 Good morning traders. This is Bruce at Veloxpro. If you can hear me and see my screen just type yes in the questions All right, good morning Hi, good morning guys All right. Yep. Thank you Okay, let's get started It's awesome interesting stuff yesterday in the in the oil and we'll take a look again today at oil There's just a few things I want to cover And let's let's jump in here learning order flow with book map Risk disclaimer trading futures involves substantial risk of loss is not suitable for all investors past performance is not indicative of future results More information at book map calm become a member there and you have access to a lot of the free resources And then reach out to us at support at Veloxpro.com with any Issues or comments or suggestions Let me show you where the recorded webinars are okay, it's In the portal page here when you become a member You can click on the education tab here And you can see the video snippets are here and the recorded webinars are one below it So open that up here and then click on the For the playlist here and that'll take you to the YouTube channel. Okay, so we're doing a little differently now as you can see and See you will need to scroll up here for a moment until we get this Link to go to the newest feed here. So here's yesterday's at the top here Okay, and the playlist playlist is on the right hand side here. All right And you can see that you have access to all of them here all of recorded webinars okay next week we have a A pro trader webinar series so we have professional traders come in and they will be presenting at this time next week okay, so register register for that you can click here on the button for a register for webinars, it'll take you to the register page here and You can click on the drop-down and then select here Pro trader webinar series and then register for it Okay And if you want to get bookmap a try, this is where you can find it. It's under that pricing tab You get it for a 14-day trial period for either basic or advanced and I think the you no matter which one you sign up for you will get the advanced I believe for the for the trial and You the difference between the two is Are these add-ons right here and and probably the most important one is the ability trade right from the chart in book map, okay? All right Okay, so we're going to take a look at the order flow. We're going to look at book map But we're going to first look at our macro view and integrate that with the micro structure okay, and the order flow it's a very very powerful way of Utilizing book map and in the order flow that will allow you to to pinpoint your entries and your and your exits Okay, so we'll we'll look at our higher time frames, and then we'll jump into book map and look at the order flow All right, so let's let's go ahead and look at oil We can see I have some pretty interesting price action in the S&P at the moment, but let's let's continue on with oil Just because I'd like to cover Some of the things that we saw yesterday. All right, so we saw spoofing type of action yesterday And that was good, and it also we can see that here is the Let's see Okay, 9 30 10 30 okay So 11 30 so it was right around this area here in in oil and We can see that that we did make a little bit lower low here at one In the afternoon, and that was it though, you know, it was obviously this is FOMC at two but They were we could we noticed here Larger players positioning themselves Okay, and and this is what is important here this using book map gave us insight to that Okay And you can we can see this obviously this big candle here At 10 30 and the the rejection out of that area and traded right back into the range And so we know that there's a lot of buyers down here Right, and that was supported all day yesterday. So now we'll see, you know, if price is gonna come down into that area now maybe we will We want to take a look and see if buyers are still interested. All right Homer I took a look at the The volumes and still notice that the the CL It was just switching it's just switching over so I don't know maybe it switched Over to the new contract on the last hour or so, but at the time I looked at it We're still on the J contract, right? For April Okay, but Yeah, you're welcome. I Do want to show show you we'll continue on like yesterday You can see that this is rollover period right away in book map, right? You can see because really when you see this kind of high liquidity very close to The you know current price all the time. I think they're getting in and out and rolling over So we can see it right here Which is a really nice thing to see in book map as well. It just confirms how these markets operate. Okay Let's see Let's go into a five minute chart and Look at some other levels of interest here Okay All right Okay, we have a trending day down so far as you can see me zoom out a little bit here, okay Yeah, I'm gonna I'm gonna shift this line to here for now Okay all right and Have another line. I'd like to put here Hey, all right And we can see I mean you see what I'm looking at. I'm just you know looking at them Basically some of the volume the profiles in my in my head in a sense here I because I know that there's gonna be volume that traded down below a lot of volume That traded as we can see it right here all of this trading activity and then a quick break of that area And that's where they're buying again for the moment Okay And we're coming back down to test that area. Okay, so that's You know, this is gonna be an interesting area to see if we are the buyers still interested in supporting price above this You know a lot of volume that traded here yesterday All right, that's a big question So we'll take a look at book map and see what what goes on now if we get a break of that area Maybe we're gonna get another distribution in the in the volume profile And and or maybe we'll see the you know Maybe we'll breach the low briefly and then trade right back up into the range and start to accept in this area Whatever the case may be we're just kind of outlining the macro view Having some scenarios in our head of how this might unfold and looking at our levels of interest here All right, so now let's take a look at book map and let's zoom out Okay, and pretty messy here. All right. I don't have the 9 a.m. Open. I opened up book map Around 915 I think or so no 930 so I don't have that data But We can see what's going on here You can see the trending to the downside here into that 4860 level a lot of volume traded here as we can see And then we see the retest here, and we don't see a lot of volume trading down in this area All right And I the limit order book in this area is not really telling me too much. I don't see really aggressive Traders here on the bid You know very close here or Supporting price at higher levels not until here and they and they just just got tested But yeah, you know this move to the upside that would be kind of hard to to read or Look or understand here in the order flow This this though is indicative of You know, we can see the Massive volume trades down below this level here and trades right back up into the Distribution that you can see here on our on our column. Okay our SVP or or CVP column so basically this is An important level Right here Okay, I would even say maybe even here Because price has not accepted down below that area. So we're just testing it now So we got some maybe some good stuff ahead of us here all right, and I think we're gonna test it and I think we're gonna trade through it and why do I say that? Although we have high liquidity here a hundred fifty five contracts. We see nice cluster of volume trade here All right, I'm looking for them to hit the bid more aggressively now as well. Let's get one more big push here Okay, just looking at the transactions and where they're trading. We're still in price structure. It hasn't broken quite yet Starting to see a little bit of volume trade here just at this Higher level right in here around 72 or so but And then this little retest in this area here though. We can see some exhaustion Not too much aggressive trading here. All right, so I'm still looking for a push down below this area Okay Let's see Okay, let me go back to the presentation and So we're showing up to this auction and When you it's just like any other market that you're going to you want to know what price is What the supply what the demand is where are people willing to pay? so You know in that auction you can see that if there's a lot of people willing to buy at a specific area or Sell at a specific area and you can you can see the paddles going up or their hands going up And there's a lot of noise and a lot of activity And we can witness that here in book map All right, so that's the first question here when we show up to this auction and understand the current configuration of the book Where are the majority of the participants? And we read that by the The order flow here. Okay the or I'm sorry the liquidity Okay, so let's zoom in a little bit and let's answer that first question Where are the majority of the of the traders lining up to trade? Okay, provide liquidity and we can see it very clearly here a hundred two hundred contracts here And they're pulling though they're adding and pulling in And then and then we're gearing up for this battle here because there's also high liquidity here That just pulled okay, and now they're at 72 okay, so Both sides here, but they also pulled down here now. There's 89 contracts at this 65 level So some some big changes just very very quickly. Okay in the auction Let me adjust this for five ticks. Okay, that looks a little bit better Terry if you don't have Audio You might want to log out and then log back in I believe everyone else can hear me right now You have it now. Okay great. Okay. All right Okay, so what's what's occurring now? All right, so we didn't get our push right? I thought we would based on this cluster of volume and then look at the transactions right in this area right here Okay, we're not getting that look at look at the I'm going to zoom in here and Look at look at the volume trading down here the sellers is it just dried up right and look at these little points right here in this area As well None there's no volume at all right So instead of more volume trading at these lower lows and breaking through this area that didn't happen In fact, we're seeing a flip here now. We see them lifting the offer with aggressive volume. All right, so More volume trading at these higher levels up here Okay, so I'm looking for now. I'm going to switch it over. I'm looking for a Price to maybe come up and test Maybe this 4880 level Okay, now we need we need to see I mean this this battle is not over yet Right. I mean these guys might they might pull their liquidity at 70 and we might get our retest here But so far I'm starting to see a Change and I'm looking for 4880 now Okay, just based on the the way that The volume is starting to trade up here noticing these little points of exhaustion down here and Also, they're getting aggressive here on the on the bid and they're providing higher liquidity here, right? 157 contracts Okay, 119 100 contracts and there's a 119 here. We're in a really tight range here. So something's gonna break right and We're gonna watch it unfold here Okay, so we identified our higher time frame, this is a pretty important level around 65 or 64 And we're reading the book and reading the auction and the transactions All right, here we go. Here come the aggressive buyers Okay, and let's see the follow-through. We want to see them continue to lift the offer here Okay, I want to see the I also want to see these 116 117 contracts here at 75 pull Okay, I want to see them pull to a higher level Right that they're not interested in selling at this level. They want to sell at higher levels Okay, okay Okay, so now let's go over another concept and this is this is a Bigger picture Concept of looking at the order flow and that's looking at the price structure here Just some very simple stuff But let's take a trend line here. Okay We're actually trendy right into that trend line right now. Okay But I want to continue on and I'm gonna draw another one here. Okay, and this is what I want to show It's more microstructural because the bigger trend line is up here, right? And we're just trading into that right now But This is the order flow we were Starting to cover was this this area here, right from 11.05 To this around, you know, 1112 or so, right? And we're noticing the Exhaustion here at 66 very little aggressive Cell activity here at at 66 All right, and then we started to note them lift the offer here and they're starting to Trade at these higher levels. We broke the price structure here. Okay, and what do I mean by that? Let's take a look Right here, right? This is a swing in that price up at this At this 71 level Okay, and that we broke through it. Okay, we came back down and it didn't accept but then we broke through it here again and Now prices and we see a nice cluster of volume trade up here Okay, so that's why we started to witness that here in the microstructure All right, and we started I flipped my decision I originally I was looking for that to to come down here and trade through based on all these transactions that we saw But we're seeing that flip right in this area right here. All right, okay, and we covered that in real time and Then I was looking for 4880. Okay, we still haven't gotten there yet, but we're a couple ticks away from it okay, and Looking for something kind of dramatic to take place and it wasn't a very dramatic move But it did break above our 71 level here And we can see that's now where they we have 128 contracts here at 71 Okay, so I will see if they're they're still interested in trading or not here at 71 Okay, where are the buyers right? That's that's the question here You know are they they were here before in this area as we can see do they want to support price Is this a a chance for them to get in at a deal at this area? Well, let's watch I see nothing that's selling so far Okay, anyway this concept of the price structure Mixes very nicely with the order flow. Okay understanding that order flow Okay, so we're now we're seeing another flip in the order flow here. I mean we're all over the place here Right, this was this was that that that that important area because this is where they were buying before Right, and we just saw a flip of the book here, you know, I mean this is a this is really trappy trappy type of stuff You know we we we broke above that structure And then and now we're breaking down from a micro structure here at 71 Okay, right back down into our 66 level Okay, so those buyers they did not show up again All right, and in fact the our our other trend line that you can see here We broke it, but it did not accept above it. All right. We came right back down Okay, now I think we're probably gonna get our push here through our our 64 level 65 64 All right Let's see Looking pretty good looking pretty good Okay, 163 contracts here at 70 and now 114 We still got 200 at 65 though, so they're still interested here at 65 So they're really back and forth But nice nice cluster of volume here can lead to the price discovery to the to the downside Right. We're looking for volume and acceptance at levels. Okay, and that's just reading reading the tape here Let's see. Let's get to some questions Is this a skew of the book that node at 3865? 4865. Yeah Yeah, I mean, there's there's your skew of the book. It's a good example I mean very aggressive orders here. Okay, and let's just make my column a little bit bigger so you guys can see it Okay, now they're starting to pull though now now the skew of the book is at 70 Okay, this is what I mean by the skew of the but now they're flipping over right there's still here at 65 There's no question about it, right and our large lot tracker is showing that one Individual trader is is primarily responsible for the majority of that liquidity here Okay, and they're battling it out. There's someone large lot trader up here. This is why we're we This is it's a I mean we can see the liquidity in this market, right? You know, we're looking at at tens of contracts here in some cases at very high levels We're looking at hundreds of contracts, but not not much more than a hundred, right? So a larger player can skew the book really easily here And that's why you get a lot of volatility in these these thinner markets like this Okay, so and volatility or thinner markets can be harder to read Okay, you get a lot more Back and forth now. They they move really nicely as well, but that's that's indicative of a more volatile market And also of less liquidity, right? But yeah, they're still interested here at 65. There's you know, we can still see them continue to come into the book here, right? We'll see though. I still think we have the potential here to break And we'll see these guys probably flip out and we'll see these guys at 70 here with their high liquidity They'll come down and they'll cap maybe the The area here at 65 and and and lower their offer. Hey, here we go. Alright, so here comes the break Let's see if we see some follow through here. Okay, some nice transactions taking place here We're down below 65. There we go. There we go. There's our break. All right. That's what we're looking for now Let's see if these guys at 70 Flip over right and maybe they bring they'll bring their liquidity down to to 65 here All right, there's our nice break. That's what we're looking for All right Let's see. Let's get to a few more questions So Judy any any questions on that in the skew of the book and understanding I mean, we can see now look at the book, you know, they're down here at 50 and that's a whole number All right. This is going to be an important number, right? We always usually there's there's high liquidity at these big figures like, you know, 48 even or 4850 Yeah, you're welcome 53 first. Yeah. Yeah, absolutely. Yeah, right here. Not 194 contracts but Now and this is that that difference between You know aggressive and passive liquidity, right or limit orders These are pretty passive right down here at 50. Okay, they're pretty far away from the market Okay, these guys right here are really aggressive because they're they're very close to the market And that's why this area here that we witnessed was really important because they were getting very aggressive and skewing the book very very close to current price And that has an impact on price as we saw Okay, and finally we did get our break here. Okay now that the question is Getting back to that, you know, we we just got a return back to where we broke from and now we're looking to see if we accept or reject Okay, so are we going to continue to the downside here? and or are we going to reject all of these guys that that sold this breakdown here are going to be covering if price can come up to the other side of 78 or so up here and maybe we'll get into the 80 as well All right Anyway some some good stuff, you know, these these markets are kind of all over to be honest all over the place So so far we've re we rejected the breakdown here into like this this area here at 57 right because we traded back up above our level here that we broke from Okay, now we just need to see you know Who who's gonna win the battle now? I mean we we can if we have a lot of volume start to trade at this higher level here We'll explore this area up here right at 78 and 80 Okay, if not if we if the buyers start to dry up and maybe these guys at 70 They start to jump right back in okay with high liquidity. Well, then I'm looking for a retest down down here maybe to High liquidity here at 53 at Judy was mentioning earlier Okay Yeah, Homer. I don't have a natural gas up on the screen. So Can't can't cover that one. Um Let's see Frank. Can you explain the toe? horizontal red and green lines the two okay the two horizontal Red and green lines Book and volume in the upper right hand corner. Okay. Yeah, this is an add-on indicator. Okay. This is part of the advanced book map the This is showing a book in balance and a volume in balance All right, and yeah, we got a couple minutes. You know, I'll cover this because I've been wanting to cover a lot of the Add-on indicators in book map the book map advanced version We've been getting some questions about it. So let's go over the the book and volume and balances All right, so the way it works is And it's all under this studies configuration this microscope icon here And open that up and then you can see all the add-ons are here Okay, so actually I'm gonna take off the book and balance at the moment So it doesn't display up here and we're just gonna go over the volume and balance Okay, and we can click on that here and we can see there there is no There are no settings for it. Right the reason being is it's a very simple calculation of Buying and selling volume. Okay, and then and then it displays it as a percentage who's winning the battle here the center line is going to be right here in the middle of of the Volume and balance for the and you can see that there's just five or four percent You know to the negative side. So just the left of that center line Okay, so there's a little more selling volume in this chart range right now So let me cover that okay, because this is an important concept that we use again and again in book map This is for the chart range that I can see right now Okay, so if I start to zoom in now in my chart range this volume and balance is being calculated for what I see Okay, if I zoom in more, we're going to see a skew right because it's a different calculation All right. Okay, so that's that and now let's get into the Order book and balance. So turn that on and let's click on this. There are some settings for it, but it's the same thing here Let me just First explain it and then I'll go through the settings This is the same calculation that is made for the book and balance But what it is calculating is not the volume at all is calculating the liquidity Okay, and it's calculating all levels within this chart range. Okay, so right now it's skewed at plus 20 All right That's because of all of this liquidity that we see down here around the our 4850 level. Okay That's why we see such a skew and Now if I zoom out like we're gonna get a different calculation, right? Okay, so let's Let me show you the some of the settings though because right now it's it's calculating in all this liquidity down here That's pretty passive. This isn't helping us much. We want to you know, maybe maybe you want to look at more aggressive liquidity and and have that Be more important for you. Okay, and and you'll wait that more importantly So what you can do is you can limit the levels to calculate here? Okay, and based on whatever you want you can Let's let's look at maybe eight levels. Okay, so eight levels on the offer eight levels on the bid and Is making that calculation for the book and balance around price eight levels on each side All right, so it's up to you. You can put in whatever you want You can also wait these exponentially. Okay, so we have eight levels. It's calculating for in total Okay, we're gonna add another filter here, and it will wait the And let's make this it's got to be less than eight. Okay. Now. It's gonna make your calculation here Let's just use three. Okay For the first three levels on the offer and on the bid those first three levels will be Twice as important in the waiting here for this calculation Compared to the next five levels. Okay, so it's a half-life decay rate the first whatever Figure you have here that calculation will be twice as important as the remainder of the levels. It's calculating Okay, and and you'll see the You know this the filter, you know has a pretty big impact on the on the output here All right All right guys, well, that's that's about it. Um, we're not getting a lot of decisiveness here in This breakdown I mean we we still Yeah, it's really not not too clear. I mean it keeps on going back and forth here right, so Maybe maybe what's what we're gonna see? instead is Volume starts to just fill fill in our our volume profile instead of getting our dramatic break like we witnessed here We're gonna get volume starting to fill in this entire area here And there's gonna get one big composite in our our volume profile Okay, instead of that nice trending day of one distribution Low volume node followed by another distribution low volume node, etc. Okay All right Yeah, you're welcome Frank. Yeah, you're welcome Judy. Okay. I'm glad that was helpful Yeah, so yeah, be be careful, you know tomorrow is Quadruple witching so you know we're watching rollovers occur and You know there's a lot of back-and-forth and and we're seeing that play out here in the order flow, okay? Anyway, yeah, actually that now Zooming out a little bit. We're starting to see a nice cluster of volume trade here above You know above like 63 or so, so maybe we'll get a push back up into into 70 And we'll just need to kind of wait and see here though, right? But that's looking pretty good at the moment. Just now now we're looking for those skews in the limit order book here, right? And watch what watch what unfolds here? Okay? Oh good that was helpful Carlos. Yeah. Yeah Yeah, well, all right, we'll do it again tomorrow. All right. Thanks guys. Take care. Bye. Bye