:58:02speed of tape.
2:58:07See if we continue.
2:58:27I have a really small risk, $700 to make
2:58:314,500.
2:58:56And here they go back in the range.
2:59:02It's the type of day, my friend.
2:59:06It's the type of day.
2:59:07As soon as your risk to reward it's
2:59:09skewed crazy on one side.
2:59:18You do also stock picking? You have any
2:59:19kind of portfolio long term?
2:59:22>> Just Tesla.
2:59:23>> That's it.
2:59:23>> Tesla?
2:59:24>> That's it.
2:59:29>> Have you ever tried to trade single
2:59:31stocks?
2:59:34>> I used to only trade maybe 2018, 2019
2:59:37options. Only options on the single
2:59:39stocks.
2:59:39>> Now it's amazing that they are opening
2:59:41futures on single stocks. I don't know
2:59:42if you saw.
2:59:45>> Look at this pullback from 595.
2:59:46>> Oh, 95
2:59:48>> I don't touch anything when there is
2:59:49this control of the sellers. I don't
2:59:51want to to be even close to the chart.
2:59:55But you see what I see. Now, if you buy
2:59:57here, okay.
2:59:58I have a $700, 650
3:00:00>> Small risk. Yeah, it's worth the shot.
3:00:02>> Okay. If I buy and accumulate long term
3:00:04and now it reverse, I take this kind of
3:00:06stop loss.
3:00:07>> It's Yeah, but you go with less size,
3:00:08no?
3:00:09>> Yeah, you go with less size.
3:00:10>> But also your skew on the profit is way
3:00:12lower.
3:00:13>> I
3:00:13>> There are always pros and cons.
3:00:30Going to revisit.
3:00:35>> You think so?
3:00:36>> You know what what is really amazing for
3:00:38me? That the top of the distribution
3:00:40it's empty in volume for yesterday. And
3:00:44this is where I have the most beautiful
3:00:45unidirectional move. So, I'm risking
3:00:49small to
3:00:50go for an expansion back.
3:01:49I love it. Always building, it's
3:01:50incredible. They they took control of
3:01:52the area.
3:01:58>> [laughter]
3:01:58>> If you feel
3:02:01I have two here and two here. They
3:02:03printed an area that usually bring to a
3:02:06really good squeeze.
3:02:07>> Mhm.
3:02:08The squeeze looks different than what
3:02:10we've seen all day.
3:02:11>> It's It's catching up with
3:02:14with sustained volume.
3:02:16And
3:02:17all day it was so See how much it's
3:02:19inconsistent. One speed of tape, one
3:02:21rejection. Look now.
3:02:22>> Mhm.
3:02:22>> Building consistent.
3:02:23>> Yeah.
3:02:25>> Probably this is the best setup of the
3:02:26day. Let's see if he can get I can get
3:02:29inside from a good point.
3:02:45>> [snorts]
3:02:47>> On this one, I I will consider loading
3:02:49more.
3:02:51If it fill me any start, I put the first
3:02:53position risk free. I load another four
3:02:55with the initial risk, so I'm risking
3:02:57the same, but I have a double exposure.
3:03:00It's my
3:03:03>> [snorts]
3:03:13>> Is the higher day.
3:03:14>> They are engaging and it's there when
3:03:16they make the good movement.
3:03:19I just hope they have a
3:03:21flash to the downside just to get
3:03:23filled.
3:03:30Here they go.
3:03:37>> There's liquidity above on the ES too,
3:03:39which is likely to hit.
3:03:42The question is if it gets hit before we
3:03:44get filled there.
3:03:46>> You have a position with a
3:03:47>> No, no, no, no.
3:03:49Above 60
3:03:50>> Yeah, when they clean liquidity
3:03:52>> break.
3:04:19You're getting it filled, right?
3:04:20>> Unfortunately not. It's It's moving in
3:04:22an amazing way.
3:04:30If there is a level from where it's
3:04:32really worth to be inside,
3:04:35it's when it will engage the 24,970
3:04:39on Nasdaq that it's really close.
3:04:41It's really close.
3:04:52>> Wow.
3:04:53>> Gold filled.
3:04:55First one.
3:04:57Loading. The speed of tape it's amazing.
3:04:59The sellers are super aggressive and
3:05:01they are not getting filled.
3:05:07Getting inside the second one.
3:05:09Come come come come come come.
3:05:10>> You need to go a little further.
3:05:12>> It's okay. Thank you.
3:05:23You guys are really good with black
3:05:24hole.
3:05:29If I can take a good trade is not
3:05:30>> What?
3:05:34>> You need to make a trade that is worth
3:05:35the ticket.
3:05:37When are you flying?
3:05:38>> Uh about
3:05:402 hours.
3:05:41>> In 2 hours from now you're flying?
3:05:42>> 3 hours, man.
3:05:43>> Mhm. Nice.
3:05:44>> No, 4 out 4 hours.
3:05:46>> It goes time.
3:05:48>> [snorts]
3:05:54>> You filled two, no?
3:05:55>> Only two contracts.
3:05:56>> Two contracts is two contracts.
3:05:58>> Quantity is two contracts, but it was an
3:06:00amazing area and I wanted four, but it's
3:06:02okay.
3:06:04>> You might get it here. Let's see.
3:06:07>> I don't want it to get too much because
3:06:09I don't only get filled, I get filled
3:06:11also on the exit position, but
3:06:18I want another one here. Another two.
3:06:32Come to that.
3:06:34>> [laughter]
3:06:35>> Yeah.
3:06:37But I have a good spike with absorption
3:06:39on the bottom, the one that I like, no?
3:06:44You don't want?
3:06:47No, you don't want, you just want to go
3:06:49up.
3:06:49The same, I don't care. What do you
3:06:51think?
3:07:02If they break this area, you see a
3:07:04rocket flying up.
3:07:06>> [gasps]
3:07:09>> That's also what I like, speed of tape,
3:07:11zero result, price stuck inside the
3:07:13speed of tape of the buyers.
3:07:15A crazy move.
3:07:16>> Mhm.
3:07:17>> So, the aggression of the buyers is
3:07:18having a result. The aggression of the
3:07:20sellers is stuck inside this range.
3:07:22I still think they can go a little bit
3:07:24more down.
3:07:36The volume has dried on ES
3:07:38significantly. On Nasdaq it's uh
3:07:42it's uh sleeping.
3:07:47They are breaking, they are breaking.
3:07:49There you go.
3:07:57I understand what's model. Maybe you
3:07:59take some break even some stop loss. But
3:08:01when it print short three areas you are
3:08:03inside with six contract total and you
3:08:05have a skew on that risk reward that is
3:08:06crazy.
3:08:07>> It's crazy. It's too much.
3:08:13Okay.
3:08:14>> Back.
3:08:14>> Up, down, up.
3:08:53>> [snorts]
3:08:56>> If this area breaks I am which great.
3:08:58Come.
3:09:08>> You got filled your other two?
3:09:10>> No, and if it goes back
3:09:12>> Oh, you are risk free?
3:09:13>> Yeah, I am risk free.
3:09:22But with [snorts] this dance you will
3:09:24visit for sure back to phase three
3:09:26because the also the speed of the What
3:09:27What is giving me the confirmation to
3:09:32have the drift directional is when the
3:09:34speed of tape is catching up. Today we
3:09:35only have a attempt fail. Attempt I
3:09:38fail. Attempt is fail.
3:09:39>> The speed of the tape indicates that
3:09:41there's uh interest and follow up and
3:09:43>> Interest and follow up.
3:09:44>> And you are in the move.
3:09:45>> And here it goes another break even.
3:09:47And now you you see when it takes break
3:09:48even usually goes to the next area. That
3:09:50is still a good area that we can still
3:09:52can try to buy but it's
3:09:54not the best condition.
3:09:56>> I I you have the right idea, you know,
3:09:58that's what
3:09:59>> [sighs]
3:10:02>> It's catching up on another sell area.
3:10:05On the top. Now, I don't like this one a
3:10:07lot, but before
3:10:08>> Do you have a model that enables you to
3:10:10enter or re-enter where you would
3:10:12normally stop out? Like
3:10:14instead of entering where you want to
3:10:15enter, maybe enter where you would
3:10:17normally stop out.
3:10:18>> No, I don't have this kind of model. And
3:10:20you?
3:10:21>> Depending on the conditions, if yeah, I
3:10:23will If I see a good confirmation
3:10:25signal, I won't enter there. If I know
3:10:27it's a a condition that I'll get faked
3:10:28out on.
3:10:29And what I'll do is is I'll enter when
3:10:30my stop loss would have hit if I entered
3:10:32that position originally.
3:10:33>> No, that's
3:10:34>> And it'll just give me a smaller risk
3:10:35better reward.
3:10:36>> Nice.
3:10:37>> But it depends on the conditions. A day
3:10:38like today
3:10:41probably would work better.
3:10:45You have the right idea, that's what I'm
3:10:46saying. It's back to the high of the
3:10:47day.
3:10:48>> Let's see because it's the fourth time
3:10:51that they go here and they reject again.
3:10:58If they bring the area, I can still
3:11:01jump on it.
3:11:04Because if we break this level, we don't
3:11:05have a small movement.
3:11:07>> It's going to be a big one, yeah.
3:11:08>> So, I can capitalize on the explosion.
3:11:17dumping
3:11:18>> The tighter the compression, the bigger
3:11:20the expansion.
3:11:20>> That's the point and today it's only
3:11:22compression.
3:11:24Okay, no area.
3:11:28>> And we're going to go break the high on
3:11:29yes. Oh, you broke the
3:11:30>> I don't have no I don't have a single
3:11:32area, so I don't have a a level to jump
3:11:35in.
3:11:35>> Okay, here we go.
3:11:38>> I still have only the level on the
3:11:40bottom.
3:11:53>> [snorts]
3:11:53>> You have model to jump in when it's only
3:11:55directional.
3:11:55>> No, no, no, no, no. I'll wait for a
3:11:57directional move. I'll wait for a
3:11:58pullback.
3:11:59>> Yeah, we wait always for their load.
3:12:04Okay.
3:12:06This one was the final take profit of
3:12:09the first long that I took. This one
3:12:11here.
3:12:11>> So you had the right idea.
3:12:12>> Yeah.
3:12:19I'm printing another area.
3:12:22Here we go.
3:12:33>> [clears throat]
3:12:49>> But you know what? I think it's more
3:12:50educational for people watching this
3:12:52session than because in directional
3:12:54section, it's super easy to make money.
3:12:56Right. This session
3:12:58you're losing a lot. You you
3:13:02didn't have any setup. You didn't took I
3:13:03took only the high probability setup and
3:13:05I'm back at break even. So they can
3:13:08learn a lot by
3:13:10the reasoning process.
3:13:11>> Right.
3:13:12Yeah, I mean
3:13:14the reason I haven't taken a trade is
3:13:15because I didn't see a trade, you know,
3:13:16it's my my job is to not just trade cuz
3:13:19the market's going up or the market's
3:13:20going down.
3:13:21>> Another area here.
3:13:23>> It's building the delta now.
3:13:24>> Yeah, it's building the speed of tape
3:13:26>> Is that 618 or 68?
3:13:27>> 68. Nothing special. But it's uh
3:13:31it's presenting again my model in
3:13:33direction of the trend following.
3:13:35I just don't see any
3:13:38absorption.
3:13:40>> See, in a scenario like this, what I
3:13:41would do is because of how clear and
3:13:43consistent this uptrend is, right? On a
3:13:451-minute chart, we see the dip, move up,
3:13:47dip, move up, dip, move up. What I would
3:13:50like to do here is wait for the 6895s to
3:13:53be broken, confirm that buyers are
3:13:55willing to lift us up, and then classic
3:13:57retail pattern would be a break of the
3:13:59downtrend line that everybody gets
3:14:00short. And then screw those shorts.
3:14:02>> Yeah.
3:14:03>> And then reclaim back above for a long.
3:14:05>> Yeah, it makes sense.
3:14:12>> Well, maybe I come back to Dubai until
3:14:14it on a good trading session.
3:14:15>> Yeah.
3:14:16Maybe we take one day with some
3:14:21But yesterday was perfect.
3:14:23>> Believe me, I was sitting at dinner on
3:14:24my phone.
3:14:25>> Are you you were watching?
3:14:26>> I was watching.
3:14:29>> So there was
3:14:32buyers failed.
3:14:48>> For me, I need to observe above above
3:14:506895, but there's nothing above 6895.
3:14:53There's there's no zap nothing's
3:14:55happening. There's no volume, nothing.
3:14:57No strong break.
3:15:03Tons of liquidity above the high of the
3:15:04day. You know, that could be traders
3:15:06stop losses. That could be
3:15:08just
3:15:09>> It's that is only expect them to It's
3:15:11also It's also the 25,000 level, so we
3:15:15have a confirmation of the area.
3:15:44I was super tight stop loss on this one.
3:15:51I have the area I have the rejection on
3:15:53the area. I'm anticipating a squeeze.
3:15:57Let's see if they start.
3:16:10>> If from this area they go back inside
3:16:11the range, my goal No, my goal is
3:16:13protecting the account, so
3:16:17I'm done because I see that
3:16:19>> Would you stop trading at that point?
3:16:20>> Yeah. Yeah.
3:16:22If they don't break this level and they
3:16:23go back inside, it's not in the model
3:16:25too. Maybe they break now and they
3:16:27reload.
3:16:29Like when the setup don't play out, it's
3:16:30because the market condition is not
3:16:32trending. Even if we are going up, but
3:16:34it's not an expansion move. It's still
3:16:37slowly building a compression
3:16:38>> Compression, compression, compression.
3:16:39>> Compression, compression, compression.
3:16:47Taking a $780
3:16:49risk to make a potential 5,000 on the
3:16:51way up, but still
3:16:53back inside the range.
3:16:58The area is still holding.
3:17:08No big trades on the candle.
3:17:11>> Yeah, on the ES, there's no big trades
3:17:12on the ES candles.
3:17:20>> The level is still good.
3:17:25>> I I still think you have the right idea,
3:17:27but it's just
3:17:47>> You see now if I was with a long stop
3:17:50loss, maybe I will three or four times
3:17:52more to get taken out by this week. So,
3:17:55that's the reason I'm waiting for it to
3:17:56reload the level, and then the idea is
3:17:58back valid, but I need to
3:18:01Speed of tape non-existent. Big trades
3:18:03non-existent.
3:18:12I
3:18:22>> Little bit of volume we have been one
3:18:24hour at the power hour.
3:18:39You you understand why you
3:18:40either I'm right fast
3:18:42>> Yeah.
3:18:43>> Or I or I or I go out.
3:18:44>> That's a scalper's main objective is
3:18:46being right fast.
3:18:48>> If I'm right fast, good. If I'm wrong
3:18:50fast, it's better because I take smaller
3:18:52stop loss. But I have areas where I do
3:18:55what you do what you say, yeah. If I get
3:18:56from the
3:18:57low of the cash session, I don't close
3:19:00that trade. I run. Like yesterday, I
3:19:01took the shot from the up of the cash, I
3:19:03took till the
3:19:04>> Yeah, cuz there's more volatility and
3:19:05expansion.
3:19:06>> They they rejected the
3:19:07>> Yeah, yeah. Sid's feeling well.
3:19:15>> Come with this one.
3:19:20Now it comes to the
3:19:24expansion.
3:19:53Depending on they take all this heat map
3:19:56level
3:19:57and they reject everything and they go
3:19:59back.
3:19:59>> And it goes back again, yeah.
3:20:00>> I But I have this feeling.
3:20:02>> It will happen. It will happen.
3:20:09Here we go.
3:20:12>> Didn't the full contract.
3:20:18>> So now where
3:20:19I think risk comes important is let's
3:20:21just say you finally catch the move that
3:20:23we're trying to catch, right?
3:20:25Because you're not in your full
3:20:26position, that reward is still be great,
3:20:28but it may not catch up to those losers,
3:20:31let's just say.
3:20:32>> That's the That's the
3:20:32>> That's the problem, right?
3:20:33>> Mhm, it's not a problem. Like when I see
3:20:35that the movement is not catching up,
3:20:37like the movement is catching up.
3:20:39I have a trend following model that lets
3:20:41me enter in all the retracement.
3:20:44>> Okay, also you would add if this thing
3:20:46breaks out, you would add
3:20:47>> Because now the direction is clear.
3:20:48>> Right.
3:20:49>> So I would not say I traded in a choppy
3:20:52and I don't benefit from monetizing a
3:20:54directional move. That's what I'm
3:20:56waiting because when we have a
3:20:57directional move, I think we will
3:20:58rebalance all the void of before.
3:21:00>> Yeah, yeah, yeah.
3:21:01>> So I have even more opportunity because
3:21:03I use the profit of the first one to
3:21:05capitalize and it's momentum. Like maybe
3:21:07we took like even a stop loss, 1,600,
3:21:10the good movement make 20,000.
3:21:12>> Mhm.
3:21:12>> Just it's not common during the day. Now
3:21:14now they are breaking, no?
3:21:17>> Here is going to get the uh expansion
3:21:18move right here.
3:21:19>> Mhm.
3:21:22Let's see, it's too fast to put my
3:21:24position at break even. I will just
3:21:26reduce risk.
3:21:28I have less than $1,000 of risk.
3:21:31Let's see if we catch the interesting
3:21:33move of the day.
3:21:39I have only one chart. I want to go to
3:21:41the rebalance level. I think it was
3:21:46the 25,050.
3:21:48No, I I I have marked here. Yeah, I'm
3:21:5050.
3:21:52It's really long move.
3:21:53>> Mhm.
3:21:59Imagine this is a fake out.
3:22:04>> If it's a fake out I'm blessed
3:22:07to lose 0.0 something percent of the
3:22:09account in a day like this because it's
3:22:11the worst condition that we got this
3:22:12week.
3:22:14You didn't trade any day this week.
3:22:16>> This is the first time of I opened up my
3:22:17computer this week.
3:22:19>> [snorts]
3:22:21>> Okay, it's building what you're saying.
3:22:22Uh
3:22:23it's building the fake out uh
3:22:26scenario.
3:22:34>> [laughter]
3:22:34>> Acceleration shots and
3:22:36>> Yeah, this is looking like
3:22:40Let me check here.
3:22:43The area is still valid.
3:22:54They're coming. Uh
3:22:57They are bouncing again on the area.
3:22:59Now,
3:23:00you know why I didn't close the
3:23:02position? Because it engaged the eye and
3:23:04it broke
3:23:05from the range. Back. So, this is this
3:23:07is a sign for me of still continuation.
3:23:11I'm more afraid of the 25,000. That is
3:23:14the level where the major liquidity is
3:23:15holding.
3:23:18>> [snorts]
3:23:22>> See, the way I look at I know you say
3:23:24you have models for when it does expand
3:23:26and and continue.
3:23:29When you do have that one trade that
3:23:30you're right, if you don't add to a
3:23:32trend continuation, that one winner
3:23:34where you are right may not be big
3:23:37enough to supplement the let's say three
3:23:39losses or three break evens, you know?
3:23:45>> Totally agree with you. That's the
3:23:46reason when the movement catch up, I use
3:23:48the profit to compound.
3:23:49>> Right. Right. The continuation of
3:23:51>> I I never out of the big movement of the
3:23:53day. Just before it happens, I load
3:23:56multiple times and I have break even as
3:23:58almost.
3:24:01>> See, that is better to do on the Nasdaq,
3:24:03I feel like, versus the ES.
3:24:05>> I On the ES, I think the same model will
3:24:07not be rewarding right so much because
3:24:09it's more expansion or balance expansion
3:24:12or balance. They are challenging the low
3:24:13again.
3:24:14Let's see what they do.
3:24:15>> There's our pullback.
3:24:16>> Yeah.
3:24:18I'm $800 on the risk on this one.
3:24:21They are really close to the stop loss
3:24:22now. Either the area old or if it
3:24:24breaks, they go to the next one.
3:24:41When they challenge again the high, if
3:24:43we have a trust up in the speed of tape,
3:24:46I'm considering taking the the risk out
3:24:49of the position.
3:24:54They are building the short.
3:24:55>> Yeah.
3:24:56>> They are building the short count the
3:24:57area. Oh, this one accelerate lower.
3:25:01Just I'm too close to take it out now.
3:25:04>> So, you wouldn't take it out early?
3:25:05>> No.
3:25:05>> No.
3:25:06>> If it's still valid the setup, it will
3:25:08not take it out early.
3:25:09>> Mhm.
3:25:10>> You see that the area failed and now
3:25:11what you see usually is that they
3:25:13accelerate. So,
3:25:15taking a smaller stop loss on this one
3:25:18for me it's worth.
3:25:20>> Right. With a potential of re-entry if
3:25:22you have another thing.
3:25:23>> of re-entry of the movement. You know
3:25:25what's the day where I lose the most
3:25:27amount of
3:25:27>> Like here when you keep entering and
3:25:28entering?
3:25:29>> No, no, no. It's the days where I never
3:25:30have an expansion phase.
3:25:32>> Mhm.
3:25:32>> Like days where I
3:25:34have
3:25:36marketing consolidation challenging the
3:25:38breakout of the eye feeling 20 times in
3:25:40a day. This is the day where I
3:25:42accumulate position
3:25:44but I never monetize them.
3:25:47>> Right. You're protecting yourself. My
3:25:49worst days are days like this where I'll
3:25:50try to catch this long three times, four
3:25:52times, five times. And it's all
3:25:54unsuccessful and
3:25:56I'm just completely wrong on the
3:25:57analysis.
3:25:58>> Mhm.
3:25:59I still think I'm right on the analysis
3:26:01of the
3:26:01>> See, what's interesting is yeah, you're
3:26:02right on the analysis though. You're
3:26:04long in the market in the uptrend. It's
3:26:06not like you're shorting it and going
3:26:07against it every single time.
3:26:09>> But it's two the two times you see if
3:26:11you enter with low risk and you have a
3:26:13bigger stop loss,
3:26:15you will be right more times. Right, but
3:26:17if I can enter a sizer, okay? When I
3:26:20have a triple A confirmation with a
3:26:22really high risk reward, maybe I take
3:26:24less position that I'm successful during
3:26:26the day. But at the profit and loss of
3:26:28the day, I have
3:26:30the good days that are really 25 war
3:26:33sessions, so it's
3:26:35Like I noticed that in the month,
3:26:38five to six session make 70% of the
3:26:41>> 100% 100%
3:26:46There's somebody I know that
3:26:49five days out of the year makes his
3:26:51whole year, and everything else is just
3:26:52a wallet pattern. You know, like
3:26:55>> Like a direction like yesterday, it's a
3:26:58monthly profit maker.
3:26:59>> Exactly. Exactly.
3:27:00>> It's an outlier.
3:27:01>> Right, it's not a daily occurrence.
3:27:03>> Yeah.
3:27:07>> I don't know if Fabio
3:27:08is going back inside, huh?
3:27:09>> I'm happy that I took out the position
3:27:12early.
3:27:15>> Yeah, this is a trade where you're happy
3:27:16that you're wrong, right?
3:27:17>> Yeah, you're happy that you're wrong
3:27:19fast.
3:27:20>> Yeah.
3:27:21>> [snorts]
3:27:22>> For the past two hours, it's done
3:27:24absolutely nothing but move up in a slow
3:27:26slow way.
3:27:27>> That's the price to pay. It's like the
3:27:29commission you pay to play, you know?
3:27:30>> Yeah.
3:27:31Since your entry fee
3:27:32>> This is what This one for me is one
3:27:33hour.
3:27:34>> Yeah.
3:27:35>> Like the the risk that I take per
3:27:37position is $2,500.
3:27:39>> Mhm.
3:27:46What I know is going to happen is the
3:27:47move is going to happen later.
3:27:49>> Later. Yeah, you know, on an hour and a
3:27:51half.
3:27:52>> For me, if I'm back home at 1:00,
3:27:54there's no way I'm trading this.
3:27:56>> No?
3:27:56>> No, no way.
3:27:59I'll set alerts if the volatility
3:28:00expands, this the speed of the tape goes
3:28:02up. Mhm. Yeah.
3:28:04>> I will try to engage in one hour and a
3:28:06half only if I see this high broken.
3:28:08>> Mhm.
3:28:09Right, me too.
3:28:11The setup can still come.
3:28:21Uh what's it
3:28:23>> Uh if you want to just kind of
3:28:25what we were saying earlier,
3:28:26uh, maybe just wrap up with
3:28:28your key mistakes you notice traders
3:28:30make, especially during maybe a session
3:28:32like today, sir. Um, and then
3:28:36either key things that allow you to read
3:28:38the order book like you had last time.
3:28:40>> You want to start?
3:28:47>> So, I feel like a day like today
3:28:48>> Yeah.
3:28:50>> you could easily just
3:28:52take 20 trades and just lose on them
3:28:54all.
3:28:54>> Yeah.
3:28:55>> And I feel like I don't know, you know,
3:28:57the move may come. I just think that
3:28:59transacting in this range and in this
3:29:01manner with how we trade
3:29:04at this point is not really appropriate.
3:29:06And I think the difference between Yeah,
3:29:08it's compressing way too much. And I
3:29:10think the biggest difference, right,
3:29:11between someone that
3:29:13will have success on a day like today
3:29:15versus someone that may struggle on a
3:29:16day like today
3:29:17is the ability to sit on your hands,
3:29:19like you said earlier, and the ability
3:29:20to say, "Hey, listen, the market's
3:29:22moving up. We're in an uptrend, but do I
3:29:24really see a a setup or do I really see
3:29:26a pattern?"
3:29:27And
3:29:28it's human nature for us to always want
3:29:30to engage and just transact and open up
3:29:32a position cuz as we see green and red
3:29:34on our screens.
3:29:35>> Yeah.
3:29:36>> And I think it's important knowing when
3:29:38not to trade, and I feel like
3:29:41the better move for me would not really
3:29:43seeing a good setup other than the first
3:29:4510 minutes of the market moving down
3:29:47is sitting on your hands and and
3:29:49accepting that you don't have to trade
3:29:50every single day or don't have to trade
3:29:52every single move.
3:29:53The money's made by waiting.
3:29:55>> I agree with you.
3:29:56>> The money's made by sitting on your
3:29:58hands. And the way I look at it is in
3:30:00terms of like ammo, and I want to deploy
3:30:02all my ammo when the target's clear in
3:30:03front of my face. And if I deploy my
3:30:06ammo when nothing is super clear or I
3:30:07really can't understand it or can't read
3:30:09it, then I'm not going to have any ammo
3:30:10remaining when a clear target is in
3:30:13front of me.
3:30:13>> Yeah.
3:30:14>> And I feel like today, you know, what,
3:30:15you could have deployed all your ammo
3:30:17and when maybe really something occurs,
3:30:19you have no more ammo to deploy.
3:30:20>> Yeah.
3:30:20>> And that means in terms of your account,
3:30:22maybe you could have taken a huge hit.
3:30:24You did really well protecting yourself
3:30:25right now.
3:30:25>> And in this case
3:30:27you have a maximum drawdown for the day
3:30:29like if it goes
3:30:31If you if you see that the model is not
3:30:33respecting but you have another
3:30:34opportunity, but you are at the you have
3:30:37a maximum loss for the day or just you
3:30:39you continue to execute till you have
3:30:41opportunities?
3:30:42>> Yeah, so some of my worst days would be
3:30:44me trying to short this move right now.
3:30:45Let's just say it was a level of
3:30:46resistance and I kept going against the
3:30:48trend trying to short it, short it,
3:30:49short it, short it. So what I do to
3:30:50protect myself is I have a three loss
3:30:52rule.
3:30:52>> If I take three trades in a row with the
3:30:54same analysis
3:30:55>> With the same level?
3:30:56>> With the same level, same analysis,
3:30:57usually I'm just completely wrong about
3:30:59that idea.
3:30:59>> Mhm.
3:31:00>> And I try to shut down.
3:31:02There's days where I'll
3:31:03take four trades, five trades and go
3:31:05against that rule and those are my
3:31:06biggest losing days.
3:31:07>> Mhm.
3:31:08Um
3:31:09>> But I do that to protect myself because
3:31:11sometimes I get emotional where I'm
3:31:12trying to catch this move.
3:31:14See the speed of the tape picking up or
3:31:15not?
3:31:16>> Well, it gave me the area.
3:31:17Like here this one this one it's a long
3:31:19but uh
3:31:20I'm not taking it because
3:31:22>> You
3:31:22>> you see that the behavior of the prices
3:31:24is changing. We have an expansion and
3:31:27now we are closing the same compression
3:31:29for the last
3:31:30>> Right.
3:31:30>> 30 minutes. It's not it's not common on
3:31:32the NASDAQ. It's not giving me an edge
3:31:34and um
3:31:36on on this
3:31:38on this topic that we were talking about
3:31:40I think in trading you need to pick your
3:31:42fight. You need to understand if you are
3:31:44a directional trader, if you are a mean
3:31:45reverting trader and
3:31:48the the thing that you need to
3:31:49understand is that you need to click
3:31:51only when you know that in the long term
3:31:52>> you have an edge.
3:31:53>> If you are if you if you are able to
3:31:56keep your losing day
3:31:59concentrated
3:32:00with one, two, three hour maximum and
3:32:03you are able to detach yourself when the
3:32:05the market is not rewarding you
3:32:06>> Mhm.
3:32:07>> and you have a trend following model
3:32:09it's important that you understand that
3:32:10the market will not pay you out the
3:32:13majority of the days
3:32:14>> Mhm.
3:32:15>> in profit and if you have a mean
3:32:17reverting or low risk to reward model
3:32:19one to one, one to one point five
3:32:22it's important that you understand that
3:32:24you cannot
3:32:26afford a revenge trading or
3:32:29taking your stop loss a little bit lower
3:32:32because you want to be right because you
3:32:34will see a skew that goes lower to one
3:32:37to one risk to reward that it's exactly
3:32:38what I don't take. I don't take one to
3:32:40one.
3:32:40>> Right.
3:32:41>> So this is the biggest where the errors
3:32:43that that I was doing in the beginning
3:32:46and also not having a fixed loss for the
3:32:48day like I I have a real clean fix.
3:32:50>> So you have a daily drawdown
3:32:52>> I I have a four hour stop.
3:32:54>> Four hours are only
3:32:55>> What's a one hour?
3:32:56>> If I If I close 10,000, okay,
3:32:59uh that is four shot of one hour that is
3:33:01$2,500
3:33:03I'm out.
3:33:04>> So one hour is at $2,500.
3:33:06>> Yes. So would you say about your average
3:33:08losing trade that if it hits your stop
3:33:10loss without you adjusting your
3:33:11management is around 2,500 bucks?
3:33:13>> Yes. Yes. The maximum lose I can take
3:33:16each one and the exposure that I take
3:33:20when I have a directional move it's
3:33:222,500. So let's say that I took four
3:33:24contract here, okay? You start to go I
3:33:26have my position at zero. You start to
3:33:29go I take other position to bring the
3:33:31risk to $2,500. Always one hour.
3:33:33>> Yeah.
3:33:34>> When I have the explosion I get paid out
3:33:36on all the accumulation that I did
3:33:38during the day.
3:33:39>> Right.
3:33:39>> Today there was
3:33:41all the movements that were invalidated
3:33:43by the next one. You see we don't have
3:33:45any stacking green. Like I build here I
3:33:48build here and I get taken out here. I
3:33:50build here I build here and I take taken
3:33:53out here. So you don't have a
3:33:55directional
3:33:56>> Now what an argument be then would be
3:33:58the model adjustment on a day like today
3:34:00we're having compression maybe to not
3:34:01adjust your stop loss. Would that be an
3:34:03argument to this point where maybe you
3:34:05have the right analysis because you
3:34:06entered you entered here earlier. You
3:34:08entered here earlier. So if you had that
3:34:10original entry point you would be up
3:34:12significantly right now.
3:34:13>> Yeah and the point is that
3:34:16it's easy to say after the session
3:34:18>> Right.
3:34:18>> it was a compression day but I cannot
3:34:20predict if after this move
3:34:22>> Right. We had an up volume.
3:34:24>> So I want to
3:34:25load size
3:34:27>> And that's where risk comes in. You have
3:34:28to take the risk.
3:34:29>> You never know. Like you need to decide
3:34:30your fight. If I want to have a super
3:34:33high win rate, I will be really relaxed,
3:34:35low contract size, and let it run. I
3:34:38will have more profitable days, but I
3:34:40will not have days of 10R, 20R.
3:34:42>> And do you think traders have the
3:34:44capability, like at least beginning
3:34:45traders, have the capability of having
3:34:46that right mind that mindset? Or do you
3:34:48think that's a tough adjustment for a
3:34:49lot of inexperienced traders?
3:34:51>> It's an adjustment that you need to do
3:34:53when you understand how the model works.
3:34:55Like, that's that's the reason I never
3:34:56advise to go live. I advise always to
3:34:59have a virtual account to practice for
3:35:01at least 90 days, keeping the same risk
3:35:03management. I'm not saying that you need
3:35:05to keep the same execution model, but
3:35:07keep your risk stable for 90 days.
3:35:10>> Mhm.
3:35:10>> And also, I don't have the same risk for
3:35:13each setup. Like,
3:35:14>> Interesting.
3:35:16>> the cash session low, I know that I can
3:35:18take
3:35:20higher stop loss, so I can let the
3:35:22market breathe a little bit more, and I
3:35:25don't need to load while it goes up. I
3:35:27load everything below the cash session.
3:35:29>> Mhm.
3:35:30>> Okay? But, I give more room for more.
3:35:32>> So, would you make your position size
3:35:33lower? Would you keep your position size
3:35:34the same?
3:35:35>> The same, but always $2,500. But, to
3:35:37explain you that I don't add when the
3:35:39market goes up, I load there, and when
3:35:42it close inside the value area low, I
3:35:44run all the way up to the value area
3:35:46high.
3:35:46>> I think that's a big point because a lot
3:35:48what I see and what I do is I
3:35:49standardize my risk like you. I keep it
3:35:51$2,500. Mine's around the same amount. A
3:35:53lot of traders would have $2,500, then
3:35:55$5,000, or and then $10,000.
3:35:58>> Yeah, I think this I will be closing
3:36:0020,000 if I
3:36:00>> Yeah, negative. Very yeah. So,
3:36:02standardizing your risk, I think is
3:36:03important for for traders to protect
3:36:05themselves on the days like today where
3:36:06they're completely wrong. And any other
3:36:07day where they're just wrong.
3:36:09Now, we're moving back into the range.
3:36:12>> It was a good decision to not engage
3:36:14this long.
3:36:16I think this market condition will not
3:36:18change. It's Friday. On Monday, the
3:36:20market is closed. We have the CPI.
3:36:23It's not catching up in a directional
3:36:25phase. I think we should accept I should
3:36:28accept the losses. He did a great job in
3:36:30not engaging any setup.
3:36:32>> You're going to have some people that
3:36:33say Fabio, you shouldn't have traded
3:36:34seven times like you did and you're
3:36:36going to have some people that say
3:36:36Carman, why did you sit there and not
3:36:38make any trades?
3:36:38>> Yeah, I I might I might I might do in
3:36:40the comments, okay? Uh Carman didn't
3:36:42took any live setup. He didn't want to
3:36:44take the risk. Fabio took too many
3:36:45setup, but it's easy to say after.
3:36:48Like they don't know how they scale of
3:36:50the profit. For example, yesterday I was
3:36:51live trading, okay? I was live trading
3:36:53with the community and we did 17,000
3:36:56loading small position.
3:36:57>> Right, yeah.
3:36:58>> But why? Because the market was in the
3:37:01correct. So I can take more risk when
3:37:02the market takes me right. And that's
3:37:04the reason I have a rule. You notice
3:37:05that as I go into a down, my exposure
3:37:08gets lower because the market is telling
3:37:10me your model is not working. Why I
3:37:12should do martingale or why I should
3:37:14increase my position size or why I
3:37:16should risk the same amount, okay? When
3:37:18I'm right, it means that the market is
3:37:20explosive, so makes sense to add
3:37:22additional beef
3:37:24because I'm right on this. And I tried
3:37:26during the years multiple
3:37:28way of managing risk and this is what
3:37:31works for me. I think every trader
3:37:32should develop his own personality
3:37:34because we are all different. The
3:37:36trading model
3:37:37can be the same for everyone. If you
3:37:39approach order flow, but then it comes
3:37:41to risk tolerance. I'm really okay with
3:37:44having small
3:37:45days of reds waiting for the big run of
3:37:48the week, but there are people that want
3:37:50small wins consistent and only one day
3:37:53that maybe lose a little bit more, but
3:37:55they don't see floating in the equity
3:37:57curve that goes too much. I think this
3:37:59comes to personal preference.
3:38:00>> Right.
3:38:03Yeah, I mean that goes back to your risk
3:38:05to reward and making sure that your
3:38:06trade has risk to reward, but
3:38:09Look at this, it's moving back.
3:38:11>> Yeah, it's
3:38:11>> This is the first
3:38:12>> And I told you from the one up, it
3:38:14bought on another level of Nasdaq
3:38:16effort. The level are not holding. We
3:38:18are in compression and usually
3:38:20that's what they want to see. When you
3:38:22have an area that don't get revisit,
3:38:26usually you have order you see this one
3:38:28field, this one field and this one
3:38:29field, no? They go back here, okay? And
3:38:32then maybe there's no holding, okay?
3:38:34>> Well, they have to pick up the
3:38:35liquidity. They have to it sell it off a
3:38:37trap short and get
3:38:38>> there's an accumulation and distribution
3:38:40phase. So in the correct scenario, if I
3:38:43see this one failing, I will not engage
3:38:45in this middle. I will wait for this
3:38:47one. But if we were above
3:38:49>> Are you mad at any of the trades you
3:38:50took? Were those are all good trades?
3:38:51>> No, I think they are all in
3:38:53the
3:38:54in the risk management that I took, they
3:38:56are all amazing trades.
3:38:58>> In your model?
3:38:58>> In my model. Like consider that the
3:39:00breakout phase that we took
3:39:02was a 1,000 risk to make 11,000. It
3:39:04reached the final target. What's my
3:39:06error?
3:39:07Adjusting
3:39:10the stop loss in profit too fast. I can
3:39:12be mad at myself for not
3:39:15second
3:39:16not not letting the price breathe.
3:39:19>> Right. Because letting it breathe,
3:39:20that's a good
3:39:21>> For example
3:39:23if an area's right, okay?
3:39:25I consider the area invalidated when I
3:39:28have a close, okay? But sometimes it
3:39:30twix down and reject. This is the
3:39:32situation where my model is not working,
3:39:35okay? The position that paid out
3:39:38for
3:39:39the loss that we took
3:39:41was
3:39:43this position here that stacked. You see
3:39:45it's stacked in Nasdaq F4, okay? We
3:39:47monetize this one, we make the 2,300
3:39:50back, okay? And then when it fail, if
3:39:53this get gets building up and you have
3:39:55this when you have a clean breakout, you
3:39:57can have 20 stacked areas here and it
3:40:01let me load 20 contracts. 20 contracts
3:40:03can give me a session of 50,000.
3:40:05>> Massive.
3:40:06>> Yeah. Today we didn't have the
3:40:08condition.
3:40:08>> Yesterday different.
3:40:10>> You know when we had?
3:40:11This is the example of the market
3:40:13behavior where I make a lot of money.
3:40:15>> Right, your expansion.
3:40:17>> Expansion.
3:40:18Okay. And I was expecting an expansion
3:40:20up. So it's my error like the target was
3:40:22right, but I did an error in market
3:40:25condition because if the model is right,
3:40:27but the regime is expansion retracement
3:40:30expansion retracement, my model doesn't
3:40:32>> Yeah, yeah.
3:40:34See, I'm not mad that I didn't take any
3:40:35trades because I'm actually happy. I
3:40:37consider that a win that I didn't
3:40:38enforce anything.
3:40:39>> Yeah.
3:40:39>> I didn't see anything.
3:40:41>> I agree with you. The beginning that few
3:40:43>> That would have been beautiful. It would
3:40:44have been You never know so fast. Yeah.
3:40:55>> What was it like trading live next to
3:40:58another trader?
3:40:59>> It's good. I I only suffer from having
3:41:01only one screen because at this setup at
3:41:03all my have ultra-wide and two and I
3:41:05have make like here I need to have on
3:41:07the same screen
3:41:08the Nasdaq 100 the profile that I get
3:41:11really slower at executing.
3:41:13>> Yeah, I think it's very almost
3:41:14impossible.
3:41:15>> scalper this is really important and
3:41:17with a trackpad it's the same stuff that
3:41:19I suffered the the other time but I
3:41:21think
3:41:22>> For sure.
3:41:23>> I will be really honest with this. Even
3:41:25if I had on my setup I will still be at
3:41:27the same result because there is no
3:41:29setup that I didn't miss
3:41:31for not being fast but there are setup
3:41:34that
3:41:35I just missing position management. So
3:41:37maybe I would have lost 1,500 but this
3:41:40one for me there is no way it would have
3:41:41been a positive day.
3:41:44>> I would agree.
3:41:45I would agree on that.
3:41:47It's hard to trade from a laptop
3:41:48truthfully. A lot of traders always say
3:41:50oh you know travel trading from a laptop
3:41:52but the way that we trade in the
3:41:53frequency and how fast it is
3:41:54>> It doesn't work.
3:41:55>> It doesn't work especially with a
3:41:56trackpad and then you know going back
3:41:58and forth between applications.
3:41:59>> Yeah, you are too slow.
3:42:01>> It's too slow. That that two second
3:42:02three second delay and
3:42:04>> we are in compression. If we are in an
3:42:06expansion day this can make a three four
3:42:08thousand dollars difference.
3:42:10>> Like that trade at the low of the day
3:42:12that I was watching it happened in 30
3:42:13seconds and being able to have to go
3:42:15back and forth between two different
3:42:17applications to go to this different And
3:42:19in 10 seconds it screws my risk to
3:42:20reward and that may say sound silly and
3:42:22like you know an excuse but
3:42:25>> No no no it's not an excuse.
3:42:26>> When you come to New York we come to my
3:42:28house in my studio and you have two wide
3:42:31screen monitors there.
3:42:32>> Amazing. Let's do it.
3:42:35>> What was it like trading next to each
3:42:36other?
3:42:36>> It's nice we trade really similar ways.
3:42:38I just have more high frequency because
3:42:42if my model presents, I don't overthink
3:42:45about it. You have really specific setup
3:42:47and if the condition doesn't align,
3:42:49it's I really like the way you trade. I
3:42:52think it's more
3:42:53high probability setup. Better to be
3:42:56out.
3:42:57I like this approach
3:42:59and I think our execution is not so
3:43:01different. Just I I have
3:43:03>> You have a different management system.
3:43:05>> Yeah, different trade management system
3:43:07but the execution and what we wait is
3:43:09the same.
3:43:09>> It's the same thing. Sometimes I'll take
3:43:11trades and watch your stories and stuff
3:43:13and we take I mean the same time about.
3:43:15>> Yeah.
3:43:16>> And it's crazy how some stuff that I'm
3:43:17seeing on the S&P, you also see in a
3:43:19different like visual like visualization
3:43:21on there.
3:43:22>> Use the same logic.
3:43:23>> So. That was good.
3:43:25>> I mean if you were in the studio today,
3:43:26do you think you would have taken the
3:43:27same trades or is there somebody you
3:43:29would have like
3:43:30>> Someone will be coming and say, "No, I
3:43:31would have trade different. I would have
3:43:33take the same exact path." Okay. Maybe I
3:43:37would wait still the power hour to see
3:43:40if we have an expansion. So, I will not
3:43:42have finished the session now. Now I
3:43:44need to pack the bag, go home.
3:43:47Because what they are building at the
3:43:49moment for me it's an accumulation.
3:43:51>> Okay.
3:43:51>> This thing is going to explode.
3:43:53>> This thing is going to explode and I can
3:43:54I know that I can monetize and not only
3:43:57make the money back but I can make a
3:43:58huge reward on this. But I will not be
3:44:01home probably because this will happen
3:44:02as always when I'm in the car.
3:44:04>> [laughter]
3:44:04>> Let's see. If I do something else for
3:44:07the day, I will share with you the
3:44:08recording so people can also how I
3:44:10managing the power hour but as of now,
3:44:13the price action is really garbage and
3:44:15but no, I my my result would have been
3:44:18exactly the same at Homarits.
3:44:19>> I would agree.
3:44:21Just a final words of like uh
3:44:25wisdom wisdom or the message to to the
3:44:28audience at home after watching this and
3:44:31the key lessons you'd like to share if
3:44:32you will from this session. You just do
3:44:34it down each of your cameras so you're
3:44:36it'll be opposite.
3:44:37>> Which one I should be watching? The one
3:44:38on Okay.
3:44:39>> And call me just in this one.
3:44:41>> So, today you have you had
3:44:44a live trading that is really
3:44:46transparent on how I manage my trade. I
3:44:49took a hit today and I'm happy that you
3:44:51can see also how I manage the position
3:44:54in a day where I don't get paid out. And
3:44:57this is exactly the setup that I would
3:44:59have taken live with the community or by
3:45:02myself. And each single setup, if you
3:45:05notice, it's always based on an
3:45:06execution trigger. So, I have a bias
3:45:08system.
3:45:10I have an execution model that can be
3:45:12the NASDAQ effort on a big trade and I
3:45:15have trade management that it's always
3:45:16the same. What's the difference? The
3:45:18difference is the is in the price
3:45:20behavior of the day. Today we had a
3:45:22compression upward range and this one is
3:45:25the days where I give back money to the
3:45:27market. And I would expect the regime
3:45:31for the day of yesterday, but I will
3:45:33still have traded today. So, this is how
3:45:36I engage the market. I hope you like it.
3:45:38And this is the confirmation method I
3:45:41use. I'm really happy to see that other
3:45:42professional trader use the same
3:45:44execution method. I will
3:45:47wait for the late session to
3:45:50see if we have a catch-up movement on
3:45:53the top, but for now I'm done till we
3:45:55don't engage the top and I leave the
3:45:58work to Carmine to see what he thinks.
3:46:01>> Yeah, I mean, I agree completely. I
3:46:02mean, I think the biggest thing and you
3:46:04you guys all saw it in in my trading
3:46:06today, even Fabio's, is that sitting on
3:46:08your hands is important. Like knowing
3:46:09when not to trade and we could sit sit
3:46:12here and say that I wasted 4 hours, 5
3:46:14hours of not placing any trade and doing
3:46:15all this analysis, but for me that's a
3:46:17win and showing that I could be
3:46:19disciplined enough that when the markets
3:46:21open and me creating all these plans and
3:46:23all this analysis, to me not to act on
3:46:25it if I don't see any signal or any
3:46:27execution that my system provides,
3:46:30right? It's I'm trading my system. When
3:46:32I look at the charts and I am observing
3:46:34price action, I'm locating my trading
3:46:37setups. And I'm not trying to create
3:46:38setups, I'm not trying to force things,
3:46:40I'm looking for my patterns that are
3:46:41repeatable that when I see it, I know to
3:46:44act and put risk on. And yet stinks
3:46:46sitting here for 4 hours and watching
3:46:48Fabio have some great setups and some
3:46:50trades that he went to scratch on, and
3:46:52seeing him be active on it, and maybe me
3:46:53not being any active on it, but having
3:46:56the analysis is one part of it, and
3:46:57executing is the second part of it, and
3:46:59without each other coming together, it's
3:47:01not a valid trade to, you know, have on.
3:47:03So, for me, I look at a day like today
3:47:04with no trades as a win. Um
3:47:07because it would have been a loss not
3:47:09only on a monetary loss, me losing
3:47:11money, but also a loss of me not being
3:47:13able to control myself in terms of my
3:47:15discipline. So, I look at not taking a
3:47:17setup and winning on my discipline as a
3:47:19as a as a win in my trading as well. And
3:47:21I'm grateful to share with Fabio, too,
3:47:23because
3:47:24>> Amazing session, brother.
3:47:25>> It was It was a good session, and you
3:47:27know, I definitely learned from you, and
3:47:28I'm sure there's things that
3:47:30we both look at that is so identical,
3:47:32you know, and maybe on another session,
3:47:34I was telling Riz this before that I'll
3:47:36look at your trades and I'll take the
3:47:38same trade that you take on the S&P that
3:47:39you did on the Nasdaq off a very similar
3:47:41analysis, but a completely different
3:47:43type of indicator that you're using.
3:47:45>> yeah, yeah.
3:47:45>> And that's the beauty of the market is
3:47:46that there's no right way to do it. It's
3:47:48just your way, and finding your way is
3:47:50important, and sticking with your way,
3:47:52and not letting anything deviate you
3:47:53away from that.
3:47:55>> I agree with you.
3:47:57Good session.

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