 Very good morning everyone, this is Rajendra here joining from Market Calf and in today's session we're going to look into the footprint add-on. It's also called as footprint charts or autoflow charts, particularly using the bookmap tool and some of the trading strategies for scalpers is what we're going to discuss using the bookmap tool here. I hope my audio and video quality is good enough to kick-start. First of all, we'll try to understand what is a footprint chart. The footprint chart itself, it's been there quite since 2001 onwards. It's a very modern study. Earlier, we don't have access to that. In one of the squat box, the user started quoting bid and ask level at each and every price levels and later on it started, I think professional software started coming from 2008 onwards, right? So it's been a very young study, a lot of exploration needs to be done on footprint charts and if you know already bookmap itself and even more advanced tool to visualize liquidity. Whereas footprint charts, it's more of a visualization tool. Again, it is also a visualization tool to understand what market orders are doing. So market orders is what we call considered as aggressive orders and passive orders we consider as they are nothing but a pending limit orders. So footprint charts helps you to understand what aggressive and passive traders are doing in the markets. So why it is so important is like it helps you to build the trading context in real time. So if you are a trader or if you are a scalper, right, you have to live by minutes. You have to live by hours, max to max. So when the market is reversing, you have to, if you want, if you are seeing a trading opportunity, if you are trading a very good trade setup, one should start reversing their trading position. Now, one important benefit of using the footprint chart is like in your scalping trades, it gives you a very good risk management, a lot of very good risk management tactics are available in footprint charts. I myself using footprint charts since the last 10 years, I started using footprint charts from 2012 onwards. So since then, market profile and order flow are my two primary studies. So footprint charts, it helps you to understand how the interaction is happening between the buyers and sellers. And it also helps you to understand the day's market structure, how the day could be evolving. It gives you a fair idea about how one should be looking into the footprint charts. And footprint chart itself primarily for the traders like scalpers and intraday traders. I don't know how positional traders can take advantage of, but food definitely, if you are an intraday trader or you want to be an scalper, then definitely it is one of the very important tool to explore, particularly for Indian markets. Footprint chart also reveals the microscopic details about the market structure. It helps traders to build the context in real time. Maybe I'll show you how the footprint chart looks like. So you can see that the footprint charts comes in a ladder style. On the left hand side, you'll be seeing the aggressive sellers that sell market orders. On the right hand side, you'll be seeing a buy market orders. So instead of you visualizing in the form of candlestick, the candlestick price action is visualized in the form of bid and ask price level. In the candlestick, what we will get? We will get a overall volume. But here, at each and every price level, the footprint chart gives a bifurcation of the buyer activity and seller activity at each and every price level. So the chart what you are watching is a five minute chart. Maybe I'll tell you, like if you are very new to footprint add-on charts, what you can do here is like, I mean, you can, you have to go to the add-on. From here, you have to add the footprint add-on. Footprint add-on, you have to add it from the, from the Bookmap website. So if you go to Bookmap portal, so here is the footprint add-on. So a lot of add-ons are there. One among them is the footprint add-on. And this footprint add-on, it's particularly designed for Indian markets, right? So they also have an installation guidelines and brief explanation and walkthrough video about how to use this footprint charts, how to set up the footprint charts. And how to configure the footprint charts, all those things are here. I prefer using a five minute time frame. So in my case, I've been using a footprint chart interval at a five minute chart because all these 10 years by most of my experience comes from watching the markets on a five minute time frame. Of course, if you don't want a timeframe basis, you can also use a reversal mode or range bar mode. So something like a range bar mode, you can use like every 10 ticks. You can, you can consider using an every 10 point range. It will plot the footprint bars when that range is broken, a new candle will form. Or you can also consider using a volume based candles also. For example, every 20,000 bars, you want to plot a new candles. That also it is possible. But as I said, I prefer using more of a five minute interval only. I experimented with the range bar also. Range bar is even more for a kind of a fast scalpers, right? So, but however, I am a guy who is looking for a trade, something like four or five trading opportunities in a day using order flow. So in that case, I am pretty much satisfied with our five minute bars. Otherwise, if you, in case, if you want a lower timeframe also, still they support one minute and 30 second kind of lower time frames, right? So five minute chart is what I said over here. Now, how to apply it? I'll show you right from the scratch. Okay, so I'll close the nifty chart. I'll unsubscribe it. I'll open nifty over here. When it comes to nifty, I'll show you the settings. I'll show you the settings, whatever the settings I'm using for the bank of tea also, see by default, the tick size is 0.05, but then for Indian markets for displaying the footprint charts, I'm going to use one and I'm going to subscribe once I subscribe automatically. I'll be able to the data gets loaded immediately. It takes a little bit of time to load because a huge amount of tick data has to be loaded in. So you see that the loading, how much bar is getting loaded showing over here. Now, once it gets loaded, you'll be able to see the charts. So the charts are here and by default of the footprint add on, I think it's by default, it's enabled in my case, it is already enabled over here. If you don't want, I can go back and enable the footprint add on. Scroll down, I'm going to set the tick size multiplier as two. That means every two point interval, the buying activity and selling activity will be collected in the form of bins. So we can call it as a bins where the buying activity, selling activity, every two point interval. So how do you know that it's a two point interval? Because tick multiplier is two, my tick size, whatever the tick size I'm setting is one. So one into two, that is two points, every two point interval, it collects the better ask activity, the buyer and seller activity. Now, for something like bank of tea, we cannot use the same one tick size as our interval because bank of tea price is very much bigger. So in case of bank of tea, what I'll be using here is like the tick size itself, I'll be using as a five and tick multiplier, I'll be using as one over here. In this case, tick multiplier, I'm using one and the bank of tea, while selecting the instrument, I select the tick size as five. For example, something like this, I go and select the bank of tea, if you use this, and I'll select the tick size as five. So anyways, I'll open the chat so I don't need to resubscribe again. This is my settings when it comes to nifty and bank of tea. So the reason is like different symbols will have different tick size. I mean, different symbol will have a different pricing levels. So we cannot use the same tick size to visualize it. So one have to go with an optimal tick size levels. So that minimum, you'll be seeing at least some five to 10 bars at any given five minute charts. So that's an optimal one I used to set mostly. Now let's go back to the slide here. Now, there are multiple views which is available in footprint charts. One among them is the delta. So let me show you the delta activity here. The delta represents whether that bar is controlled by a buyer or a seller at any single price levels. So if in case if you want to change the view of the footprint add-on, you can click on footprint, go to the footprint settings, and then from here you can go and select the footprint type. So I can change the footprint type to horizontal delta or diagonal delta. So diagonal delta is what one should prefer. So let's say I'm switching to diagonal delta over here. Now the information what you'll be seeing over here is like, so this is diagonal delta. Maybe I'll go to horizontal delta over here. Horizontal delta. Now in case of horizontal delta, you'll be able to see a positive value and negative values over here. So what is this positive value is like the buyer activity minus selling activity. If the value is positive, that means that particular bar is controlled by the buyers. That particular levels are more buyers are there compared to the sellers at that exactly price level. Means buyers are taking more effort around those levels. If you are seeing a negative value, the negative value represents what? The negative value represents mostly sellers are more aggressive in that particular zone. So you can also able to see where the momentum is getting generated. So if at all sometimes there is a huge activity is there, huge selling pressure has been witnessed in this at that particular price level, more sellers are there compared to the buyers. So that is what we'll be able to see from the delta. This is called as delta at price. We call this a DAB DAP. DAP means delta at price. At each and every price level, it measures the delta. Again, what is delta here? So delta is nothing but total number of buyers minus total number of sellers. If you see a positive delta, then aggressive buyers are in control. Means the buyers are comparatively more compared to the sellers. If it's a negative delta, then aggressive sellers who are aggressive sellers, the one who are punching the market orders. An order flow reveals all the traded quantity, right? All the buyers and sellers quantity will be completely revealed over there, all the executed market orders. It shows only the executed market orders only. There are also other modes in the footprint charts. So if I scroll down, I'll switch it back to some. This will give me volume at price, WAP VAP. So some gives me WAP volume at price at each and every price level. It combines that total volume, bid and ask quantity. It'll be combining put together. It shows us a total volume over here. Now, if you see the color coding, the color coding is very much, it shows very interesting stuff. What it shows is like, whether that volume is dominated, that zone is dominated by the buyers or by a seller. Green means always that zone is controlled by the buyers. Red means that zone is controlled by the seller. So maybe I'll show you that mode here, the background type mode what I'm using is a full background delta plus. It is highly preferred so that you can easily spot some sort of absorption sometimes. Whenever any absorption is happening, you can able to spot. However, if you don't like this kind of colors, one can definitely move to a single color also, full background single color. So where we'll be able to see everything in a green color itself. A light shaded and thick shaded will be more volume activity happens around those levels. Light shaded are the one where lighter volumes happens. Lighter volume or you can also consider switching to bit and ask. So B and S means bit and ask ladders. So in my case, what I'm going to do, I'm going to prefer switching to the actual background based on the delta color, positive and negative delta colors. Okay, now what is happening in the markets? Let's have a quick check on that and then we'll go and talk about more, some of the principles of order flow. So what it's been happening here is like price opens gap down. So maybe I'll compress. You'll be able to see along with the footprint charts, you're also able to see the bubbles as well. So these bubbles are in a tick level format. So you can keep on zooming the bars and you can see that the red and green color line is nothing but the bit and ask line. You'll be able to see the bubbles, the red color bubbles are nothing but sell market orders, bigger the bubble, bigger the order is. And the green color bubbles are nothing but the buy market orders. Bigger the bubble, again, bigger the volume is. You can also click and then you can check the volume. And you can also just check how many quantity got traded, whether it traded at the bid or it got traded at the ask. You'll be able to see those things. The difference between the bid and ask is what it's called as a spreader. So that is what it's more of a market maker's term. When it comes to Indian markets, we don't have any official market makers. Like in your market, we have that term called official market makers. They come and supply liquidity. So there are big companies like Citadel, Jane Street Capital, Optiver, those kinds of brands, they come and supply liquidity in the markets. So using high frequency trading techniques, they come and supply market makers. I mean, they come and do market making. When it comes to Indian markets, though liquidity providers do exist, most of them are arbitrages. We don't have an official term like market makers when it comes to NSE India. But does liquidity providers, they do exist in the market? If you ask me, yes, they do exist. How do you know that? If you ask me, right from the market start, you can see that whenever the market is starting up, you'll be able to see, bid and ask will be there available on both the sites. At any given time, the moment market start, you'll be finding liquidity over there, and the liquidity presence will be there till the end of the day. So that means what? Market makers, they do exist, even though there are no official tag, like market makers or designated market makers. But when it comes to US market, if somebody wanted to do a market making, they have to officially register with the exchange, and they do big volume transactions. And they mostly place limit orders, they are wholesale traders, their presence will be felt in the markets across the day. Maybe their presence will be always available 80% of the time. 80% of the time, their volatility is more or less guaranteed. Whatever the bid and ask values that you're seeing in this example, they're nothing but a pending limit orders. They don't move the markets. So what exactly moves the markets? The market orders. But these pending limit orders, they can control the velocity of the price action. Anyways, so we'll look at some more detailed information about that. So we learned what is Delta. Now what we're going to learn is what is the value of the market. Big single-priced volume. Now, first thing, when you are trying to learn footprint charges, first thing you have to understand what is the relative volume, which volume is the bigger volume, which volume is a smaller volume. So at a single-priced volume, when I say single-priced volume, I'm talking about something like this. You see the 1,600 into 3,900. So that is sell side, it is 1,600 and buy side, 3,900. So these are single-priced volume. So for a big single-priced volume, I will consider as 450 lots. I'll consider as a big volume. 450 lots means it translates to 22,500 shares. So book map, it shows in terms of shares, not in terms of lots. Please remember that. So big volume is 22,500 for Nifty. For Bank of T also, it is going to be 450 into 25, 25 is the lot size. So 11,250 is the big single-priced volume. You can see here, there are two, in this chart, on the sell side, 2,900 and 4,800 are the two big volumes which are happening, which got traded in that particular bar. I think around 10, 10 or somewhere we had seen this kind of big volume. In today's, this is a snapshot from today's one only. So such a big volume got transacted. Maybe I'll show you from the chart itself. I'll go to Nifty and then I'll go to somewhere around 10, 10. So here also you can see the 31, 250, that's a big single-priced volume. In 10, 10, 10, almost very close to it, that is one big single-priced volume got traded over here. This is Nifty futures. So obviously, what is the volume? 22,500. Anything about 22,500 is considered as a bigger volume. So 24, 450, definitely it's a big volume over here, big single-priced volume over here. There is also an ultra-thin volume. An ultra-thin volume refers, we call it thin volume bars. This is also another example from Nifty futures itself. Today only it has been taken. If the Nifty lots, you see that on both the sides put together, if it is 350 lots, 350 lots means it translates to 17,500. If none of the volume is neither on the buy side or on the sell side, look at that on both the sides, volumes are less than 350 lots, that is volumes are less than 17,500 shares. Those volumes are considered as a thin volume bars. Now why this is so important, I'll tell you. There are times when the price is moving on the upside. It is more connected to a simple auction principle also. Let's say when the price is auctioning higher, the price keeps on auctioning higher as long as the buying activity got shut off. Then what will happen? Then sellers will take control of the markets. Sellers will take control of the markets. So the transition points you'll be seeing a thin volume, thin volume at the day high, thin volume and that bar low gets taken out. That usually mean towards the VWAP, it mean towards the VWAP level, VWAP levels. And on the opposite side also something very similar is true over here. So when the markets are going down, the volume started thinning out, means the sellers lose their strength or maybe some sort of a momentum exhaustion we can call it, which is followed by the thin volume activity is followed by a mean reversion towards again, towards the VWAP levels. And that low of the bar offers a stop loss over here, a very tight stop loss is offered around those levels. So that the volume thins out, thin volume. Now I call this strategy as an insecure low strategy. So means usually what happens is like it is going to be an immediate long, but at the same time, at some point in time, the same day, I'm talking about the same day, we don't know how much upside it can go, but minimum will be targeting towards the VWAP. But how much ever they go on the upper side, the possibility is little more than 60% that they always come back and break the lows. So this strategy is what we call as what? Unsecure low strategy. Unsecure. Which side you should trade first? First thing is like you should learn to trade the long side first, because that is where the very tight risk management is offered. Very, very tight risk management, something like Nifty and all, one can take like 10 points, 15 points kind of stop loss they can take. And target, they can aim like 15 points, 30 points. Sometimes even in a highly volatile market, you can go up to 45 points, 50 points also in a highly market. Right now, the market volatility is got thin down, particularly in November, December we had seen elevated volatility, but if you see today's market low also, so today I think the market low, let me go and show you the low here. So here is the low, right? Now this bar, if you could see that, it is ultra thin volume on both the sides. This is Nifty futures, so Nifty futures ultra thin volume, we always measure when the price is hitting a fresh day high or a fresh day low. So today a fresh day low is hit, 17,500, notice the number 17,500, all the bar volumes on both the sides, it never crossed 17,500, means none of the size is not more than 350 lots. Neither on the buy side also not more than 350 lots, neither on the sell side also not more than 350 lots. In fact, the biggest volume what I am seeing is like 10,200. 10,200 means how many lots? 10,200 divided by 50, 204 lots only. Now this bar is what I will call it as a ultra thin volume bars. Maybe I will pull up on a text tool, I will say like ultra thin volume bars. I will call this an ultra thin volume bars, ultra thin volume bars and that's an interesting one. So the thing here is today's price action is very much getting compressed, though morning price action was very good, first to one hour of price action is very good, but after that the volume started running thin. So this ultra thin volume bars usually it pushes the price towards where? Towards the VWAP, so you can see a pink color line over here that is the VWAP levels. So when the trade will get active, the moment price breaks the high, the trade will be getting active, it moves towards the VWAP. So here today it is like hardly 12 points of price action towards the VWAP. The reason I said today is more of an first half, first one hour there is a serious volume traders traded, but after that volumes are running thin over here. After that what is happening? Volumes are running thin, when volumes are running thin always it get attracted towards the VWAP. So one more time it got attracted towards VWAP, again you can see that all these are like ultra thin volume, at some places yes some slightly bigger volume got traded, but again you can see that from 11 to 10, 11, 15, 11, 20, so all these volumes are running thin volumes. So thin volume indicates that price is traveling in a low liquidity zone, not only that, usually it happens because of two reasons. One is nobody is interested in aggressive participation, another one is like usually happens in a dull market activity, or if the price is trading in a low liquid conditions, we will be seeing a low transactions. If the price is moving in a highly liquid market condition then very high volume transactions will happen. So once again what is happening over here, repeatedly price is getting attracted towards the VWAP, in fact in the previous session also we talked about it. I am sure the people who attended the previous session we talked about anatomy of the sideways markets. Now something similar to that is what today also it is happening, today also nothing big difference is happening over here. Okay let's get into some more concepts. So this one of my favorite trading strategy it is unsecured low or ultra thin volume bars, it can happen on the upside also, it can happen on the downside also, as I said it is one form of an exhaustion in the markets, exhaustion at a very very lower time frame levels. So usually the people who are looking for a mean reversion, mean reversion towards the VWAP they can go and trade such kind of levels. So what are the other principles that we can think of using order flow, there are various principles we can think of, these are some of the principles I personally follow myself, some of them are like big volume clusters, then initiative drive, absorption, delta divergence, drabbed buyer, drabbed seller, genuine buyer, genuine seller, exhaustion high, exhaustion low, volatility, liquidity zones, stop hunting, commitment of trades, unfinished business, stock imbalance, smart delta positioning, delta unwinding, strong secure low, red volume, zero liquidity zones, ultra thin volume that is the principle I had explained over here because that is what it happened right now. Anybody who knows this concept very easily they can apply with a very tight stops and order flow sweeping. In fact bookmap has very good absorption indicators and order flow sweeping indicators, I think it is yet another add-on that you can find in bookmap, off late bookmap started providing a lot of add-ons, in my case I am just experimenting only with few add-ons only, so sweep indicator, absorption indicator and footprint, but however if you go to the bookmap portal you can find a lot of add-ons over here. So recently they also provided Python API and JavaScript API, particularly if you are a coder you might be liking this, maybe you are building some sort of an automation or something like that, then definitely the Python API or JavaScript API could be helpful to build your own, I mean to automate your own applications. All right so look at the volumes here still it's tightly gripping, it's tightly hugging the VWAP and moreover it's an expiry day as well, so if it is an expiry day you know that mostly option sellers are the one who is likely to make money majority of the time, one of the day we have to give it back to that, I mean as of now there is no aggressive activity, maybe second half there might be some sort of aggressive price action, but first half as long as this volume is going to run right, it's very easy to figure out that we're going to see some sort of a huge sideways price action, price is going to spend more time around here, already they started spending time and they could spend a little more time also, means if the price goes up they'll fall back to the VWAP, if the price goes down they'll come back to the VWAP, the VWAP is somewhat it is going to act like a center point, if you tell you one thing for an option buyer there are no free money, so since there are no free money right, option sellers are the one who may they tend to make money 75% of the time, very few days are going to be an option buyer day, so thus far the scenarios are indicating that it is at least the first half is going to be to the option sellers, because aggressive volumes has been literally dried up, such kind of dried up volume usually results in what balancing markets, market will start rotating means very quickly you can figure out that, so one important one thumb rule that you always need to know here is like, if the intensity of the volume is very high, let's say if the intensity of the volume is very high, warning to some extent intensity of the volume is reasonably higher and not so big volume though, if your VWAP along with the price, if the price also moves down with volumes, what will happen to the VWAP? VWAP also brings down because price is moving with volumes, so price is moving down with purely volumes, high volume it's like high volumes, if it's moving with high volumes then the VWAP level also will start moving along with the price, but what we are experiencing right now, we are experiencing right now with a thin volume activity, in a thin volume activity day what will happen, so again very simple, if you know this concept right, you can handle the intraday price action very easily, in a thin volume day let's say maybe morning would have been we would have seen some decent price action, if tea had crashed at the opening itself it had crashed some 140 points within the first one hour, now after that what happens like by the time the VWAP also started and they moved very closely towards 17, I mean 18,020 levels, now later on what started happening more and more dull boring price action started happening, so in that case what will happen, it will always get attracted towards the VWAP, VWAP will not migrate, VWAP will be going straight, volumes will be very thin, so if the volumes are thin what will happen, price will attract it towards the VWAP and more and more dull boring volumes are going to happen, more and more thin volume bars that you are going to see, what will happen is like the price action will go, VWAP will be flat and price will be mostly circulating towards those levels, price action will be mostly trying to trade around those levels or sometimes they will go up with the less volumes, again they will get attracted or they will go down again they will get pulled back towards the VWAP, so such a kind of a day is what right now we've been experiencing, if at all has to change something has to change what has to be happened, some big volume has to happen, maybe big volumes are again happening on the downside, maybe again the VWAP will start bending down, so one of the primary trades in most of my strategy is trading towards the VWAP, I had said this in many of my sessions, now also I am saying the same thing only, if you are seeing a big volume activity as a footprint trader, you are the first one to know that, yes the volume since the morning is pretty high, if you have and if you keep on observing the volume activity, you are the first one to notice that yes the volume activity is pretty much higher here, yes first one hour volume has been decent, not high but decent volume, but at the same time post that volume started running dry, usually they will get attracted towards the VWAP, so mostly I would say like it is more of a scalpers day, maybe first one hour could be more of a trend traders day that has been done, that has been over done and dusted, now the market something has been changed in the markets, what has been changed is that the low volume activity, so it doesn't matter price goes up, it attracts towards the VWAP, price comes down, it gets attracted towards the VWAP, again you can see that the selling is happening, a continuous flow of selling is happening over here, with the bubbles you can identify, the same thing you can watch it from a footprint charts also, that sellers in this zone are pretty much more, but still is the volume, anything has been changed, still ultra thin volumes right, when you can figure out the ultra thin volume is like only when the candle closes, because until the candle is not closing the volumes are, it can happen anything can change, all of a sudden a big volume can happen, so I'll be mostly watching, still another two more minutes is what left for the five minute bar to close, so still I'm not able to see any volumes, any big volumes more than 70,000 shares or 350 lards on any of the sites, I said also no such volume, sell side also no such volumes, so means what all, what are the selling happening is also more of a thin volume selling only, absolutely, so means what maybe one more time they might get attracted towards the VWAP, they generally get attracted towards the VWAP with less volumes itself, but VWAP is not trading thus far, it's trading very closer, because the volume has been running dry, so price is mostly hugging through VWAP, there are many times price deviates away from the VWAP and it provides a significant trading opportunity, all sometimes nifty 30, 40 points of opportunity, it gives from a scalping point, and some cases sometimes like in Bank of T and all it can go like 100, 120 points, primarily 100, 120 points, and on even days the trading opportunity can go as high as like 70 to 100 points, so even days the opportunity will be super high, rest of the day is normal trading opportunity, like 30 to 40 points and still it is a decent trading opportunity from a pure intraday perspective, so one of the thing here is like is there any big volumes that is what guys should be scanning, and whenever a fresh volume, fresh high or fresh low is made, you are the one first to aware about that, yes the price is making a fresh high or a price is making a fresh low, because whenever a fresh high is or fresh lows are made, again my view will be shifting to what is happening to the volume, when the price is breaking out with big volume, is the big volume actually sustaining or not, or if it is low volume, even if the low volume is not sustaining also, that's a crucial sign to look for a mean version towards VWAP, I'm sure you guys are able to understand the simple concept behind that, not everyday I'll be looking into the VWAP, but 60% of the time I'll be looking into the VWAP, because 60% of the time mean version happens towards the VWAP, other than that there are a lot of principle to follow, so one among them is like initiative drive and absorption, you know initiative drive is more of a momentum activity by aggressive traders, the one which happened in the opening, right, so very appears an intensive price action happened, first one hour, first one hour price moved with volume, volume activity will be very high, you'll be able to see big price action, big single price action will be there, and the length of the price action also will be pretty much bigger, everything I'm talking about from a 5 minute perspective, at times you'll be having something called stacked momentum, and at times if the intensity of the selling is even more intensive, sometimes it happens with order flow sweeping, you'll be finding a lot of zero zones on one side, absorption is exactly opposite to that, in an initiative drive market orders are the one which is a driving force, they are the smart money there, whereas when comes to absorption also you'll see high volume activity, but you will be seeing some sort of a responsive action, here the smart money is more of a limit orders, unfortunately today there are no absorption yet, though morning we had witnessed some sort of an initiative drive, you see that the price is getting attracted towards the VWAP, at least it is getting closer to the VWAP over here, it's very common in a dull boring markets, one of the thing a trader has to sense is like is this day is a high volume day or it is not a high volume day, if it is not a high volume day, maybe if you're an option buyer, one of the good day to avoid, or you can try in the money scalping, so buy in the money and then look for one or two points, three points or maximum five points of gains in your in the money options, and then look for an exit, that's the maximum thing you can do, because these are the places the market will not offer not much of a big trading opportunities, look at the dots, all these are like small small dots over here, relatively literally there is no demand is there in the market, it means nobody want to take a big long positions or big short positions in the markets, maybe because of holiday season, yesterday also market does the same thing only, maybe we don't know how long this could continue, it could continue maybe till new year maybe, all the sudden price crashes, but rest of the time market will be finding it that price will be keep on rotating around the VWAP levels, most they touch the VWAP one more time, so now you can see that some big buying activity is happening, big single price volume I think looks like almost, and both the sides volume interactions are happening over here, all of a sudden, so maybe they could even, this volume activity is looking a bit aggressive, this is aggressive, this is not the same one, it's aggressive one, you can see that there are no volume activity on the other sides, so what does that represent, mostly sweeping is what is happening over here, single handedly somebody is pushing the price up or they keep pushing up higher also, so this is more of a sweep, the sweep itself ended with a huge volume activity, notice that this is what we call as a trap, all of a sudden an absorption is happening, means what, big buyers are keep on buying and buying and buying, look at the volume activity over here, it's a huge volume activity, 88,750 lots, such a huge volume and then the big trader got into a trap, this is what we call as a kind of a trapped activity, so in fact there are also indicators to understand this absorption, it's more of an absorption, so what is absorption over here, this is kind of an absorption, an initiative drive is happening, the buyers are pushing the price up, you see that the buyers are the one who is the major driving force in many of this auction, in this entire auction from here, mostly I'm able to see only buyers only, so buyer activity is extraordinarily higher and the bar is ending with a huge volume activity, that huge buyer is getting trapped and prices getting pulled back again to the downside, so look at that, this is the highest volume which got traded, I think throughout the day one of the biggest volume got traded around those limits, all of a sudden such a crazy price action was happening over here, so that's what the definition of absorption itself is, it's a high volume activity where liquidity supply is very high, it does tend to do a responsive price action, means the traders get into a trap, despite big buying activity price doesn't mean to us, price starts falling if it is a buyer got trapped, if seller got trapped then despite having a big selling activity the price will pull back on the long side, so that's more of an absorption, so this is more of a sweep, what we witness is more of a sweep, sweep also happens with the reasonably decent volume, the live market itself we talked about that a lot of big volume traded in the zones, but then the biggest volume it ended with a trap 84000, so what is the volume size 94 200, so will they come back to VWAP again, the possibilities are there, because that is what is going to happen, that's what we've been talking about it, so since the big volume activity happened over here you could also seen that some mini migration towards the VWAP on upside, because volumes are the volumes are the driving force over here, that is making since big volumes are pushing the price up VWAP also shifting a little higher over here, again if thin volumes again what will happen, again price will drop to the VWAP levels, kind of a frustrating sideways markets, of course one more time I think we might test VWAP, not necessarily immediately we can go a little bit higher also, but still always we could come towards the VWAP levels, even though buyers are the driving force over here volumes are still once again it is getting muted, all of a sudden we had seen a big volume activity and then that's it, from there they we started falling back down some sort of an absorption happened around those levels, so this is the place the buying activity ends in the form of trapping, trapped activity, let's see how the price is once again falling back towards the VWAP. Rajin we have two questions on YouTube, if you can just you know answer them that would be great, so there is one question from Rids, he's asking so how to determine good entry for buy and sell using this information, and the second question is I want to know about delta divergence, so how to use it, so can you answer these two questions, thanks. See delta divergence in I think in book map still there are no metrics for delta bar level delta I don't think it is available as of now, maybe if there is a bar level delta you can get that like let's say overall delta, so maybe I'll show you how to calculate the overall delta, but in book map the feature is not there I think, so if you go and then I'll change to delta mode horizontal delta, so this gives you delta at each and every price, but if you sum up all the blocks, if you sum up all the blocks, if the value is going to be positive that's overall delta for the bar, I think the overall delta for the bar is not available to my knowledge I guess, I think that is not available here, so if the price is hitting a fresh day high, but still the delta is going negative, so that's what we call as a delta divergence, whenever usually we'll monitor delta divergence at the fresh day high or fresh day low, so when the price is hitting a fresh day high and delta is getting negative that means water, despite prices hitting a fresh day high some smart sellers are entering into the system, so in that case delta divergence goes negative, so where we can look for a trend reversal, so look over here, there is a huge delta over here, it's a huge delta, it's a very big positive delta only, so what is the other question Urvashi, as I said delta divergence we don't have a bar level delta we don't have, but single price delta is what right now bookmap is providing, maybe like how they are providing a volume information like that if they provide delta information also, in that case we can able to monitor that, it will be very easy to calculate the delta divergence, I mean it's very easy to visualize the delta divergence, correct, the second question is how to determine a determined good entry and exit points using this information, see as I said it differs case to case, every day the market is going to do something different, but how much ever the markets are going to do, it will be bounded by the principles of order flow, so the principles of order flow what I had seen over here, so some of them are like my own screen time, so you have to find a significant screen time in first how to learn to observe them order flow, learn to observe the order flow, try to get some far idea about those order flow principles, each and every trade there is an underlying principle is behind that, there is a strong rule is behind that, the rules are pure mathematical and the rules are pure visual, you can even if you are seeing that chart from by looking to the chart itself you can determine the rules, you can figure out the stop loss and most of the cases the stop loss are going to be very tight and most of the cases it is not going to be a random trade right, most of the cases it is going to be the based on one of the strategy, every other day markets are going to do something different, someday markets are going to trend, some days we are going to see a highly volatile market, some days we are going to see a low volatile markets, so in a highly volatile markets trading opportunity is going to be higher, your risk is also going to be slightly higher, so you need to have a far idea about volatility, so maybe trying to measure with a simple ATR charts we will get a far idea about that, maybe you can look into daily ATR or you may look into hourly ATR also to get a far idea what is the right now, at this instant what is the volatility, so maybe you can use let me show you how you can measure the volatility, I will go to trading view kind of charts from there I am going to pick up ATR charts, so before getting into the market itself you should have a far idea about volatility, so that will get you to have a far idea about what kind of fluctuation that we can anticipate in today's markets, either you can use ATR or you can use standard deviation, so a simple average true range will get you the volatility value, halfway you can see that the volatility started rising from 12th of December onwards, post Fed announcement, right when the Fed policy announcement happened post that the volatility in the market started rising heavily until then volatility was like kind of calm, if in case if you are very short focused then short term focused then you can also consider using in kind of a hardly ATR values also, so increasing values means bigger candles, bigger ranges, declining values mostly results in a sideways markets, since yesterday onwards markets started rotating and slowly the volume also pulling down, markets also making smaller and smaller candles, so when the market itself making smaller and smaller candles and I am seeing low volume activity in the lower time frame, right, so I will not have a huge expectation unless some sort of a sudden big volume jumps happens in the markets, until then I will be mostly trading towards the VWAP only, primarily, I am going to use the principles of out of flow, blindly we are not going to live in isolated trading area, right, so I will go back and then I will switch back to actual B&S footprint type, yeah. Rajin, there is one more question, what is this red indicator in the bottom? Oh yeah, so that is like cumulative volume delta CVD, so a delta represents what, a delta represents at a single price level, so maybe I will show you here, I will go to the footprint add-on, I will go to the delta, oops, so this delta is measured at a single price level, so we can measure delta at a bar level also, if you sum up everything, let's say I will go back to horizontal delta, if I sum up everything I will be getting the bar delta, what is the overall delta of that particular bars, for example here you can see that it is more of a negative number, here you can see a lot of negative numbers are there, so means overall delta value is like total, if I sum up everything I will get the total delta, total delta if it is negative that means that bar is controlled by the sellers, this is at a bar level delta, right, if I sum up everything, but if I sum up for the entire day, if I add all these delta numbers, you can see that the delta value is declining, so what does that means over here, means overall we are seeing more and more sellers, so more sellers for the entire day itself, right from the beginning it starts, at the day beginning it starts at zero, when the day begins it starts at zero and it started making, maybe I will show you the entire day's activity, so this is like entire day's activity, it starts at zero levels and slowly you can see that sellers are the one who is pushing them aggressive sellers throughout the day, so at this point in time if you are reading minus 48, 2500 means, today overall there are more aggressive sellers are present for the entire day at this instant compared to the buyers, so means what how many net sellers are there for the day, this is not at a bar level, it is at an entire day level, that is what a cumulative volume delta is all about and you can also visualize how throughout the day how the buyers and sellers are performing, you can able to see in the form of CVD charts, so 48, 650 divided by 50, so almost 10,000, approximately 10,000 lots is what more aggressive sellers are there compared to the aggressive buyers, so that means what total buyer for the day minus total seller for the day is like minus 49,550, so that means what, today we are witnessing more sellers, there is more selling sellers are in demand, for some reason maybe US market is yesterday they tanked the 1.2 percentage approximately, so maybe more sellers want to sell in this markets, there is a selling demand is going on, but that doesn't means like always when the CVD is down they will go further down, not necessarily, right, so it shows at that instant what what the buyers and sellers are trying to do, sometimes even you might find an CVD delta diversions also. Okay there is one more question for you Rajendra, the question is the negative delta is increasing, but the price is also going up, is that what you mean by delta diversions? Is that no not like that, so we will be always measuring like the recent when the new low has been made, what is the delta and right now let's say one more low is making, if you see if the delta is going on the upside whereas prices, I mean prices going on the upside and delta is going down, yes that could be kind of and considered as a kind of a divergence, right, so from the swing low to the swing low is what we can measure, maybe I could say like this is not a delta divergence I would not say like that, like, but yes still there is an aggressive selling demand is there, all of a sudden there was a sudden spike, like buyers showed up from sweeping happened, we also told you how to monitor the sweeping as well, it's very simple that if you go to the P&S you can see like one sided activity will be there, that is how the sweeping happens. Thanks Rajendra one last question before we end the session, so Satish actually wants to know what would be the ideal setting to get the identity chart up and running, so he had selected one earlier as the tick size, so can you like show him how it works, so for nifty I'll show you because I already added but I'll still show you, you have to use a tick size as like one and subscribe, once you subscribe we'll be able to see the charts and from there you just go to the add-on and select the footprint add-on, scroll down, choose the tick multipliers too, whereas for bang ft you have to open bang ft charts, bang ft charts, since bang ft is having a bigger pricing something like 42,000 players, we have to choose a slightly higher tick size, even though 0.05 is the tick size, we want to collect every five point interval, we're going to collect the buy and sell activity, so I select tick size as five, I'll subscribe, once I subscribe the chart will open and then I'll right click and then I'm sorry I'll go to the footprint add-on and from here I'll go and set the tick multiplier as one by default it's going to be one only, so that means every five point interval we'll be collecting, whereas in case of nifty every two point interval we're going to collect, so tick size is one, tick multiplier is two in case of nifty, so two point interval we'll be collecting the buy and sell activity, any buying and selling activity happening within that two point range will be keep on accumulating in those bins, in those bid and ask letters, all right, so maybe I'll give some brief idea about footprint, footprint is not limited only to just I mean bookmap is not only limited to footprint charts, I mean internationally in US market or cryptos if you have you you might be seeing the heat maps as well, so those heat maps are nothing but pending limit orders, you will be able to visualize a liquidity that's a primary idea of bookmap but in Indian markets as of now we are still using level one data only, the data type what we've been using is level one data, level two and level three is what primarily used for tick level I mean primarily used for plotting bookmap heat map charts, but then unfortunately still in Indian markets we just I mean bookmap is right now available only at level one only, I hope they'll be moving towards level two and level three and mostly the bitcoin the crypto markets are I mean any digital currencies you can go and get up to 20 levels, so 20 levels of bookmap visualization is possible even in US market also they've been already using level three data, so there also you'll be able to see the heat map, right, so the basic difference between bookmap and footprint add-on is very simple, I mean footprint add-on is also part of bookmap only but bookmap is exclusively designed for visualizing the liquidity, bookmap shows market orders in the form of bubbles right and pending limit orders, so here visualization is done via bubbles and heat maps whereas in the footprint charts it shows only market orders, it shows only executed market orders, maybe we can have a fair idea just kind of if you have a real imagination how that price is traveling you will get to know whether the price is starving in a highly volatile markets or highly less volatile markets or you can easily visualize order stop hunting you can visualize using full footprint charts you can visualize so order flow sweeping you can visualize easily but visualization is here done in the form of volume blocks with buyer and seller segregation, in case if you really concerned about getting to know about the internals of the market that's what we call as a market microstructure so there's a book I can recommend over here trading on exchanges right so market microstructure for practitioners we really want to know how the volume order who generates the order flow how the volume is generated how exchange matches the buyers and sellers how the iceberg orders big orders will get filled up particularly how the absorption happens and particularly how the market maker behaves how they do business in the markets in case if you want to know the internals of the market how the market exactly functions or how the price is manipulated most of the times how the options option traders how the option market makers behave so everything if you want to know about it then one can consider reading this book market microstructure for practitioners right so I hope you learn something knowledgeable content in my session if yes please comment in discord or if you're watching from youtube please provide your valuable feedbacks that will help me to step up myself better and then I can try to teach something even more reasonably learning content so that you can take advantage in your trading career I take this time to thank you book map and true data for providing me this opportunity and thank you Urvashi for arranging this and thank you once again I hope maybe in the near future we'll have another interesting learning session about book map and order flow thank you thank you Urvashi thank you Rajendra that was indeed a very insightful informative session for all those people who have joined us on youtube I see that there are a couple of other questions also feel free to reach out to us on our discord channel so I've posted the link on youtube you know feel free to reach out to us with your additional questions we'll be happy to