Original subtitles

All right, here's week two of the weekly

hot seat episodes. You guys are getting

some good value out of this by the sounds

of things and it's good to see a lot more

submissions this week as well. So we'll

work through these from the top and get

through as many as possible and break them

all down and run through the trade setups.

So we'll start off with Nick here. Nick

submitted a few trades in this screenshot

but looks like he's highlighting the 1

.47pm trade. So he's ranked it as a B rank

trade with two confluences and here it is.

So 1.47pm you've got your trade here off

the previous day value low, overnight

value low and I'd actually rank this in A

setup Nick because you've got the

developing session value low as well and

it looks like you took your trade at 7

.33pm which is about in between the value

low of the developing session and then in

between those value levels just above. So

I really like this trade. It's about as

good a trade as you can get in terms of

confluences, three confluences lined up

and even better it's three value lows. So

previous day overnight and developing

value low which have broken past and below

and now retesting on the underside. So

that's a really good short setup but as

confident as you can get for a short

setup. Three aligning value lows broken

through and retested on the other side. So

really good trade selection on that. Just

the only thing I'd say to note for you is

this is an A rank not a B rank. You've got

three confluences there. So really good

trade selection. I know you didn't submit

these ones for the hot seat but I can see

you took some other good scalps here. This

one being more of a B rank trade. Single

confluence overnight point of control.

Quick scalp off that level. Same thing up

here. Quick scalp off the previous day

point of control. Both wins here and then

one loss. Looks like you shorted the

previous day point of control which was

correct. It did run down. Tickled your

take profit by one tick and came back and

stopped you out. So the only feedback I

could say there is maybe if you'd entered

that trade a bit closer to the value level

you would have hit take profit on that

trade. I can see you entered a bit further

down. So that's the only feedback on

those. Otherwise really happy with your

trade selection here around 147. Fantastic

trade. Great confluences. Three aligning

value lows equals a really really good

trade setup. So well done. Next one is

from Mr. Brad. Bradley Willington. Alright

so we've got two trade setups here. And it

looks like the first one here was a loss.

Second one was a win. So let's break these

down. Actually the same trade that Nick

took. Except he took both times. So the

first one here. It got traded through

right. So he went short from the previous

day value low and overnight value low.

Shorted those levels. The price ended up

breaking through. Back up to the previous

day's point of control. Before coming back

down. So nothing really you can change

about that one. That's still fantastic

trade selection Brad. Also a trade I would

have taken as well. Depending on how the

profile would have looked at the time. But

at the very least that would have been a B

rank setup. At the very least potentially

A rank. Depending on how the profile

looked at the time. The developing

profile. So nothing I would default with

that trade Brad. That's good trade

selection. Good confluences. I mean price

had failed off the point of control.

Failed off fair value. Broke below the

overnight fair value. And also broke below

the previous day and overnight value area

lows. So all good reasons to short. But

the market had other plans there. Pushing

back up to the previous day's fair value.

And current session fair value before

melting again. So nothing to fault there.

Just luck of the draw on that loss

unfortunately. But obviously second time

around. That trade there again. Still a

valid trade. Previous day value low.

Overnight value low. And developing

session value low. In fact the same trade

that Nick took as well. You guys took the

exact same setup there. So great trade

selection. Just the first time around

didn't work. Okay so nothing to fault

there. Both trade selection really really

good. But the second trade there. With the

developing value low. As added confluence.

It was just a perfect trade selection. So

well done on that. And no feedback on that

first one. Other than random luck. Next

one here is from Andrew. And Andrew hasn't

put down the confluences for his trades

here. But I can assume I can find them

here in the trade selection. But in future

reference guys. When you submit these.

Make sure you also list down what

confluences you're looking at. Just so I

have a little bit of context. But I can

see here with Andrew's trade. You've got

the previous day value area low. Overnight

point of control. Kind of stacked together

there. With the developing session point

of control. And then using the previous

day's point of control. As his resistance.

So trading back and forth here. Really

carved up the markets here. These are

really nicely done. Really nice scalps.

You can see he's bought at the developing

session point of control. Normally not a

great area to buy. Unless you've got

existing surrounding confluences. Which

you do here. Previous day value low.

Overnight point of control. And that point

of control of the current session. All

developed in that one spot. So you've got

three reasons to have support there. And

that's what he's done. Bought. And then

sold back at previous day point of

control. Which is as you can see. Perfect

spot to sell at. So buy sell. Then at the

top here he's then sold. And then bought

back at the same level he previously

longed from. And he's done it again here.

Shorting the top. Buying back at previous

day point of control. So great entries.

And great exits. Really good read on those

scalps. Then I can see down here. You went

to go buy at the overnight value area low.

And got a small little trade up to the

overnight point of control. So you traded

level to level. As well as the developing

profiles value area low. Level to level.

Exited that trade for a few points. So not

bad. And good timing on that exit as well.

Because that's where price also melted

back down below the value levels from. So

really good trades here Andrew. I can't

fault any of these. These are great

scalps. Level to level. You followed the

rules on the entries and the exits. And

overall just really happy with that for

trade selection. So well done on that.

Next one here is from Anim. And Anim's

trade here. It's trading the S&P. It's

ranked as a B rank. With two confluences.

Overnight POC. And high volume node. And

the trade taking about 20 minutes. So he's

expected price to come back to the

overnight value low. And current session

value high. When I saw that price used the

OPOC as resistance before breaking. I

decided to put a limit order in to the

expectation of it becoming support. So

he's expecting a broken resistance to and

support here. So let's have a look. And

here's the trade. So overnight POC. Yes

indeed. Broken to the upside. And then

used as support for a nice easy long trade

there. A nice in and out trade. So what

you can see here. I think you've made a

really good read on this trade. Seeing

that value develop up the top here. If you

guys remember from our earlier Q&A. That

when you see value developing right by a

value level like this. And there's no

quick downside reaction. But instead a

high volume node develops and accepts that

level. That's a good indication that price

is potentially going to break to the other

side. So seeing that value develop. You've

got the high volume node. Price had a

small reaction from the overnight POC. But

ultimately you made the right decision in

waiting for that breakout. Seeing that

value develop. Then price pushing to the

upside with very little resistance.

Pushing to the upside. And then your idea

of buying as a limit order right here.

Which is now on a B rank location. You've

got overnight POC and a high volume node.

Developed for a really nice entry. Minimal

drawdown. And a nice quick take profit

there as well. So really good read on

that. And seeing that price was extended

above the value area high of the

developing session. And back into value of

the overnight session. Really good call on

taking that breakthrough to the upside.

And then a retest. So that's really well

done. I would rank that. Obviously it's a

B rank. But I would rank your trade

selection there. A rank selection. Really

well done on waiting on that breakout.

Versus fading the level alone on a C. So

well done. Next one here is from Graham.

So this is the S&P as well. Time and

trade. Nine minutes. Ranking at a C. Maybe

a B. Confluence was trade was a retest of

the previous day value high. Reinforced

HVN below the level. Cool. Outcome win for

24 ticks. What did I do well? Correctly

read the retest of the PDVAH. Had support

from the high volume node. And read the

trend. Cool. Cool. Let's have a look at

the trade. So here's your trade setup. So

you took this previous day value area

high. Was broken through. Again similar to

that trade. What we just looked at of

Annam's trade. Seeing price develop this

at a value level. Without a quick reaction

to the downside. Is a good sign to expect

that breakout. So you have correctly

identified that. Upwards trend. Developing

volume node. Right below the level that

it's about to break out from. Price

inevitably breaks out. And you've gone and

taken that retest of that previous day

value level. And of that high volume node.

So that's really well done in your

selection. Take profit target being 801.5.

Really decent. I'm pretty happy with that.

You are correct on saying the high volume

node as resistance here. Could be a bit of

an obstacle for your take profit target.

But I'd say that with the trend in mind.

And with what just happened with the

previous day value area high. I'd say

you've got pretty good downside protection

here for your trade long. So it's not

something to worry about too much. You can

pretty confidently still hold this trade

long. Even with that resistance right in

front of you. And in saying that your take

profit target wasn't that far off it

either. More on the edge of that node. So

really well done on that trade selection.

I would not fault this trade. That's

really well done. Again a good hint guys.

If you're wanting to look for anticipating

a breakout versus a fade. If you see value

like this developing in a high volume

node. Develops right adjacent to a value

level. Before a breakout. That's a good

sign that price is potentially looking to

push higher. As the market is finding a

lot of interest at those price points. So

something to keep in mind. And really well

done on this trade. Very happy with that.

Great quality trades so far. Another one

from Graham. This one he's ranked as a C

trade. Confluence is developing value area

high fade. So that's the only confluence

here. Outcome loss of 20 ticks. Okay. So

let's have a look at the trade. Alright.

So here it is. He said he's faded the

value area high. Developing value area

high. And that was the only confluence.

And I can say Graham. These type of

trades. With the developing value area.

Unless it's clearly a D shape or an even

distribution profile. Ideally you want to

avoid just trading the developing profile

value highs and lows. These can change

pretty frequently. And aren't very

reliable as sole confluences. So I would

have personally avoided this trade

altogether. But it's good you've noticed

that and reflected on that. And were able

to identify. You know it wasn't the best

quality trade. So even if this was a D

shape or even distribution profile.

Ideally you want to line that up with a

surrounding confluence. And around here

there were no other surrounding

confluences. Until up here at your

overnight value area high. So overall this

was a trade that definitely could have

been avoided. So good reflection on that.

But just remember if you're going to use

the developing profile levels. Normally

best to pair that with a previous day.

Previous week. Or a previous session value

level. Versus just trading on its own.

Those trades are going to burn you more

often than not. Next one here is from

Brendan. Overall win. Two previous trades

I took where I moved my stop to break even

a little early. And got stopped out before

the move. Okay let's have a look. Okay

cool. So I can see a couple of trades here

Brendan. I'm not sure what the confluences

are on this short you made. Back down to

previous week's value low. Looks like you

tried to. Maybe there was a high volume

note at the time there. But depending on

what the profile looked like at the time

of that trade. Best to avoid taking trades

near the point of control. Looks like you

sold that trade above the previous week

value low. And above point of control. So

not sure where the confluence is on that

first trade. But maybe you can clarify

that. But other than that. That's a trade

that I would have avoided. Given on what I

can see on the screenshot. Second trade

here. You made a really good choice for a

B rank trade. High volume node from the

profile. That had been put in earlier. And

then retest of the previous day point of

control. So one. Two confluences. You got

short. And really good trade idea. That

would have been a really nice trade. But

like you said. Moved your stop to break

even too early. Definitely a psychological

thing to work through Brendan. As you

said. But otherwise really good trade

selection on that. That's great. Two

confluences. And a retest from the

underside. Really clean set up there. So

well done on that. Sick. The third trade

here. You took a previous day value area

low. With a bit of a high volume node. A

little shelf there on the profile. And

also the developing value area low. So you

have basically three confluences in this

area. You got long off the high volume

node edge. Which is exactly what you want

to be doing. And bought that back at I'm

assuming an arbitrary target. So happy

with that trade as well. You got that

reaction for that quick scalp. That would

overall be an A rank setup. Especially if

that value area low was there at the time

of your trade. As you can see. So one,

two, three confluences for a quick scalp.

Well done. So yes. All I'll do is like you

said. Work through that. Moving your stop

to break even too early. Work through

that. Even attempt just not moving your

stop to break even. We've had another

post. I can't remember who posted it. But

someone else had the same issue of moving

stops to break even too early. That's

something you might want to add in later.

Once your discretion builds. And once your

intuition builds up. After spending some

time trading this strategy. And purposely,

consciously observing the markets. Within

the framework of this strategy. Maybe

something to add later. Because moving a

stop to break even can be a real intuitive

type thing. Where you'll kind of sense and

know when you should do that. Versus just

letting the trade breathe. So one practice

you could do is just sizing down a bit.

And then letting your trades breathe

completely. Don't move that stop to break

even yet. Just let the trades play out.

And see them win. And you know build that

confidence. Before you start to add in

that intuitive skill of moving to break

even. Because there's no really hard and

fast rule. I know I like to use the 75% of

the way to targets. And then moving the

stop to break even is my personal rule.

But even then I don't do that all the

time. It's only when I feel like the juice

of that move has been squeezed already.

Will I then move to 75%. Move to break

even at 75%. So it's definitely more of an

intuitive thing. Versus a hard mechanical

rule. So for the meantime. You could

definitely experiment with just letting

those trades breathe. Okay Michael. Four

trades in the same area. All B-rank

trades. Price move from underneath.

Michael's overall question here. Is what

would have signaled me in the moment to

avoid at least two of the first three

trades. I feel like it's taken me too long

to read the market. Have been getting more

losses than I should due to misreads.

Okay. I felt there was a bullish strength

of the bottom to the P2POC level. Was

going long on the pullback to stack value

there is an enforced note. Okay. So this

one's a bit hard to see. It's a bit zoomed

down. But I can kind of get an idea for

what you're doing here. So it looks like

we've got the developing profile. The

value area low is down here. Your previous

day POC. Previous day value area low. Both

stacked. So you've got three stacked

levels here. Price has broken to the

downside and pulled back up to retest from

the underside. What I can see immediately

is it looks like you've gone long one, two

times. Initially you're longing into

resistance levels here. So that's the

first thing here. Michael is the fact that

price already showed it's willing to

travel outside of value to the downside.

It's traded below the previous day's fair

value. It's already well below overnight

fair value. And is now extended past the

previous day's value lows. So we're

trading deep into discounted levels with

no sign of any fighting back from buyers

on the way down. So the first issue I can

see with these trades is the fact that you

are buying into resistance. So yes, it did

push back to these levels. But ultimately

it's just pulling back into to retest this

value before continuing to the downside.

There was no indication of a confident

break to the upside which would cause you

to want to then use this as support. So

yeah, longing in this area here I would

not class as a good quality trade. So what

you should be seeing here is that when

price breaks away and confidently breaks

away from value lows, you're looking to

anticipate a retest and continuation as

price pulls back towards value. You're

initially going to look for a retest to

continue that move down especially when

price is shown. You know overall a bearish

trend. It's pushed through fair value and

through value levels retesting on the

other side and breaking down overall. You

want to follow that trend and because this

spot here was the perfect spot to look for

a short continuation. So don't buy into

the resistance levels as they've been

broken now. Support broke in terms of

resistance. So don't buy into those. You

had the better idea on that last trade you

took where you sold. You took the retest.

In the end they ended up taking that

retest and that's where you got your

winners from. As I can see from the next

couple of trades as well you ended up

taking quite a few runners on that trade

as well. So that's the idea. To avoid

those first two trades just reading that

context again bearish downtrend extension

away from value lows and pushing below

fair value. So you want to be looking for

that retest of value to continue the trend

versus trying to break back into value. So

last trade was really good. You had the

right idea there in the end. But again you

could have ended up taking that trade a

bit higher and getting an even more

favorable position had you had the same

idea in mind initially when it pulled

back. It's the perfect pullback. Perfect

area to enter for a short. So don't try

and predict the market breaking back into

value. Just trade what you see. If price

is clearly extended away from value to the

downside just go in line with the market.

Trade that. Look for that retest to

continue versus anticipating and trying to

predict a break back into value. Let's go

and count the trend. Stay with the trend

and enter where you get a good price to

retest that short as you eventually did on

that last trade. Next one's from Graham

again. These are a couple of trades. He's

attached to the Notion Volpro trade review

sheet. So that's cool. So we've got one

confluence, a C rank and here's the trade.

So yeah, previous week value area low

broken and retest and a four hour pivot.

Cool. That's a personal confluence of

Graham's. Not one I'm familiar with too

much but we'll take it into account here

as well. And cool. Gained 24 ticks. Okay.

So if we look at the trade here, he's

highlighting this particular trade. The

break from previous week's value low and

push down. Previous week value area low

broke to the downside. Graham's gone and

taken the retest and sell back down to

point of control. So good exit on that

point of control. Good target for your

take profit placement. And entry being a C

rank trade. A little bit risky but given

you understood the risk and you understood

it was a C rank trade going in. Nothing I

can fault there. You saw price fail off

the previous week value low. You took that

immediate retest and exited at the

developing point of control. So I really

can't fault you with that. It's a good

scalp. Good entry and good exit. So well

done. Next one's from Malik. Malik has a B

set up. One minute trade. Trade looked

good because we were below previous value

levels. So I was looking for sells. All

right. Let's have a look. Okay. So there's

your trade. You entered the trade at the

previous day point of control. Overnight

value high. And also above the developing

session value high. So that's quite good

Malik. You got a couple of good

confluences in there. And pretty clean as

well. You can see that level actually gave

a couple of setups like you said. So

really good trade selection. That's about

as clean as you can get for a B rank. You

could argue it's an even an A rank trade

being above the value area high of the

current profile being a sort of extended

level then heading into two resistance

levels. So really good trade selection

there. Nice move back down. Again

arbitrary targets. In hindsight it would

be nice to have a runner on this as well.

Seeing price fail off that previous day's

fair value. But other than that that's a

really good scalp. Really good selection.

Minimal drawdown. Can't fault this trade

selection. And good exit as well. Exiting

above the point of controls. So you had a

pretty safe run to take profit there. So

that's a really really nice. Good trade.

And last one here from Johannes. See

setup. Overlapping value high in previous

day point of control gave me the

confidence to get in. Missed the first one

so I thought I should dollar cost average

in to get it. But it didn't touch my

second limit 1.5 hour. Let's have a look.

Okay nice. So you've got your stacked

value levels here across this point. Price

is traded above those levels. And put in a

sort of high volume note across this point

here. Which is I assume where you got your

trade when price pulled back. You can see

there. So I assume that was a confluence

and you got your trade on the pullback. So

this is good. This is something I wanted

to highlight. Someone asked a question

earlier a couple weeks ago actually. About

what to do when there's a high volume note

plus the value levels. And say if the high

volume note is you know a decent couple of

points away from the value levels but sort

of in a similar area. What should you do?

Should you wait for price to pull into the

value level or trade the high volume note?

Well when the developing profile is

showing you there's a shelf of volume

across this point. A shelf of interest

across this point. And that's in front of

the value level. Ideally you want to start

building your position at the very least

when price taps the edge of that node. So

if you want to be play it safe you could

add one contract as price taps the edge of

that node. And then if price digs in

deeper closer to the value level then add

in the rest of your position at the value

level. Because a lot of the time the

market's going to react to the high volume

node or the market is more likely to react

to the high volume node versus the value

level once it's traded through that point.

Because this is the most recent the

market's most recent thoughts if you want

to say on the value level. So the market

here has broken through these value levels

to the upside and has already shown

acceptance here by building these value

these high volume nodes above that level.

So when price pulls back towards the value

level seeing this little pocket of value

this shelf right above kind of adjacent to

the value level would be the best spot to

enter versus waiting for that to pull all

the way back. So that's a really good

trade entry there. Really happy with that.

And obviously nice take profit taking

profit right at the edge of this larger

node to the upside. Great place to exit

because that's where you could expect

either some sort of retracement or a large

reversal back down into value. So really

happy with that trade. Well done good

selection and good choice getting in at

this point here rather than waiting for

price to come all the way back. The only

thing I'd say is your stop loss is a

little bit risky here because like we said

yes price should reverse at this high

volume node and should find support at

that level given that it's right above

this value point. But there is a chance

obviously it can still come back and

retest it as it has not retested that

level yet. So I would have had my stop

loss a little bit wider to give it room to

tap that point had price come back down.

But other than that can't fault you on the

trade selection on the entry that's really

good. Just be mindful of having your stop

loss on a value level. You're probably

more likely than not over the long run

going to get stopped out having your stop

loss placed on a value level like this. So

those are some great submissions this

week. Really happy with those trades guys.

Really well done. Trade selections looking

really nice. Hope you guys find this hot

seat segment really helpful. I'm really

enjoying doing these. It's good to run

through and keep the tools sharp for

myself as well. So I'll be posting up the

next one here. You can see the post that

this video is currently linked on. Submit

your trades for episode three and I'll see

you guys again at the end of the week.