 The podcast is now starting. All attendees are in listen-only mode. Good morning traders. Can you hear me and see my screen? If you could just type yes in the questions. Okay. All right. Excellent. Thanks guys. Appreciate that. How many times I've been here talking to myself for five minutes and not knowing that no one can hear. So always start the webinar that way. Let's get the recording going. Okay. Welcome to the bookmap platform details webinar. This is Bruce at bookmap risk disclaimer trading futures equities and digital currencies involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. For more information go to bookmap.com. The platform comes along with education. So there's an educational course. It's four parts and it's a little probably a little different than what you are accustomed to. We start with basic market mechanics in order flow and understanding those like a sweep of the book and we can go through that today. And maybe I'll show it in Bitcoin as well. Just beautiful sweeps in the book there. Just perfect for demonstration of the concept. And then we start there and we go through the structure and reading the tape and the order flow and reading the liquidity at these levels and the context of all of that. And then we go through and back up all of that content in education in the live order flow advanced analysis webinars that start at 11 Eastern so in about 25 minutes. Always following this webinar. So you can learn about it and then you can apply it in the live market. That's the concept. Let's take a look at bookmap.com and just go through some of the basics here for those of you who are new. And there are some new guys in here so welcome. And we'll just scroll down here and quickly go through it. Intro video about bookmap. Nasdaq total view. I'll talk about that in a minute here. But connectivity. So first off let's define what bookmap is. It is a visualization software trading platform. You can also see other platforms in here like Ninja Trader and TTX Trader Pro and Interactive Brokers Traders Workstation. We connect via the API of these platforms however we are a platform too. So you can connect directly through your data provider CQG, Rhythmic, Gain, Capital, IQ Feed, Transact and Dev Experts as well. So with Dev Experts this is that Nasdaq total view in last tail and soon we'll be adding bats to that as well. And it's also for the GDAX exchange for digital currencies so that's how we're connecting. We are a software trading platform. We're not a data provider so you will need to provide your data except for those digital currencies. We have an exclusive deal where you won't need to provide the data. And it's free from us. Let's click on monthly here. Look at the packages that are available and just go over some of the options here. So there's really just a couple of versions here. Digital and Global. The digital version here is free. It's real time. You get connectivity to GDAX and you get it's real time but only one digital currency at a time. And you also get delayed U.S. equities data. So those are the two ways of connecting your digital free version. So you get a taste of what book map is. The digital plus here, what you get with this is the ability to trade right from the book map chart for the GDAX. You get the U.S. equities delayed. You can record and replay your data. And you get the advanced education as well. That access to those live order flow webinars as well as that educational course. You won't get that with the free version nor with the free version will you get full support. Once you get a paid product you'll get full support in that advanced education. Global, book map global, this is how you connect to this version to connect to futures and U.S. equities. And it also includes the GDAX as well. Everything from the digital plus here. And then the global plus is basically it's all inclusive of global and digital plus. In addition to that you get these add-on indicators. These are proprietary add-on indicators that we developed for specifically the order flow. One is the ability to trade right from the chart. It's unique in a lot of respects because you can see exactly the historical evolution of your trading process. And you can hide your orders behind high liquidity if you're trying to, your stops for example, or you can front run high liquidity for your orders to enter. Large lot tracker as you can see here this is for larger players identifying them in the order book and how they might be bullying the book or skewing it. Or maybe that's just where they want to get filled. And then in balance indicators as well as an iceberg detector again looking at larger players using hidden orders and getting filled without showing their liquidity in the book. And a correlation tracker. You can also follow us here on Twitter at bookmap underscore pro all sorts of new stuff here. And then YouTube channel all sorts of videos intro videos features and components and then order flow video snippets. This is similar to the content we go through in the advanced order flow live webinars. We just go through it in detail. Alright let's take a look at book map and what's going on here. Okay we're looking at the ES and you can see the 930 open here. It's maybe a quick jaunt to the downside to this point of control here maybe in the overnight session as you can see but it's been quite bullish since as you can see the nice nice move to the upside and it looks like we might get a continuation of that move now. Alright so looking for this 34 33 to 34 liquidity to be tested here and we'll keep an eye on it as we go through here. But I want to first go through what you're looking at in book map for the new guys because this can look rather daunting and very different than what we're accustomed to. So let's make it simple and something that we are accustomed to and we'll look at a simple candlestick chart. This is a 5 minute candlestick chart. Open, high, low, and close of a 5 minute period. So we all know what the candlestick chart is however there are multiple problems with the candlestick chart. Number 1 is aggregated data within a 5 minute period. Everything is lost within that 5 minute period. Number 1 is the microstructure. We have no clue about microstructural areas that traded or broken and then also seen the transactions that occurred in those microstructures. That gives a significant insight to future price movement. I'll demo that when we turn on some of the other data here. Where is the volume? It's in a sub chart. It's completely separated here. You can see the volume down here. Let's close up our indicator panel. We have an indicator panel that shows the cumulative volume delta. We know there's a lot of buying here. That's good. It's insightful. But where? What type? We split it out so we know it's mostly aggressive buying here. Most charting platforms won't even do that. We need to know what type of volume, exactly where and when it traded, and then how does it relate to that microstructure? Let's turn on the microstructure and quickly get a lot of insight here. This was a really quick and strong move to the upside. Here's a microstructure though. We kept on going up and pulled back. You can maybe say this is even structural here because we can see that we bounced off of this little swing right here. Then we continued to the upside. This is a little bit clearer though. Let me use the drawing tools here to demo this. Here's the little jaunt. Here's a structural area. It was broken and then we traded where? Up into this structure here. Note how we broke that structure. Note how we traded... Sorry about that. Note how we traded sideways here and then broke out of it. Here's another structural area from here to here. You can see how important it is to understand these structural areas. That's completely lost in this candlestick chart. You don't see any of that data. It's aggregated data within a 5 minute period. Up and down, back and forth between that 5 minute period. We want to understand this. More importantly is we want to understand the volume within it. This is going to give us a lot of insight. Let's clear the drawings and let's put on the volume. Let's zoom back into these areas. Here we go. We can clearly see lots of green dots here. This is lifting the offer. The aggressors are coming in here and lifting the offer to higher highs. This is the area here from our structure analysis. They broke out here. Look at the breakout. It's aggressive buying. Look at the color of this cluster of data. We can see we rejected here and a new high. We went sideways for a bit until the buyer stepped in and lifted up out of this structural area. It's a nice buying. This is indicative of a trend in the market. More aggressive buy volume at higher highs. Let me define that. Let's look at these two elements in the chart. We'll add the heat map. The green line up here is pretty nice. We start to see sellers coming in here a bit. We're starting to exhaust out here on that buy side. Where are the buyers? Look at the sellers in these areas here. What exactly am I looking at in these two elements? The red line here is the best offer. Let me bring up the dot size. These green dots signify aggressive classification of volume. This is a market buy order. They crossed the spread and took liquidity off of the best offer. Note that we can zoom in here and we can see exactly what traded here. Note how we're breaking apart all of those trades and we're down at millisecond level in the timeline here. We're looking at millions of seconds. We've recorded every single market event. That's the power of book map. We came from HFT environment, the software. We needed to know where we were getting filled with our algos. We retain all of that data here but note how as I zoom out we consolidate that or aggregate that into just a bigger dot. It's just graphically done though. It's still accessible. We don't trade at those nanosecond or microsecond levels. We need to understand the overall of what's going on here and here's our answer. Here's the aggressive buying, pulling that market up. We started to note that sellers were starting to come in. We saw some of the exhaustion here and sellers started to come in here but the buyers stepped in and lifted it a bit higher here. We start to see sellers are starting to come in though. That wasn't the case down here. We're getting all sorts of insight for a possible reversal here and change in the order flow. You can start to see even more sellers starting to come in here. We put all of this together and then we want to see... What we're looking for is we need to see that we start to note sellers are starting to come in here but we need to see the structure broken because we are still in an uptrend. This is what we go through in this advanced order flow webinars. We note this but we're still bullish until we're not. Here they come again. Lifting the offer. Let's zoom in. One more push to the high side here and then look at these retests up here. It's completely exhausting out. Let's zoom in and we can know precisely what traded up here. At this level here 43 contracts and that's just up at this little pin here. Let's just put this data in here though. It's completely exhausted out. Sellers start to step in and they hit it pretty hard here. We can see that. We're just looking at two elements here. Let's just get rid of the candlesticks because they're not helping us at this point. We haven't even gotten to the strength here in the work map just because we're covering these very simple two elements. That third element is the heat map. This is going to be a great example to go over in about 10 minutes with the advanced order flow webinar. This is a real nice double bottom here and you're going to see that trend continuation here. Anyway, the heat map. What is the heat map? It's just a historical evolution of the dome. Let's go over the dome. Everything to the right of this vertical white line here is the live market. This is your best bid and offer currently. This number here is your last traded volume. Here's your price ladder. Current order book. These are contracts at these price levels here on the offer. These are sellers lining up providing liquidity in the order book. This is the dome. Here they are on the bid done in these areas. Note how these numbers are always changing. This makes it very difficult to trade using the dome because you have to remember where the liquidity is, how much, how long it was there, how they behaved in front of it or behind it at other price levels. That's just on the offer. We need to do the same on the bid. That's very taxing mentally and for those of you who trade from the dome know exactly what I'm talking about. Let's solve that issue with the heat map. There we go. Let's zoom in here a bit. We take these areas of high liquidity or it's a scale and you can see the scale up here. Gray is low liquidity. Blue is higher than white then yellow and then orange is the highest liquidity in the book. Here's our example. 2735, there's 919 contracts up here. That's fact. We just know that. That's where they're showing they want to deal. We'll see though if they mean business or not when price comes up into this area or if it does. We paint that in here and you'll see that if we zoom in you'll note how this is really kind of skewing the book here. You'll note how these numbers change and the liquidity heat map changes. When the heat map changes in this window it's recorded and transposed onto the chart historically. All these striations in the colored heat map is showing that they're adding and pulling liquidity. Price just came up in 234 here and they pulled up here as well. They're up here now at 35 and we can even see that they're starting to pull. We had 900 and something contracts. Now it's 880. What's their behavior in this auction? We can answer that decisively. They're starting to pull. They're showing less interest in selling up here. If we see more aggressive buying here lifting the offer then they're shooting for this as a target because the market needs liquidity to trade. We can start to zoom vertically here and look for next areas of high liquidity. The important part here to piece together is the aggressor and how it relates in context to the more passive limit orders, resting orders. We put this context together so we understand the auction with the intent of traders at these levels in the order book, how they're behaving, and then the aggressor here as well. Who's in control? Reading the tape here. We can see that buyers are still lifting the offer. We don't see a lot of sellers. We just kind of exhaust it out here one take away but buyers starting to step in. Let's see them test 35 right now. Looks pretty good. Let's see it. We're one take away. Now look at their behavior here. They're adding in. Just bumped up to 1162 contracts. The buyers are starting to shy away from that now. This is what's occurring. This is live in the auction here. We can see that right when it came up here they started to pull but then they added right back in. Let's use our data tool here. We can see from 900 to 800 in something 852 and then they really started to add in here after that. 1152 contracts. What's their intent? Looks like they want to get filled here. Now they're starting to pull a little bit but they're still very, very high. It's higher than before. What's the reaction here? The buyers are starting to shy away from that. We actually did test right into it here at 35. You can see nothing traded, not one single contract. If the buyers are still bullish they're going to trade into this. The sellers are going to note that and note how they start to come in on the other side here. Note how we actually broke this little microstructural area right here. We see selling down here. We made a lower low in the microstructure and we see sellers. This is microstructural. Based on that, if we see a little more selling here at 33 or maybe even 32 and 3 quarters, we can come down and test the bottom of this range here. We're starting to understand the auction together with the aggressor. We just got that context here in real time. We'll keep an eye on it. We're down at 33. Let's see if they can hit the bid now and maybe drive it down into these lower areas. You can see them lining up here at 30 and a half. This is a target here. Overall picture though, this is the important swing. If we can see more liquidity trade down below or more aggressive sellers transacting at this kind of swing or even lower low here then we have the potential for price discovery further to the downside and maybe a shift in the trend here. Maybe a switch in the order flow. Alright guys, I've got to go. If you're signed up, we'll see you in the next webinar.