All right awesome stuff guys so I've come to the shop basically to give you guys an idea of what you
would be looking at if you're looking at a basic candlestick stock chart.
If you are going to observe what it would be if you were looking at basically layering on the charts
I'm going to show you on a candlestick shot and also show you on a market profile chart as well so you
will have an idea of essentially what you're looking at.
Okay.
So.
So I'm just going to zoom in here a little bit just to give you guys a picture of what's going on.
So I'm just going to pick.
All right.
So let's take for example the decline here.
So typically you would start to experience so when you see a candlestick like this where we were going
up and then we kind of hit something and then we got some downward pressure we got a bit of a tell.
Now typically you could have had the classic case of stacking.
So this could have been due to stacking on the dome.
So we probably traded up here for a little bit and it looks like we're going higher and then we start
to build a stock and then the whole thing fell down.
It could be typically due to absorption.
So that could have been coming from the possibility of a reload for example that could have been the
cause of it.
So we could have been going up and we kept reloading and reloading.
So being in the buyers then we get a big push down and then the market comes still.
And then you can see us trade back into that level.
And then that would have also resulted in some further reloading and then the candlesticks get tighter.
And the reasons candlesticks have gotten tighter is because we've had a lot of reloading.
Liquidity is now dropping off because again at the end of the day most likely we're starting to see
some layering.
All right.
So that's probably held the market a little bit down.
So I'm looking at this candlestick.
I would say this would have been more there was more a higher probability of it being airing because
of the time of the day.
And so you can see that in the volume by this huge amount of volume.
And so that most likely could have been lagging.
So the market's gone and traded a lot of volume but wasn't able to get through the contract.
So they basically got absorbed.
I don't think it was iceberg in but it also could be an iceberg as well so we traded into the iceberg
and got strongly absorbed and then the market held still.
But I think it's possibly lagging so this could be that this is an example of that part of me and the
reason why I say that is if we look at the next scandal we have a bit of a tell.
So that will be very typical.
So that bracket that you would get when at the end of the day when there becomes a defined sort of trading
range where there's a letter here and there's a letter here as traders protect their positions overnight.
So if you're looking at the futures markets or pound futures for example this would have probably looked
like a land where the market ran up Hitler ran down hit a land and then called for the day basically.
And that's so that's an example of.
Again if we look at another example we should be able to see an example of a possible.
So this tail here.
So inside of this there would have been a sweep.
So typically you'd get sweeps where the sellers just overwhelm everything and the whole thing crashes
down.
I'd most likely at this point we run into potentially what would have been a very very big again I would
say this was a big stock.
So obviously we had a part of the book where there was a stock and I'll give you a really good example.
I was trading a pound futures and I was looking at a domain pound futures and I could see that there
were one hundred and forty contracts trading at the time it was a high sell price and it was so away
from the book I think it was like a tenth line on the book and it kept revealing itself just as we went
that one or two ticks higher and then it would disappear because we lose sight of it.
When the when the price bids a little bit lower and then all of a sudden the market started make a big
run into that those hundred and forty contracts.
So that is what that's typically what a stock would look like.
So you got one hundred and forty contracts trading up there.
It could also be a spoof but again we see the market running into that and then it hit it and then filled
about 70 contracts but then that was it.
So all the buyers failed and then the whole thing came crashing down.
All right so typically I think that that's what happened here is that we traded very low very quickly
had a stock and then we reversed and then obviously started trade more more meaningfully around this
sort of price area said definitively this area became an area of problem.
Now again I know this because I understand the micro structure of what could have happened on the dome.
Why am I actually seeing this kind of reaction.
Typically because we stock so I would say that there was a bit of a sweep here because of the extended
price action.
So we had a lot of traders bidding lower but then we had a stock and move fast.
So I'd say if I know that there was a stock trading down here it means that traders were defending this
point and they were quite comfortable building real contracts at this level.
So there should be a really strong level.
If it was to start trading under that or get a break so we'll then get a pretty huge decline if we start
breaking this kind of price level.
So that's another example there of typically what happens when we see a stock.
Now there's of course some things like spoofing and we wouldn't be able to see because that would be
typically quite difficult to visualize bar and for example this would be a typical spoof.
So this tail here.
And then we trade through it very very quickly within a few sessions.
So what typically happens in the case of this kind of spoof is we go up the markets lock in hits what
it thinks is going to be the spoof orders maybe there was a half pull and triggers some but there's
not a lot.
So we get a bit of sell pressure but then very quickly the market starts trading through it on a sweep.
And that's because the orders that were initially acted as a spoof have disappeared.
So the traders program.
So this is typically when we get situations where there's a lot of pulling and there was a lot of spoofing
around this sort of price area.
So we've got a big decline but then we trade quite quickly through it because that's proof.
Also when this market kicks off a lot of traders get whipped into those kind of trades.
Right.
So again the market participants their idea wasn't to draw you into the trade.
It was more to do their spoof technique to scare the market into going lower and they were successful
for a little bit.
So if anyone was trading ahead of that spoof or front running in the spoof yeah they would have been
they would have done fairly well.
So again that's the key element that's lost a very typical case there of you know traders taking advantage
of a spoof again you know people talk about front running for example but I don't personally I don't
think you can really front one on the dome as much because algorithms of quite active.
So I haven't mentioned front run through the program but front running is something else that can happen
is wearing traders see like a big stock like we were describing here and then just front run the stock
basically.
But China is a bit clever these days so there will be they'll prefer to utilize a lot more icebergs
than maybe stocks.
I am personally stocks along Mike and the lake type protections I saw here again this week.
These kind of pin bars are typical of reloading.
So again here would have been a case where we were trying to trade long we kept reloading and then eventually
the buyers basically right now and then obviously we ended up closing much much lower.
I live in this kind of reverse hammer this these kind of reverse hammers tend to come a lot from reloads
and obviously that resulted in the sweep.
So again if you're looking at this kind of price action depending on where you're seeing it and the
time you're seeing it you can determine whether it's a reload perhaps stock for example you're going
to see a lot more reloads coming into like an early European session where the market's quite liquid
because reloading is a lot of the trading that's happening is that traders are trading into positions
that have been reloaded used icebergs.
So basically it's just day to day business.
So as long as you understand how reloading an iceberg works then it is what it is you can kind of make
sense of it and reloading typically creates a much more than even icebergs.
So reloading tends to create a thin hotel just because in the case of a reload we are hitting the same
price constantly and you'll see a lot more reloading coming out of maybe really tighter buys which typically
suggests that there was a reload maybe at the bed or the offer but you won't be able to tell unless
you're looking at the Dome.
But like say like a thin bar like this there's clearly a lot of reloading going on because of the tightness
or the price.
So I tend to take that into consideration some people might look at this differently but typically that's
what we kind of get.
So that's a few examples of typical price action.
Again this is sort of middle of the day.
So this will be a typical iceberg situation where we've come in with either iceberg the lot and then
eventually closed higher or this was a case where we hit a stock we traded low.
Very quickly hit a stock and then closed high and then continued.
Right.
So typically this occurs when we hit a big volume of orders on one side of the book and there's not
the other side to counteract it.
So again that tends to come from these kind of hammer candles and that's why a lot of people like to
trade these is because what they don't know is that they don't know exactly what's happening.
It's not just a question of big orders sometimes it's the kind of order again if it's like an iceberg
then a lot of people clearly got convinced that the market was going down and that's why we were able
to generate this kind of water flow because not only did this happen.
These guys were the set stop losses which would have allowed for bigger offers later on.
So those buy stops will mean that the offers get really big and fast they cause a bit more sway because
stop orders are kind of that really if you are selling the market then you'll buy stock is technically
a buy order so that that adds fuel to the fire.
So whenever when those orders get triggered it's almost like all those buy stops go to offer once and
they cause a sweep I'd say again people don't know why they say oh they're trying to run stocks.
It's not really they're trying to run stocks it's just that the truth is that the stocks got run because
they were all by stocks basically.
And now we've got a situation where those that have come to offer and there's no shortage of people
willing to sell to them.
But then again they're just not enough sellers.
So obviously the market just keeps going up.
So again it's a lack of understanding that causes the this to feel like the algorithms have this massive
edge but really these guys are just trying to make a market and they're using the exact same principles
that you're learning here to create the algorithm.
So it's there's no real edge here.
So again you can see that typically situation that again here we have a classic case of a sweep and
this would have been typically an iceberg.
So whenever you get a sweep and then we fell to go down it means that we hit an iceberg on the way down
and then that's what caused the market a pause here and then you can see that we had a short Bull Run
reversal is because we got iceberg.
So you can see those those tweezer tops they called.
So if you see a tweet the top is probably typically an iceberg.
It's just a price level.
We couldn't get through and obviously let the market push back up.
So on a micro level if you're a sculptor then this is useful information because it allows you to get
into trade sculpture quickly get into other trades as they develop and then you can sort of observe
things bar by bar.
So even in this bar for example this would have been typically a situation where this would have been
a spoof.
So there was clearly a spoof here.
And obviously the market quickly realized it was a spoof.
So obviously everything ran through it but in a nutshell.
So we ended up with a higher close.
So there will be a lot of micro element of trading going on and I'm just using the pound as an illustration.
But again this is typically what you're looking for at basic candlestick John.
So if I saw proven out a profile.
So for example we're talking about stock and pulling.
This is quite easy to see on a profile and reloading.
So this would have been typical of iceberg and reloading at these price levels.
And then we get a breakdown.
So again you can start to see that as well.
You can also see areas where you get these single prints those tend to be maybe we drove in and hit
a stock and a lot of big flow of orders came in and then we single print it out.
So again if you're looking at the profile that's the kind of information you're looking for is to see
price coming out of those reloads or breaking out of those areas where we're getting a lot of iceberg
in stock and for example I we're seeing big moves coming out of that.
So again that's why I put these lines on my profile chart is because I'm just basically bringing the
dome into the profile so you can visualize that well.
Awesome stuff guys.
I hope you enjoy the course so that's brings us to kind of a close.
This is more to kind of act as a follow on if not a precursor so the existing course I have on the dome.
So hopefully you guys have had a lot more clarity in terms of how the dome functions and if you understand
this now then technically speaking you should be able to visualize a lot of this just looking at your
ticker as it as the prices tick back and forth.
So if you're looking out my ticker right now you just go back to the Candlestick charts here.
I'd say if you're looking at my ticker right now on cable today we're trading 123 39 K 123 38.
So obviously we've got the bid offer spread that so we're not seeing any movement really.
We're heading bed 37.
We're not really going off it at the moment.
So it's just head in bed and we've gone up against a 38.
So it's been steady a you know and so.
So we're not seeing any real movement and of course it's the end of the day right.
So we know liquidity has gone out of the market so obviously 38 is holding and talking about that lagging.
We should have basically seen a strong order lag.
So yes quite we could see that tweezers top here that we got.
So that's definitely definitely telling us that we as we run into an iceberg at this point and obviously
that iceberg kind of pushed this up.
So there was clearly a trend here.
A lot of business to do.
And judging by the price rise obviously it was quite successful at doing that business.
And what's funny.
What it was actually happening today was the European Central Bank.
So this shouldn't be about sort of 1 o'clock my time is about 3:00 ins in Central Europe but the ECB
was interest rate decision was 12 45 and the press conferences were 130.
So no doubt a lot of traders were eager to be selling off the back of the fact that they thought that
the the move from the ECB is one of a was one of us as somewhat bearish and position.
So again they would have gone with selling European assets in favor of the dollar but then obviously
we hit an iceberg because the bigger traders probably just took advantage to basically unload some of
their position.
And obviously we got iceberg.
In a nutshell.
So a lot of basically a lot of buy orders felt.
So again that could also be as a scenario where this was a take profit situation or it could be new
new new business.
But we have no way of telling other than we know some business was done at that price and this led to
a price rise.
So in future we should really see at this point in the day a bit of a lag developing.
But again most importantly if there was an iceberg down here we know that this is a strong level.
And of course if we break under that we should start seeing typical signs of a sweep.
So again if you're an Asian a trader you'll be looking out for a point where you'd want to get involved
in that kind of a sweep and obviously look at the top of the market you can see that tail off which
is very typical again of the end of day layering that we're talking about where the market's gone up
it's had a lag and it's now been contained.
So I wouldn't expect this area to be broken.
No till the next intraday.
Right.
So maybe in Asia tomorrow possibly in Europe as we get into that rollover point is by 8 o'clock at night
in London.
Yeah I wouldn't expect much movement and that's what causes the market a back up so very shortly I think
we should see a containment around here because it's quite possible that we are going to start we're
going to get a bit another jump up to kind of contain this.
So we should be led either side of the book.
So this is also a really interesting thing observe.
So I'm just using sort of the the current price action it kind of gives you a feel.
So again this was an iceberg.
Quite clearly we got a tweet this double bottom formation or this tweezer formation and then over here
this is typically layering because it's end of day and we got the shorter tail and we saw evidence of
layering earlier on as well.
Prior to the ECB where the market got contained sort of that 7 a.m. sort of 8 a.m. when traders love
to trade.
So with markets got contained and then we got a big break out what looks like a breakout and then an
iceberg and we finished off the day with a lag basically.
So you can actually read the dome on a normal chart and not really have to really have a dome.
You can make sense of what's going on if you understand the micro structure.
Anyway thank you very much guys for.