 okay cool yeah I think we are live in YouTube and also discord just a moment yeah so once again welcome back everyone thank you so much for being a part of this session very good evening to everyone so before I proceed further can you quickly confirm can all of you see my screen and hear my voice clearly I'm live in YouTube and discord both so you can confirm me by using the chat option in discord and also using the live chat in YouTube so with your confirmation I would like to proceed all right thank you thank you for the confirmation just give me a moment well so once again welcome back everyone before I proceed further this entire session the analysis on nifty and bank nifty on using order flow tools which is powered by true data and a quick disclaimer before I just give me a moment yeah a quick disclaimer anything that I'm going to share from now onwards is going to be a educational purpose information only they would consider it as a buy or sell recommendation any decision that you take in trading or stock market investing are subject to market risk so let's quickly get into the subject today I have planned to discuss three important points number one the context of the market that's always discussed in my session and importantly I'm going to discuss one of the concept which is like open relationship with where the market opened and how the market can behave or can form the pattern based on the open of today so that I will be discussing and second I will be discussing about the footprint chart that are being offered by the book map tools so how to utilize the book footprint information effectively and final thing is that how can we utilize that information along with the absorption indicator so that we can take effective decision so these are the important points that I'm going to share in today's session all right so let's quickly just a moment just a moment so let's quickly get into the subject before I proceed the basic thing that I always discuss in my session that I will go by the framework okay so once you get that then we will understand what will be the importance of open that is the open of today with respect to the previous day behavior so there is a there is a interlink between both of that information so that I will be discussing so first thing is that what exactly the context that we look for when we want to get into any particular trade so we don't take a random decisions we have certain framework in that the first thing is to identify the trend so as in like in terms of the price where the primary market is primarily heading that's the point one and then we have L that means a location where we can probably get into the trade and where we can get out of the trade so where specifically where we can monitor the price action of the market that's the second thing yeah and third thing is basically the entry and exit how we can take entry and exit so this is a basic framework we follow in every session and the first step is to identify the trend in simple words basically to understand the price behavior of the present moment if the overall market is making higher rates and higher lows then we will consider it as an uptrend if the market is making lower lows and lower highs then we will consider it as a downtrend if the market is making no decision movement in either direction then we will consider it as a choppy market or the sideways market once the trend is clear then we will identify the location that means where the in simple words it's nothing but the support and resistances immediate support and immediate resistances and specifically like if it is if it's moving in upward direction the last swings can also be the locations where we can monitor the price action this is the second step and third is entry and exit that's exactly where we will be using book map charts and I will show certain information using the basic today's market activity all right so if this is clear to you then we can move on to the next information which is where the market opened so for example let's say this is the entire day's range of yesterday assume this is a range of previous day and we will compare today's open with the previous day open okay so especially this is very critical information for the intraday traders in its sense assume that at any given condition market opened above this particular range or below this range basically beyond the previous day range then we will consider it as imbalance open okay imbalance open within the market day if the market opened within anywhere within the previous day range then we will consider it as a balanced open all right so in that perspective whenever market opens in imbalance that means there is there is a lot of heat in the market and when this happens probability or kind of chances of market moving or giving a good momentum in one particular direction or maybe a good movement possibility is quite high when market open imbalanced okay so basically beyond previous day range if it opens within the previous day range then the balanced kind of movement can be expected in the market so in most of the cases market tend to stay within the previous day range or if it also makes a directional moment so there will not be a bigger momentum in the market so I hope this is clear yeah just a moment cool so if this information is clear to you okay let's try to understand in the chart what exactly happening with respect to the context and then we will come to the bookmap charts so basically as I said I'm going to concentrate today on footprint charts specifically on footprint charts and absorption indicator which are offered in bookmap pro version bookmap India pro version so let's try to understand what exactly happening with respect to the price so right now I'm using 30 minute chart okay as you can see this is a 30 minute chart the moment you look at the chart you can see two information so just a moment as we can see from this point okay so from this particular point market started to move in downward direction and there is one strong you know pullback from the lower end and right now again market is approaching to the same level so basically this particular level so at the given point of time obviously with respect to the price pattern as you can see market is continuously making lower lows and lower highs all right lower lows and lower highs until unless the market moves in this particular direction we can expect downward momentum all right so so with respect to that context okay so I want to link it to the present day information which is I assume that we were here okay so from today's market is from this range to this range right so this entire range is the today's market it is very clearly evident that after breaking up last swing low market is making continuous lower lows and lower highs so with respect to that we had a shorting opportunity for today's market in terms of the overall bias of the market or considering the trend of the market at least till this particular look this is one of the context okay so we were looking for a short trade opportunity and second important information in the same way where we have the possible locations that we can monitor okay so in that sense we have an immediate major support at 17,030 and considering today assume that you are seeing the market today morning so in that sense we have a level of last swing high here so with that sense considering market was moving in the lower lows and lower high formats until unless price sustains above this particular range then until this happens until price sustains above this range we can short the market that was the basic context of the market so this is the importance of having the structure or having the kind of framework where we will identify the basic trend of the market and we will try to align with that direction with the you know upcoming analysis so if this is clear to you let's try to understand what exactly happened or what is happening with the bank nifty chart just a moment so this is where we have a bank nifty futures and meanwhile if you have any particular questions try to take a note of it and feel free to ask them in the Q&A session so I'll be happy to answer them just a moment so if we look at the bank nifty information that's also here also the same kind of a context so but one of the important point that we need to consider here is that market took the short movement the short movement whatever we are seeing now the bearish momentum has started from this point that means the last swing high major swing high so with that context we can clearly assume that the market is presently trading within this particular bracket okay this is point one and right now with an immediate momentum we can clearly see that the market was moving in the lower low and lower high format with that context definitely looking for a shorting opportunities make all sense until unless price sustains and accepts above this particular level that was the context all right so with that sense we look for shorting opportunities both in bank nifty and nifty in this example okay so once this is clear to you okay we have identified the immediate support and resistances for the market right here we have an immediate support and for today's market assume that we are here and with respect to that this particular level the last previous day low was also important so as we were discussing open relationship with the previous day range so let's try to understand that in the nifty in the first place as you can see in this case the market opened within the previous day range this is the opening candle of the market and this is where the market opened 1870 which is within the previous day range as you can see we saw the extension okay so we saw the extension but not not to the greater momentum even the market failed to reach the last support itself that's exactly what I was saying so when market opens within the previous day range then the possibility of a bigger momentum decreases a lot so let me give you another example where market opened this is a classical example I want to give you so as you can see in this day okay so this is an opening candle and market opened below the previous day low and you can clearly see the kind of momentum that we got on that day so this is exactly the point I was mentioning so with this context okay one thing is that market opened within the previous day range and second important thing is that price is presented training in the downward direction and we have an immediate locations where we can look for price action and then take the then observe the price action when price approaches to that levels if this is clear to you then we move on to the next step which is the book maps chart where we will take decisions of entry and exits in so many ways to today I have considered to explain footprint chart and absorption indicator in a detailed manner alright so first thing is that before we understand these advanced indicator we need to understand the base indicator that are being offered here okay so which is nothing but the BBO indicator as you can see the red and green lights that we are seeing presently is called as a BBO indicator in simple words the best bid and best offer which is available at the present moment so book map chart beautifully stores the data the advantage of this data is that if I enable the candlestick chart okay if I enable the candlestick chart just give me a moment yeah it's a 15 minute candlestick chart as you can see this was the first 15 minute candle alright when we see the candlestick chart we will be able to see the open close high and low but the BBO indicator shows the pattern that is been forming within the candlestick so within the specific time interval as you can see this was the entire structure for example assume this was a you know descending triangle and after that it broke breaks the high it is not a direct concluded price or kind of a executed price but it's a best bid best offer available at that specific point of time that will be stored historically with respect to that we will be able to see the pattern within the specific interval so you can call it as an kind of a 3d data where you can see what is happening within the candlestick alright the advantage of this indicator or advantage of using this chart is that you can get into the trade early just an example okay consider an example assume that you are looking for a long opportunities okay and you are seeing a descending triangle and after the break of this particular triangle you can take the entry but in the candlestick chart we have to wait for the first 15 minute or any time interval what does blue sorry what does the blue dotted line indicates just a moment I think that those are the lines that I have drawn there are no blue lines I think those are the lines that I have I'm drawing so I'm explaining while you know showing the pattern alright yeah that's basically the advantage of using the bbo indicator so when we use bookmap charts we try to concentrate on the bbo indicator so that we can get into the trade early and we can get out of the trades early we can use this particular indicator or we can use this particular graph like we use the price action for example let's say the bbo indicator making higher S and higher lows that means market is presently moving the upward direction considering that you are looking for a long trade you can look for the break off last bbo swing so don't worry how to identify the effective swings I will get definitely get into that particular thing right now but bbo indicator can be used to identify the structure within a specific interval and we can get into the trade or we can get out of the trade earliest comparing to the candlestick trading alright so this is the first bear indicator that we use when we open the bookmap chart and in this right now I have added an absorption indicator and after this I will come to the footprint chart information okay so I hope this is clear okay in previous chart Sachin is asking a question what does the blue dotted line indicates I think there are no blue dotted lines if you are asking about the dots please confirm me once is it about the dots that you are seeing there are no blue lines that I have presently seeing on the just a moment so let's try to understand absorption indicator in a detailed manner okay so there were a lot of questions also about this particular indicator in the last session if you go to the configure add-ons okay by default you will not be able to install the absorption indicator by default okay number in the okay if you are asking about this dotted lines see these are the nothing but the swing identification that is done by the software itself so I'm presently using ninja trader software to plot my charts and using the true data true data feed for this so basically you can go to the indicators right click and go to the indicators and then you can add swing swing kake swing indicator so that you can you know in use and you will be able to see the swing highs and swing lows automatically that will be identified all right so let's straight away move on to this so we were about to discuss about we were discussing about the absorption indicator so by default you will not be able to get it you have to visit to the book map website so first thing is that you should have book map india pro version in order to use the all those indicators and you can see cumulative volume delta point of control indicator we have correlation tracker absorption indicator all these indicators are included in this particular package all right if you want to download the add-ons you need to visit book map dot com and go to more just a moment go to more and knowledge base and then visit this add-ons okay so as you can see in the knowledge base if you visit the add-ons so at the left corner you can see all the add-ons that are being offered so you can say for example if say absorption indicator if you visit that you'll be able to see the information of all the information about that particular indicator and this is where you have the link to download the indicator once you download it you'll get the java file and you simply need to go to the add-ons for example in this case go to the configure add-ons and click add then you have to import these are the indicators that I have downloaded from the website and the same has been uploaded to this particular add-on box all right once that is done you'll be able to see the indicator here first thing is that there is a condition involved in absorption indicator all right so for example when I click on absorption indicator right so the first thing is that this is the setting box this is so critical important here because in this we have two important setting first thing is that right now it is automatic mode that means automatically the absorption indicator will be calculated the order that we are presently seeing here what exactly it means you can clearly see that if within 2.5 seconds okay 2.5 seconds the traded volume was greater or equal to this particular quantity then consider it as an absorption all right so there are two modes here one is automatic mode right now it is in automatic mode if I disable it I'll be able to control this particular number manually for example let's see if I put it as 5000 you can clearly see whenever there was a condition where within 2.5 seconds 5000 quantities got executed what is the logic behind it this is so important to understand because see we are calling it as absorption that means someone has to be consuming the orders that are being placed so how we can conclude it so in that sense for example let's say market is moving upward direction okay so consider market is moving in upward direction and suddenly we saw the reversal okay that means someone entered the seller who entered here was strong enough to defend the price and also move the price in the opposite direction of the initial direction point one and what this particular condition does is assume that in this case within 2.5 seconds okay within 2.5 seconds 5000 quantities got executed those are the market by orders okay if that is a market by orders which got executed within 2.5 seconds the question here is who consumed those orders so definitely for every market order that we place if we are placing a market by order one particular market by order there has to be the passive sell order against it so there has to be the passive order or limit order there has to be there in terms of the selling order so that is what consumed this order that is exactly the logic behind absorption if within fraction of seconds such big quantities are getting executed and also at the same time that means at the same time that means someone is passively consuming that kind of big quantity within fraction of seconds so which clearly gives us a hint that someone is smartly collecting those orders who are you know who are placing market orders those will be consumed or those are getting consumed as the passive orders so with that sense we will consider this particular condition as an absorption so in simple words assume that market is moving up a direction and when we see the absorption right the selling absorption that indicates the presence of passive seller and when that happens in most of the cases we see the immediate reversals okay it doesn't mean that when we see the you know absorption we need to short the market I will definitely come to the point action point I will discuss later try to understand the logic behind it all right so I hope this is clear assume that in the same case someone again entered here okay so lot of selling orders consumed within fraction of seconds and immediately market started moving in the initial direction of the trend so that means we are also seeing an absorption here so we can use the absorption in two ways first thing is to identify the effective swings all right so give me a let me give you an example so if I zoom in a bit all right so today's chart if I zoom in a bit you'll be able to see let me disable the absorption indicator in the first place then you will be able to see a lot of differences so just based on the bbo indicator you can clearly see there are a lot of fluctuations all right a lot of fluctuations which we cannot consider for every single time we cannot consider all the swings all right with that sense we can use the absorption indicator to identify the effective swings if I enable it all right so you can clearly see right now I don't have to confuse so this is where we have a effective swing this is where we have an effective swing this is where we have an effective swing provided okay so market was not moved opposite to opposite direction in that sense we cannot consider this as a swing but here market moved in the opposite direction after the absorption present so in that sense we can use the absorption indicator for identifying the specific swing which has more significance why it is important is that assume okay so this this is an example we were looking for a short read okay so as per the context we were looking for a short read and after waiting for first 5 or 15 minute okay so after waiting for 5 or 15 minute now we know that this is where the absorption is and we are also seeing a immediate correction that means it's a valid swing and valid absorption in that sense provided we are looking for a shorting opportunities we want this level to be broken off so in that sense if the market breaks so the break of this particular level can be the entry trigger for us where we can keep our stop loss that's exactly where the application of absorption indicator comes into so last absorption was somewhere around here as you can see this is where the absorption happened the green dot that's where we can keep our stop loss after breaking off last absorption this is where the another break off last absorption happened and after that we can simply trial our stop loss to the next absorption level so first thing is to identify the effective swings we can use the absorption indicator point one and point two we can also use this information in order to trial the stop losses okay so our first first stop loss got triggered here okay so our entry was here and first stop loss got triggered here no problem we are still looking for a shorting opportunity where we can shot now you are very clear that this is where we have the absorption and we are also seeing a effective swing and we can short below this particular level this was the entry trigger and after that we can keep our immediate stop loss to the last absorption and we can keep trailing our stop loss until unless our stop loss triggers so for the last second trade this was the stop loss trigger further alright so how many trades we can trade well it depends on the style of an individual so one can use this particular indicator the absorption indicator in order to scalp also for example the earlier example that we were discussing was basically the break off the bbo indicator swings right so it was a breakout kind of a trade if you are not a breakout trader if you want the discounted trades for example if you if you want to look at the pullback entries you can also do that for example as you consider in the same context you are looking for a shorting opportunities and market moved in the upward direction significantly and we saw the absorption here okay we saw the absorption as you can see 5100 quantities got executed at this particular level within 2.5 seconds that indicates an presence of passive seller alright with that sense the immediate swing alright so as you can see one thing is that if you are an aggressive scalper you can immediately take a short trade here but if you are a little conservative but still not too conservative so in that sense you can wait for another swing to form and after that you can immediately short if the market breaks that particular swing for example in this case this can be our one more short trigger but for all this the context is very important we are looking for a shorting opportunities based on the price context that we have discussed in the initial stage so that's why having the context is the first thing and after that you can utilize this information in order to align with that particular context alright if this is clear to you then we can move ahead and understand the footprint charts by any chance if you have any particular questions you can post in the live chat I will try to answer it if you have any particular questions or we can straight away move on to the footprint charts any particular questions with respect to the discussions we had so far well so just give me a moment so if the absorption indicator clear to you then we can move on to the next indicator that I have planned to discuss today which is footprint charts okay so just give me a moment footprint charts you don't need to specifically download it or additionally download it so it will be available directly when you have a book map open so there will be an indicator footprint by default installed so you can simply enable it there are so many options so many settings here so I'll try to cover it a step by step process okay so first thing is that the bar type all right so this is how the footprint chart looks like don't worry how to utilize this information I'll definitely come to that point footprint bar type right now it's selected as time interval so there are four ways by which you can plot the footprint first thing is time interval that means from this point to this point or assume five minute interval 15 minute interval some people use five minutes some people use 15 minutes so based on your price action trading or your your price monitoring based on that we can select the time interval right now I use 15 minute charts in order to monitor the price behavior in the candlestick charts in that sense I want to look into the 15 minute candlestick chart what is happening with respect to the footprint information so for that I'm using time interval there are different ways reversal based on the reversal also you can calculate for example market is moving in downward direction and there is an immediate reversal if that reversal is in this just a moment I will show you so if you have selected reversal I have selected as 20 tick that means whenever there is a 20 points correction opposite to our initial moment then the new bar will be formed new footprint bar will be formed so that we don't want range range is specifically like for how many range for example market if market moves in this case 20 I have selected as a tick for every 20 point movement of the market there will be a new bar in terms of the footprints so you can also use this information if you are like for example if you are monitoring in the footprint charts in in US markets and also you can use this particular information and then you can go to the volume so with respect to the volume also so much of for example in this case I have selected as 50,000 quantities so if the 50,000 quantities executed at any one point of time so at that particular point of time the new bar will be formed with respect to the footprint bar all right so in that sense we are presently using time interval for it so 15 minute time interval because that's where the that's where I monitor the price action in terms of the 15 minute candlestick charts that's why I want to see the information the order flow information within the 15 minute candlestick charts and hence I'm using 15 minute time interval chart so bar width is nothing but the width of this particular bar you can change this according to your setting so for example by default setting is 80 so I'm not going to change anything so 80 I have kept it as it is horizontal smart scaling all right so it's nothing but it's highly recommended to keep it active so basically it scale the information the footprint information according to your zoom in and zoom out activity so hence I'm keeping it as active so then comes the background type all right the information that you are hearing so just a moment let me zoom in a bit and show you just a moment yeah so this is the footprint chart information that we see when we configured here all right so in that sense presently we are just give me a moment so as we can see here here with respect to the background type so right now don't concentrate on the text concentrate on the graphics okay so that graphics is nothing but the background type right now I have selected as delta plus and minus what it means to say is that at any given point of time okay there will be a market buy orders there will be a market sell orders okay so that will be recorded that will be shown here so whatever the information that you are seeing at the right you are seeing the buying this is the point where 16300 quantities got executed as a market buy order and 4000 quantities got executed as a market sell orders so in that sense it will relatively compare all the information that's that's exactly the importance of histogram delta plus and minus which shows us both buying and selling presence so if it is it's mentioned in green that means that indicates a presence of aggressive buying or a market buying if it is red then it indicates a market sell so you can clearly see here 28700 quantities got executed as a market selling comparing to that 22,250 quantities got executed as a market buy so definitely at that particular stage sellers were dominant and hence the overall graph is showing as red okay so with this information when you when we keep it as histogram delta plus and minus we will be able to see where the maximum number of orders got placed for example the entire bar this is where we are seeing a maximum number of transactions okay at this particular price level that is the number one information we get and the second immediate information that we can get from this particular chart is that okay this is where we are seeing a maximum number of transactions what is the behavioral factor or what is the behavior of that particular orders as we can clearly see here that it is indicated by the green color why because 83,350 quantities got executed as a market buy orders hence the aggressiveness at this particular price level where more with respect to the buyer so buyers were more aggressive in this particular price level first thing is that where the maximum number of orders are getting placed that is the point information number one information we get and second information what is the behavior of those orders whether they are a market buy orders or market sell orders so you can ask what is the use of it where we can use this information don't worry I will definitely discuss about that let's try to understand the setting in the first place and after that I will explain you the use cases using both footprint and also the absorption indicators so this is about the histogram delta plus and minus there are different settings as well you can simply put the histogram which only shows you it will not show you whether it was a buy and sell order but it will only show the kind of a volume profile okay volume profile of that particular specific interval so another thing you can do is histogram del diagonal delta plus and minus so it is also an indication where we will be able to see diagonally we can compare both the buy and sell order so earlier the chart was only showing as a volume profile but now it is showing the if there are any red charts okay so let me show you another chart and show you how it looks like just a moment yeah this is one of the good example as you can see here that earlier with respect to yeah so as you can see here that when we select diagonal delta so it will show the chart okay for selling it shows the separate chart for buying it shows the separate chart we don't want to look into this kind of information so there are people who monitor this as well but personally I use histogram delta plus and minus the reason is that it shows one particular chart and the profile of the chart and second also where we can see the maximum number of transactions and also the behavior of the transaction so all the conditions that we want to monitor as as in as in like order flow charts so that we can get when we select histogram delta plus and minus so all other information are nothing but the different way of looking into the background of the information so this is a histogram buy and sell we are able to see buy and sell separately and full background single color so basically it shows the complete block all right so you can also see full background delta plus and minus it is a delta plus and minus only but it will only show us the difference in the entire box not as a profile so we will not get the profile here so hence I'm using histogram delta plus and minus with respect to that we can see the profile and also the behavior of the orders all right so color according to your need you can change this use sets so this is one of the recommended option to keep it active because if I disable it you'll be able to see whether it is a market buy or market sell that's it but you will not be able to see the significance of that particular market buy or market sell so if I enable it you'll be able to see the one level the level that is marked you know dark dark green all right so that indicates the more number of orders all right so that gives us a good you know visualization and also good differentiation the immediately we can notice the change in the market and hence I'm not changing so I'm using this particular option use sets okay so transparency according to your need you can change this more to the transparent more the if you keep it more so transparency will be more of the chart so I'm going to keep it as a default setting I'm not changing anything is background right aligned so it's nothing but the alignment of the chart as you can see it when I selected as right aligned so it will be the graph will be shown at the right so this also according to your need you can change but I'm not changing anything over there then comes the footprint type okay the information that we have seen here is of the chart but now the information that we are selecting here is for the text that we are seeing now all right right now buy into sell that means it is showing this is the right set that we are seeing is market buy orders and this is where we are seeing a market sell lots okay these are the cells these are the buys but you can change this also if I select as some it will show the entire you know summation of that particular level for example this point to this point 2007 50 quantities got executed this is nothing but the total number of orders that got executed which we can see using the text here horizontal delta so it shows us the delta information so earlier it was a total numbers but now it is showing only the delta for example if I select as buy into sell you can see clearly see 10650 quantities executed as a market buy 1100 quantities executed as a market sell market buy minus market sell all right so in this case it's a positive delta only positive number only so around how much this this is the number so this is the delta information itself all right so with this information for example in this case okay so it is showing as 18000 okay 18000 means it's a positive delta that means market buy orders were executed more here how much 18000 difference so around 18000 quantities additionally executed at this particular price level as market buy orders that means it indicates the dominance of the aggressive buyers all right so and then we have a diagonal delta it's nothing but the calculation of it so basically 5500 and 5500 so automatically it will compare it to this and it will add it here so basically the diagonal calculation of it so personally I like to use either buy into sell or horizontal delta all right so either one we can use for getting the information if this is clear to you then the text positive color negative color you can change that if you if you intend to do that you can change it here and maximum font size is 14 I am change anything this is the maximum font size if you increase it so font size will be increased also and then we have each text right aligned left aligned so it's nothing but same like similar to the you know this right and left alignment that we have seen here I haven't changed anything over here it's a default setting then comes a critical information uh crypto rounding I'm not changing anything over there tick multiplier is an important critical parameter that we need to have a control on this is nothing but the price range that we want to keep for example when I am subscribing to this instrument okay assume that if I want to subscribe to any new instrument all right so it will ask for a tick size you can see 1.5.1 make sure that if you want to use the footprint give it as one okay one means one okay so one point movement so right now the subscription is selected with a one point tick size with respect to that if I again go to the add-ons sorry if I can go to the add-ons three I have given it as a tick multiplier so the tick that you have selected is one and the multiplier you are giving it as three three multiplied by one how much three so what software does is assume that this is 100 okay this is an example when market moves to another three points 100 one not three so this entire range will be considered to calculate the numbers here the calculate the order flow information okay so if I change this okay if I change it as six assume six you can clearly see the bar width has automatically changed so hence it is important to have the right number over here according to the visual appearance of the chart and also for nifty I am presently using it as three because it gives a clear visual you know visual of the entire price sorry order flow information okay so this is point one and we can simply multiply this number by two for bank nifty for bank nifty we can use six as the tick multiplier for that means for every single three points we are trying to monitor the footprint chart information I hope this settings are clear now comes the important point how we can utilize this information ultimately that's what is what that's what is the important point right so that is what we want to understand well in the explanation itself there is an answer for example as I said it gives us two important information first thing is that what is happening with respect to the orders of you know with respect to the volumes of that particular specific interval what is happening so that is the first information we get the profile alright so just give me a moment let me enable the candlestick and show you because that will be an easier thing to understand so you can see this particular time interval okay so this entire interval market moved in the downward direction market closed here okay market closed here but one of the important point that we want to notice okay so when we see the footprint charts we will be able to see the profile within the entire specific interval as you can see when I see the 15-minute information over here this is where the maximum number of transactions happened 0.1 and 0.2 okay 0.2 is that what kind of orders they are are they market by orders or they market sell orders so definitely in this case they are the market by orders well that is clear but the next question is how the price behaved how the price price moved after this particular information occurred once there is an aggressiveness two things can happen if they are very strong buyers the price should have continued in the upward direction but in this case the price has closed at this stage that means the price closed below this particular level which was the highly transacted level and also controlled by a aggressive buyers so with this particular information we can clearly see that in this entire transaction all right the one who entered aggressively to the market by orders here are getting trapped how because they are they are you know placing a market by orders but market instead of moving upward direction it moved in the opposite direction so someone passively consumed these maximum number of orders or transactions at the seller level or in the selling side which is a critical information that we can use it from footprint charts and we can look for shorting opportunities so first thing is that it is aligning with respect to the initial context that we are discussed with that sense we can keep our stop losses to this particular level 0.1 and most importantly okay so the main application or main use case of the footprint chart is to validate and invalidate the entry setup all right let me give an example what exactly i'm talking about okay so assume this is where we have a resistance okay this is an example this is where we have the resistance and market approach to this level as per our context we are looking for a shorting opportunities and after completion of the 15 minute candlestick okay we get this particular information all right with that we are seeing a maximum number of transactions the aggressive buyers here and price closed below our resistance level so first thing is that we are looking for a shorting opportunities and second thing is that the entire transaction that we are seeing here is also supporting our information even though if you're not using absorption indicator just by looking into this information you can simply short below this particular candle all right for example in this case assume instead of this okay if the profile has formed like this if the profile has formed like this okay maximum number of orders are getting placed here even though it is closed negatively okay even though the market closed in the negative bias if the market buy orders more number of buy orders accumulated at the lower end in that case there is still a chance to break this particular level this is one of the critical information we get from footprint charts I hope this is clear to you please make sure if you have any particular questions feel free to ask them in the question in the live chat box so I'll be happy to answer them first thing is that the footprint charts can be utilized especially to validate and invalidate the rate so in this case the second example that I have given that invalidates matter for example assume that we were you know just monitoring the price action and looking the candlestick information and after we are seeing a red candle we are happy to short the market at the low of that particular candle but when we have an information within the candlestick charts kind of footprint information we can one thing is that adds up the conviction and also it helps us to identify the cautions all right so at any given point of time we don't want market buy orders at the lower levels when we want to short so this is a kind of context we can get from the entire footprint charts and we can utilize this information in order to validate the first example right now it is a validation of the trade because it is supporting our context so it is validating if it is not then it is invalidating the trade in that sense even just if we are using the absorption indicator but it is showing a different information then we can pause our information and we can look for further confirmation so we can avoid unnecessary trades using the footprint charts I hope the context is clear if you have any particular questions feel free to ask in live chat I'll be happy to answer the questions all right so how we can combine both the information well so I'll try to monitor the overall footprint charts in a separate window itself okay so just give me a moment and one uh three or sorry uh four important locations I specifically monitor for my intradit rate so first is that the previous day hype and previous day low all right so when price approaches to those level I'll be more cautious and I will try to monitor what is happening in the 15 minute candlestick charts and second when it approaches to the IV high IV low for example let's say if the market uh after completion of the first one hour we have the range right so that range we will call it as a IV range so when market forms the first one hour range I will also try to monitor when price approaches to these levels I'll try to monitor the footprint charts in the 15 minute okay so 15 minute is not a thumb rule you can also utilize five minute footprint charts the idea remains the same okay we just don't depend on the uh just simply the candlestick information we try to look into the candlestick charts and what is happening with respect to the orders and then we will try to you know uh conclude it all right so that's that's it from my end and we can combine both the indicator all right so for example in this case for entry and exit definitely the absorption indicator is a very uh you know kind of a beautiful indicator for us because it clearly helps us to identify the possible swings you know this is where we have the strength in terms of the swings so we can immediately notice those swings all right and since provided we are uh since we are looking for a shorting opportunities we can simply look for you know as like say you know break of last swings okay break of last swing lows or we can also look for if there are any resistance if the price approaches to those levels in terms of the bb indicator if we see the confirmation in the footprint charts how more number of transactions has to happen in terms of the buying orders and price has to close below this particular level that's a brilliant setup to get into the short trade and we can use the absorption indicator to trial our stop losses as and when the price continues to move in our original direction out of the trade direction all right so I hope this is clear this is it from mine for today's session if you have any particular questions feel free to ask in the comment section sorry the live chat option just a moment any particular questions so far I want to summarize the overall discussion that we had today so first thing is the context so basically a tle framework I have explained t means trend l means location e means entry and exit so first thing is to identify the trend of the overall price basically to understand the context wherein the market moving presently this is in sideways or support trend and downward trend and with respect to that we will plan our trade this is step one step two is to identify the locations ideally for intraday traders so definitely the previous day low previous day high and i below i be high all those are the levels that where we can monitor the price when the price approaches to that particular level or immediate support and resistance also can be tracked once you identify the locations then we get into the entry and exit so first thing is that we discussed about today discussed about absorption indicator that helps us to identify the absorption points in the market and also with this we can identify the important swing points in the market where the market is taking immediate reversals and we can use that information to identify the patterns within the market all right point one point two we can also use the absorption indicator in order to keep our stop losses trailing when the price moves in our direction when we take an entry so as in when price continue to trade in our direction we can simply keep our stop losses trail with respect to the absorption so that's where we can use it and then i also discussed about the footprint charts which will help us to identify the order flow information within a specific interval specific interval so it gives us a profile of the interval and then also it gives us it helps us to identify where the maximum number of orders are getting placed and also identify the behavior of those orders with respect to that we can validate and invalidate our trades all right so there is yeah there is one more point i want to discuss yeah just a moment there is a profile okay as you can see there is one more profile here there are two profiles actually one is a current range volume profile okay and session wise volume profile session wise volume profile indicates the entire session of the day for example this is an entire days activity right so this shows the entire days volume and volume behavior so this is where we have the maximum number of transactions and this is where we have a maximum number of accumulations as well okay so with that sense the session wise volume profile will help us to look at the overall volume profile for the entire day entire range and then we have a current range volume profile which will help us to identify the range wise volume profile for example if i zoom in a bit okay so for this particular range where we can see the volume profile so this is where the maximum number of orders are getting placed so in most of the cases we get this particular information using the point of control itself so let me show you the setting of that the yellow line that you are seeing here right this yellow line is nothing but the point of control that we can enable when you visit the session wise volume profile just right click on it configure column and then show poc on chart so if you just enable this you'll be able to see the point of control chart and this nothing but this line is nothing but the price level where the maximum number of transactions are taking place so until this point until this point there was no change in the point of control so price was clearly you know moving in the downward direction and point of control was here but something happened when point of control changed here that means the maximum number of transactions price level is shifted downward level so point of control will help us to identify the acceptance of the price one thing is that the moment of the price and second thing is the acceptance of the price that will be identified using the point of control as in when the more and more volumes are getting accepted at the higher levels that means there is a demand in the market if the point of control is moving in the downward direction that indicates immediate downtrend so point of control will also help us to identify the immediate change immediate change in terms of the overall trend all right so that one indicator also we can use it yeah you know identify the immediate shift in the trend any questions all the indicator that I have discussed is available in book map India we visit book map dot true data dot in so you'll be able to see the information that is the book map is being offered for Indian markets so right now I'm using the pro version and it offers almost all the necessity indicators that I'm presently used and there are so many other indicators as well today I haven't discussed about the correlation tracker point of control we have discussed cumulative volume delta I haven't discussed it so maybe I'll try to discuss in some other session so try to keep attending all the sessions will be you'll be able to you know learn so many things with respect to the dynamics of the market all right so if you have any particular questions I'll try to answer well so I hope today's information added value to you and just give me a moment yeah so I hope today's session added value to you if you have any particular questions feel free to ask them in the comment section so this will be this particular session will be available for you to watch in the future as well so once again thank you so much for your wonderful time the information that I've shared now so far is for educational purpose only it is not any by your cell recommendation please consider it as an information to learn and you know research purpose only and yep thank you so much for your wonderful time see you in the next session until then take care bye bye jai hind