 All right good afternoon traders and so let's see here it should be broadcasting and well so we've done a few of these events now this is our second one where we're just going over rather quickly some of the things in bookmap here and over and we went over one on candles I can show you where that is just to give you a feel for what this is all about here it's if you go to our youtube channel it is under well you can see it under videos here if you scroll down a little bit it's right here and what we just covered is quickly how to read candlesticks in the live order flow so you know we all know what a candlestick is open high low and close of a period and then we're trying to read the order flow within it and we covered how to read the volume and then the heat map within here and that offers quite a bit of additional insight we're going to do the same now with the heat map that's the goal here of the of the event and let me know if you have any questions happy to go through it we'll recap this here but we'll go through an exercise as well I gotta go through some disclosures and then we'll jump right in general disclosure all book map limited materials information and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations risk disclosure trading futures equities and digital currencies involves substantial risk of loss and is not suitable for all investors past performance is not necessarily indicative of future results okay hold on a minute here um yeah guys on on discord uh you have no permission to watch this okay i'm gonna end it here i'm gonna we're gonna add it into the uh sorry about this here uh i'm gonna add it in the special events so you guys can add it in that we can access it in there all right there we go okay and then you can uh the text channel there in special events uh sorry about the disruption there uh ready to go though all right so um let's check it out all right so we'll jump right in uh and jump in here and how to read the heat map first off what is the heat map showing us all right well it's showing you liquidity uh limit orders uh limit sell orders on the upside here above price or you know historical price and limit buy orders down below uh and what we want to gain from this is insight uh where are the traders dealing and what is their action uh in the market all right so uh and understand who's taking the other side of the trade here the aggressors the aggressor volume uh we're all accustomed to that uh it's what most people are looking at on the bookmap chart uh it or in any chart uh it's the the aggressor market buy and market sell orders and these are the ones that are moving price uh so uh what the the heat map is showing you is all derived from your depth of market your level two whatever you want to call it everything to the right of this vertical white line is showing you the current market this is our current best bid and offer in the s and p e many we can look at some stocks and we will uh uh we also have uh do i have crypto up here no uh i don't we're gonna add that though uh and um this is our current best bid and offer this is our last traded volume this is our price ladder and the c o b column stands for current order book this is showing you in here uh the liquidity at each price level right so uh and what we're going to gain from this is what we want to learn and then potential setups in here all right so the uh order book is showing 329 contracts here at 42 60 uh at 60 and three quarters we have 319 up there and it's this orange color if the numbers change in here let's say it comes down to 100 or less the the color is going to change to uh this kind of bluish color uh and uh be a little bit darker than that be more like this one down here almost black basically right so the scale of the heat mass in the top center of the chart red and orange is very high liquidity then yellow then white then blue and black is the least amount of liquidity that's it so when the order book changes in here the heat map will change the beauty of this in book map is when these numbers change uh the heat map is recorded uh so you can see the evolution of their actions in the order book you will not be able to see that in your depth of market all right so you can even see here as we trade it up into this uh 42 60 very very high liquidity here uh it transacts you can see it transacting right in here in book map and verify that we also know that some stops were triggered there uh and then and then there was still more buying pressure it traded through okay not buy much but a little bit a point and a quarter uh and then uh more on the bid here it transacts and we find sellers start to come in okay retest back up uh into these levels uh and let's zoom out a little bit so we have not come back up yet again to 42 60 okay this retest here and then that's been it so far all right so we'll cover this in just a minute here and what what this might mean here uh but it's just very simple what we're showing in the heat map uh how long uh and or the record of traders uh in here uh showing their liquidity and in the order book uh their behavior they started to add more in look at the color start to become more orange as price is coming up and then it becomes a little bit yellow here so they pulled a little bit in the last second but they transacted this is what we want to understand did the transaction happen or did it pull when and it's pulled liquidity it's something like this you see it down here and they they didn't they never dealt uh they they came into the order book for a very short period and then they pulled the liquidity away uh but what we can uh glean from this is starting to understand where there might be some demand okay and uh in fact they pulled here and added down here and this is likely the same player in fact we can follow them all the way along because it's recorded pulled here maybe added up into these areas but certainly up into here some of it transacted pulled down into these areas here uh pulled and then added back down to here the same price level where they came from at 56 right so now we don't know if it's the same player but it looks pretty much like it uh and some of these areas it looks very much like it they pulled here and added down here all right so uh start to understand even the specific players bigger players uh in the market and we can uh start to understand the intent of these traders at these areas so do they really want to buy here and the answer is no they're just showing some interest but they're not staying in the order book okay that's telling us something all right now if if this is such a bullish breakout uh well then wouldn't wouldn't they be looking at this as being a deal here uh around 58 or so supporting the move higher and that uh you know looking for a price to accept above the breakout right well we're not really seeing that behavior here in fact they're offering at lower levels in here all right so we're starting to understand that too so the bid is way down here and they're offering at lower levels and larger players got filled all the way up through here all right and we know that we can verify it with the transactions uh here in here and here and in here all right so it's just fact this is how it unfolded in the price action and the auction all right so let's see here um you should be getting sound in here jk i i see my in in discord you can always jump over to youtube as well on our youtube channel but you should be able to see it so we're in the special i had to move over to the special events that the the discord event thing threw me in kind of a different room there so i'm sorry about that but we should be should be fine now i see can anyone else hear me in discord should be there you can just verify all right yeah okay thanks rob um all right well let's uh let's uh take a further look all right so now um you know this is really kind of a very core and unique uh feature in book map in fact i want to take the volume dots off here uh and i also um yeah i'll leave best bid and offer on for now uh but that's it okay so we'll just look at two elements on this book map chart here uh and you know being able to understand all of this action here at a very uh accurate level uh is unique uh that's a distinction between us and uh many others this is not tick data it is just real time flowing data uh tick data you in between transactions you you would not see any change or update in the order book in here my god you'll see every little change in the order book and that is is pretty unique um all right so um the reading the heat map in here well if this is a bit much for you we know what it is now uh in fact you can hover over these areas here and see precisely how much liquidity was here we see 375 this orange color over here 505 uh at this 60 level right and it changes all the time right so uh the same information is down in the lower left hand corner here or you can use this rollover tool here or hover uh data tip tool all right so now the way the heat map works is if i zoom out you'll see this change in color it was red okay well what that means is when i zoomed out it had book map the heat map has scaled still 500 contracts that we saw at that red level that has not changed is that's just fact but the color changed because there's another area in here that ever so slight or it could be you know blaring in there for for hours uh that there was high liquidity in there that was higher than 500 contracts uh therefore it has scaled the heat map to give you that reference okay so that's another thing in here uh and then i want to go through before we get into the setups i want to go through a bit about the um uh settings in here because this is important many different traders uh on different timeframes and different instruments want to scale the heat map in different ways okay so if we uh click on studies configuration or if we right click here on the heat map and we go to the heat map settings uh we're looking right now this is the default value uh it's somewhat dimmed and it's showing the upper and lower cutoff in here now let's just make it bright here for now all the way and then uh upper and lower cutoff these are the two main tools here for starting to filter the heat map okay so the lower cutoff here a percentage there's a percentage at the lower end here uh that will show what will cut it out of the calculation in fact we can use exact size in here and i'll show you what i mean if i input 50 here or let's put in 75 what book wrap has just done is contracts that are 75 or lower have been cut out of the calculation and they will be black right so if we look in the order book in here we see if we put in 200 okay it's gonna cut out everything's gonna be black more or less right except for very very high liquidity those 500 contracts here okay everything in the current order book is is black though because it's we're saying anything and you can you can see all the liquidity in the in the cov column here uh there's nothing that is over 200 right now at this moment okay so uh it it it's all black so it's only showing the areas of high liquidity now the same is applied here to a slider and it's just a percentage slider so if we go all the way over here it's 80 percent um and you know we went over 100 percent here to cut it all out um so anyway that's uh that's one way to filter the upper and lower or the up i'm sorry the lower cutoff same exists for the upper cutoff so if we say anything above let's say 500 or let's say 200 right and put that in uh so now everything has been uh cut off um on the um on the upside though i'm sorry this is the threshold so it only shows up to 200 everything above that though will be um the you know red or dark orange color right so that's another way of filtering it here on the upside uh and you can just use the slider like this or um you know or you or use an exact number it's up to you right now why would you do this well maybe it's just a little too much information for you maybe you're looking at a very high time frame we've got a couple of days of data in here uh and uh you know maybe maybe that's not offering the information that you need okay so uh you can just uh you know make this as extreme as you like uh and just see that okay wow there's pretty pretty high the kodi up here that's gotten filled uh and then also here from yesterday maybe this is a good view for you uh depending on the way you trade it's not my style uh but uh i usually just go to the default settings to be honest uh and maybe bump up the brightness a little bit all right and then i zoom in uh i also note some of the high liquidity in here that's been in here for most of the day uh pre-market overnight etc uh you know at 42 50 uh makes sense that the figure there and then i zoom in and try to understand some of the details here uh in the heat map all right so that's important to go through it you know for those of you who um uh already understand uh the heat map uh you know i just this is a bit of a review for you uh and play around with it different instruments uh also not just the s and p you know we jump over to apple or something uh you know we can also do the apply the same filters here okay so if that's important uh depending on uh uh the the trader that you are j trader he'll he'll filter this really really high he only he only cares about really high areas of liquidity right so it's up to you uh and um uh whatever helps you the most to gain gain more insight from uh that activity uh of the players in here uh providing liquidity okay all right let's move on uh we've got the um we understand the uh uh settings here let's go into some uh potential setups and understanding how to use this information here all right so let's uh take a look at this s and p and then we'll go through live some live analysis as well we're not getting too much action at the moment it's actually starting to break out a bit um and i'm actually kind of surprised here uh so the reason being is typically larger players getting filled all the way up here uh and staying in the order book and transacting and with very high liquidity so usually we're starting to kind of just look for maybe some exhaustion on the buy side that there's no more buying pressure and that these guys have been getting filled in here uh we see some icebergs transactions in here there's about 500 in here and we're at Fort well um i have icebergs since yesterday uh but um we have quite a few icebergs uh that uh sold up up in this area here uh so and we also have high liquidity getting filled so these guys are sellers in here okay so now if that's the case uh then we're starting to look for maybe a potential uh reversal okay we've covered this many times over the years but what we want to read and understand in here uh is this context between the aggressors uh the uh market buy and market sell orders uh and the uh the liquidity in here now if they're going to stay in the order book and get filled all the way up this is what it looks like now what we're looking for is this right here high liquidity on the offer starting to go maybe at lower levels maybe a lack of buyers or some buyers up here and trapped and then pulled away really quickly but now we're starting to look for the potential okay it's just one scenario because we've you know climbed all day long here uh it is an inside day from yesterday but uh we want to know if there's more buying pressure or not okay if there's not and we start to see the sellers come in here this is how you start to uh you can start to see a head and shoulders this is actually pretty classic to be able to see a like a head and shoulders pattern high liquidity filled high liquidity filled uh price moves away from this area here uh and then starts to get down into this level here uh and uh and then we start to see some sellers down here we'll get one more retest back up to about here at forty two sixty and that's it that would be your right shoulder and then we'd be looking for the potential for more sellers because they're already we're looking for that scenario of sellers down here uh and uh if we get it uh then we'll likely get a retest in an auction back down there uh and then we're looking for maybe the continuation to the downside okay for the follow-through of that pattern it's really all about the order flow here okay so uh we can look at a candlestick pattern as well uh and start to understand the heat map here in fact we've done this exercise many times in the past to go through and uh just take off the volume completely and just look at two elements okay so uh you know what what is the context here well you know it traded up into this high liquidity we can't see the transactions but it looks like it did uh up in here it's kind of spotty some traded some didn't uh now they're up here okay do we have enough buying pressure to get up there well the reaction well not not now we're starting to see sellers starting to come in uh all right so look for this area to test liquidity on the bid and if if we get enough into that and through it we're looking for lower levels 57 all right so right now we're in the middle of this range now this is going to be a good exercise here the the heat map is uh a little skewed here uh because of uh this high liquidity up here but they're down here and it's kind of in the middle right we'll watch this we'll watch this here and maybe these guys will pull and add lower and the book will become less skewed and more balanced okay price always kind of seeking this kind of in the balance there uh you know again and again and again uh so um let's see how this unfolds here okay we're right in the middle between areas of too high liquidity and now there's quite a bit up here now these guys just pulled and we still have liquidity up here at at 62 though now they're coming back in a little bit all right and we're still kind of in the middle here okay now what we're looking for what if these guys pull in here and there's more of a skew and there's no interest in trading up here well the sellers have an easy route to get back down into this lower level and that's what we're kind of looking for in here okay now we might get uh the opposite scenario what if these guys start to pull and the skew in the in the order book happens here okay we see more on the bid at these higher levels here okay and the reaction is buyers and starting to add a little bit more in here and starting to climb up into it and these guys are starting to pull but i really not seeing too much here would love to see this love to see this liquidity here even even go lower okay and then i want to see these guys pull in here and what would happen is we'd be looking for maybe a balance here uh down to this level so we the balance would be liquidity here and liquidity here and then the balance would be right here at 59 right in the middle okay makes sense now be nice if that unfolded here in real time let's see we see this all the time though okay so want to see these guys pull and add down to here okay and then now that there we have a new balance area and the middle is right in here which is in this small little range in here is the point of control okay or high volume node in here okay even on the session range volume profile right so anyway these are some details in reading uh some of the uh liquidity uh in the order book and it makes sense uh now sometimes you know there you'll see like high liquidity pop into this order book and immediately sellers go for it uh they want it uh and um uh you know most of the time these guys won't get filled they'll pull and add it lower pretty pretty quickly but again we're reading the context here between buyers and sellers okay are the aggressors interested in some of these areas and you can see they're not right now they're just not it's just kind of going back and forth between two areas of high liquidity this happens most of the time any questions on this okay so uh AVP this is where you get confused we trend up would you not look to take the higher liquidity well we need to kind of understand again like are they interested in it uh what it was the context in here you know uh here they you know here's a quick move up it was a stop run we know that and then they're bidding down in these areas but they kind of stayed in here and you know got got filled in here and this this is why i'm this is why i um i understand your confusion uh but we've been trending up into high liquidity for hours now okay so what does this mean it means larger players are getting filled on the way up okay i mean we've seen days like this all the time um um oh you're welcome jeffrey for the afternoon session we'll we'll do more of these uh it seemed to be uh well liked uh so um yeah so okay so i'm we're just going through some scenarios in here we're still in an uptrend uh no doubt okay i mean we can't deny that um however we're covering another scenario the opposite scenario in here uh what if uh you know we we trade up into these areas now we're trading up into it right now okay so there's still some more buying pressure these guys are still getting filled it looks like and we'll zoom in here and look at the dots okay actually some of it pulled in here and boy i'll tell you like when we start to trend you'll see these days another stop run here more icebergs on the other side here though too okay so uh again more context now these icebergs aren't in the order book but they're getting filled so we went from what was it um 1401 or 106 so another 500 just right in here just just transacted uh icebergs okay from here on okay and we went we went higher here so yeah i would agree with you like uh yeah this is uh this is trending up and uh it's still um trending or trading into liquidity okay so we're just open though uh you know these some of these moves like just are are crazy like uh during the webinars the daily webinars in the morning when we have them uh and we start to look at uh some of these areas where you're just like god my god they still you know we're they're still getting filled they still they're still more buying pressure uh filling these guys and then what happens um the next day it it reverses and we see like two or three days uh completely reverse uh go the opposite direction right so you know understanding this is on on different on different time frames as well there's there's a lot of liquidity getting filled in here and it's still going up so anyway uh it's just something to note uh until we see something different that that this um uh liquidity stays we we start to trade down into lower liquidity here and we start to see maybe the book underneath it uh on the offer underneath the highs uh they're supporting it or supplying more uh at those levels and the and the buyers aren't interested in it okay so that it was one one element here or one scenario here uh obviously that's not playing out and we are um well that what did play out let's let's look at this okay so we're banging around in here we don't really know uh what's happening here we know we're just in the middle of the range okay and then what happened here where they we start to trade up into it and what are they doing they're starting to pull some of that okay and they are adding on on the bid here now I know this is this is easy this is hindsight uh but you know we cover it in real time uh and uh they're adding in here starting to pull in here uh and uh we don't have the volume dots in here but we're we're going higher okay so looking for this higher liquidity to transact and then looking for that potential stop run which we already know we can see it down here okay so maybe back up into 65 and just about there and again like let's let's not make this too complex um about the liquidity okay maybe covering a stock is easier is better okay high liquidity is up here this liquidity has been here since 9 30 or even pre-market okay at like 7 30 am or even back here you can see some they've been in here there's 144 000 shares up here at 72 this is like a magnet okay if we find buyers interested in it okay so like for example it's the opposite scenario like this is a magnet down here if we find sellers interested and we're certainly not right if we found the sellers in here see the sellers come in here well they got upended and buyers buyers buyers and buyers okay into high liquidity on the offer up in these areas so yes these can act like magnets for sure if you find the buyers interested in it now the short term high liquidity that skews that order book is a different story so it's like a kind of that that analogy we use with the farmers market or something that uh you know tomatoes uh and all of a sudden like a truck load of of uh tomatoes comes down the the street and it would be basically very high liquidity uh you know showing um just a ton of supply up at these levels here right and then okay well great we know there's a lot of liquidity up here great there's inventory but do the buyers want it typically this is a spoof acts like a spoof you show high high supply the market goes whoa you know that's not uh you know if there's a high supply up here it must be worth less uh and you'll see it drive price down lower okay uh spoofing you you see it of course you know it still exists all the time but it's not like it was uh whereas it was just so blatant you would you would see not just spoofing you'd see layering something like this um many many at at at these different price levels uh very high liquidity uh and then uh the reaction is uh they don't they don't take any risk whatsoever they do not transact they just show here in the order book and and price reacts to it okay so you don't really see that very often anymore at least as blatant as that all right so anyway let's let's let's start to look at it again and uh well yeah we'll read the the current market but want to look more into um you know potential setups in here and we might have to do a little hindsight in here just for time sake uh this is not a webinar we're reading too much of the live liquidity uh this is more about understanding you know how to use the heat map uh and um let's take a look here's your high liquidity on on the offer and and look at the reaction okay we can zoom in here did they did they transact some did yeah absolutely i'm sorry these are sellers in here okay well that's delta boy we really have to get into the details here um where is it volume dots that's the wrong place okay well those are sellers onto the bid i guess at this point here and then the bid then the bid dropped um so kind of a skew and the updates in here but uh anyway um let's just zoom out now we know we know it's on the offer though here okay you know price moves away they're on the offer here all right and then what's the reaction to it you know you can you can see that it kind of uh push the market lower in here we've seen it in the live webinars all the time it's like we're looking for it for it to go higher uh and then all of a sudden someone comes in and just spoils the party and the reaction is sellers okay i hope that answers your question i understand the confusion uh the uh trying to cover it though like i think the best way is with some of the stocks in here how you see these very very clear big levels this is where they want to deal it's advertising here we are we're up here buyers you want to reach us we're up here we want to get filled okay and that acts like a magnet and then you'll see these kinds of things like we drew in flipping of the order book like this uh and um uh you know some sort of uh you know algorithmic uh disruption in here that can help push price back up into this area here it doesn't always happen and some of that behavior is prohibitive all right let's take a look in you anyway some uh maybe a little some uh closer at some areas in here where we might see different ways of of of using this in setups not too much in here usually a flip of the order book is a really good one and we'll try to find one um but um flip the order book would be there on the offer here trade through it and they flip from offer to bid now they want to be buyers up here then they want to be buyers up here and then up here as well uh and then boy at this point it's looking pretty good that uh we're going to trade up into like uh high liquidity here on the offer right if the reaction to this kind of liquidity that comes in like this is buyers we'd be looking for the target uh to be up at that high liquidity okay so let's maybe look at some candlestick patterns in here that can support that let's try to find a real one too and you can kind of see a flip down here you know now they're on the on the bid at this price level it's not an immediate flip uh once price gets through they start to show more here on the offer on the bid from offer to bid and price accepts higher the whole time okay so that that can uh answer a question for this range in here that you see and this is a potential setup in here so the question would be what do you guys think in this range in here you're bullish right in fact what we typically look for with the volume dots are like a pull back to here and then get in okay but it could pull all the way back to where it you know broke out from right so whatever it is that you're looking for in here to give you maybe signal um you know for your your trading maybe it's a move down below here and a quick move away uh maybe you're looking at trend lines in here uh for pull backs a lot of traders look at that uh so you'd be looking at something like um well first a trend line break okay which we can draw up okay uh and then you're looking for uh and then also a trend line break here right so a trend line break down into these lower areas here you're still bullish okay this is just the bottom of the range in fact it's maybe even a little stop run below here uh and then you've got another trend line here you break that great you're looking for a move back up to maybe in the middle here and then top of the range type of thing okay does that make sense i'm going through it really quickly for a setup um but uh you know this is one potential way to look at it here's another one in here there's many but um you can see it in here all right same idea same concept and back up above here and you can see the volume come in okay where where would you be looking for it to go here well high liquidity right here and this comes in later um so in this area here you'd be looking for top of the range and then more liquidity comes in and they change the dynamic completely otherwise it would have come up here it might have come up to 170 80 or 171 at that point but no these guys got filled in here big big transaction okay let me see let me get to youtube questions in here in here and well again like if they add on the uh on the ask well here i mean we see it in real time all the time uh up here this is everyone knows that there's liquidity up there all right so uh yeah these these areas act like magnets or longer term high liquidity they want they want to trade and they're telling you so these little short term areas in here though are the ones that like if there's all the sudden like high um a supply in here we can actually see there's there's buying pressure that wants this typically price moves away they've trade down here though and now they want to come right back up here okay and that would be your your initial target maybe even front running a little bit is a good trick uh to get out before because you can see it didn't really quite trade into it right well it was a a take away before it got to these 4600 4700 contracts there are shares okay so um yeah anyway this is a many different ways to look at it in here um uh but the the concept is the same you are bullish in this zone in here looking for high liquidity on the on the bid to test high volume nodes in here uh as well it kind of traded the one it bounced a little bit traded through it came back above it bounced up in a high liquidity uh they're on the bid still down here it goes below this this is a great deal down here uh and um uh but you don't know if there's more sellers that may push it through right but you and there were some in here this is where they got upended especially when you see it in here uh it looks looks pretty good to go up here and with the potential to go up into these areas here if you get this kind of buying right to trade through it uh finally it does uh it took a while uh into this uh 70 50 area here uh and um uh now look look look at them move it up again okay into that high area of liquidity that's your target okay now you can draw that zone up again you're bullish within that zone it actually it's got a couple in here um and then this one failed but it came back down into kind of a high volume node in here and bounced off of it starting to kind of wane because this is really deep pullback in here uh so what if they can get down here below here though that's something different and they didn't and again you'd be looking for uh wow this is interesting so they're on the offer or on the bid here um they're uh they they get filled they're on the offer here there's enough buyers to trade into it and through it you'd be looking for the next level up here okay here in here all right let me get to more questions in here uh in uh youtube okay yeah sure james you like these uh afternoon sessions okay uh you know i i i hope i'm not there's not a disconnect between understanding the setup in here like maybe you're if you're trading volume profile well look you know these are your low volume nodes right well when you're looking for liquidity down there then you know and and you know that there's tons of buyers in here uh so you're looking for a move back up into uh these areas to re-oction back up in here okay so that that's the the same concepts uh then as drawing these some of these trend lines in here okay so you already know that you know most of it's trading up here anyway so you you know you're trading down to high liquidity down in here it's not even transacting uh it never reaches it uh and then you're looking for that potential break and the where do the aggressors come in and really start to take command well it's in here okay and then they're they're going for here uh and then top of the range and then looking if you can transact up here we have a potential to break up into these areas here let's look at the break here it is here trades into it more above it there it is usually what we'd like to see now with stocks it's a little different we'd like to see though some support underneath here in the futures uh and uh to kind of goose this up a little bit higher uh as well so that should help answer a question as well about understanding the heat map uh when there's kind of more liquidity on the bid in here looking forward to trade back up into these areas here okay new bull market george uh yeah I don't know about uh I mean like um I'm not I'm not convinced yet by it I know that if we look at our candlestick chart in here yeah great strong day too we're up at highs here it's pretty good it's pretty good um but this is this is exactly what I'm talking about here this is where you can get into a lot of trouble in here okay and this is this is how again heat map can help you and now we're talking we're back to that discussion on the higher time frame so we're covering this in the afternoon today on friday uh at uh 250 east coast time uh about an hour uh in 10 minutes the the market will close they're getting filled all the way up here even an apple they're getting filled they're getting filled getting filled okay 72 is up here okay so we're opening up now like I said much much higher time frame here understanding okay if they're getting filled all the way up in here watch for it maybe on monday we go higher yet again and then watch for tuesday wednesday thursday friday to be down days all right so uh you know it'll probably close up near the highs uh you know we might see a we might see a big sell-off in the end of the day here but uh and then maybe a gap up on sunday evening or um uh you know monday uh and then uh and then look for it because we this is not you can't deny it they're getting filled on the way up okay so we're reading this is actually a much much higher time frame outlook okay we're not looking at you know smaller moves in here we just cannot deny the fact that they're getting filled in here so look for that scenario if that starts if the order flow starts to support that scenario now you've got something okay so you'd start to look for sellers to come in you look for high liquidity on the offer uh that's at a lower level uh look for the targets on the bid at lower levels just like this if you just flip that chart upside down okay uh mohammed you want to look at the nasdaq quickly sure okay high liquidity in here at 525 my god i was looking at 500 thinking yeah we'll get to 500 but this is quite this is quite bullish it's quite a bit of buying here and then this nasdaq really picking up here uh right around maybe two o'clock and then especially 230 okay looking for 550 here all right now this is you know maybe a little different than what most traders are kind of experienced but like uh uh you know we're we don't see anything yet for that reverse that big big reversal that we're talking about uh but we're we're open to that scenario um next week because this is undeniable they're getting filled up here uh in these areas all right point made on that uh and uh let's uh continue on yeah yeah the the spoofing in that flash crash and the kid in his parents basement in uh in the uk uh yeah yeah i mean he understood the game theory very very well uh and that's precisely what's going on uh you know it's it's it's all a game uh and um try to out game the others find an edge off of others where they're committed and then uh and then you you put the screws into them James i i am kind of looking at the crystal ball you want to look at the crystal ball in a low time frame absorption exhaustion great uh point here uh this is um well they're getting filled in here but they're they're still more buying pressure so it's not total absorption total absorption is like uh maybe we can find an example here uh they just can't trade through it they'll hit into that liquidity and they just can't get through it and so we'll probably find one in stocks it's better well at this point more or less it's absorbed there's still it's not the the true definition definition of it but you know basically they they look at cvd here pops you know just pops to the upside here let's just zoom out a little bit we have context in here by looking at this strong cvd reading here where did price go nowhere okay here more buying up here as well where's price nowhere it when a couple takes higher okay so this is absorption like total total absorption they're going to stay here price can trade into it but it can never get through it totally absorbs it right so but that's more or less the concept here uh exhaustion is a lack of uh aggressors okay so when we uh look for these moves down into an area and there's no more it has nothing to do with the heat map okay it has to do all about the um uh neg right here okay there's some trading up there uh it's not much though okay so that's what we look again that's why we're looking to see like how much is trading up in these areas here if if there were enough buyers here we'd likely go to the next tick here and if there was enough there we'd likely break it up into a higher area here okay but in in this case this is you know a very very indicative of a low volume pullback okay heavy volume in here light volume on the pullback and then start to get heavy volume down again where it can auction and then extend lower here as well okay that's it that's a exhaustion or lack of uh trading and and you know here it it did exhaust here there's there's no trading up at the best offer up here so that that is a good you know example of it um but it's also a low volume pullback in here okay so not bad not bad on that uh again it has nothing to do with the heat map though all right now the heat map may affect it uh the aggressors up here may be very very high liquidity in here and no one wants to deal with it okay all right guys well let's uh take a look at uh crystal ball here with james um oh i'm sorry crystal uh miss reddit here crypto you want to look at crypto sure in fact let's look at uh finance futures okay still kind of um following the um stock market to move to the upside here guys same same ideas in here no no different um traded into threw it up to this area of liquidity here now we're looking at a new range in here uh and you you are bullish and you're looking for buying these these these kind of uh pullbacks in here looking for the aggressors to come in and move it back up into some of these areas here okay and maybe top of the range up here at 270 all right well let's uh let's take a look here you guys are more interested now this is finance futures right so um so and is is usdt okay so it's tether it's going to be a little different than maybe what you're looking at okay uh now this is a really good question in here um uh ft uh zuher um when price reaches the liquidity what uh is the best uh time to enter a trade uh after the price reacts with the liquidity uh zone or should we wait for the pullback what you're looking for is and we we cover it many times is the reaction into this liquidity in here is there still more buying pressure or selling pressure okay in this case you know we start to see it's like wow okay first off did they transact or did they pull or both it's transacting right into it you can see it okay and there's still more buying pressure in here great i'm looking for it up here and we do this in real time i know this is a cop out in hindsight uh we do in real time all the time we even have a skew in the order book here uh and then both of them pull at the same time so this tells us too that this is likely the same player uh you know uh adding here uh and then price starts to come up and they're pulling and then they're adding over here again uh you know this is more indicative of the kind of spoofing that we're accustomed to seeing uh some years ago this kind of uh shenanigans where did it go right to 24 200 beautiful move right you can read that in here see does that make sense can you guys read that can you can you see that uh the pulling here the adding in here the buyers coming in doing the same again here buyers come in we were looking for it to trade up into here what's the pulling i'm referring to well at at both here okay they're adding in here okay on on the uh on the bid uh they're up here at the offer they pulled actually some of this some of it transacted and then some pulled uh and then uh and then but they're still here at 150 but they pull the same time here see across the board here in fact i mean this is just it's almost uh almost laughable um it's the same player who's even adding up in here okay and then maybe pulling in here and maybe even adding because it went from lighter to darker here they may be pulling and adding in here as well or maybe pulling and adding higher but just note note the line here and when we start to zoom in and start to see some of the details it's the same players and then back in again here okay now here they're they're adding in here we're still finding buyers still finding buyers great move higher still finding buyers okay now it's kind of all over the place in here and let's zoom out a little bit and let's get rid of our so we can see better here there we go all right anyway uh yeah trading up into these levels here a little bit of a change they're on the offer now kind of interesting they're on the bid now okay they're on the bid but on the offer here this is see see how this is where we put that context together reading the heat map on the offer here did we find sellers no on the bid here did we find buyers yes looking for 250 it took a little while but it got there okay it bounced off of here again on a pullback and then finally got there all right so uh now this we're looking at very small time frames in here it does not matter we can zoom out and look at much higher time frames in stocks we're you know that was a good one uh and uh also in this one right here you know this is the high liquidity down here back at 100 where it broke out from all right jeff does that or hefe does that answer your question oh why are they not scattered like that on btc it's um i'm looking at a tick value um uh of 10 and um the um it's kind of similar to the futures i mean i i know that it's kind of scattered all over here but uh the um the best bid offers a tick value of 10 but these are all sorts of other transactions that are taking place where it could be you know one dollar levels in here it could be you know 10 cent levels in here right you can break it down that much so that's what i think is going on in here okay we're still being kind of accurate with some of the data in here on the um on the on the transactions but 10 dollars there's a lot going on in between 10 dollars anyway when we zoom out it all comes back together here okay futures that that won't happen is a tick value and you're going to see everything here okay so we just need to put the volume dots on okay so look look at this they want it okay now watch this i would see how we're we kind of have a skew here i would look for high liquidity to come in about here on the uh on the bid it's actually not so there's actually kind of a skew here on the offer this is kind of interesting um so i was looking for more of a balance in here uh for for uh them to come in uh if it's above this area in here we're up here we have high liquidity uh and then we're looking for it to rebalance uh instead there's look at this this is this is crazy they're still buying pressure in here they're going for it right it didn't even have to rebalance okay i mean we see some here on the on the bid it's not a whole lot but we do see some the blue kind of area in here the buyers are still trading up into high liquidity they are getting filled in here guys this is looking really good i think for next week okay looking for some uh uh selling it's just one of the prime scenarios i'd be looking for okay i mean this just that it's relentless buying into high liquidity all the way up and let's take a look here zoom out because we started the day here um and it was total inside day from yesterday's price action and it was it was a tough read uh during the day and then uh let's see here when did we break out around 11 o'clock and uh yeah up up into the 42 50 area here and it's still going okay another 20 points higher here it's taken a while but it's gotten there kind of a grind up in here getting filled all the way through all right so we can even we can even mark this up and maybe we will on our candlestick chart um uh and uh kind of mark up uh this whole area getting filled and it's still you know maybe it goes higher here okay but 42 50 and above well let's watch for it okay because we can assume that uh a lot of traders in here as it continues to go against them they're getting more size on okay so it's a much higher time frame uh view or outlook here uh and let's let's make sure to mark it up 42 50 it was online at 42 50 okay all right and then i'm gonna also just give this a different color in here make it orange modify or maybe just let's make it dashed there we go all right good enough all right we'll take a look at that uh next week uh in the webinars uh jeff looks like there's a book flip at 1115 um from buy to sell on the s and p yeah a bit a bit yeah and again that's a nice nice kind of read there it's it's not the easiest uh read but yeah you can see it they're supporting it underneath here so and the flip is kind of here there's another one down here uh price went through it though so it's kind of weird uh but they're on the bid here uh they were on the offer here all right one more question here um if uh treasury bonds are are hard to read with the heat map can you please explain it a bit because liquidity is always close to the price yeah i mean that those are really deep markets um and price doesn't move very much in there you will see the same things though uh that um uh is unfolding but dig you're seeing thousands per each price each tick level and uh you know what is 32 and a half uh dollars per move right each tick so uh you know it's not a big mover uh but you'll you'll see the same same concept same same ideas um it's just uh maybe a bit more challenging to read it might try the notes you know five-year ultra bond something like that um and then you can extrapolate that same um uh information over to the uh to the bonds okay yeah this was more in-depth read uh and also talking about setups and and one in particular that needs we're still waiting to see if it unfolds is the higher time frame setup uh that um we've just seen these days where you just you know it just continues to trend uh up and up and up and uh yeah we're we're looking for uh and they're getting filled all the way through so and it doesn't make sense but people uh are getting stopped out and um getting margin calls on the way up and larger players are just on the other side here just sitting and getting filled so we've seen it many times over it look for the scenario for next week and we'll cover that next week as well okay so recap here um so uh yeah we went through uh first off we determined and went through and defined what liquidity is okay and these limit orders uh above price limit sells below limit buys the depth of market the c o b column uh understanding how is defined from the current market in here in the liquidity okay the heat map scale uh and then understanding it historically over time the adding and pulling of liquidity uh that we can see in here uh and then um we covered uh the uh reference here that this might be dark red in here but we zoom out and becomes orange uh the the liquidity is set in stone you cannot change that uh it's just that the um there was higher areas of liquidity like right down here watch this we get that we zoom in a little bit more this will become red you know something like that all right uh it's because now it's in reference to only this high liquidity in here not that one that's out of the picture now okay so uh we covered that and then we also covered uh uh different ways of looking at this through the different um uh instruments uh and using the um uh upper and lower cutoffs in here okay to uh you know try to give more insight maybe or uh clear out some of the noise all right and then we also uh started to go through the different scenarios uh and understanding imbalances in here uh and appetite longer term liquidity uh versus shorter term liquidity uh and the reaction to it and the balance in between these ranges in here uh and then like we do see kind of a little bit of an imbalance in here actually the imbalance was on on the offer first they come back on on the bid here and then they pull uh and then uh very high liquidity in here all getting filled though look at that pocket of liquidity in there getting filled here and here so this is getting really interesting for um you know maybe a bigger move next week all right just it's something to look for uh and uh uh yeah so the reaction to it here's a flip of the order book here on the offer on the bid and now we're in between two areas of high liquidity and watch again in balance in here okay now they're they're bidding up at a higher level and we're kind of in the middle maybe a bit more and we'll trade to seven uh 75 here okay here it is here's an imbalance here's the action fires and we should trade up into 75 okay this imbalance in the order book is pretty pretty key thing a lot of algos read this a lot of traders read this uh order book in balance uh and um uh you know and where price might be valued all right so higher time frame liquidity versus lower time frame liquidity answering your questions in there uh and then going through uh how to read that um in uh for uh higher time frames as well as lower time frames uh for your setups okay so let's see yeah we'll go through more and more and more in real time there's our move into 75 and that we'll do one more quick reading and then we got to call it call it quits here uh and uh do you use the order book uh in your trades absolutely all the time all the time uh in fact like we've done this exercise so many times to where I get a lot out of it we take off the volume dots completely and we just read price action and liquidity okay so look at it here right now we don't know what the volume is but they're on the bid here kind of a flip kind of a flip of the order book buyers seem to be interested in it all right well then it should transact into it okay the imbalance or where balance is is right here between this and this okay see that see that see how that's starting to skew that in balance or that balance all right so now it's kind of like throwing more in here there it is so balance is now down between these two levels so let's see if price can go down a little bit lower here okay now trade into here and then we're looking for another can we get another imbalance in the order book here now we're down at this this level here there was previous liquidity okay let's let's watch this watch these see these guys pull now look at here they are at 74 we want to see the kind of again balance in here now these guys actually pulled here at 74 and it's kind of reevaluating that again and we're now now we're back to 74 and a half to 72 and a half and we're right in the middle anyway guys keep and do your own studies on this take a look at it you'll see like an understanding of this uh in balances in the order book and look for an an edge in there at your levels okay I think that would be helpful and this is it maybe a good review here in in replay mode and you can go through this all right guys we'll we'll call it a week have a good weekend everybody we'll do more of these maybe we'll go over volume dots next time and just read purely volume and then we'll add the heat map back in and kind of put these pieces together okay but uh I think this has been rather exhaustive on the heat map maybe we'll come up with some other stuff to take a look at as well as an addendum to this uh this webinar yeah there's a lot of info it's a little too much I think um trying to trying to pare it down um into uh more understandable uh and uh bite size pieces of content not long long videos like this it's turned into a longer video uh and there was just kind of more to look at more to cover here especially this high time frame outlook here uh you know when we see stuff like this it you know just it doesn't make sense sometimes it keeps on grinding higher into high liquidity and just like wow this is incredible uh but there's a reason for it uh and we'll find out that reason next week likely okay just keep keep your a mind open to that scenario next week all right and we drew up and we'll look at it here we drew up this uh 42 50 here all right all right guys thanks have a good weekend and we'll catch up uh next week take care bye bye