 Good morning traders. This is Bruce at Veloxpro. If you can hear me and see my screen, can you just type yes in the questions? Believe my audio is working All right. Yep. Okay. Good. All right. Thanks guys Okay All right, let's take a look at the order flow in book map And just go through a few things first and then we'll get right into the order flow a risk disclaimer Trading futures and options on futures involves substantial risk of loss is not suitable for all investors past performance is not indicative of future results More information go to bookmap.com become a free member there and get access to a lot of resources and Reach out to us at support at Veloxpro.com if you want to give book map a try This is where you can find it just explore hit the pricing tab it's down here and And You can see that there's the basic version And the advanced version now you get a 14-day trial period for for either And if you don't like it during that 14-day trial period, just let us know and we'll cancel it your credit card is not charged so But you will need to put it down. Okay, if you want to stick with it then just Don't do anything and we will begin the subscription. Okay The difference between the two not only the price and they are billed quarterly is the The add-on features here and especially the ability here to to trade from the chart. Okay Nice book map action in the ES right now, okay, we'll take a quick look Let me show you where you can find the webinars the It's under the portal you will need to sign in You can click on this link here. This will take you to the registration page Okay Here This is today's webinar in it ends today. Okay on the 10th. I just added the other webinar here for next week so you can register for that right now if you like, okay all of the Recorded webinars and videos are under this education tab. You can see the book map recorded webinars here Just click this link And that'll take you to the YouTube page Okay Here in the YouTube page you can see on the plate on the right hand side the playlist of all of the recorded webinars And this is the recorded webinar from The third. Okay, we don't want that. I've got it here. Okay, so yeah the ninth I just you you'll click up here and get to the one that's from the ninth here Okay, so actually let me write that down So we take care of that Okay Yeah, asking you questions here. This is your time to go over any kind of issues that you have any Clarity, but the thrust of these these webinars here is to go over the order flow and show you what book map can How book map can give you an advantage at these areas Okay, just by looking at a very objective transparent view of the market Okay So let's let's take a look here All right, so we're gonna look at some higher time frames first just outline Some areas and then then we're gonna look at the book Okay, we want to look at the order flow at these specific areas And that that allows you to pinpoint your entries your exits and your trade management. Okay So let's take a look here. Okay The 15-minute chart on the ES. Okay, you can see we obviously we had non-farm. It was very good News and we saw a nice move to the upside We had some lines drawn in here. Okay from previous Analysis, let me see what do we have here? Sorry just a moment Okay, yeah, it's up here at this level there are 60 or 76 level And we can see we just just tapped it and and fell right back down now I haven't even put in lines for today yet. Okay, so What I am I know is this area down here at 61. That's what we were looking at previously Okay, and let's zoom in now. This is a 15-minute chart. Okay. This is where they were buying before We can see the big candlestick wick here. All right, so You can see that maybe they're starting to cover here. Maybe they're starting to buy here We'll take a look at the book. All right, just like Kaweeca is is sane so we can see that we've sold off down into this area and Let's take a look at a five-minute chart see if we see any other levels of interest here. This is looking pretty good I like this 68 level actually I would lower that a little bit to be honest. Ah, I lost it Okay, so let's just put it in here Okay, and this is this is primarily why I'm interested in it is just a moment here Okay, this is where we came down and we came back up and tested that area and sold right back off Okay, so we'll probably see a flip of the book in this area. I'm imagining. Let's take a look Okay, here's our 68 level. No, I'm not really not really too much of a flip a little bit not a very aggressive flip That's for sure When we're talking about an aggressive flip of the book We're looking for at this swing low here pretty high liquidity, which we do get at 68 But then we're looking for this high liquidity on the bid to flip over it on the offer now this liquidity here This is giving us insight Okay, this this liquidity that is on the bid Is now on the offer at higher levels, so they're not very aggressive So usually when we break down to a new level you will see them flip pretty Depends, you know, you might see them flip very aggressively and then they'll want to be Sellers here and this will be the new reality for price it will be trading between 68 and Well the low here at 60 63 or so Okay, so Let's let's let's take a look here. So we were interested in this this area here on our higher time frame basically more much more interested in Just a minute here 661 right Yeah, around the 61 61 almost 62 okay 61 to 75. Let's take a look Okay All right, so here's 61 75 and there's pretty high liquidity there. Okay, so surprise surprise We don't know what that is at that time. It was 832 contracts, so You know what a what a difference in in liquidity This is considered high liquidity now just a few days ago. This would have been low liquidity So we're seeing some price movement And not a lot of liquidity in the marketplace at the moment Okay, so that leads to more volatility All right So let's see. All right. Well, they're starting we can see here They're starting to get pretty aggressive on the on the offer now at 67 All right We were looking here at 69 just just previously But now we're starting to see them getting interested here at 67. All right, so let's go back to the presentation And let me go through this. Okay, so we're going we're showing up to the auction And it is an auction and we want to think of it that way This is the model. It seems to hold up really nicely for us and we're looking for the current configuration of the book What does that mean? It means that we're looking for where are the majority of the buyers and sellers in the auction? Okay, we can answer that very quickly. Okay in book map We can look at these high levels of liquidity. Okay, here. They are on the auction in the auction here 62 and three quarters here. They are now look at them getting aggressive very aggressive here You know, they were at 67 now. They're at 66 and that just happened. All right That is the current configuration of the book and some buyers are starting to get interested They're starting to to provide some liquidity, but they're pulling it quickly here between 64 and 65 Okay, so that leads into the next question in the auction How do those larger liquidity providers behave when price approaches them? Do they really show interest or they do do they not? And that's what we want to read. We so we're reading the context of their intent Okay, so just think of going to an auction and you start to see a lot of buyers that when price comes down toward them They know, I don't really want to buy. I'm not that interested Okay, that's this kind of behavior. We're seeing right here Okay, that is the adding and pulling of liquidity at this price level Okay, what about the sellers reading the context of the sellers? Well, that's that's a very different Okay, 66 is starting to change their mind at the moment But we'll see what happens up here at 67 if we can get up there All right, so we can read the content here the context here at 60 66 Price came up toward them. He pulled as price goes away. They start to add right back in all right, so Now look at them get aggressive aggressive here at 65. Okay, so Maybe we'll see a nice move down and into this swing here And some of the liquidity down here at 62 and three quarters Okay, you can you understand that that that that flow that we just we just saw we just we just witnessed here Okay, reading the intent of these traders We before this Before any of this happened here. We were noticing these guys were starting to get interested but not not really very fickle Pulling pulling their liquidity. They're really not interested in buying whereas these guys look pretty intent on selling All right, so And that will skew the auction All right now combine that with looking them look at the aggressive Market sell orders hitting the bid and we're charging right down into this level here Okay. Well, we're a few ticks away from it All right, we're getting in a little bit of a rebound here and now we'll see if these guys are still interested at 65 Okay, so let me let me show you what I mean here Okay, this was the current auction at Well, you can go even back further This was the current auction when we started the webinar Down here around 61 or so and then 67 68 We noticed the 67 a little later Okay, as I go forward though the auction starts to change a little bit showing some interest here Showing some interest at 67 and and and now 66. They're getting aggressive Okay, so there's more sellers than there are buyers and they and they want to trade up at these levels and it's pretty aggressive because it's pretty close to price and We're starting to get this Nice nice skew in the auction. Okay. There's more supply at a lower level Okay, and and even more supply All right, and that just continues to Skiw that auction. Okay. Now we see now they're getting interested here on the bid though Okay, so we're getting a nice little battle here. That's going to shape up in a very very tight little range here Okay, unless unless someone starts to really skew that auction again or the buyers the aggressive buyers or sellers take them on Adrienne I'm not sure what you're asking if this is a basic overview Or if you look are looking for a basic overview. I'm sorry. There's a question before here Would you mind covering some of the contrast sayings? Yeah, okay. Sorry. You're asking for a basic overview. Yeah, sure No, no problem at all. That's what these webinars are for. Okay All right So what do we what do we All of this heat map information here is derived from the limit order book Okay, the the dome These numbers here that these are contracts that are resting at these price levels where traders want to be sellers here on the offer In the depth of the offer and these are the traders that want to be buyers on the depth of the bid Okay, look at it. Nice little flip here as well Okay, so now we've got a pretty big change here in the in the in the auction process All right So anyway when these numbers these numbers here in this this is the current market window here Okay, best bid is the is dash green best offers the dash red and this number is the last traded volume Okay When you see these numbers change here You're going to see the heat map change. Okay. Now. We've got in what adrian is asking about here Is using the contrast configurations? Okay, because we can we can filter out a lot of the noise here I mean these numbers are constantly changing all day all day long now if I bring up the you know We can look at very specific areas of brightness And We can get into all the all in minutia in the details here Of the liquidity that is provided or or polled All right, so it depends on on your settings now If if we look at that right this this setting here, although there's a lot of detail It's not helping. It's not helping me. I mean it might it might help you depending on the way that you're You're trading your trading methodology. I'm not really too keen or interested In the the kind of shorter term liquidity here I'm looking for those really bigger players higher liquidity Okay, that jumps into the book or is in the book for a long time Okay, because that's going to have an effect on price and But I'm just going to show this to demonstrate here that these very white areas are high liquidity And darker areas are less liquidity Okay, now where this really gets interesting is All of this is recorded and then it's Transposed here on to the chart historically so you can read the auction process You don't have to read the dome any longer It's all recorded for you and it's put input into the historical chart So you can see that you know between 66 and 67 previously they were interested Okay, will they be interested again is what we want to know and they're starting to show some interest look at them come in here Okay, even with this crazy setting here. All right, so What What I like to do with the contrast configurations is there these are very powerful Filters here the white cut off and the black cut off and what that means is I'm cutting off of the Well It'd be better to describe it with using exact size Okay, so I'm going to input and let's just take a look at the book here. All right, I'm going to input a thousand Okay, so any areas that have liquidity of a thousand contracts or more are going to be bright white Okay, all the rest are going to be scaled accordingly to those areas You can use the same for the the black cut off as well Okay, you can you can cut off the black at a certain point. So this is the cut off level a thousand Okay, it's the same here with the slider, but it's just based on percentages. So if I slide it all the way to the right Okay, it's going to take the areas of highest liquidity within this view, which is going to be this area here And that that's going to be the brightest and everything else is going to be scaled accordingly As I bring this slider down, I'm allowing more and more liquidity to have meaning or significance. Okay Now it's it's like taking these thousand contracts that we had previously and Bringing it down to like 800 that'll be the brightest anything above will be brighter I mean will be the same brightness. I'm sorry Okay, so Play around with these filters first All right, you can play around with the contrast as well. I usually just keep it at 50 Okay, I find this large and it's kind of a top-down approach here for filtering Okay, I find the large size highlight very helpful. I like to bring this up quite a bit And what this does is it is targeting areas of very high liquidity and scaling nose Okay, so if I bring this all the way up to the right It's those areas that are the highest and it will show those areas right Okay, now the last one here is the brightness Okay, you can really bring that brightness down here and you can see that Well, if I bring the the high liquidity Large size highlight all the way to the to the top now. I'm just targeting only that high liquidity Okay, this is a pretty extreme view Now a lot of a lot of traders like this actually This is all they use. I've seen it. I've seen it many times Okay, I I prefer to see a little bit of detail I want to understand the auction and the intent of some of these other traders So I'll bring up the brightness a little bit and I want to see a little bit of algorithmic activity Okay, and this looks pretty good. All right, maybe the white cut off. I'll bring down just a hair Okay And yeah, that looks pretty good for me Okay, so I'll keep it at that now if you You know if now For example, today we can see the liquidity has changed dramatically in the book Okay, we're looking at hundreds here. Whereas the other day we're looking at thousands of contracts per price level Now what if someone jumps into this book with 1500 contracts? Right right right here Right at the same moment. All right at 65 1400 contracts that area is the brightest now in in the other areas Uh, it's going to skew the book or the the heat map Okay, so you might have to adjust for it. Uh, based on that if we had the um We we can we can see that uh by bringing up the white cut off a little bit and we can start to adjust it All right, so um, it gives it because it's going to be a representation They're referencing each other and that's how the the heat map operates. All right, so just a all it takes is a little tweak uh of the Contrast configurations and and you'll get the the look that you want Okay, Stefan, uh With areas that are stronger under the gray Yeah, well It's not I'm not going to define it as strength. Uh, I'm going to define it as it's just liquidity Okay gray areas are less liquidity Uh, if there's less there are less contracts here On the offer than there were here at 67 Okay by the gray scale and can I identify the right side? Um Okay, so I if I understand correctly Stefan you're asking if I click on I can use this tool here the data tip tool and let's zoom in a little bit And I can hover over these areas here with my mouse and I have the date The time and I have the numbers here the liquidity Historically, right now as I slide back and forth. You'll see those numbers change Uh, especially in these areas here because you can see graphically it changes as well Okay So that's how that works if you want if you want to see the actual numbers Okay, you can also see that same information in the lower left hand corner So you don't have to use this tool if you don't want to Okay, uh Kaweca Okay, you want to go over some of the add-ons large lot and imbalanced indicators All right Okay, well, let's just um, let's go over that Pretty trappy activity going on here. Uh, let's let's take a look at Let me just cover this first. I want to look at the order flow here and what what's kind of unfolding now Okay, so we're starting to see here Uh At this 63 level this low here Okay, we've broken this downward trend line Uh, and we're starting to trade up above in these areas now Okay, previously we were looking at We were looking at 67 And that 68 area too that but we were looking at a 68 very early on in the webinar, right? Reason being was this over here. This is where that break occurred and uh, and yeah Well, we can see, you know, the the sellers are lining up here at 68 Okay, and again, I'm trying to I'm trying to Read the intent here of these traders Uh, understand if they if they really want to trade at some of these levels or not By now in We always hear about these numbers. Oh, you know, you you can never really Understand them because they pull their liquidity all the time. Well, that's true. But then how do you get filled? Right Now these larger players they'll they'll keep their contracts here if they want to get filled because they'll get the first The first fill it's a FIFO market first in first out Okay, so if they mean business, they'll stay in the book And we can read that behavior here. We can see high liquidity that stays in the book Okay, look at these guys here. Okay, these buyers There's no question about it Like, you know, they wanted to buy the sellers are hitting the bid here And and this liquidity just stays here. They want to get filled Okay That's it. There's there's nothing there's nothing really to to to argue at that point These guys want to buy and the sellers Are are taking their liquidity off of the the best best bid at that point Okay, it's a nice example We don't always get such a nice clear example There's a lot of pulling and adding of liquidity, but we can look for and what we look for here Is this liquidity to stay in the book? And we we want to see large dots that punctuate that large liquidity Okay, so now this is they pulled a little bit, but we do see transactions Okay, they went to a higher level and they started to pull too Okay, but we are seeing transactions up in this area Okay, so You know, they're they're definitely Selling or the transactions aren't are being met. All right So the liquidity is being matched here with the aggressive aggressive market buy orders and that's starting to flip right here Okay, now we see some aggressive selling coming in Okay And let's take a look let's look at a bigger picture here now. So what's going on? Okay, and we're back at our 68 level that we were looking at Okay on our higher time frame Right. I had 67 here on the higher time frame, but then we looked at the book And then we noticed it was actually 68 that we're really interested in Okay, so And that that's another reason to To verify your higher you can verify your higher time frame levels here. Okay, because you know, we're looking I'm looking very clearly. I'm interested in this area here at 60 67 and three quarters And we can see here instead. It's it's really actually 68 and a quarter All right came up and just spiked into it Okay, so Any any of the weaker hands here any of these Sellers moving their stops down well a lot of them probably just got hit Okay, so the market will now we need to continue to look here Does does price accept above our level at 68 and a quarter not yet Clearly not yet. Okay. It's it's spiked above it. We see the transactions take place and it drops right back down into the range Okay, so we'll need to see what What are some of the things we want to see in the auction take place here? Okay, well, we want to see the the offer Have them get aggressive again here on that offer Okay to Show here at at 68 and a quarter a large size liquidity They're going to support their decision. They wanted to go short. They wanted to be sellers up here Well, I don't see them right now Okay, or maybe we'll see a skew here in the book and on the on the bid Maybe they'll raise the bid up into these areas here and support at a higher level It's pretty pretty dark at the moment So let's adjust for our our book I'm just going to bring the white cut off down a little bit I'm going to bring down the large size a little bit And I'm done That's good. It's good enough for me Okay, so now I can see A little more detail here starting to come in at 69 And that's not as aggressive as it was previously Okay, so they want to be sellers a little bit higher Maybe average into their price. I don't know all all we know though is is for sure that at 69 now They're starting to show some liquidity and also at 70 And we don't see the buyers gain here. They are okay now. They're starting to jump in Okay at 67 Okay, there are a few ticks away So it's not the most aggressive But it is it is more aggressive than anything else we see in the in the current book Okay 69 is now starting to get interested too All right, so we'll watch this auction unfold here, but let me get to some more questions And then we're going to wrap it up here NQ I do not have loaded Sorry, Adrian Stefania wanted to reach out to me at support at Veloxpro.com. I'll put the email in here Regarding your your question there That would probably be best to Discuss discuss there All right Okay support at Veloxpro.com all right well, okay, so looking for a little more kind of Understanding here or some of the phenomena and we're not getting clear You know really clear nice examples of it with that flip of the book It's really nice to see when you when you can see them They're on the offer and they're they're kind of here You know at 67 they're on the offer and they flipped and now they're at 67 on the bid Okay price will start to accept or we're looking to see That you know price is being supported From this breakout area now the breakout really occurred down here right and Maybe 66 and a half or so so It's really nice to see that and we're not seeing such a such a clean example. So it's a little muddled and But we can still read the order flow. No no no question. No problem here. All right. Okay. Good morning, Seth I have a good weekend yourself. Let's see. Um Enjoying the daily reviews in the market doing an amazing job. Thank you very much. Um Oh cool. All right. Well good for you Um Yeah, all right. All right, so it sounds good All right. Yeah. Thank you, Andrew. Thank you very much. Um, all right guys, well, um Let's see here still still watching and and And kind of waiting here. I mean 67 is uh, they're staying here and it's starting to you know Reading reading this auction now they're starting to pull. So it's it's a it's kind of an odd day here. Um, but um We haven't even gotten to reading the tape here. We've been just talking about the auction Okay, in fact to the point where we can even take the volume off and you guys might want to consider doing this I did this the other day with with a trader and They they really liked it. Uh, and I I've I've I've covered this before in the past Because we're we're so accustomed to looking at Volume and understanding volume But we don't really understand the auction That's because this this kind of data has never really been available to us But but it is now right we we can instead of trying to read these numbers here and And like a some sort of mathematical whiz In the dome that takes a lot of effort and in and time to learn Now you can just see it here graphically Right, but now you can see how it interacts with the chart over time, which is Even that that that whiz is not really going to be able to to put together Right because there's a lot of things to look at here and We can start to to understand the auction process And and these these levels of liquidity behave very much like people in an auction Even even if they're algorithmic it doesn't doesn't matter. You can still see their intent Okay And maybe try that out, you know, we didn't even get to traded volume today so Reading the the tape or the traded volume and the transactions is a whole whole another side of order flow and that's traditionally what order flow is Because that's that's stagnant. I mean we we can that already happened and we know where those areas are right, but I just I'll cover this with the Kaweca there's a couple different ways you can do it. You can click on the This new tool configuration or a configure visible components And then you can turn them off here or you can go up to the studies configuration Volume dots here and then you can just turn it off here all right and What you're looking for and actually what I'm going to do is I'm going to turn off the heat map and Show you and then we're going to wrap it up. All right I'm going to turn off the heat map here and I'm just going to show you that the transactions that the traded volume And let me just bring up that dot size a little bit. Okay, where are the majority of the dots? Trading or you know the these clusters of activity Okay, that's what we want to read and while you can now you can start to put that together here I mean we're getting kind of dots evenly dispersed all over the place That that's why the you know the the tape is is a little hard to read today um But That said you can you can start to look for Where the transactions take place and the market what that means is the market can trade at those areas All right, or in some of these cases like over here Before 1045 well all of these sellers down in this area. They're going to be trapped Okay, in fact, we come back down just before all of that cluster of volume and we trade right back up Okay, so um, they're trapped for a number of points. Okay, but you can see that we did continue to the downside So look for the clusters of activity because the market can trade there and you usually will get price discovery toward the direction of those clusters Because it it can trade there It has the potential to trade there and has the the potential to discover other areas too Also look for these areas where it doesn't trade at all Okay points of exhaustion and we just had a nice one right here at 66 Okay, look at the the the transactions that traded here Okay, very few Uh, we can also see there was really high liquidity here just by looking at the dome All right, so um now now you're starting to put the pieces together Okay, high liquidity here Okay, exhaustion Looking for maybe a move back up into some of that traded volume Okay, all right guys. Yep, uh, hope that helps have a great weekend and we will catch up with you on monday Take care