Full transcript
0:01So, I'm going to go over today the live
0:03trade that we took 300 points profit.
0:06This was called live. Uh executed based
0:09on order flow, so that's reading order
0:10book level two, time and sales, and
0:13volume footprint chart, and using volume
0:15session profile
0:17to help identify my levels, okay? So,
0:20I'm going to do a breakdown of this for
0:21you guys and show you really how to be
0:22using this order flow to help you trade,
0:24okay? So, two tools I want to be showing
0:26you today. First thing's going to be the
0:27volume session profile. So,
0:31see a lot of traders saying there was no
0:33trades today. No trades, no trades. How
0:35do you trade this market? What are you
0:36going to do? You're getting wrecked,
0:37whatever, right?
0:40It all falls back to this basis. What I
0:42have learned over the last 6 years of my
0:46trading experience
0:47is that
0:49every strategy will have its pros and
0:51cons. And there are a lot more
0:53strategies out there that have way more
0:55cons than pros. There's specific
0:56strategies that are only good in one
0:58type of market. Um there's a lot of
1:01noise out there as well. There's a lot
1:03of strategies that will offer a lot of
1:05fancy-looking tools that will truly not
1:07help you.
1:08I have experience with pretty much
1:11everything. I've tried pretty much
1:12everything, and I've narrowed it down to
1:14a certain amount of tools that really
1:16help me tremendously when it comes to
1:18finding trades like this. Now, you will
1:21have day traders out there, and I've
1:23already dealt with it, that will say,
1:25"Ah,
1:26that's a gamble. You're just taking a
1:28break out at the open." Well, guess
1:29what? I've been doing this for a year
1:31and a half now, and I have a 96% win
1:34rate. Every single trade has been taken
1:36live on stream with my verbal live
1:39callout, and it has been prefaced with a
1:4215-minute premarket prep before the
1:44market even opens. I'm anticipating this
1:46and calling out the move before the
1:49market even opens, okay? I'm able to
1:52identify, usually, where price is going
1:54to struggle and possibly start to
1:56reverse, Trading defensively versus
1:58offensively, just a simple maybe two to
2:00one risk reward setup. Hey, around 40
2:02points I'll take a full exit or hey, I'm
2:04expecting the market to be a little bit
2:05strong based on X, Y, and Z. I want to
2:07let these trades breathe, aka today.
2:10Okay? So,
2:11all of that encompassing information has
2:13helped me become a very, very solid
2:15trader.
2:16Um so, let me get into this and show you
2:18the specific trade, okay? I was able to
2:20identify this, catch the move, hold the
2:22move, etc. If you want to see the um
2:26just for right now, at least until I
2:27upload the full live, you can see the
2:29live trade itself on my Instagram uh
2:32uploaded on a reel, okay? With the
2:33callout and everything like that. So,
2:35first things first,
2:37I got some key levels marked out here,
2:39but
2:40but what I want to take is an important
2:42note. So,
2:43what do you guys notice in the
2:44premarket?
2:46All right, taking a look at this this is
2:47QQQ over here. I have Nasdaq over here.
2:50I like to use QQQ for um for volume, so
2:52that's why that's there.
2:54Um so, what I see right here really is
2:56that how we're holding this little range
2:58right here, right? We can see in the
2:59previous day a little bit of
3:01consolidation at 71480 and we can see a
3:03little bit hold at 71438,
3:05right? What else can I possibly use to
3:08get a good range here? Well,
3:10if I come over here to session volume
3:12profile, again, this is under
3:13TradingView, just go under the session
3:15volume profile. I'm going to turn this
3:17into that.
3:20Something beautiful to see here, okay?
3:22So, this is showing volume distribution,
3:24all right? So, what I'm looking at is
3:25distribution and now I'm looking at the
3:26previous day's volume session profile.
3:28What I want to look for at this point in
3:30time, okay? This is going to be called,
3:33okay? This is
3:34volume session profile.
3:37And what I'm looking for is POC, okay?
3:40POC equals
3:41point of control, all right?
3:44That POC is equal to the white line,
3:48all right?
3:49So,
3:50as I'm taking a look at this, you see
3:52that white line right there? 71440
3:54previous day range point of control. So,
3:57when I'm looking at the the and you
3:59know, you'll have value value area high,
4:01value area low, which is above or below
4:03the point of control. I'm not
4:04necessarily concerned about that though.
4:06What I'm concerned about is the point of
4:07control. I want to see where the highest
4:09amount of {quote} volume or transactions
4:11or distribution is laying at. I can see
4:14that's at 71438. All right, mark that
4:17level out, 71438.
4:19All right, what about 71482? Well,
4:21that's the top of the range that I liked
4:23from the previous day, that little
4:24consolidation range. And it's lining up
4:26perfectly
4:28it's lining up perfectly on the day with
4:30that pre-market level. So, I can see in
4:32the pre-market it's respecting this
4:34pretty darn well. Right? So, now as I
4:37watch price start to play out, okay? I
4:40can see how when I'm deducing a setup,
4:45this is what can help me determine where
4:47my entry criteria is going to be and how
4:48I'm going to trade this, okay? Um again,
4:52funny enough, I've been trading this way
4:54for a long time. I'm just now starting
4:55to see other gurus start to catch on.
4:58They're starting to use terms like point
5:00of control, area of interest. They're
5:02starting to use order flow things like
5:05that, right? All of a sudden people are
5:06starting to catch on, but
5:083 months ago they were trying to sell
5:09you on a 15-minute orb to a $300 a month
5:12subscription where they barely live
5:14trade. And whenever they do live trade,
5:15there's just a bunch of losses, all
5:17right? Just a a fair warning here.
5:19>> [clears throat]
5:19>> Fair warning, if someone's trading
5:22if someone is trading on a prop firm
5:25and there's no real consistency, meaning
5:28they're not really green every single
5:30day, there's a lot of red days in there,
5:32and they don't have this massive
5:33risk-to-reward ratio, you're probably
5:34getting scammed, okay? You're probably
5:36getting scammed. So, just something to
5:37be thinking about. All right, so back to
5:39this. As we're watching this play out
5:40here, what I'm going to do now is go
5:42over to something called a volume
5:43footprint chart. So, what this is going
5:45to do is it's going to show us the
5:46underlying
5:48tick chart data on each candle. It's
5:50going to show us that tick volume as it
5:52comes in in real time. It helps us
5:54confirm moves.
5:55So, when I break this down over here to
5:57the
5:57wrong chart. Hold on a second here.
6:00When I break this down to the volume
6:02footprint chart,
6:04again, same thing on the volume
6:05footprint charts,
6:07anywhere that's white would be
6:08considered the point of control for that
6:10specific 5-minute candle because I'm on
6:12a 5-minute time frame.
6:14What can we see here, guys? What do we
6:16see at the open? At the open, aggressive
6:19selling pressure. Now, I know this is
6:21I'm showing this to you after the fact,
6:23but this current trading day at the
6:24open, actually on my call outs, I called
6:27out my trade. I said, "All right, calls.
6:29I'm in QQQ calls."
6:31Right when I entered, I saw it on the
6:33order book. I identified it. I said,
6:35"We're hitting a wall. We're hitting a
6:36wall." Those were my exact words.
6:39Price started to pull back. That's this.
6:41This wall happened. So, 7 75,000 on the
6:44buy, 43,000 on the sell, happened like
6:47that. I saw the wall occur in real time.
6:50Didn't exit the trade because I'm like,
6:51"Well, there's more buying pressure than
6:53selling pressure. My thesis is still
6:54correct. I'm entering with increased
6:57buying pressure showing on the tape. I'm
6:59still going to hold my trade even though
7:00I can see that there is a wall because
7:02what happens when we snap through a
7:03wall? Oh, we fly. We fly." So, I'm
7:07sitting here and I'm being patient. Now,
7:09price does reverse.
7:11Price reverses. Okay, that's a lot of
7:12selling pressure there. 152,000 on the
7:14sell side. As this is starting to push
7:16down, I'm looking at the order book
7:18level two. I'm not seeing many orders
7:21hit the bid. The bid is going to drag
7:22the price down. I'm not seeing many
7:24orders coming at the bid. I'm still
7:25seeing orders trickle in at the ask with
7:28okay volume for what the volume was on
7:29this day.
7:31As I'm watching that play out, I trade
7:33options personally. I'll call out NQ
7:35futures, but I trade QQQ options even
7:37when I enter off of NQ.
7:39So, as I'm watching that play out, I'm
7:40like, "You know what? These options
7:42contracts are holding up very, very
7:44well. So, taking a look at the options
7:46volume on the contract, specifically I
7:48was watching the 716 calls. They had
7:50over 12,000 on the volume.
7:54So, that's a very high number of volume.
7:57And as I was watching that play out,
7:59also NQ had reversed 20 points.
8:02Meanwhile, the options contracts had
8:05only pulled back about 8% and then they
8:08hit 10% for a split second at the peak.
8:11But, 8% really.
8:13This is telling me
8:14premiums are on my side. Premiums are
8:17gaining value even though we're selling.
8:19Cuz technically, it should be close to a
8:21one-to-one. So,
8:23if NQ has pulled back 20 points, I
8:26should technically see the options
8:27contract somewhere around -20%. It might
8:30be -16%.
8:32It might be -24%.
8:34But, like that could have stopped me
8:35out. But, as I'm sitting there watching,
8:37I'm like, contracts are holding up. I've
8:38no reason to get out of this trade. It's
8:40holding up beautifully. My confluences
8:42also were holding up very well. So, when
8:44I took a look at Spy and Nvidia, which I
8:45use to trade the Nasdaq, they were both
8:48pushing. I had, again, zero reason to
8:50get out of this trade. So, I hold. I
8:51also expressed this out loud. I say,
8:53"Guys, option contracts are holding up
8:55well.
8:56Do what you got to do on futures, but
8:57I'm still sticking in this trade. It's
8:58doing well." As it starts to come back
9:00to the entry,
9:02I just reconfirm. I'm like, yep, still
9:04the 716 calls, still like it. We'll see
9:06what it does.
9:07Then, these orders start to trickle in.
9:10And now you start to see that push to
9:12the upside. You start to see the
9:13increased buying pressure and the lack
9:15of selling pressure. And this just moves
9:18beautifully to the upside. Albeit with
9:20low volume, with low volume, but it
9:22does. It moves gorgeously. And as you
9:24can see, that's how we got the remainder
9:25of this move. Okay. Now, hey James, why
9:28why why 105 points to the majority exit?
9:30Like, if you really believed in this
9:31move, why would you not just hold it up
9:32here? Well, I don't have a crystal ball.
9:34We're forming new all-time highs. So, my
9:36basis was because I do like to see
9:38higher volume, I would have liked to
9:40have seen at least above 1.5 on the
9:41tape. Seeing half of that draws caution
9:44for me for sure. So, definitely scaling
9:47out
9:48of the position on this first push up
9:50here, and then basically fully out of
9:52this trade at 105 points profit cuz in
9:54my eyes I'm like, "Look, we've
9:55essentially moved 100 points profit in
9:5710 minutes with essentially no pullback
10:00uh with not the strongest overall
10:02volume. It is strong buying pressure,
10:04that's for sure. There's basically no
10:06sellers present whatsoever. They were
10:08there for the first, you know, 20
10:09seconds and then they were gone.
10:11Um so, I'm just telling myself I I truly
10:13don't know when this is going to pull
10:14back. I have to wait for volume to
10:16confirm a pullback. I just have to. But
10:19otherwise, I'm just going to scale out
10:20appropriately where I can scale out at.
10:21And as you can see, it really doesn't
10:22happen until we get almost to 200 points
10:24profit. We get that pullback into that
10:26key level 549, which I was also able to
10:29mention this on the live. And this is
10:31something at this point where you just
10:33start to look for point of control
10:34shifts. So,
10:35I'm going to teach you right now, this
10:36is what I call an exhaustion move, okay?
10:39This is a beautiful tool I like to use
10:41to help identify possible rejections,
10:44all right? Again, your guru has probably
10:46never taught you this, and then now all
10:48of a sudden it's probably going to be on
10:49their YouTube videos after I post it.
10:51But what I look for is a reversal in the
10:55delta on volume footprint chart. Delta
10:58on a volume footprint chart simply means
11:00the variance between the two. So, you
11:01see that there's 433,000 on the green,
11:04the buy side, and you see there's
11:06443,000 on the red, the sell side. So,
11:09this delta, the -10,360,
11:12is simply the difference. That's all.
11:15Sounds complicated, very simple.
11:17Additions and subtractions. The total is
11:19those two numbers combined.
11:21Oftentimes,
11:23when you see a
11:26the inverse, okay? So, a green candle
11:28with a red delta, negative delta. So,
11:30you have a green candle making newer
11:32highs with a red delta showing a shift
11:34in buying or selling pressure or the
11:36opposite. You see a red candle with
11:38green delta. Okay, it signals a
11:41reversal, a potential rejection, or a
11:44potential bounce. In this case, it would
11:45be a rejection.
11:47What else do we have to take note of
11:49here?
11:50We are at a key level. 29 666 is a key
11:53level.
11:54So, I can see that we're struggling. Not
11:56only are we at the key level, right?
11:58Candle closed right below the key level.
12:00I can also identify, "Hey, even though
12:02that candle is, {quote} {unquote},
12:04green." As I'm watching that play out,
12:06what I'm also seeing here is that it has
12:09a red delta. This would draw caution,
12:11okay? Um when I was in this trade, did I
12:13think we could see a 200 points? Yeah,
12:15it's only 20 points away. Do I think
12:17it's going to keep going? No, a pullback
12:19is inevitable at this point. The second
12:21that candle closed, a pullback is
12:23somewhat inevitable. Another thing to
12:25take note of here is the point of
12:26control, the white area, has formed
12:29right at the top of that candle's body
12:31close. That is something that also makes
12:34me
12:35a little more on the cautious side. Just
12:38because of that, it's forming as a
12:39resistance. It's forming as a ceiling.
12:41Whereas, this one formed as support,
12:43that one formed in the center, it kept
12:45going to the upside. Forms as a ceiling,
12:47double top rejection. Double top
12:49rejection, right? Just decides to to
12:51plummet. So, that's something I want to
12:54keep an eye on. Now, what do we see as
12:56price sells? We see an increase in the
12:58negative delta. This is confirming,
13:00{quote} {unquote}, that it does want to
13:02sell. Okay? So, this is how you would be
13:04identifying those things in the market.
13:06This is, again, beautiful example from
13:08literally from today.
13:10Um and I only like to use examples from
13:12like live trades I've personally taken.
13:14I hate people that go back and
13:15cherry-pick stuff like
13:17"Well, I happened to catch this, but
13:19nobody watched me do it, and I happened
13:21to do this on the live or you know what
13:22I mean? Like it needs to be done real
13:24time." That's the only way to prove
13:25legitimacy in this day and age where you
13:27can edit everything.
13:29Um you know, I recently had somebody I
13:30found out they were editing their
13:31TradeZella stuff. They're just posting
13:33TradeZella stuff after they edited it. I
13:35I can't believe it. So, everything
13:37nowadays can be edited. It must be done
13:38in real-time to show legitimacy. And
13:41again,
13:41any type of profitable system is so if
13:44someone's trying to tell you a system is
13:45profitable, that means they should be
13:47able to prove to you
13:49throughout a long duration of time, I
13:51would say the course of a year,
13:52on live sessions only. It must be live.
13:55They must trade on regulated brokers,
13:57and they must be able to show you
13:59consistent success with those trading
14:02strategies. If they cannot do that, it's
14:04not consistent, it's not successful,
14:06you're simply paying their mortgage.
14:07Hate to say it, but that's what you're
14:08doing. All right?
14:09So, just remember that.
14:11Um
14:13the only other thing I can possibly add
14:14to this, I would say, is volume in
14:17itself, like using volume footprint,
14:19what I've showed you, using volume
14:20session profile, what else I showed you.
14:22Um these things help tremendously. But,
14:25these are tools that complement each
14:27other, okay? I cannot just use one
14:29thing. I don't I don't just show up to
14:31the market and use order book level two.
14:33I use order book level two, time and
14:35sales, volume footprint chart.
14:37Volume session profile really is only to
14:39help find key levels or confirm key
14:41levels. I don't use it in like an open
14:42session,
14:43but I will use it in the pre-market prep
14:45or just identifying levels overall.
14:48Um
14:49you know, Bookmap for those people that
14:51like to spot liquidity zones, right? I
14:52personally don't use Bookmap, but I know
14:55that it is a good tool for others. A lot
14:56of people swear by it.
14:58Um yeah, things like that, right? But,
15:01it's it's all about culminating these
15:02things together to help you identify
15:03trades. But, at the end of the day,
15:06the number one thing that drives markets
15:07and moves markets is volume. So, I will
15:10be that biased person that says any
15:12strategy revolving around reading volume
15:15accurately in real-time is going to be
15:18more accurate than other strategies. I'm
15:20not trying to say it's better. I'm just
15:22trying to say it's more accurate. So, it
15:24depends on what you're looking for. Are
15:26you looking for like
15:28a more mechanical like textbook
15:29strategy, or are you looking for
15:30something fluid like this that can adapt
15:33to any market? This can adapt to any
15:35market. I can trade markets that range,
15:37I can trade markets that break out
15:39with with long trends. I can trade flat
15:41markets. We could really trade anything
15:43with this. That's the beauty of it. The
15:45the the hard part about this is it it
15:46takes a long time to get used to reading
15:48order book level two and time and sales.
15:50I mean
15:52the fastest I've seen someone get good
15:53at reading quote unquote volume is right
15:56around a year, you know, I've never seen
15:57anyone do it faster than that. So, it's
15:59just something to keep in mind. And a
16:00lot of people will give up, right?
16:01They'll try to do a strategy like this,
16:036 months in, you know, they'll do it for
16:056 months, they'll be like, "Yeah, I'm
16:07going to move on to the next shiny
16:08object." Shiny shiny object syndrome.
16:1015-minute orb, you know, anything else.
16:13It doesn't really matter. I'm not hating
16:14on that stuff, I'm just saying they're
16:15trying to move on because it's proven to
16:17be too difficult for them. So, just know
16:19that before you dump jump into a
16:21strategy like this, all right? So,
16:23hopefully this provided a lot of value
16:25for you guys. That's my goal whenever I
16:27make these YouTube videos is to show you
16:29guys
16:30good education based on my live trades,
16:33okay? Um I will be dropping a beginners
16:37session, day trading for beginners. So,
16:38if you've been looking forward to that,
16:40that's going to be coming up here soon.
16:41It'll be a relatively long video for
16:43sure, but I'd rather have it all in one
16:45place for someone just so they can just
16:46favorite one video and keep that. Uh but
16:48yeah, yeah, hopefully you guys have
16:50appreciated this. Uh let me know in the
16:51comments if you liked it, your thoughts
16:53on it, any comments, concerns. Like and
16:55subscribe, obviously, I would love that.
16:58Um let me know, all right, guys? 1%
17:00better every single day. You guys have a
17:02blessed one. I'll see you in the next
17:04video. Peace out, everybody.