good morning folks this is Michael so I'm going to be looking at shorting the NASDAQ now we're looking at a two-minute chart here simply because that's where the inefficiencies are obvious for me I'm going to set a limit to sell short inside of a sell side of balance buyid and efficiency I'll note that in a moment it's also aiming for the hellside liquidity pool resting relative equal lows right here and so there's my Target and my stop loss the stop loss is above the first candle in the CI which I'll note for you here and including the volume and balance you'll notice that at the lower end of it and now that we're back inide of it the limit order to be short one contract has been filled if it can go to consequent encroachment of that Cy I'll be interested in selling more um annotating the buy stop liquidity raid so that liquidity has been purged so the market should explore lower looking back into yesterday's regular trading hours okay I'm adding there just around the consequent encroachment got to fix this this isn't where I wanted it I one on the top left and we'll make it a little bit bigger so that way can see it okay so essentially it's a turtle soup and it's a deferred all right so presently short two risk is defined at the high of the Ciy and again aiming for the cells side liquidity down here this is kind of like a a classic setup where we've already ran out liquidity prior to the opening bell at 9:30 eastern time so we have a shift in Market structure and I'm adding more here if I can get four contracts on I I'll certainly try to do it but the opportunity to get a break below the low formed at around 21 , 698 uh that should start to accelerate things as long as you stay in the lower half of that Cy that's noted here once we break that low magnify this a little bit see the bodies of the Wix better okay so you can see that that low I'm having the limit order to cover the short at again was referenced on the relative equal lows so don't lose sight of that I'd like to see it break below that swing low that's just recently formed and then it can work back up and touch the bottom end of that civvy again and I'll annotate the inversion fair value Gap now that I think it's uh inv validated one more look here at the uh time here notice the Run higher did to take out the buy side started at 7:00 a.m. it's classic pre-market session activity now in a perfect world it could just start going lower but because we're just ahead of the 9:30 opening bell it might want to whipsaw a little bit in here I I don't feel that the stop loss is in Jeopardy but it could be hit if it does get hit I'll to re short okay so one of the things that um let me move this underneath that low one of the things that I like to see is the unwillingness per price to get back to the premium side of an array like for instance the sell side and Bounds bu side and efficiency that little red box I've highlighted here we've already worked in the upper half of that so I want to see it stay in the lower half if it does go back and trade to it if it does again trade inside of that I'm not really unnerved by that it's completely permissible because of the opening range beginning in a couple seconds usually there a little bit of a flirt of action right like that you see how quickly it just sharply rejected that these are all signatures I like to see when prices giv me indication that it's I'm likely on side now all of this might make you nervous if you're watching it you're you're looking at that stop loss thinking it's going to run up here and jump and hit that and maybe it can maybe it might do it but I'm not thinking that I want to see it break down and make a lower load Than That Swing Low one candle will go there we go now any retracement back up into the low of that Cy if it does so I'll add one more contract my stop loss I'm not interested in moving yet now I'm looking at about the middle of it okay so approximately where my average entry price is for the existing short position if it can trade back into that same price level um I will try to time that with a market order to sell one more and don't think that it's going to give me a chance so I'm going to just add it there now so I'm still technically inside the the Cy and also the uh inversion fair value Gap right before the B C is taken I'll I'll anate that in a moment I'm trying to pay attention to what this is actually doing that's nice i' like to see it get real heavy in here and again you're probably wondering why am I looking a two-minute chart is there some kind of secret to that today no just the Cy I'm highlighting here can be drawn out over one two-minute candle versus the broken up one minute imbalance it's got multiple fair value gaps on the one minute chart in the same range that's highlighted here so that's the only Advantage I'm using the two-minute chart so I taught this in the 2024 video line up on the YouTube channel so you can go back and listen to that I made that very clear once you have a bias you know what you're looking for you know the draw liquidity all those things are foundational but the timing is based on either a 5 minute 4 minute 3 minute 2 minute or one minute chart whichever one has the cleanest inefficiency that you can work with to find that type of thing it can touch the lower end of that but if it trades up inside of that pink box I want it to see it stay in the lower half that's very very critical and it's also working in the uh the aspects of this inversion fair value if I get this thing to drop on the right candle there you go so far it's a little unorganized but the draw is still very much obvious the liquidity has been taken on the buy side traders that are buying on a breakout they're they're caught offside right now they don't realize it yet right now they're just hoping it's going to move in their favor half of that inversion fair value Gap the one that's orange I want to see price stay below that as well so it's a combination of two things I want to see it stay in the lower half of the pink box which is the Cy and I want to see it stay in the lower half of that orange box which is the inversion fair value Gap so my my thought process is I'm going to break lower and go below that low right here that's what I'm annotating so that Candlestick should be the definition of the high of that return back into both CBI and inversion fair value cut so if my readon price is accurate um it should be unwilling to trade in the upper half of both of those rectangles I've drawn highlighting inefficiencies that's about where I was filled on that fourth contract so I'm going to highlight the midpoint here you can see consequent encroachment pretty much nailed it so I would have added that fourth one when I just was touching the low of it so either way I would have got that fourth contract on I'm going to sit Pat with what I am right now I don't want to go anymore and I'm not going to do any partials so it's going to be a full pull to sell side liquidity if I can get it it starts to break down in here that'll be a good indication I want to see a lot of heaviness big long stretched out black candles so I want to see a lot of desire for Price the the probe lower and close in some of that opening range Gap that's not clearly defined here but I'll let you look at your charts in relationship to that idea I'm trying to keep The annotation as light as possible because I don't usually put this stuff on the chart when I'm trading but for the sake of you watching and following along with the logic where was my premise on Entry why was my entries where they were you're seeing that here so far this is exactly what I want to see I want to see a lot of heaviness here goes a little bit more I want to drop that stop reduce some of the risk I won't be so interested in chasing with the stop loss but I want to reduce it now here and that'll stay with the life of the the trade now not interested in moving anything else if it comes back and stops me out it covers commission costs it gives me enough for a pizza dinner and it'll be whatever it is but I'm more interested in following along with price action does it want to reach for that low and if it does it might punch through it a little bit further than my limit order is marked so if it does so uh it might not reflect the execution label so I want to take that in consideration here and kind of like scrunch the chart up a little bit vertically so that way if it does go below it it should allow me to share that with you oh I hate when they do that it should fil me there you go hope you enjoyed it take care and be safe