Chain Of Custody Of Price With Daily Inefficiencies

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

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,

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

190

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