Chain Of Custody Of Price With Daily Inefficiencies transcript

Hello folks, welcome back. Just a quick little review. If you weren't able to listen to the trader roundup Twitter space or Xpace on Sunday, I uh covered basically the move that took place on Monday. And a student was asking me about this cell center and balance by side and efficiency and it is I guess the again got the conversation if you will uh talking with the student I had no intentions of sharing as I indicated uh last week I didn't want to give any analysis you know going forward for this week I wanted you all to rely on your own and I basically just told the student and everyone listening that uh this volume imbalance right here price would likely draw up into that and then sell off.

Uh we were looking for this buy on imbalance selling efficiency here and we got down to it with the encroachment traded to to it on Friday and then today we opened traded up into that volume of balance right there. And you count these levels here as gradient levels for price to try to draw down into. What time frame is it anchored to? The daily. So the daily chart has these octant and quadrant levels and we went right up into the volume imbalance here which happens to be in agreement with basically the Friday new day opening gap.

So when we go into the lower time frame, we see it drop into well not that basically drive up into this area here and then sell off. So, if if we were looking at the um the daily down into a one minute chart, these levels here are the octant and the quadrant levels. You can see how we are working inside Friday's new day opening gap. This is also going to be that lower volume imbalance on the daily chart. I recorded a little snippet off of the trader roundup from Kit's Xpace that he runs and then helps manage the flow of questions and whatnot.

And I I snipped a little piece of that and put it on my ex account so that way you can see exactly what was being said. You can see the time at which it was posted by the the student with their chart and then I was within minutes after that answering it and I gave you exactly what was happening on Monday. So you get this, you know, this comment all the time, you know, in my posts or if someone else is talking about me or another influencer or whatever, uh, they'll say, "You'll never see him.

He never does it live. You never see him do it live." Um, this morning I showed my my stop loss when it was very close to where I was wanting to see a an increase in the breakdown in in the short. And I told my son Kale, I said, "As soon as I show this short and the U stop loss with it, I know they're going to run up there and hit it and they're going to sink it down." And and it happened. [laughter] So, I had to go in and go and not chase it, but we had to go and look at the levels here.

So, here's that upper volume imbalance part of May 5th. Okay, May 5th of 2026 on the daily chart. Let me go back to it real quick. I just want to make sure you see it. Okay. So, this candlestick right here, right here, and then this volume imbalance up there. So, all of this is the discount array we were looking for when we're up here. We're going to drop down into that. So, if we measure the low, which is this open and close, because it's basically the same thing, 28,000.25 and well yeah we're basically went to open price so it should be technically what like this kind of move it ever so slightly I don't think I'm going to be able to I Wait.

So anyway, then I have the fib. That's what I have anchored incorrectly, I think. Wonder why it's showing that. See how it shows 28,00075? That actually shouldn't even be showing like that. I don't know why it's doing it. Either way, it it's good enough for government work, right? So, we traded up into the volume and balance, the lower one compared to this one. I stated that for swing trading, uh, this would need to be an area where your stop loss can't be below.

So, that way you're not going to get stung by a premature stopout. So now that we have these highlighted, just know that this purple level here is the volume of balance in this. So you can see it right there. See? So it's there to there. And then we can put that back. Now we can drop back down into a one minute chart. And you can see how it's utilizing those levels here. It's pretty pretty random, isn't it? All right.

So we're going to go back in. You can see overnight we hit this uh Friday new day opening gap and it's the same as that lower level sell side of bounce by side efficiencies volume and balance and here is that other see it's purple okay or it should be showing as purple um that's the next bit of business here. So, if you measure if you measure the the fib from the high of that May 5th, 2026, that's what this level is here, the top of that down to the low, okay, on the daily chart.

And you project them forward, you get these types of uh levels here. These are the the high the upper octant quadrant lower octant consequent encouragement lower octant lower quadrant lower octant and then the low of the May 5th 2026 buy center efficiency. Okay. and ahead. We were a drop down in Okay. And we were looking at how price opened in here. I I wanted to get in with a limit order, but I was afraid it wasn't going to fill me, and I just wanted to be in it because then I could manage manage the trade around it. if I got stopped out as you saw me get stopped out in the black um end up going back in again.

So getting shortened here and dropping down. We got into the high of that May 5th positive balance sell side efficiency and then it rallied up stopped me after I took a partial and then once it got it in this area here I'm selling short once more and I'm looking for I I want to try to get down into consequent corrosion on the daily charts May 5th buy sell side efficiency and then try to trim some of these off in here but it ends up coming back up and trading in the upper volume of bounce more time.

I was expecting it to get really really heavy and for whatever reason it didn't. It just didn't happen. So, if we break this down and we go in here and start looking at the the finer details, we'll go through all of the the Rickma row of the octants, the quadrants. There's the low of that May 5th, 2026 buy center bounce sellside efficiency and this is where I'm getting stopped out on. So the high of that volume imbalance down into the first octant upper quadrant next octant last coin encouragement next octant lower quadrant lower octant and then the low of the May 5th 126 by side efficiency on the daily chart and you can see how we left this area up here.

We have the octant there and this could have been an area where you could have seen it trade up into if it would have done that. That would have been an area to get short again. And here we have this. So this is the upper quadrant on that May 5th of 2026 buying efficiency. So, we have a fair value gap in here and the market trades up into it there and we break lower. Now, we're down into the lower octant right before we get the consequent encroachment.

And then we get the body of this cibby laying right on top of that octant right before we get into consequent encroachment. And we trade up into it here. Really nice shorting opportunity there. And look what it's doing. It's keeping the body. Okay, it's keeping the body outside of the upper half of that. And look, look at all the bodies actually. They're staying outside. That's an indication it's likely to go down a lot.

Okay. And we break aggressively lower. We have another octant rate below the consequent corion of May 5th's side of balance cell deficiency. And nothing in here that we can utilize. And now I'm going to look for areas that take partial profits. So as we get closer to this, I teach students to try to run down equity. Okay? You're you're basically chasing new equity every time it gives you an opportunity to take partials at key levels.

That being lowest octant, lowest quadrant, octant below consequent encroachment, consequent encroachment. Okay. So, it could very easily come back up and trade against me because it's been heavy all morning. So, I want to start like trying to trim some of this off and just simply use these levels here. Once it gets to it, treat it just like it's a sellside imbalance. I'm sorry, sellside liquidity. And then if it gets to it or below it, then taking a partial or getting close to these levels.

There's nothing wrong with peeling something off and then finally letting the uh the low get traded below and then taken out so that way we can close a portion of the trade. Um there's the uh the second trades partial and then stop out right in here. And then we have the new entries here, here, here. They're partials. Partials. Notice they're in close proximity to the gradient levels. And down here, right before, and then finally giving up the ghost rate at the low.

But it went a little bit. It went a bit lower, but you're never going to get all of it. Okay? You got to get real content with just being good enough. Okay? Content enough or being content with, you know, what you got out of the trade. And there it is. And then the rest of the session, you can see how we have all of the movement is being basically support. Look at the octet rate below consequent encouragement. Look at that.

Beautiful. Notice the bodies don't touch that octant. And then we break lower. Come in here. We break lower. Drift lower. One more time. Flirting below that May 5th, 2026 is outside of balance outside efficiency is low. Then we trade right way back up. And then we are inside the lower quadrant. Same thing in here. And then we're in the lunch hour. Okay. So during Monday's New York lunch, we go in here. Look at one of these little retail bull flags.

Notice that it doesn't seem to work there, does it? And it's going up into the octant rate below consequent encroachment. We move lower. We move lower and then back down below the May 5th positive valid efficiency and just meandering around in here. And when it starts just spending a lot of time between octants and quadrants, it's usually indicative that you want to sit to the sidelines and don't do anything. Okay? Don't don't try to do anything fancy.

Don't squeeze anymore to try to get more blood out of the turnup. So we have relative equal highs up here between here and here. So there's there's buy side resting right there. So anywhere between um and 200 in there in that vicinity. Um the market could go up here and try to grab that. It does. So here it goes right up to consequent encroachment of May 5th, 2026 positive balance side efficiency on the daily chart. Then we meander around on a lower octant rate below consequent encroachment and we're just spending a lot of time in a narrow range and go right up to the lower octant right below consequent corrosion.

Look at the reaction off of that. Ain't that brilliant? And trades lower. Look at the reaction there down to the lowest octant using the lower quadrant here. breaks down lowest octant. Beautiful. Look at that. And then one more sweep below that. And there's where we're at right now. Okay. So, not a bad little technique, isn't it? You're looking at things, creating very specific inefficiencies. Um, it just so happens to be the ones I'm always talking about, which is probably random, but I I wanted to kind of like preface it by saying you you can see these things being explained beforehand.

You can see these things being uh demonstrated. I I show executions. You see me getting stopped out sometimes. Uh the volatility right now is is really really high. And there's nothing I can do with that except for either consider getting back in or moving to the sideline or reversing, [clears throat] excuse me, or reverse and go the other direction. So, I don't think that um if you're finding some difficulty finding footing, okay, or stability or consistency right now, especially if you're brand new, um don't let that beat you up.

Don't let it beat you up because you're going to find that there are times when the markets is simply going to be a little bit more difficult than it can be in other times. Enforcing your will or trying to complain about it like it's going to do something to change it doesn't do anything to change it. The only thing it does that makes you have a toxic mentality. And I think that's going to be it. Um, you know, it's real easy when you see these people out there and and they talk the talk and uh I promised 50 times 50 times whatever they do and uh just in one day [snorts] smoked