Smartflow and Market Manipulation

so um I mean I'll just I could just take questions or I could just uh talk about what I think is important U May yeah maybe you can just kind of give an overview and if there's questions then yeah so um so yeah like before we revamp smartflow we would have to rely just on manipulation um and these manipulation spikes are really tiny like the biggest one of the day is only -2.2 for so it's not a very manipulated day this one's only 1.09 but you know if if I was trading this myself without smartflow then you know I would obviously buy here and maybe sell here or something for a few bucks um I would sell here and buy back here for a few bucks and I never really look at manipulation tally but if you can see you know manipulation tally is um it bottomed out right here right at the top of the day right here so from here until the current uh time of the day manipulation has been getting progressively more bearish along with the uh the downtrend day um yeah and and the market F found its direction after this mm price Discovery smile which I have no clue like this is this is the most bizarre thing I've ever seen in the history of the stock market in the history of me looking at the stock market like every single morning there's the same pattern and you think it corresponds with London I mean that's what I was thinking like London closes about what 10:30 my time is that it I don't know but um I mean okay I I don't want to get get into how this is calculated but basically the trades are only going in One Direction like the market maker trades are only going in one direction for this for this period like every single morning so it's bizarre but anyways I you know let's let's let's get into what what we can actually predict so um so yeah like uh I really like this Divergence here um great and there's there's all these dark red lines popping up and then we get a downtrend day so like um as you guys know the opening range is like like let's say 15 30 yeah here the the the 30 and the hourly opening range is about the same which would be here to here so anything below here is a breakdown and you get a very telegraphed um signal that smart money is going to break this down below the below the opening range and the extremely telegraphed red line going up like this green line going down like this so green line is smart money so going down means they're selling red is Momo which is Momo is usually dumb money but again for if it's not spy QQQ there are tickers where Momo has total and full control so right but but for spy QQQ generally speaking smart money is going to be in control and uh yeah Momo's buying here and smart moneyy selling and this this all happened this this Divergence from here to here it happens before the opening range breakdown so before like every other day trader on the market they're looking at this and they're thinking oh is it going to break down I don't know I'm G to wait for the breakdown confirmation but we here at Big Short we know that it's going to break down because of this Divergence before before the breakdown even happens um yeah and then uh then here we get you know there's this really innocuous looking uh spinning top dogee bar here no it's actually a dogey not a spinning top but um really innocuous but on ours it's a big biggest dark green bar of the day which leads to a multi-day my multi bar rally here and then um yeah uh it's you know we also have like call volume here and then put volume here as as the price stabilizes I mean what more could you ask for this is every indicator that you need sorry I'm just really hyped about this I'm I'm really hyped about this new uh this new uh indicator because I just I just think to myself like wow like so it's the Divergence that like you said is really important for spy and QQQ I mean that's the big one to look for we see it around I don't know 11 o'clock at least that's what it says on my chart uh yeah like starting like so up until this point they're they're moving pretty similarly although right actually actually here in the morning we we do get a little bit of Divergence knows how like if we zoom in um if we zoom in really close well it's hard maybe it's even harder to see when I zoom in but actually know they're they're both kind of moving down now that I see it okay fine there's there's no morning di Divergence um but um in afternoon yeah but yeah the the dark green and the dark red are basically what it's basically um contributing to the Divergence so um you want to go over the colors mean to okay so the the light green and the light red wait someone's calling me Beijing China what the [ __ ] why would someone from Beijing call me anyways so they found [Laughter] out so um so yeah the light green and the and the light hey someone's waiting in the waiting room I think sorry oh Justin Park hey Justin Justin who uh who bought TLT and shorted Google okay so hey Justin um wow this quite the turnout for a last minute Zoom meeting anyway so light light green um light green and pink green or light green and light red they mean that the lines are moving in the same direction so notice how from here to here the red and the green lines are both ticking up that's why this bar is pointing up because it just means that both smart money and Momo are buying this bar which is not a bullish or a bearish sign um if anything maybe it's a bearish sign I I I don't [ __ ] know I really don't know but but I what I do know is that this dark green and the dark Reds they are they are uh predictive because so for example here the dark green the the light green line is ticking up and the red line is ticking down I see you see and then so that means it's here that means that smart money is buying because the green line is ticking up and Momo is selling which means um the red line is ticking down and that's why this becomes a dark green bar because smart money and Momo are in Conflict so so you could think of these dark color bars as conflict bars okay so here not buying bars they're conflict bars okay yeah but the the direction up or down uh is still indicates whether it's buying or selling it's it's the color that indicates whether uh the two forces the two forces in the market are in conflict or harmonious yeah so here they're in conflict and when they're in Conflict generally the smart money wins so that's why we get we get some strength here um oh I see so you're seeing those strong red bars at around I don't know 11:30ish like they're in strong conflict there yeah that's why smart money smart money is winning yeah well smart money wins um after the fact in the F future here we only know that they are in Conflict um but yeah of course smart money generally tends to win on spying QQ and then so yeah so again they're they're in Conflict here they're in Conflict here and they're in Conflict here and so so that's why we get we get this the red line moving up and the green line moving down because Momo is buying they're like okay we're going to buy this dip it's going to go to the moon and smart money is shorting into them and and we get this breakdown and and yeah and then Momo's just in Despair and uh and these keeps by yeah and these um these uh kind of transparent gray bars are actually what Momo is doing in the background you see the little gray bars you can barely see so like Momo's buying in that like 11:30 time yeah yeah yeah yeah in fact like we kind we kind of condense all this information into one pane but if you look at the segregated version It's the exact same information but it just kind of helps you see it better with your eyes so these gray bars are all the Momo activity and these bars are the smart activity so so here all these positive bars here are momo buying they're buying hoping for for a bounce and all these negative bars are smart money selling they're selling into into the breakdown and Momo is buying and they and you know Momos occasionally sells too like for example they sell right here right before the bounce they're like oh man it's breaking down I'm going to capitulate so they capitulate right here then we get a little bit of strength here but alas you know they their faith is renewed because they buy every single bar during during this little bouncy bounce and of course they get screwed so it's just it's it's beautiful like if you once you get it like you see that it is it is the best thing since slice bread I don't mind cutting my own bread but um and there's like some light dark pool um resistance too with like all those clusters I think yeah Sarah likes the dark PS um and you'd say individual tickers react differently right Tay this isn't true for every single yeah I think Tesla I think the red line is is more predictive um but I don't really know because I designed the whole thing around spy um yeah but some tickers are like Momo controlled yeah yeah here I mean like they're kind of moving together so I don't really see much signal so so you notice how most of the bars here are light green and light red it's just yeah it means they're not really in Conflict smart money is kind of like whoa like this is your territory you guys control this stock because you guys are crazy we we don't want to [ __ ] with that I am so unsuccessful trading Tesla is no is no joke but if you go to the the rational places then then yeah well I think people who trade they trade like bars like see all those tweezer tops and all that stuff like I'm just not into that but you know they they they're looking at Candle patterns and they're trading candle patterns which I don't really like but whatever yeah um oh iPhone is in the waiting room I don't know what that is but hello iPhone nice of you to join us hello um yeah any questions from anybody I had a question on so the I was really used to trading M and looking at the little kind of circles at the top yeah but in the new layout like should I be paying attention to the Momo flow and the smart TI the numbers that are I I like I like this more than manipulation because manipulation is kind of it's kind of something where like it's like it's like a quick driveby shooting you know like like you get bar like this and you think okay like I could go long for a few bars you get a bar like this and you think okay I could go short for a few bars but this it really Paints the whole picture and like you know like with manipulation you can make money on like little short movements here and there right but but you don't really know what what their inventory level is whereas here like you get you get the trend of the entire day and and you get like this this Divergence here is just is Just Killer like if you look at some of the examp I posted in the Discord it's it's the same thing I could load them I could try to load them up um where did I even post those things uh how do I how would I search for those yeah so like something like this man this is probably way too tiny for you guys huh very small how did I is this a little bit better yeah a little bit yeah good enough okay I guess this as good as we can get it um but yeah like for example look at this look at this Divergence here like smart money sells Momo buys and we get downtrend and then um and it's it's and then around here in the middle of this consolidation Momo starts to sell off and smart just kind of stays even or maybe even buys a little bit but they're selling off here and then we get this big rally I think we have someone else in the waiting room oh okay wow a lot of interest uh hi Zoom I I um yeah and like for example here we have Momo we have Smart buying and Momo selling and we get this like sharp you know rally and yeah like the the real money in day trading is made by um Trend days and with this we see the the direction of the trend day and I I just think it's incredible um yeah here we have Smart selling and Momo buying simultaneously and we get this this nice uh downtrend day um and again and again here here as well starting from because notice from from here to here they move kind of they move kind of um in in tandem so here there's a Divergence which leads to down and from here maybe oh there's there's more people coming in Kevin okay you guys can see my um hi Kevin you guys can see my calculator right okay so like from here like I know it's hard to see but from here to here there's like a lot of Divergence and then we get we get more down right and then and then from here to here they're moving kind of in unison are you moving the calculator I only see it oh hours oh you know you're right it doesn't um my C the zoom video is not going to update that much okay I'll just use my mouse instead so yeah there's a there's that Divergence here but then here from around you know like let's say like late morning to early afternoon um they move in Tandem and then from here right around this point right here this smart money starts to sell again and the green line the green line yeah Green Line smart money starts to sell again and red line M is just buying they're like yeah we're going to dip we're going to you know but then it it goes down as a result and it doesn't go up until we get you know this uh this smart money buying again um yeah I mean like I could give more examples but it's really all the same thing uh yeah it's just like it predicts the direction of the trend day uh yes any of the new people do you have any questions or go ahead Simon no I just going to say so are you using it on um like larger time frames then I mean because I was I was actually using M on really small time frames like you mentioned um I mean yeah it is a like it is a larger time frame than m in terms of like my certainty because like you know like if you're if you're getting a breakdown like this with with red line and green line diverging then like you know I I think it's pretty solid so well the the cool thing about smartphone though is that it's going to keep going in that direction until you get something like this this is when this is this is your warning of like okay it's time for you to get out of your shorts right yeah yeah because like and that's the cool thing is like with M it's it's a drive by shooting like you like they come they shoot and then they're they're gone you don't know where they've gone but here every five minute bar you get additional information okay they're still they're still shorting they're still shorting and then here they're like okay this is where smart money is finally buying while Momo is is um I don't know selling or saying even or something and that's that's when it starts going up and also um there's there's this which is you can see the difference between smart money and Momo um it's I think it's kind of we haven't really back tested it so thoroughly to know which one is better but you know know I guess it's a matter of preference and you can look at both but they're they're pretty similar so what is the first one and what is the second one um the first one we the first one the bars are just separated out so all of these colored bars are smart bars and all of these kind of transparent gray bars are momo bars in the background and they're just there to kind of tell you like in what quantity Momo is buying right so like here we we get a lot of smart money selling dark red bars but you can see kind of faintly in the background that Momo is is buying during that time um whereas here there's no Momo because it's simply the difference between smart money and Momo so we we're subtracting the two values from each other and I I'm I'm not sure how useful this is um I know for a fact that this is quite useful but um if you really have a negative faith in Momo then then this could prove useful as well I mean an inverse an inverse faith in Momo yeah um yeah and this combined with the dark pools and the option flow like holy moly you know it's just it's a cornicopia of of signals we got we got these dark greens coming in we got the put volume coming in price stabilizing now we're getting some more red but it's Power Hour so be careful yeah yeah we we still you know put put this in with our normal trading strategies of like not trading power hour or respecting the trend of the day all that at the same time like you know with with these dark Reds popping up and this positive manipulation I wouldn't be surprised to see the next bar red I wouldn't be surprised to see the 1240 to 1245 bar to be red but again but you know like yeah these are these are smaller than than the powerof stuff but yeah yeah I don't know I I don't know maybe Power Hour it behaves differently but especially in the fast moving morning and especially like during this price Discovery period and especially like right as it's about to break out that's when this thing really shines can you make your window taller oh sure any more questions I know all you shy people are just sitting there waiting for Dad Trader to ask more questions but I'm I'm uh willing to take questions from anyone oh Kevin's asking what is Momo Momo Momo is um they are the force so there are two forces in the market there's mean reversion and momentum and there's been a lot of studies on this um momentum is not necessarily a wrong or dumb force in the market they just they are just of the mentality of um when it goes higher buy more so buy high sell higher whereas mean reversion is sell High buy lower Buy Low sell higher and oh look it's the red bar that I was talking about guys you see I'm telling you guys this [ __ ] [ __ ] works it's amazing um but anyways um so uh so yeah but generally speaking when it comes to I I I think I mentioned this earlier but when it comes to the ETFs you can think of momo as kind of like dumb money and when it comes to uh individual tickers then sometimes Momo is is in control more so than smart money so you can think of it as Momo Momo is the animals in the zoo and smart is the zookeepers and sometimes the animals they just run loose and they just terrorize the zookeepers and all the patrons of the zoo but most of the time such as spy and QQQ the zookeepers are very much much in control uh Jacob just asked a question I literally predicted this red bar here guys so oh nice I promise you Dunder Mifflin is better than prison uh Jacob asked a question in the chat um okay let me let me open this chat can you just read it out actually oh sure are there tickers that are are there tickers that are more easily manipulated by mm I saw Schwab with the previous smart flow and there were more spikes in QQ the big ETFs I saw Schwab with the previous smart flow and there were more spikes than QQQ um yeah yeah there's definitely tickers that are more easily manipulated um but you also have to think about not just how easy it is to move I mean the bikes seem more predicted than QQ more trade options yeah I don't know I I don't really follow that stocks I oops I don't really follow that stock so I can't speak to it specifically I mean I've traded it before in the past I can't really speak to it specifically oh look it's doing quite well today relative to the market um yeah we we get this uh Divergence here and it goes down but then you know it we get some strength and it consolidates goes up and then after it goes down here you know exactly when to buy the dip here with these dark greens but but generally speaking the the green and red are moving together here so there's no strong um conflicting signal here I think I think you're talking about the manipulation spikes yeah I guess there's some negative manipulation spikes here positive one here right before it goes down sure I mean yeah maybe maybe this is one where the market makers are have a lot of power I don't know but um but one thing that I do want you guys to think about conceptually is that market maker manipulation it's not just dependent on how easy it is to manipulate a stock otherwise they would do nothing but manipulate penny stocks all day long it's also about how much they can profit from that manipulation so like if they spend a lot of money like like um pumping a penny stock to the Moon they're not going to make that money unless they can find bag holders to sell into so so they so they're going toate stocks where there's a lot of retail activity where there's a lot of retail Traders um wanting to try their hand at day trading um okay next question says what is Momo mathematically not metaphorically like would it be cumulative tick Delta or something similar and how's it colorized in the histogram darker first lighter thanks well I guess I would say that the mathematic calculations are proprietary how is it colorized in the histogram darker versus lighter um in here it's uh it's colorized by the the light gray but you could see it broken down here by SF segregated and it's just this entire bottom pain here pointing up above the xais is buying down as selling yeah yeah so here Momo's buying here they're selling and uh yeah but um but here it's all Consolidated how much institutional trading is there on this Buy in QQQ a lot I would say um oh there's that red bar you predicting yeah I I'm telling you guys the red we're on the Spy chart though but oh okay there's QQ yeah I think QQ is driving the action a lot today because um because of all the big Tech earnings and CQ is very heavily weighted to Big Tech but yes look guys anyone who was listening to this uh live stream could have shorted and made money from my little wreck in fact I bet Justin Park did did yeah I KN I knew he did I knew you did Justin good job Justin you sneaky bastard you're always you're always trading off of my non- wrex okay but yes how much institutional trading is there on the SP I would I would say like at least like 50% of the volume is institutional I think um I I I don't know the statistics off the top of my head but I would know if I if I type some numbers into the computer but institutions are often dumb too like um like you know all the 401K just index tracking funds they're really dumb money they they just every month they just buy on the same day and and the um and the other you know the more sophisticated Traders they take advantage of them so institution doesn't necessarily mean smart there's all kinds of different forces in the market there's there's the institutional uh you know there's the there's the um blind money funds like the like the passive indexing kind of money there's also like um big hedge funds um there's uh market makers these are all separate entities and so the mom and pop retailers they're just they're just one one element of it all nice are there any more questions okay I think we're good and at least we succeeded in just in making money as [Laughter] usual okay great well thanks so much for doing this Tay I I pulled Tay into this at the last minute um just to get him to help people read the charts I think this is really helpful yeah Sarah will uh we'll make some stuff for the help section later but um yeah for now at least you guys have some uh some big picture Concepts to think about all right well thanks for being subscribers thumbs up all right by guys guys thanks so much and if you guys have any questions and you're feeling shy feel free to DM me or Tay we'll answer any questions you have sounds good thanks right bye bye bye

so um I mean I&#39;ll just I could just take questions or I could just uh talk about what I think is important U May yeah maybe you can just kind of give an overview and if there&#39;s questions then yeah so um so yeah like before we revamp smartflow we would have to rely just on manipulation um and these manipulation spikes are really tiny like the biggest one of the day is only -2.2 for so it&#39;s not a very manipulated day this one&#39;s only 1.09 but you know if if I was trading this myself without smartflow then you know I would obviously buy here and maybe sell here or something for a few bucks um I would sell here and buy back here for a few bucks and I never really look at manipulation tally but if you can see you know manipulation tally is um it bottomed out right here right at the top of the day right here so from here until the current uh time of the day manipulation has been getting progressively more bearish along with the uh the downtrend day um yeah and and the market F found its direction after this mm price Discovery smile which I have no clue like this is this is the most bizarre thing I&#39;ve ever seen in the history of the stock market in the history of me looking at the stock market like every single morning there&#39;s the same pattern and you think it corresponds with London I mean that&#39;s what I was thinking like London closes about what 10:30 my time is that it I don&#39;t know but um I mean okay I I don&#39;t want to get get into how this is calculated but basically the trades are only going in One Direction like the market maker trades are only going in one direction for this for this period like every single morning so it&#39;s bizarre but anyways I you know let&#39;s let&#39;s let&#39;s get into what what we can actually predict so um so yeah like uh I really like this Divergence here um great and there&#39;s there&#39;s all these dark red lines popping up and then we get a downtrend day so like um as you guys know the opening range is like like let&#39;s say 15 30 yeah here the the the 30 and the hourly opening range is about the same which would be here to here so anything below here is a breakdown and you get a very telegraphed um signal that smart money is going to break this down below the below the opening range and the extremely telegraphed red line going up like this green line going down like this so green line is smart money so going down means they&#39;re selling red is Momo which is Momo is usually dumb money but again for if it&#39;s not spy QQQ there are tickers where Momo has total and full control so right but but for spy QQQ generally speaking smart money is going to be in control and uh yeah Momo&#39;s buying here and smart moneyy selling and this this all happened this this Divergence from here to here it happens before the opening range breakdown so before like every other day trader on the market they&#39;re looking at this and they&#39;re thinking oh is it going to break down I don&#39;t know I&#39;m G to wait for the breakdown confirmation but we here at Big Short we know that it&#39;s going to break down because of this Divergence before before the breakdown even happens um yeah and then uh then here we get you know there&#39;s this really innocuous looking uh spinning top dogee bar here no it&#39;s actually a dogey not a spinning top but um really innocuous but on ours it&#39;s a big biggest dark green bar of the day which leads to a multi-day my multi bar rally here and then um yeah uh it&#39;s you know we also have like call volume here and then put volume here as as the price stabilizes I mean what more could you ask for this is every indicator that you need sorry I&#39;m just really hyped about this I&#39;m I&#39;m really hyped about this new uh this new uh indicator because I just I just think to myself like wow like so it&#39;s the Divergence that like you said is really important for spy and QQQ I mean that&#39;s the big one to look for we see it around I don&#39;t know 11 o&#39;clock at least that&#39;s what it says on my chart uh yeah like starting like so up until this point they&#39;re they&#39;re moving pretty similarly although right actually actually here in the morning we we do get a little bit of Divergence knows how like if we zoom in um if we zoom in really close well it&#39;s hard maybe it&#39;s even harder to see when I zoom in but actually know they&#39;re they&#39;re both kind of moving down now that I see it okay fine there&#39;s there&#39;s no morning di Divergence um but um in afternoon yeah but yeah the the dark green and the dark red are basically what it&#39;s basically um contributing to the Divergence so um you want to go over the colors mean to okay so the the light green and the light red wait someone&#39;s calling me Beijing China what the [ __ ] why would someone from Beijing call me anyways so they found [Laughter] out so um so yeah the light green and the and the light hey someone&#39;s waiting in the waiting room I think sorry oh Justin Park hey Justin Justin who uh who bought TLT and shorted Google okay so hey Justin um wow this quite the turnout for a last minute Zoom meeting anyway so light light green um light green and pink green or light green and light red they mean that the lines are moving in the same direction so notice how from here to here the red and the green lines are both ticking up that&#39;s why this bar is pointing up because it just means that both smart money and Momo are buying this bar which is not a bullish or a bearish sign um if anything maybe it&#39;s a bearish sign I I I don&#39;t [ __ ] know I really don&#39;t know but but I what I do know is that this dark green and the dark Reds they are they are uh predictive because so for example here the dark green the the light green line is ticking up and the red line is ticking down I see you see and then so that means it&#39;s here that means that smart money is buying because the green line is ticking up and Momo is selling which means um the red line is ticking down and that&#39;s why this becomes a dark green bar because smart money and Momo are in Conflict so so you could think of these dark color bars as conflict bars okay so here not buying bars they&#39;re conflict bars okay yeah but the the direction up or down uh is still indicates whether it&#39;s buying or selling it&#39;s it&#39;s the color that indicates whether uh the two forces the two forces in the market are in conflict or harmonious yeah so here they&#39;re in conflict and when they&#39;re in Conflict generally the smart money wins so that&#39;s why we get we get some strength here um oh I see so you&#39;re seeing those strong red bars at around I don&#39;t know 11:30ish like they&#39;re in strong conflict there yeah that&#39;s why smart money smart money is winning yeah well smart money wins um after the fact in the F future here we only know that they are in Conflict um but yeah of course smart money generally tends to win on spying QQ and then so yeah so again they&#39;re they&#39;re in Conflict here they&#39;re in Conflict here and they&#39;re in Conflict here and so so that&#39;s why we get we get this the red line moving up and the green line moving down because Momo is buying they&#39;re like okay we&#39;re going to buy this dip it&#39;s going to go to the moon and smart money is shorting into them and and we get this breakdown and and yeah and then Momo&#39;s just in Despair and uh and these keeps by yeah and these um these uh kind of transparent gray bars are actually what Momo is doing in the background you see the little gray bars you can barely see so like Momo&#39;s buying in that like 11:30 time yeah yeah yeah yeah in fact like we kind we kind of condense all this information into one pane but if you look at the segregated version It&#39;s the exact same information but it just kind of helps you see it better with your eyes so these gray bars are all the Momo activity and these bars are the smart activity so so here all these positive bars here are momo buying they&#39;re buying hoping for for a bounce and all these negative bars are smart money selling they&#39;re selling into into the breakdown and Momo is buying and they and you know Momos occasionally sells too like for example they sell right here right before the bounce they&#39;re like oh man it&#39;s breaking down I&#39;m going to capitulate so they capitulate right here then we get a little bit of strength here but alas you know they their faith is renewed because they buy every single bar during during this little bouncy bounce and of course they get screwed so it&#39;s just it&#39;s it&#39;s beautiful like if you once you get it like you see that it is it is the best thing since slice bread I don&#39;t mind cutting my own bread but um and there&#39;s like some light dark pool um resistance too with like all those clusters I think yeah Sarah likes the dark PS um and you&#39;d say individual tickers react differently right Tay this isn&#39;t true for every single yeah I think Tesla I think the red line is is more predictive um but I don&#39;t really know because I designed the whole thing around spy um yeah but some tickers are like Momo controlled yeah yeah here I mean like they&#39;re kind of moving together so I don&#39;t really see much signal so so you notice how most of the bars here are light green and light red it&#39;s just yeah it means they&#39;re not really in Conflict smart money is kind of like whoa like this is your territory you guys control this stock because you guys are crazy we we don&#39;t want to [ __ ] with that I am so unsuccessful trading Tesla is no is no joke but if you go to the the rational places then then yeah well I think people who trade they trade like bars like see all those tweezer tops and all that stuff like I&#39;m just not into that but you know they they they&#39;re looking at Candle patterns and they&#39;re trading candle patterns which I don&#39;t really like but whatever yeah um oh iPhone is in the waiting room I don&#39;t know what that is but hello iPhone nice of you to join us hello um yeah any questions from anybody I had a question on so the I was really used to trading M and looking at the little kind of circles at the top yeah but in the new layout like should I be paying attention to the Momo flow and the smart TI the numbers that are I I like I like this more than manipulation because manipulation is kind of it&#39;s kind of something where like it&#39;s like it&#39;s like a quick driveby shooting you know like like you get bar like this and you think okay like I could go long for a few bars you get a bar like this and you think okay I could go short for a few bars but this it really Paints the whole picture and like you know like with manipulation you can make money on like little short movements here and there right but but you don&#39;t really know what what their inventory level is whereas here like you get you get the trend of the entire day and and you get like this this Divergence here is just is Just Killer like if you look at some of the examp I posted in the Discord it&#39;s it&#39;s the same thing I could load them I could try to load them up um where did I even post those things uh how do I how would I search for those yeah so like something like this man this is probably way too tiny for you guys huh very small how did I is this a little bit better yeah a little bit yeah good enough okay I guess this as good as we can get it um but yeah like for example look at this look at this Divergence here like smart money sells Momo buys and we get downtrend and then um and it&#39;s it&#39;s and then around here in the middle of this consolidation Momo starts to sell off and smart just kind of stays even or maybe even buys a little bit but they&#39;re selling off here and then we get this big rally I think we have someone else in the waiting room oh okay wow a lot of interest uh hi Zoom I I um yeah and like for example here we have Momo we have Smart buying and Momo selling and we get this like sharp you know rally and yeah like the the real money in day trading is made by um Trend days and with this we see the the direction of the trend day and I I just think it&#39;s incredible um yeah here we have Smart selling and Momo buying simultaneously and we get this this nice uh downtrend day um and again and again here here as well starting from because notice from from here to here they move kind of they move kind of um in in tandem so here there&#39;s a Divergence which leads to down and from here maybe oh there&#39;s there&#39;s more people coming in Kevin okay you guys can see my um hi Kevin you guys can see my calculator right okay so like from here like I know it&#39;s hard to see but from here to here there&#39;s like a lot of Divergence and then we get we get more down right and then and then from here to here they&#39;re moving kind of in unison are you moving the calculator I only see it oh hours oh you know you&#39;re right it doesn&#39;t um my C the zoom video is not going to update that much okay I&#39;ll just use my mouse instead so yeah there&#39;s a there&#39;s that Divergence here but then here from around you know like let&#39;s say like late morning to early afternoon um they move in Tandem and then from here right around this point right here this smart money starts to sell again and the green line the green line yeah Green Line smart money starts to sell again and red line M is just buying they&#39;re like yeah we&#39;re going to dip we&#39;re going to you know but then it it goes down as a result and it doesn&#39;t go up until we get you know this uh this smart money buying again um yeah I mean like I could give more examples but it&#39;s really all the same thing uh yeah it&#39;s just like it predicts the direction of the trend day uh yes any of the new people do you have any questions or go ahead Simon no I just going to say so are you using it on um like larger time frames then I mean because I was I was actually using M on really small time frames like you mentioned um I mean yeah it is a like it is a larger time frame than m in terms of like my certainty because like you know like if you&#39;re if you&#39;re getting a breakdown like this with with red line and green line diverging then like you know I I think it&#39;s pretty solid so well the the cool thing about smartphone though is that it&#39;s going to keep going in that direction until you get something like this this is when this is this is your warning of like okay it&#39;s time for you to get out of your shorts right yeah yeah because like and that&#39;s the cool thing is like with M it&#39;s it&#39;s a drive by shooting like you like they come they shoot and then they&#39;re they&#39;re gone you don&#39;t know where they&#39;ve gone but here every five minute bar you get additional information okay they&#39;re still they&#39;re still shorting they&#39;re still shorting and then here they&#39;re like okay this is where smart money is finally buying while Momo is is um I don&#39;t know selling or saying even or something and that&#39;s that&#39;s when it starts going up and also um there&#39;s there&#39;s this which is you can see the difference between smart money and Momo um it&#39;s I think it&#39;s kind of we haven&#39;t really back tested it so thoroughly to know which one is better but you know know I guess it&#39;s a matter of preference and you can look at both but they&#39;re they&#39;re pretty similar so what is the first one and what is the second one um the first one we the first one the bars are just separated out so all of these colored bars are smart bars and all of these kind of transparent gray bars are momo bars in the background and they&#39;re just there to kind of tell you like in what quantity Momo is buying right so like here we we get a lot of smart money selling dark red bars but you can see kind of faintly in the background that Momo is is buying during that time um whereas here there&#39;s no Momo because it&#39;s simply the difference between smart money and Momo so we we&#39;re subtracting the two values from each other and I I&#39;m I&#39;m not sure how useful this is um I know for a fact that this is quite useful but um if you really have a negative faith in Momo then then this could prove useful as well I mean an inverse an inverse faith in Momo yeah um yeah and this combined with the dark pools and the option flow like holy moly you know it&#39;s just it&#39;s a cornicopia of of signals we got we got these dark greens coming in we got the put volume coming in price stabilizing now we&#39;re getting some more red but it&#39;s Power Hour so be careful yeah yeah we we still you know put put this in with our normal trading strategies of like not trading power hour or respecting the trend of the day all that at the same time like you know with with these dark Reds popping up and this positive manipulation I wouldn&#39;t be surprised to see the next bar red I wouldn&#39;t be surprised to see the 1240 to 1245 bar to be red but again but you know like yeah these are these are smaller than than the powerof stuff but yeah yeah I don&#39;t know I I don&#39;t know maybe Power Hour it behaves differently but especially in the fast moving morning and especially like during this price Discovery period and especially like right as it&#39;s about to break out that&#39;s when this thing really shines can you make your window taller oh sure any more questions I know all you shy people are just sitting there waiting for Dad Trader to ask more questions but I&#39;m I&#39;m uh willing to take questions from anyone oh Kevin&#39;s asking what is Momo Momo Momo is um they are the force so there are two forces in the market there&#39;s mean reversion and momentum and there&#39;s been a lot of studies on this um momentum is not necessarily a wrong or dumb force in the market they just they are just of the mentality of um when it goes higher buy more so buy high sell higher whereas mean reversion is sell High buy lower Buy Low sell higher and oh look it&#39;s the red bar that I was talking about guys you see I&#39;m telling you guys this [ __ ] [ __ ] works it&#39;s amazing um but anyways um so uh so yeah but generally speaking when it comes to I I I think I mentioned this earlier but when it comes to the ETFs you can think of momo as kind of like dumb money and when it comes to uh individual tickers then sometimes Momo is is in control more so than smart money so you can think of it as Momo Momo is the animals in the zoo and smart is the zookeepers and sometimes the animals they just run loose and they just terrorize the zookeepers and all the patrons of the zoo but most of the time such as spy and QQQ the zookeepers are very much much in control uh Jacob just asked a question I literally predicted this red bar here guys so oh nice I promise you Dunder Mifflin is better than prison uh Jacob asked a question in the chat um okay let me let me open this chat can you just read it out actually oh sure are there tickers that are are there tickers that are more easily manipulated by mm I saw Schwab with the previous smart flow and there were more spikes in QQ the big ETFs I saw Schwab with the previous smart flow and there were more spikes than QQQ um yeah yeah there&#39;s definitely tickers that are more easily manipulated um but you also have to think about not just how easy it is to move I mean the bikes seem more predicted than QQ more trade options yeah I don&#39;t know I I don&#39;t really follow that stocks I oops I don&#39;t really follow that stock so I can&#39;t speak to it specifically I mean I&#39;ve traded it before in the past I can&#39;t really speak to it specifically oh look it&#39;s doing quite well today relative to the market um yeah we we get this uh Divergence here and it goes down but then you know it we get some strength and it consolidates goes up and then after it goes down here you know exactly when to buy the dip here with these dark greens but but generally speaking the the green and red are moving together here so there&#39;s no strong um conflicting signal here I think I think you&#39;re talking about the manipulation spikes yeah I guess there&#39;s some negative manipulation spikes here positive one here right before it goes down sure I mean yeah maybe maybe this is one where the market makers are have a lot of power I don&#39;t know but um but one thing that I do want you guys to think about conceptually is that market maker manipulation it&#39;s not just dependent on how easy it is to manipulate a stock otherwise they would do nothing but manipulate penny stocks all day long it&#39;s also about how much they can profit from that manipulation so like if they spend a lot of money like like um pumping a penny stock to the Moon they&#39;re not going to make that money unless they can find bag holders to sell into so so they so they&#39;re going toate stocks where there&#39;s a lot of retail activity where there&#39;s a lot of retail Traders um wanting to try their hand at day trading um okay next question says what is Momo mathematically not metaphorically like would it be cumulative tick Delta or something similar and how&#39;s it colorized in the histogram darker first lighter thanks well I guess I would say that the mathematic calculations are proprietary how is it colorized in the histogram darker versus lighter um in here it&#39;s uh it&#39;s colorized by the the light gray but you could see it broken down here by SF segregated and it&#39;s just this entire bottom pain here pointing up above the xais is buying down as selling yeah yeah so here Momo&#39;s buying here they&#39;re selling and uh yeah but um but here it&#39;s all Consolidated how much institutional trading is there on this Buy in QQQ a lot I would say um oh there&#39;s that red bar you predicting yeah I I&#39;m telling you guys the red we&#39;re on the Spy chart though but oh okay there&#39;s QQ yeah I think QQ is driving the action a lot today because um because of all the big Tech earnings and CQ is very heavily weighted to Big Tech but yes look guys anyone who was listening to this uh live stream could have shorted and made money from my little wreck in fact I bet Justin Park did did yeah I KN I knew he did I knew you did Justin good job Justin you sneaky bastard you&#39;re always you&#39;re always trading off of my non- wrex okay but yes how much institutional trading is there on the SP I would I would say like at least like 50% of the volume is institutional I think um I I I don&#39;t know the statistics off the top of my head but I would know if I if I type some numbers into the computer but institutions are often dumb too like um like you know all the 401K just index tracking funds they&#39;re really dumb money they they just every month they just buy on the same day and and the um and the other you know the more sophisticated Traders they take advantage of them so institution doesn&#39;t necessarily mean smart there&#39;s all kinds of different forces in the market there&#39;s there&#39;s the institutional uh you know there&#39;s the there&#39;s the um blind money funds like the like the passive indexing kind of money there&#39;s also like um big hedge funds um there&#39;s uh market makers these are all separate entities and so the mom and pop retailers they&#39;re just they&#39;re just one one element of it all nice are there any more questions okay I think we&#39;re good and at least we succeeded in just in making money as [Laughter] usual okay great well thanks so much for doing this Tay I I pulled Tay into this at the last minute um just to get him to help people read the charts I think this is really helpful yeah Sarah will uh we&#39;ll make some stuff for the help section later but um yeah for now at least you guys have some uh some big picture Concepts to think about all right well thanks for being subscribers thumbs up all right by guys guys thanks so much and if you guys have any questions and you&#39;re feeling shy feel free to DM me or Tay we&#39;ll answer any questions you have sounds good thanks right bye bye bye

Transcript for:Smartflow and Market Manipulation

Transcript for:
Smartflow and Market Manipulation