 Good morning. Good afternoon traders and welcome to the pro trader webinar. Typically we do this as a series But we're doing things a little differently and we have a special kind of event here for the pro traders a one-off but we're doing things a little differently and we have and it's with a Pro trader here Carmine Rosado for stocks and futures Many of you know who he is. He's gonna be talking about his supply and demand levels And how he reads the order flow within book map and optimizing his trade entries and exits He's been trading for about seven years. His main focus is on trading supply and demand price imbalances while using order flow tools such as book map and price volume analysis to successfully confirm each trade very nicely concisely written here really like the Outlook there with his trading There's some links in here if you want to contact Carmine. He offers a Course and mentorship here. I'll be putting this into the chat so you guys Can you know click on the link directly? You've got his YouTube his Instagram and then also there's some book map specials here from Carmine With his affiliate link. These are not available from the book map com website. These are longer-term Special discounts that are only available Through our affiliates like Carmine. Okay, so we just need to go through the disclosure and then jump right in and give it over to Carmine a General disclosure all book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations risk disclosure trading futures equities and digital currencies Involves substantial risk of loss and it's not suitable for all investors Past performance is not necessarily indicative of future results. So let's turn it over to Carmine here Let me get his screen and We can get going here Alright, okay, so Carmine you so you're showing right now a your candlestick chart. Is that right? Yeah, okay. Yeah, we're all set. So yeah, take it away Carmine Well, thanks Bruce. So for that everybody who is watching the live stream from the investor trade community Welcome and for those who haven't heard of me and are in the book map community or just heard of me online Thanks for having me in here and for those that do know me My main trading style is based off of the supply and demand and balances and in this live stream I want to go over basically how I trade these zones while I Incorporate book map, you know volume market context and different types of tools into my style to Successfully take high quality setups and it's very very powerful the minute that I ditched all other indicators And I really focused on, you know, organic true price action Along with really honing in on the mental side and the emotional side of trading It really began to change and I noticed a dramatic Difference in my trading abilities and I don't think a lot of people focus on the mental side or the emotional side to trading And it's why they struggle and I have plenty of videos and I basically have a tree here And I always view supply and demand as the tree trunk or the core To any trading strategy that I use what I mean by this is at the bottom, you know The leaves the the stems everything grows because of the trunk and supply and demand imbalances and my supply and demand strategy is Basically the core to everything else in my opinion and the traders that I have worked with over the years Everyone that has a lot of success in the market Has incorporated some type of supply and demand price and volume analysis in their trading Now at the top of the tree I have book map because everything below it could be seen or could be used with book map It's not a necessity. You do not need book map to be successful However, it is a tool to be used to add confluence to your setups or read types of information in the market, which You can't really see anywhere else. I Also have volume on here for those that have been following me You all know volume is a core component to how I trade And in fact, if there is a lack of volume in the direction that I am looking to trade or just a lack of volume in the market I more than likely won't take a setup or I'll just trade with smaller size to protect myself What volume tells me and I'm gonna explain all of these points into detail in this webinar But What volume tells me is there's interest or participation in the market and that is extremely extremely important to any type of setup that I take Market context extremely important as well Basically understanding the Participants in the market between buyers and sellers the markets an auction place just like I see we some people are saying the sound is skipping Everyone could hear me good. Is there an echo? Is it skipping and the video quality as well? Yeah, I hear you just fine. Let me know in the comments before I continue here Everything good. Okay, so market context is very important Because it basically helps gauge the participation between buyers and sellers if we're a buyer in the market We want to know where other buyers are buying if we're a seller We want to know where other sellers are selling and we want to know where traders have large positions Maybe smaller positions where some traders are underwater and just basically the underlying backbone to the market because if we are a Participant we want to know everything that's going on Along with this is other order flow tools I'm going to explain this in the video and I plan to make more in-depth videos on these specific tools However, how I view the market other than this tree analogy is it's basically the market's a storyteller and us as traders We are the readers We have to read the story the markets telling us with as much clues or context clues as possible and the more clues Or the more pieces to the puzzle that we could add The clearer the picture and the easier it is going to be to understand the story So the more confluence that we have or the more tools It's going to be easier to read the market and easier to take high-quality trading setups So this is how basically I trade my setups I think this is very important and a lot of traders who begin trading I think trade based off of a whim or they just trade because the market's moving up And they think they have to be a buyer or they see the market moving down They think they have to be a seller how I trade my setups and based off of reviewing my journal and the trades that I make the Most amount of money on and have the most success with is Based off of this formula. So I look at it as where plus when and why Equals a trade now again, I could really only explain how I trade in this webinar Everything that I go over is based off of personal experience and personal trades. You may differ You may not agree, but I could only explain what works for me others in my community and how I trade So supply and demand the balances Basically give me my where component to this equation This tells me where I want to be active where my areas of interest are to be present in the market These basically I look at it as my advertisers to price the market is basically like I said earlier. It's an auction It's an advertising Mechanism to attract buyers and to attract sellers just like any other market or just like any other auction So my supply and demand zones Basically give me my where component. These are zones These are areas that I possibly want to be active. These are my areas of interest I think it's very important for any trader to come up with a specific area of interest in the market Now the second part to this equation is the when and why Price and volume give me my when and why component when and why I want to be an active participant It gives me my confirmation and it puts the final piece together for the trade It's my validator to entering that trade Without my advertiser and without my validator my edge isn't present and I'm a spectator on the sidelines So I must have my supply demand zones Possibly even support and resistance. I'm gonna show you some examples with this in the video I have a few live trading examples that I've I'm gonna show you all by the end of this video So supply and demand is my where price and volume tell me when and why I want to be active without the two I do not have a high quality trading setup Now in this video I'm gonna explain in detail price and volume giving me my when and why component this is basically the confirmation aspect to it and Like I said earlier with the tree trunk example market context volume Bookmap other order flow tools with price and volume help provide this component I want you to look at it as basically an arsenal the more things you have in your arsenal The stronger and the more powerful your trading strategy will be How I use book map so we're on a book map webinar And I have book map up here and everybody that sees this if you don't know what book map is I briefly have to get into you know, what you're looking at some people are more advanced and know exactly what's going on here But basically how I use book map is I gauge the relationship between buyers and sellers I gauge who's showing more effort in the market who's showing more aggression who's more passive You know, are there large participants? How's the speed of the tape speed of the tape is very important, especially if trading equities and stocks Apple Tesla Amazon, etc You want to see a very fast tape because what a fast tape tells me is there's Participants active in the market. There's high volume. There's participation. There's interest So fast tape is very important and this is something that gets developed with screen time and experience It's not something you could learn fluently through a book reading something you know watching these videos will definitely help speed up the process but your brain is like a muscle and subconsciously we develop and gain strength by using that muscle and learning things that we don't know before and Over time with screen time and experience our brain muscle gets stronger to subconsciously Recognize certain things that we may have not known in the past So these are things that do get developed over screen time and experience the goal with these videos is to kind of Help speed up that process a little bit So what I'm gonna show you in this video on book map The first thing is a heat map now book map is a very very good tool to basically show you Pacific components to the auction they have many different tools and it is all based off of organic price action Nothing here is lagging. These are all orders coming into the market. We could see true intention We could see fake intention So the first thing I want you all to focus on here is the heat map What this is gonna show is yellow red orange lines They are all passive orders what you're on the order book now What this means is if we want to buy let's just say Apple at a hundred bucks We can go put an order for Apple at a hundred dollars if it's currently trading at let's just say a hundred and five bucks And our order will appear on the order book and this could be displayed displayed depending on the color Our size or true intention So these lines basically right here are all passive orders in the market Anything above price is a passive sell order and anything below price is a passive buy order The COB column is basically the depth of market Which is showing you the depth of those orders at that price the larger the depth meaning the more orders at that price The darker the heat map will be and I think I've seen red being the darkest Color that we'll see you'll see it in in more examples later Red means a very passive large passive order So that's those those are the passive orders that's the order book and now we're gonna see the bubbles those are basically aggressive orders and Everything we see that's green on the chart Basically is an order that hit the offer hit the ask and it's an aggressive buy order and everything that's red Hit the bid or it's an aggressive sell order So the bubbles represent completed transactions. We could also see these on the time and sales The lines represent the level to the bubbles technically represent the time and sales or completed transactions at that price So it's the same thing as a level two in time and sales just visually representing it, you know in a different manner Now we're also going to see on my chart specifically like I said There are many other tools you could use but how I use book map may be different than how use you use book map And there's no right or wrong way to do it There's no right or wrong way to even trade in the market your strategy might work for you Mine might work for me So how I use these tools might be different some might be the same But what I have on my chart is a column called SVP now what this is going to represent is a volume profile And these are going to show completed transactions based on that price. We're looking at so just really quick We could see a large I haven't split up between bid and ask but at 39 31 on the S&P 500 They were 4900 lots sold on the bid today. So aggressive sellers at that price and On the offer there were about 3600 Lots which aggressively hit the market to buy that is a session volume profile by price And then I have a CVP which is a chart volume profile Which is the same thing that I just explained but it moves dynamically based on where I am looking at on the chart It's chart volume profile and it gets zoomed in by whatever range that you're looking at Okay, now the most important thing to this video is supply and demand and balances I'm gonna pull up thinkorswim here again And like I said earlier, these are all zones or areas that I'm potentially looking to be active in the market So going back to the presentation here a Supply zone forms when supply exceeds demand and it creates a supply imbalance based off the candlestick chart And a demand zone forms when demand exceeds supply and it creates a demand imbalance based off the candlestick chart So pulling back up thinkorswim here We're gonna see a supply imbalance which formed earlier last week back on Wednesday from this move to the downside And we extend it and wait for price to retest this supply zone Where it gives me my where area and I use other tools that I'm gonna explain in this video on to confirm this trade To potentially play the market to the downside Supporting with other factors that I'm gonna explain here same thing for the demand zone This one was formed. I want to say over a year ago So I can't go back that fast this but we look for areas to play long at the demand zone They are all based off of price order and balances To help speed this this learning curve up You're gonna look for areas of consolidation basically where the markets balanced What I mean by a balanced market is buyers and sellers are agreeing on price You have an equilibrium between buyers and sellers Some might be looking to buy at a dollar some might be looking to sell at a dollar ten We're in a tight consolidation range and the market is balanced at this point Now directly before a large aggressive move up We want to see this consolidation area because this large aggressive move up where the buyers really step into the market After that consolidation balanced phase. This is gonna formulate a demand zone Same thing but flip it for the supply side You want to find an area where the market consolidated where the market was balanced There was an equilibrium between participants followed by a very aggressive and violent move to the downside Which is gonna validate supply zone Area of consolidation is where the imbalance was created It was an area where buyers and sellers agreed on price Beforehand and then either buyers took aggression for demand or sellers took aggression for supply going back to the chart We had an area here where the market consolidated. We had an aggressor drop to the downside fast forward two days The market hit the supply zone gap down the following day and stayed below with the rest of the day I could pull up NASDAQ here instead of always looking at the S&P You can maximize this and the same thing in this area We had a consolidation area followed by a very sharp drop to the downside and look how many times this acted as resistance and Provided nice short setups. So this is the origin the following day. We hit it. We sold off I'm gonna show you an example of how you could take a potential short position at the supply zone Then the following day look what happens we open up right at it We put a lower high intraday and we sell off we reject with heavy selling pressure then Fast forward overnight hit the zone we sell off Then the following day we hit the zone again We sell off into VWAP and we bounce putting at a double top and selling off before the market does close Again, these zones are not magic. They don't work all the time. They are just areas of interest I've seen many zones get destroyed. I have different rules for different markets up trending down trending Volume and things of that nature. So just because you're seeing a clean zone like this. That's rejected three times Doesn't mean all of them are this clean This is just a very good example in the past three days with three different short setups and the same thing for the demand Zone so they're not magic. They sometimes get destroyed But as soon as we break through a zone above supply or below demand, I remove it Now You could also this is how I play it or how I how I view this So you play a retest at that origin of the imbalance? It could be Yesterday it could be today it could be next month It could be next year it doesn't really matter as long as we didn't break that full imbalance and the reason for this and how I view it number one is orders must get filled that didn't get filled the first time in this Consolidation area because of the market moving away from that consolidation area in a very fast and aggressive manner Sometimes some orders did not get filled that we're looking to passively get filled the first time So we can look for a retest for those orders to get filled And that's when we get a bounce at demand or a rejection at supply Or another way to look at it is traders buy based off of value if we have a supply zone You know, we might have sellers agreeing that this is very unfair value So every time the market comes into this area this unfair value sellers step back in and the market moves back to the downside You can look at it however you want but the main point here and the end result is the zones are very powerful And they work extremely extremely well if you focus on the right things Now going back to that tree example remember I said about market context and volume This is very important. Like I said, you want to put more pieces to the puzzle together to form a picture Intra day context market context basically the relationship between buyers and sellers Factored in intraday or just a larger picture What I mean by this is the example from Monday yesterday The market moved up and this consolidation area right here actually formed demand And then we moved into that supply zone that I showed you before and the market pulled back Now during this pullback in the back of my mind and how I want you all to Pre-like or think this way is the market moved up. The pullback is imminent However, there are tons of new buyers which formulated this demand zone over here that if the market does pull back We want to see buyers defend this area either number one their positions get filled that didn't get filled the first time We could use book mat for this. I'm going to show you a perfect example of something that I'm testing Or we could just say that buyers want to defend this area because they agree that this is their fair value and The market may hit this value bounce off of it and we could take a potential long trade so I look at zones as Context where are buyers or sellers factored in that Sometimes I don't even take a trade at a supplier demand zone But I use it as a piece of information To take a setup based off of what I'm seeing form intraday more or not more on that I'm going to show you an example of a trade that I took exactly what I just said there, but Sometimes we'll hit supply and I don't even take the trade at supply. I wait for some type of development to tell me Okay sellers are factored in that supply. Let me find an area where I could play the market short Point number two, like I said earlier volume is is extremely extremely important. If I don't see volume I probably don't even trade it. You could ask the members in my discord Volume is the number one most important sign to my trades and even to my thesis And if I don't see it, I most likely won't take a trade or I'll trade with very very small size So I need to see volume Does it support my thesis? Am I on the right side of the market and there's two ways to look at volume You can look at it by volume by price or volume by time This is what I mean by volume by time as you could see down here I have a custom buy for selling indicator on thinkorswim Volume was pretty much non-existent, you know, very very tight very very small even in the morning There was nothing significant when the market did open up when there is usually higher volume and We can relate volume to volatility because usually lower volume not all the time, but most of the time Usually lower volume brings lower volatility and a lack of volatility means there's lack of participants in the market especially larger ones which we want to Be on the same side as so if there's not a lot of volume most of the time It means there's not a lot of volatility we could tell this by seeing if the market's balanced How are highs or lows being reacted to are we seeing continuation above a high are we seeing continuation below a low? Just how is price action developing are the candles basically painting in slow motion or is the you know Market moving in a fast manner. These are all things that I look for and they play a very vital role in Every single trading decision that I make And like I said earlier, it's not something that you know, you might look at this chart and Say what is he talking about about? You know volume of volatility, but for me this chart is we're breaking the highs We're not seeing a lot of continuation. We're moving down and we're in a very tight range where You know the market basically is not doing much. You know, yeah, we're hitting demand Yeah, we're hitting supply, but there's not a lot of volume and there's not a lot of volatility Now also, I'm gonna show you this example. This is what I mean by volume by price Because on book map or other order flow tools, you could use a footprint chart You could use a standard volume profile, but I like book map because it has a volume profile integrated in it We're gonna see large participants basically trapped at a high. So here we have basically on Nasdaq 210 lots Which aggressively hit the market at the high Got absorbed by this passive seller now We have a very large trapped buyer at the high and a very large passive seller at the high over 210 lots at that price So if I'm buying something or I'm a buyer or I'm a bull This is very concerning to me because we hit a high Without looking at any other context, you're gonna be surprised on the candlestick chart What I show you with what this looks like here, but we see a very large Aggressive buyer at the high yet. There's no continuation to the upside So that's very very concerning to be a buyer at this point Especially with such a large buyer trapped at the highs and the market moving down putting pressure on this buyer I'm gonna explain that more in detail into detail with the lesson later on because I took a trade off of that Analysis but point number three is What are related instruments markets doing do they support my analysis and I must recognize Inherent weakness or strength in the market I think this is very key and it's a tool that is slept on by a lot of traders because Sometimes they get so much tunnel vision of what's in front of them and they ignore the not only the larger picture But they also ignore What their related markets are trading if I'm trading the S&P 500, you know, I want to see what Apple's doing I want to see what Tesla is doing. I want to see what out of Amazon Microsoft Facebook I want to see what all the other market leading equities are doing do they support my analysis Or am I fighting the trend and I must recognize this weakness or strength and it gives me a very good piece of information to kind of support this Here's an example on the left. We have the S&P 500 and without looking at any other tools We're just looking at a candlestick chart this market sold off into the demand zone and found the found a bid We rallied out of this a decent amount rallied, you know 60 70 points off of his own at the same time Apple a major market leading equity came into demand and also found a bid nice volume building into the market and in my Discord I said the market could bounce at this 407 to demand Apple coming into a keyed demand zone and if this level fails it could bring more blood But if we catch a bid and Apple bounces off demand It's gonna help support not only this demand zone to bounce But it's also gonna help support buyers being factored in to raise the S&P 500 and rally out of this zone Another example here. We have Nasdaq on the left and Tesla on the right Nasdaq opened up sold off had some nice lower wicks inside of this demand zone some nice buying pressure as you could see in the next In the first three candles The second and third one and bounced off this demand zone at the same time look what happened with Tesla Tesla sold off and the charts look identical So very identical charts, then we dip back down Tesla finds a bid we rally in the day after hitting the demand zone So this isn't a necessity. You don't have to look at the equities, but sometimes it gives me more confluence it adds more context to my setups and It it provides an extra piece of information to any type of analysis that I'm looking to do It's very very vital and like I said the more pieces to the puzzle You could add the clearer the picture and the higher quality setups that you're gonna take See what else we got here and then putting the pieces together So this was a setup from today I did not take this setup But I know a bunch of members in my community did and the analysis is the same across the board I'm gonna pull up the S&P book map here and this was from the pre-market plan See over here, so we had a nice clean break above our our level We had some nice passive orders looking to get filled here and I'm gonna break down exactly what I saw The first thing I want to show you all is All this up here are the pre-market plan just to show you the levels so you could understand the context backing the setup Pull this up here Okay, I Don't want to get rid of this thing here. Okay So the S&P 500 volume is dead. I will pull that up after so essentially what we were looking for was a break below 3908 on the S&P 500. This was a level from the day prior This was something that we bounced off of yesterday and this wasn't necessarily a demand zone However, it was an area that the market found buyers the day prior. It also was a gap from the weekend found buyers at it yesterday found buyers at it overnight and what we were watching for was the market to either hold above 3908 to play long or Sell off and break 3908 to play short What happens here on book map is the market comes down I'm gonna pull up the PowerPoint again Break below 3908 the target was the 3875 the man's own Let's up again here That's three not 908 support level from yesterday's holding overnight. We're balancing in between and above It's hard to be bearish above this level for continuation And if we could successfully break 3908 and the market leading equities continue to sell off I'll be open to playing puts. We're playing short first targeting 3875 demand and then the 3835 demand zone to the downside So what we're gonna see here before I show you book map is We're gonna see some large passive buy orders at 3918 and 3908 Now this could be a true buyer in the market loading into a very big large position Long position or it could be a seller closing out his short position So what I wanted to see today pulling up book map here is What my fault process was as we were coming into this area. We also rejected supply Was I wanted to see this buyer get filled his large position Whether it be a short closing out as his sell order or a new buyer factored into the market I wanted to see this buyer get filled and the market to go up Past this aggressive sell order that we saw earlier in the day at 3926 In fact in the discord I was watching to play the market long off of this level if we could get above 3926 We never did and this validated that this may have been a short Closing his long position because if it was a true buyer all of these passive buy orders would have got filled They got hit by aggressive sellers The market would have came up because this large buyer would have shown effort to bring the market higher The market moves based off of effort versus reward if I'm watching a level I want to see this level hold and buyers show effort to bringing the market higher We could have targeted the supply above in fact that that's exactly what I was watching going to a one-minute chart This is what it looked like Markets sold off basically This is where the passive buyer was loading into his position or closing out a short And I wanted to see the market get above this aggressive seller at 3926 We failed to which made me not play the market long and which validated my point that this may be a seller Closing out a short position which is just going to help fuel the market lower because the market cannot sustain on shorts covering It could only sustain on new buyers in the market and how I view new buyers is if demand does form on the way up So then the market got to 3908 and this was the cleanest setup of today We get below these passive buyers and this is something that you want to see if you're scouting on book map or just reading the tape Here we have our 3908 level We get below it with aggressive selling prints again red bubbles are Aggressive sell orders coming into the market We hit a very large passive buyer he gets filled then the market comes up 3908 now is acting as resistance We get below it more aggressive sellers coming into the market come back up look exactly where we reject 3908 come back down then we see a very weird bracketing order over here 3908 we're still below it then boom we cracked 3900 aggressive seller comes into the market and we have a free fall Consolidation more aggressive prints coming into the market all the way into our 3875 target Which hit perfectly so that's an example of showing you the aggressive selling that you want to see if we're breaking below a demand zone Or breaking below a key level or something in that nature Indicating that sellers are more aggressive in the market you add on the context that not only did we reject supply but we're also not forming new demand and sellers are aggressive and it gives you a high quality setup and a hit our target at 3875 I wish this was a demand zone because this bounced off of it perfectly And I wish it just wasn't an area to scale out of a short cover the shorts I wish this was an area to get long because we hit it and then we hit the supply zones three different times from this drop So this is the consolidation area right here this drop validated a supply zone we wait for the market to retest and later in the day we hit the zone and Reject to show you what it looks like on book map over here all day three nine Three oh acted as resistance and as we came into the zone some large buying into it You had a very passive seller up there basically stopping price for moving higher Market pulls back from it and then all afternoon Every time we came back into three nine three oh We rejected and sold off multiple times from it and we hit it end of day and closed higher So that was the setup from today, and I also want to show you a setup Aggressive selling hit the market remove liquidity book map broke below thirty nine oh eight It's validated confirmation to become a bear and play short wrong selling until three eight seven five target hits Now another way I use book map is to view trapped participants. This is very very key I want you all to think a little differently than retail traders 90% of them fail so put your mindset and your perspective in Not that retail trader mindset and understand the true auction of the market So how the market works is we move up until the last buyer buys and the market moves down until the last seller sells That's how any market works. It's whether you're talking about a car market, you know real estate stock market Whatever the market moves up until the last buyer buys and the market moves down to the last seller sells When I see a large buyer trapped at the high especially at a supply zone and there's no follow-through to the downside or To the upside it's a very strong sign for a potential short-term reversal Now what I mean by this is whatever the market's gonna do whatever it takes to put a large buyer under pressure Forced them to close their position causing more of a sell-off large trapped participants Recognize this and they put that participant under pressure However, if that participant continues to put pressure on the market, then we may see continuation in that direction What I mean by this is NASDAQ from yesterday NASDAQ from yesterday I'm gonna actually pull up the NASDAQ chart here and this is based awful of that key supply zone that I mentioned earlier We hit it three different occasions on three different days and sold off on it So obviously an area where sellers are very strong. They're holding the market down It's tough resistance and extremely strong supply Then yesterday on Monday May 23rd 2022 The market had a strong rally making higher highs making higher lows and we hit that same exact supply zone at 12.045 and three-quarters Now what this looks on book map the example that I showed you earlier is we're gonna see a very large trapped buyer at the highs When you add on the context of we're at a supply zone It makes it a higher quality of a setup if I've seen this large buyer at the high randomly and not at a supply zone Yeah, I might have taken the trade, but it just adds more pieces to the puzzle gives me more Confluence and makes it a higher quality of a setup So the market came up into the supply zone a very large passive seller This is on Nasdaq and 200 lots is is decently heavy size It's actually very aggressive size on the Nasdaq Came to the supply zone hit the high of 12050 the market moves up until the last buyer buys We have a very large trap buyer over 238 lots at the high and now the market recognizes this and if we are below this area and the market puts in lower lows Lower highs and we put this buyer under pressure The market is going to continue to sell off because it's going to force this guy to close out his position Sell his long position and that's just going to cause a further sell off in the market Same thing for the flip side if we see this on the demand side and we see a large seller traps the lows and We're doing everything to put him underwater and put him under pressure It's a good sign the market's going to reverse to the upside Where we're for the supply side and at the supply zone We have a large trap buyer market does everything we could to put him under pressure And we got a clean sell off from this area about 40 or 50 points from that the market also puts in a lower high We stay below this area Then the market comes back down and dips even further and this provided a nice high quality setup on Nasdaq Just off of this supply zone nice double top going into the end of day So this is just using different tools to validate some trades out of supply or demand zone But ideally you want to put him underwater because he's gonna start sweating If you're a large buyer and you're let's just say you're long, right? 200 lots someone could do the math on Nasdaq. That's a really big pocket If we're long up here really really large size and the market starts coming down We're gonna start freaking out Because our position is on the water and that's just gonna cause a further sell-off Especially when we double top and pull back from it the trap participants very very Very very key So now I'm gonna show you some live videos. I these are all trades from the past Some I've taken some are just based off of analysis But I got six good setups of live recordings on book map So putting the pieces together so far and one thing I do want to mention is Uh Support and resistance is different than supply and demand. There are different topics. I have a video of this on my youtube people get these Confused supply and demand is different than support and resistance So here this was back in I want to say January the market was downtrending putting in lower lows putting in lower highs And we had the FOMC meeting on a Wednesday and the market sold off from this FOMC meeting Formed supply at 4 4 12 So now we got a supply of 4 4 12 and the next day the market sells off It formulates demand in this area and rallies back inside of this supply zone Now what's key here is not only was it done on higher volume It was from FOMC and it was near high in the market where obviously large Participants are active with FOMC from this large drop. I mean this is a 160 point drop on Wednesday right here So the next day we form demand and come into the supply zone and we sell off from it Now what this looks like is intraday perspective. This is the same supply zone at 4 4 12 is We see a nice rally inside of the supply zone We form a high we dip down and then we break the high Which is a failed high a day break out and we start moving lower and then on this move lower We see a wedge and we market starts selling off from this and I said in the pre-market plan I post pre-market plans in my discord every single day and in the pre-market plan from January I said we had key supply at 4 396 and 4 4 12 This can very well reject and we'll be on watch to find selling activity to play puts So now here's a live recording of what we could see on book map And what I want to show you all here is as the market comes up into that 4 4 20 area We're gonna see a very large passive seller get filled Gets filled some here then the market comes up There's some aggressive buy orders that come through inside of supply at this point We're breaking above the high a day So if we have a high a day or a low a day you want to see increasing volume above that high or increasing volume below that low Increasing volume on a breakout usually means continuation and if you see us break a high and there's lack of follow-through and lack of volume It's a good sign that we're gonna see a rejection. So as the market came up broke the high here what it looks like on the chart is Right here came up. We broke the high sold off then we start selling back down The key point I want to make here is as we break the high Offers step in so now we have four four two. Oh, we have some trap buyers at the high the market sells back down and as we start moving lower now this book kind of flips and There is a seller basically Reloading his position from earlier and forming a big area Uh four four two oh that the market's gonna have a hard time getting above Offers step in and as long as now we recognize this my job is to find prints intraday That sellers are removing liquidity from the market stepping into the market aggressively And then it's safe for me to personally play the market short place by puts whatever instrument you trade in this case And as soon as you see aggression here, you could get short your stop is above the high at four four two Oh, you're risking about seven or so points and I forgot where the nearest demand was But then we come back into four four two oh and look it acts as resistance Come back into it four four two oh another large buyer gets filled acts as resistance Aggressive prints coming through and we're about 20 points off the off the high here And then we get a sell-off even further With more aggressive selling prints coming through so it's just recognizing at supply at this point Some trapped buyers at the high a very large passive seller showing his intention there and then aggressive participants Coming into the market after that passive seller Shows his intention to the downside and then it's safe to play the market to the short side Then I didn't get a recording of the wedge break But we also broke the wedge and you may have looked to play the market short there as well Another setup was a demand bounce and then we retested this level So essentially what we're gonna see here is This is the FOMC drop. This was the next day We have the FOMC drop which forms supply to the downside We have that demand that formed here We have that wedge and that failed high a day break then the following day We sell off into this demand zone pre-market and then we start moving up this area right here Where my where my mouse is moving over actually formed new demand from this move up right here Then the market pulled back bounced off of this new demand, which is already inside existing demand and found a bid Looking at a intraday perspective. I don't really remember. This was back in January what I saw that really screened algorithmic But not always I said this leads to a reversal and I was watching for a 4300 break the scalp into VWAP to play to the upside and this is what the picture looks like intraday Market opened up hit this demand zone bounced out of it and actually formed a new demand So looking what it looks like on book map now Again, everything is gonna come together with all these examples everything that I've been explaining So the market sells off we have demand at Got the number exactly We got demand at four two nine six So now we're inside of this demand zone and what's interesting here is look out how the market basically is Bracketing inside of this demand zone. So we're in a very tight consolidation range And I think this is where a large participant basically was Leveraging into a large position or trying to get filled and as long as the market can move back above this 4300 mark which was not only the Consolidation high but it also was a whole number with large passive sell orders on the offer As long as we could get above that then we could expect a quick move up Because we are at this demand zone. So this is what it looks like on the chart right here basically consolidation And then on book map. This is the consolidation that we just saw Then the market consolidates. I think we break. Okay, then we pull back into four nine two zero or four two nine Oh more passive buy orders get filled aggressive sellers are hitting that order and We're consolidating in this range for like 15 minutes Then we break the low and aggressive selling prints come through Remember what I said earlier if we're breaking a key level or a low or a high you want to see follow-through in that direction With that participant that broke that area to keep putting pressure on the market in this case We got below the low we broke below it more selling comes in and what's interesting here and really what kind of put The cherry on top of this analysis was as soon as we broke the low not a second later a passive buyer Basically was acting like a floor down here as soon as that sell order got filled Which made me think that there was a very large buyer looking to get filled the position and as long as we could break Above that forty three hundred mark. I was open to playing longs. We break above it briefly We pulled back now depending on how you trade in your analysis Even if we pull back into this range our analysis is still not proven wrong, especially with the buyers basically defending their position Morse buy orders get filled and then watch what happens when we break forty three hundred after even more buy orders get filled For about a 30 minute period aggressive buyers come in and we played the market long targeting VWAP Which I think VWAP was four three fourteen. It was a quick fourteen point scalp We we identified very aggressive buy orders coming in above forty three hundred with the context That I just mentioned before of a buyer loading into a very large position and that context along with those aggressive buyers on the break to the Upside kind of validated the setup and we got that clean pull rally into four three twelve and I think VWAP was four three twelve Yeah, VWAP is around four three twelve We got even a further rally to four three forty, but you followed your plan and you stuck to your targets Yeah, we got a even further move up to four three twelve, but there's another setup with this so What I just explained before about that large buyer basically getting into a position This consolidation area and that aggressive prints above forty three hundred Basically validated that this was a demand zone to the upside and it was going to form if the market pulls back It's safe to say we have new buyers factored into the market around that area And we want the same buyers to defend this position Not only because we have new buyers factored into the market and new demand, but we also have a bounce out of the old existing demand zone that forms in the pre-market then as the market pulls back into This forty two ninety six this area This was around ten thirty Look what happens on a tape here Passive buyer shows up an aggressive seller hits his passive buy order. We start consolidating more We pull back into this range, right? Four two nine six is where this area was around ten thirty ten forty five right here This was ten thirty ten forty five When we pulled back into this range and watch the aggressive participants come into the market Watch this move See how we start having aggressive buyers come into the market With the previous context and the current tape I'm okay with taking the market long stop below that area where that buyer found a value before and you could get a quick 40 points scouts to the upside. I'll take that all day long if I'm risking You know eight points or ten points in this case Okay, here's another setup. This was also an interesting one So this was back in January as well and what we were watching for was a sell-off into this demand zone Actually, no, this is the exact setup that I was just explaining before just on a smaller time frame So here's that consolidation area. This is off of a one-minute chart This is where the new demand formed This is the rally that we took out of 4,300 earlier right where my cursor is at scalping into VWAP for a quick scalp Eventually the market pulled back down and this consolidation area from earlier where we saw that strange buying activity Was defended and we retested this buyer He proved to be strong and this is where we saw those aggressive prints coming into the market We broke above that wedge. We had some nice volume coming into the market and we could spot this all aggressive orders right here See those aggressive very large green bubbles that's supporting our thesis to the upside and in the discord I say a possible trade scenario. I'm watching for is the area to hold on a pullback 4,299 to low a day If this does not hold I'm not interested in longs as the market will either balance or sell off We pulled back into this 4,299 and we found a nice rally out of that area Okay, this was another setup and this was a very very interesting one because this was extremely large size So let's see what we got here So we had a very large trader basically defending his position The S&P hit this demand zone bounced out of it and it looks very similar to the setup I just explained earlier where we pulled back and we've Retested this area and found a bit off of it. However on book map And again, you could use other volume profile tools or other orderful tools don't have to use book map We could see on the volume profile here a 3600 lot seller or buyer excuse me at 45 35 and What's interesting here is that's a very large discrepancy because we hit the bid at that price was only 660 and then a tick below that was only 1500 So this is a little bit of a discrepancy and how I basically read the tape or even book map is I just look for things that are Unusual or weird or out of the ordinary and I see how I can relate that to my analysis Put myself in the perspective of whatever Participant that person is whether they're a buyer or a seller and I figure out how I could trade on the same side as them Or where they're gonna be in the most pain because those two pieces of information right there Where they're gonna be in the most pain or where they're gonna be the most rewarded gives me a really serious edge in itself So in this example, we had a very large buyer at some point earlier in the day at 45 35 This also aligns with a demand zone which started at 45 38 So at 45 35 we have a very large buyer and what's extremely interesting here is I want you to keep a note on the size So right now it's 3,600 lots What we're gonna see here is as the market pulls back down into this 45 35 There isn't any passive buyer shown on the heat map here or the level 2 Basically providing the liquidity to hold the market above 45 35 So watch what happens here. We pull back into 45 35 and there's going to be some aggressive sellers hitting the market Yet there isn't a passive buyer Basically there to support the market at 45 35 and we come into this level multiple times Here's a second time He's at 3700 lots We defend it and I think we pull back in it one more time. Yep We pull back into 45 35 one more time There isn't a passive buyer here yet the market could not get below 45 35 so I don't know if it's this buyer doing whatever he wants to do to defend that position or if it's somebody else But we really could not break below 45 35 And if I'm recognizing this intraday, and I'm seeing this weird discrepancy of look at this price action I mean just we're hanging out here at 45 35 and we're not selling off after such aggressive prints and every time we hit It we try to move up so when I see that I recognize that and with the context that we are at demand This gives me a solid setup to potentially play the market long if we start seeing aggressive buy prints to the upside For more risk, but a better probability of it working out or I could even get long with this guy Basically trade with him, but that's a little bit of a lower probability But the risk will be extremely tight because we're getting in you know five or six points lower Then we see the Prince star coming through We pull back down and look what happens pull right back down into 45 35 ish 45 36 Again, he's doing whatever he could to defend that position then aggressive buy prints come through and The market has a clean rally as soon as we spot these buy prints I'll let this play out so you can see them form in real time. Here's 45 35. Here's that large buyer And here we got large prints coming through Validated that trade off of demand and it gave us a nice setup to play the market to the long side and then we've hit a high at 45 56 we pulled back and look what happens. He defended his position on that pullback the market came back up Solely off of a large buyer defending his position 3800 lots someone could do the math on that and at the same point To give it more confirmation of exactly what I said earlier Tesla a major market leading equity and NASDAQ also bounced off the man with it Tesla hit the demand zone strong buying volume caught a bit off this demand zone Whether you trade Tesla itself, you know go for it But if you're trading a market leading equity or a market leading in to see ES and Q If we see this type of action on on Tesla and this day Apple did the same thing Microsoft did the same thing and it gave added confirmation to take this market long So we got three pieces of information here. We're bouncing off demand. We got a large buyer defending his position We got a large buyer in the market and we have other market leading equities bouncing off demand as well Gives us a nice trade Now this was a losing trade I remembered taking the setup and in my opinion was a really bad setup yet I let my emotions get involved and I took a trade That I should not have taken reviewing the chart after the fact but everything looks good in hindsight and in my opinion I think this was an emotional decision and I should not have taken this trade but Essentially what we're gonna have here is the market dips into this demand zone and we rally out of it and We come into supply a 404 oh 5 5 now what's important here and my mistake is I take the market long inside of supply. I should have never done it I don't know what I was thinking here, but what we're gonna see here is on book map we're gonna see a very large seller at 40 40 50 and As you could see as the markets coming up to 40 50 we basically have a ledge right here, right? Hot a lower volume above it higher volume below it There's 4,700 lots getting absorbed on the offer, which means there's 4,700 lots so far today at 4050 which is not bringing the market higher. So what that tells me is there must be Seller passively selling to all those aggressive buyers over 4,700 lots at that level So what I was watching here for and my mistake was I was looking to play the market long if we could get above 4050 now the mistake here was I did not recognize we were at this supply zone. I Got no business taking the market long at supply. However, I Expected us to keep bouncing or keep rallying off of this supply zone and invalidating it because we did bounce off a demand pre-market However, watch what happens when we break above 4050 right inside of supply watch what happens here So not only did 4050 act as resistance the offer stepped back in after a large position got filled The market moved back lower. Progressive Prince came through Want you to see what happens at 4050 now we got 4050 now we got 5,300 lots at that price Now we got 5,700 lots now we got 6,000 and look what happens an offer reloads here Now two ways you could look at this you could look at it as hey, let's play the market short We're at supply. We're putting in a lower high at supply We obviously have a true seller in the market and if we do break the high Give it a little wiggle room to break attract a bunch of longs and then dump the market because we are at supply Remember what I told you guys earlier think differently than retail If we are at supply think of ways to play the market short instead of playing long if Sellers are present if buyers are present it might be a different story And you might want to avoid the short and focus on longs however, my stupidity is I was looking to take the market long Above this supply zone or above this 4050 seller to put him under water and I didn't give it enough wiggle room At this point. We got fifth or sixty seven hundred lots at the offer. It just keeps getting absorbed We're failing to break above it. This is a red flag if you're a buyer And like I said if we break above it give it wiggle room let it attract longs Longs buying inside of supply is a recipe for a reversal the market needs our liquidity With 90% of retail traders lose 90% of retail traders are given their liquidity to big money who is basically on the other side of their trade Doing the opposite so they could use our money to get a gain fill their position and gain liquidity in the market So in the market broke above 4050 I took the market long right here Right as we hit the supply zone at 4055 Never got above six to eight points Which basically shows acceptance of that level a seller basically got filled a Offer stepped into the market and this was a major fake out to the upside The offer when we got back below 4050 got back in and showed more intention over there 4050 Then the market dipped and I stopped out of this position I should have waited and I should have not thought like a retail trader Although I have taken setups like that that have worked out before but it was a perfect supply rejection And how I view this is a bunch of retail longs got long above supply Inside of supply and after a large seller got filled a long position Then we pulled back into this demand zone and we actually found the bid off at this level And then here's actually a picture of that of that seller 7500 lots aggressively bought above 4050 broke above it. I like to give my trades about six to eight points of wiggle room to basically show acceptance Of that level and then if it brings continuation four points is a test six points is a Acceptance and then eight points is continuation in this case We broke about four points this level got tested and I really should have been looking for ways to get short instead of long But I reviewed it and now I know and I'm prepared for a future trade at some point in the future Okay, you're just set up. I don't have a recording for it However, this was in the discord. This was an intraday commentary. This is basically where I update my fall process throughout the day We're watching a bounce out of this demand zone, but instead of getting long This was at the same point that That example I just showed you earlier with the with the absorption at 4050 Came to the demand zone and we were watching a break above 3390 3990 and 4,000 and it should bring us in for a move into 4013 and then a move into 4030 I Took the first setup was a losing trade, right? A lot of people after a losing trade put their head down. They freak out I'm right on the day. I don't want to lose any more money. I'm not mentally prepared if I'm down 500 I don't want to lose a thousand if I take another wrong setup, right? Sometimes the best setups happen after you stop out So if you stop out of his position, don't put your head down Look at ways to focus on another opportunity because there's always gonna be opportunities in the market a lot of people take a loss They get frustrated they shut their screens down and five minutes later They miss out on a crazy setup that they could have made back their loss and then put more money in their pocket This is a perfect example. I took a losing trade instead of walking away shutting my computer down I focused on another opportunity and we took the market long above 4,000 into 4013. I don't have a live recording of this But look what happened at 3 9 9 0 and 4,000 look at the aggressive buying coming into the market brought us a movement to 4013 and Later in the day brought us into 4030, which was our target But this is the type of buying you want to see if you are playing a breakout Or if you're trading on the same side as buyers. This is the exact This is the exact Type of action that you want to see now Here we have a lower high at supply and a break of 4,000. This is another nice setup. I got one more after this So here we have a lower high at supply lower highs basically just show that buyers fail to Provide more fuel to the fire to bring us past the previous high when we see it at supply It's a very bearish sign, but instead of getting the market short at supply. Remember what I said earlier sometimes I don't Sometimes I don't take trades at supply Sometimes I you just use it as context and in this example we hit supply I did not get short at supply and then the market started moving down to Broke below support at 4,000 and we saw aggressive prints at the downside below 4,000 I want to show you what this looks like Right here So we hit so I don't think I have the supply rejection, but I do have the 4,000 break so again We have a lower high at supply if we fail to hold and view up and break below 4,000 I may look to play short. There's not much stopping us from selling off into three nine eight five So a lower high was put in we were watching for a break below 4,000 if we can confirm it by the tape Targeting three nine eight five watch what happens as the market breaks four thousand We have a large passive buyer there if we are trading this We got aggressive prints coming in before the break and then we got more aggressive prints as we break through this level Consolidation and this was just a clean fast sell-off below 4,000 for a 15-point scalp into three nine eight five target Bids stepped in so you can see down here. Here's the aggressive break below 4,000 Large red bubbles coming in we hit our three nine eight five target and you move on from the setup So all you got to do you come up with a plan you sell your position if your target hits where your stop-loss triggers Anything else is noise You have to follow a plan create a plan and stick to that plan and Then this example This is the last one. I Made a video on this on my YouTube a while back But basically very strange action here on the lows of the S&P 500 What was interesting here? And again, this is what I mean about looking at the tape to Spot different things that Might be out of the ordinary or a little weird and in this case at every one dollar or one point increment There was a sell or a buy order passively for I think it was like a hundred fifty or two hundred lots at every One dollar increment for ten points so right there that was a little too clean a little too smooth and Something you don't see very often at exact increments for the same size so then the market started selling off and These buyers got filled Or this large one order we could call it got filled I'm sure it was one participant and remember that first example I mentioned earlier about you know This could be a short closing out of a position or this could be a buyer looking to get long something The move after the action will explain what it is because this buyer or the seller is going to do whatever To influence the market so in this case this large passive buyer I don't care if it's a short. I don't care if it's an actual buyer gets filled his position Also had a very weird bracket order and this order gets filled now. There's two ways we could play this See if I have a good example of this the first way is recognize this and Speculate that new demand is going to form the example. I told you earlier is Moves to the upside cannot sustain if there's not new buying in the market So when I see this and I see aggressive prints come to the upside and I see aggressive buyer step into the market I personally view it as new buyers in the market as long as this area could hold so you could play it the first way of Speculating that new buyers or new demand is forming get in when we start to see aggressive prints come in or You could just wait for a retest and wait for demand to form and play a retest Speculating that this buyer is going to defend his position and later in the day Not only did we bounce out of that area But look what happens the market pulls back and where this strange algorithmic Large buyer large seller action was we pull back into it bounce out of it perfectly and rally about I don't know 40 50 points from that area So you could play it long speculating that it's going to form right here or just wait for a retest retest are obviously better They provide higher quality setups And I haven't done enough testing yet But that type of action may formulate stronger demand zones because later in the day we pulled back into that area This is what it looks like on a candlestick chart And rallied from that. So that was just a large bracket buyer slash algo. However, you want to view it And that's just how I view the market. So that's pretty much all I got on my end It's just combining supply and demand you could use any order flow tool You could use book map, but volume is very important and market context is very important Book map just kind of adds the the cherry to the top of the cake Time and sales level to it doesn't matter what you use The premise is supply and demand is very powerful when you combine multiple tools and when you focus on organic price action while maintaining your emotions coming up with a plan and Trading your edge or your strategy every setup that I take and I lose on 90% of them 80% of them Basically our trades that I did not trade my setups or what worked for me the best And there's nothing more frustrating than taking a setup because I expect something happened to happen in the market Up or down. I think it's gonna go up I think it's gonna go down and we enter a trade based off of that thesis There's nothing more frustrating than a loss that way But if you focus on your setups you trade your edge and you're very patient for your setups to trigger Then you'll have a lot of success in the market, but you also must master your emotions Maintain them and focus on psychology. So I'm gonna leave you all off on that note I hope this helped definitely check out the links in the description below Follow me on Instagram. I'm open to any questions there And Check out also the link to the course in the description below and if you're interested in book map They hooked me up with a discount code for you guys Let me know if you have any questions in the comments And DM me on Instagram if you do so so I'm gonna hand it back over to Bruce. I'm not sure how this ends, but go ahead Bruce Oh, it ends badly. Um, no just uh Just to Follow up here Thank you very much Carmine. That was excellent. Very very simple very straightforward and It's all here in in the price action and Really like your tree Metaphor there as well understanding supply and demand. It's an auction and this is what's happening in that auction Guys, if you like this video, please give us a like button hit the like button there subscribe to our channel Makes a big difference. We can have more webinars like this with Carmine and Yeah, I put the link in there for Carmine's a Special offer to book map that's not available from our website and then comment to also on this on this webinar the I just had a quick question for you About and and I'll try to get to some questions if we can I know Carmine's been going for over an hour now, but Carmine like what about exits Your entries are very very nice focus on the on the entries. Are you always exiting at Other supply or let's say you get in a demand zone. Are you exiting at a supply zone? Yeah, that's a good question. So Pretty much all my exits are either at VWAP a next supply supply or demand zone next support or resistance level if I spot something when I enter a trade and a few minutes after I enter and something spots up on the tape and The original thesis that I had may now be proved wrong because of something that you know Provided a red flag or something that may be incorrect my original thesis that I may exit the trade prematurely But I would say 90% of my exits are either VWAP Support resistance next supply or demand zone or just something that provides a red flag that has to make me exit the trade You know at the moment whether that be news Whether that be just you know a strange volume pattern or something of that nature But yeah entries are very important exits are even more important And I think before anybody puts a trade on they must have a predetermined plan where they want to enter and where they want to exit and only stick to that for me Supply demand support resistance VWAP high a day low a day are also good reference areas, but that's pretty much it on that note Okay, and then also too. I think I hooked you up with the stops and icebergs indicator But the show you showed some examples in there that really were very suspiciously Look like icebergs just absorbing as much as they could so Anyway, I'll connect with you after and sure and and maybe get you connected again with the stops and icebergs Indicator Okay, so I think that's that's everything. You know, thank you everybody for coming. Thank you very much Carmine This was really good really appreciated it And we'd like to do more with you. It's Excellent stuff and very very simple But very powerful So exactly a lot of traders over complicate the process when I stopped looking at indicators or you know Stop trying to focus on a hundred different things. That's when I became such a better trader because I wasn't Influenced by the noise in the market there could be a lot of different piece of information that provide noise and The more simple you can make your trading the better off you're going to be in the long run It might feel different when you first, you know transition from something that's more complex to simple But it's very powerful the cleaner your charts and the more simple it is the better off you're going to be Excellent. All right. So thank you. Thank you very much everybody. Thank you Carmine. We'd like to do it again with you For sure. Okay. All right. Take care. Bye. Bye