 Okay, good morning everybody and welcome to the book map webinar today with capital and Regendron and this is gonna be a presentation from Regendron, he's a trader and this is gonna be who we're very pleased to have him for this presentation He'll be going over book map for Indian traders with the bank nifty and the nifty markets And I need to go through disclosures and then we'll get into the introductions and then See what capital has to say. I mean Regendron has to say here 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 the risk disclosure Trading futures equities and digital currencies involves substantial risk of loss and it's not suitable for all investors Past performance is not necessarily indicative of future results Okay, so our capital Would be pleased if you could take the presentation from here and introduce Regendron Thank you so much gross and Good morning everybody and thanks so much for joining us here today for this live session Before I hand over to Rajendra and do something about him. So most of you already know him well already But I'm sure there would be still some gaps which I shall attempt to fill today Rajendra studied out as a telecom engineer and then soon turned into a full-time derivative trader mostly trades the nifty bank nifty USD INR and highly liquid stock derivatives He has been trading the markets himself Since 2006 and for that has been using market profile and order flow for more than a decade It's designed and published more than 100 open source trading systems on various trading tools We strongly believe that market understanding and robust trading frameworks are the key to trading success He has been writing about markets trading system designs mark sentiments Trading softwares and various trading nuances since capital that you I think are muted there for Yeah, sorry, there you go Sorry, sorry, I don't know how it got muted. Anyway, I'll just Repeat what I just said. He's been writing about markets trading system design market sentiment trading softwares and various trading nuances since 2007 Is the author as you may be aware of At market calls in is the co-creator now of Algo mojo. It is an algorithmic trading platform or a bit yourself traders This is just a very simplified gist of what all he has been doing and keeps doing even now Over the years, I have personally seen Rajendra grow both individually and professionally It's helped so many traders in their trading journey and continues to do so We are in fact very fortunate today to have him here as part of her team and to help traders once again Ray Rajendran will cover the basics of order flow first Called by sweeps and absorption indicators called by on the bookmap platform for identifying trades in a nifty and bank nifty So over to you Rajendran to take it forward from here. Thank you couple and thank you Bruce and couple for the wonderful introduction So I hope I'm audible Yep, so you're good All right, great. Yeah, so what I am trying to Attempt to talk in today's session is like I'm gonna touch base on market microstructure So and how will be a bookmap is very much connected to that. I'm sorry regent Can you share your screen in in discord or I'm not seeing a A screen right now for you. It says stream is paused. There you go. There you go Start the streaming Yes start streaming again, and then You know and then take the The presentation on on top About now Yes, that looks good All right, great So, hello everyone. So what I'm trying to do here is like I'm trying to Give some just about what market microstructure is all about and how very much bookmap is connected to that One of the key reasons why I had become a bookmap user Otherwise, I'm a more often market profile and order flow user I've been using this for more than a decade now and book map is something new to be I've been experimenting with book map and then getting used to the nuances of book map it's been quite some time like Me and Bruce got introduced and very impressive platform What a bruise on their team had built up So in today's agenda what I'm gonna discuss is I'm gonna look into the very fundamental things of what moves the markets and How book map can be useful for Indian readers. I'm gonna talk mostly from the Indian narrative And how it is different from auto flow tools, which is already available there in the markets We call this a footprint charts and from a beginner point of view how a beginner can identify a potential trade on book map We're gonna look into some of the very interesting concepts like auto flow sweeps and The sweep indicators and also the absorption indicator we're gonna look through what is an absorption means and what does the sweep means and Some of the instruments like nifty bang nifty and reliance or if possible we'll try to look into more library examples how we can apply it in a real time So we might seen this picture if you haven't seen this picture, let me tell you what this picture is all about There's a picture. It's a very famous picture taken by James Webb telescope You know James Webb telescope The picture shows Karina Nebula It shows how the stars are forming and let me tell you this picture is taken from 7,500 light years away from that. It's a crystal clear picture Now what it shows is that it shows very detailed microscopic information about how the stars are forming Now I'll tell you how book map is connected book map is also exactly doing the same thing now What book map does is like it shows the visualization of traders how traders are behaving in the markets and It gives a very microscopic details about the market structure same like James Webb telescope And it helps traders to build the context in real time so that one can take very very short-term trading decisions So most likely book map if you are very well aware or if you are already using it book map is a professional tool bill for scalpers and intraday traders So usually I prefer to use book map to understand the interaction how the interaction is happening between the buyers and sellers You know when the market starts the buyers and sellers come and collide among each other And there is a great fight happening between the buyers and sellers So a using book map one can understand the markets Understand the traders behavior and also the market structure better. It's very well connected to the auction market theory probably if you are If you're one of the fan of auction market theory, I'm a great fan of auction market theory So for me book map is an a very interesting tool to look into that So this is how the book looks like so it shows a lot of details Book map shows visualization of Orders typically a very fundamental level. It shows the how the market is moving right How the market orders are behaving in the markets? How Quiddity is getting supplied in the markets or how limit orders are getting where limit orders are getting positioned in the markets Where big traders are coming in where small traders are coming in? And it provides a lot of nuances about trading at a very very microscopic level Similar to James with telescope. Let me give you a brief idea about market microstructure If in case you might hear the term very much new maybe market microstructure is not new if you are a book map user So it gives you the basic idea about how the exchange works Now let me tell you a lot more traders have a very weird understanding about how the market works most of the people they have in weird assumptions But in book map, you don't have that kind of assumptions It's everything is like you're gonna see it visually and it gives a basic structure about how the market works How the market participants are behaving How the trade transactions are happening how the big transactions are happening Sometimes even how the stops are getting hunted Sometimes how the iceberg orders are coming into the markets like the big traders institutional orders And you can see that how the auto matching is happening in a real time so book map gives you a realistic visualization over here So basically it you can use this tool to study about Primarily about traders behavior because 80% of the time we're gonna deal with traders. And yes, there are times Sometimes even big traders long-time frame traders investors institutional investors. They also dominate in the markets but they're relatively In terms of fine, they're not They are we're not gonna hit them every now and then most of the time we're gonna deal with traders So book map gives that beautiful visualization on that so the screen what you're seeing is and kind of how the Orders goes to the exchange and how the order book matching happens And how the data is collected So typically It gives a basic idea about the market mechanics So same thing can be visualized from the exchange. So so market mechanics shows How exchange matches the orders And the final outcome is what the order flow how the orders are flowing into the markets and how the markets are getting moved By the flow of orders at any given time, right the flood of orders will keep on coming into the exchange limit orders market orders So the exchange job is to match the buyers and sellers So how it gets matched let's look very in a very detailed fashion What moves the market if you ask me at a fundamental level Who is looking for an immediate fill of the orders? Let's say market orders are the one who moves the market It doesn't matter what news is happening So yesterday like you would have seen that if you are trading nifty yesterday, there was a big gap down despite the big gap down because There was a strong news was there last Friday Fed chairman Had said some aggressive statement in Jackson Hole and because of that our entire global markets are freaking out Indian markets also open with a gap down But despite that sentiment which was extraordinarily negative almost the gap down was a very big gap down almost 400 points of gap down But despite such a gap down what happened, right? The market started recovering back buyers started showing up So at a very fundamental level the buy market orders moves the market up. It doesn't matter whatever the sentiment which is running on So at times sentiment can be momentary But what is happening in front of our screen? If I am able to see that how the market orders are behaving maybe my trading decisions might get better So at a very fundamental level buy market order moves the market up If I am sending and sell market order Then I'm the one pushing the markets down So it is not only about the market orders alone If you would have used the traditional order flow tools, it shows only the visualization of the market orders But there is an also another side to that Which is what the limit orders So talking about limit orders Typically limit orders that we called as an liquidity to the exchange. So if I am if I'm a market maker Generally market makers, you know what they will do they will supply two way codes Maybe I'll show you how the two way code looks like. So this is how the two way codes looks like Now what you're seeing on the screen is on top 20 levels from the order book You can see that the values are ticking up and down Uh, the example what I'm quoting is from brilliant. It had taken some couple of weeks back So the prices keep on moving up and down and you can see that the codes are getting supplied over here on the left hand side So the top 20 levels They don't move the markets If you're seeing the markets keep on moving up and down So, you know, it's moving it's keep on moving up and then instantly it's coming down and it's going up Now what you can see here is always the limit orders They closely track the price action wherever the price action is happening where the price is getting moved Market orders are going to move And limit orders are going to track the market orders most of the times and it will be waiting for the fill It's they are pending orders Now when I started my career in 2006, I frankly said I looked into this And then I really thought like these are big traders big buyers and big sellers I can figure it out from the order flow I mean from the order book But it took a long time to realize that that is wrong. They're not going to move the markets They can control the market when they cannot move the markets because they are just spending limit orders spending limit orders They don't have any power to move the markets, but they can control they can build resistance. They can they can build a supporter But however, who has the maximum control is like the one who is placing the market orders At any given time both market buy orders also going to come. Market sellers orders are going to come So that is what it finally gets revealed who is moving the markets And of course book map also provides a beautiful visualization on limit orders so that you can Visually in real time you can figure out where the support and resistance are I think going forward more and more interesting things are likely to happen in the Indian uh ecosystem Where uh more and more innovative tools are like book map are entering and then uh It it it only brings the understanding of the markets Understanding to the traders better rather than living in assumptions Okay, now let's quickly get back to The market makers so the market makers are the one who supply the courts. Okay. They are the one the one which is Typically most of the Indian brokers they provide only up to five levels Now very few brokers in India. They also started providing 20 levels Now we can visualize The market maker what the market maker is doing where they are giving the courts So market maker generally supply the limit order They supply the liquidity. They're mostly they are passive order. As I said, they don't move the markets They just simply provide two way codes Market makers will be present on both the sides. They'll be sending Liquidity on the buy side also on the sell side also and that is how they do business I'm not going to go more detail into that And the other side is the market takers market takers are the one who sends market orders So if I am sending a market order, think about that if I'm sending a market order So probably I'm the one who's going to push the market up If I'm sending a market sell order, I'm going to one push the market to the downside Give me a sec So if I'm a market maker, I'm the one who consumes liquidity So all these market order rest in the order book. So we need to know how the order book is getting organized If I'm looking into the order book, you know, right the way they're only passive orders. They don't move the markets So limit orders are typically pending orders waiting for the fill They're just simply resting in the order book Kind of an advertising mechanism. We call that as an advertising mechanism Because they flash us that hey, I'm here. I'm waiting for the fill And mostly limit orders get matched with the market orders Typically with the order matching exchange will have that order matching engine Its job is to keep on matching the orders So always if I'm sending a market order, the market order always get matched with the best available ask or best available bidder But limit orders, whatever you are seeing on the screen they are not realistic one because most of the orders lies in the limit or hidden orders Not all the limit orders are revealed. Not necessarily it has to get revealed Mostly if I'm placing a small quantity, I don't like to hide my quantities because my quantity is very small But if I'm a big trader or if I'm from the institution side If my trading size is very big, I don't want to showcase myself that I'm trading a very big quantity So what I will do is like I will generally hide most of my orders and exchange almost all the exchange in the world. They provide the privilege to hide your orders. So that's kind of a privacy purpose exchange provides that So 90% of the trading quantity can be hidden So these limit orders will get revealed only if the transaction is happening exactly at that price level once the transaction is complete The limit order get executed only then the quantity gets revealed Until then we cannot really see the Hidden orders. So I cannot really say how many hidden orders are there I cannot by looking into the quantity alone. I cannot say it might show 10. Maybe remaining 90 might be in the hidden state Right. So it's very difficult to say that unless the execution happens once they once it gets executed all the market orders will get visualized What is the exchange reveals market orders totally it? It's nothing but executed transactions totally get revealed Once execution is done, then only the market order gets revealed limit orders Not necessarily the limit orders has to show the complete details 90% of the quantity can be hidden As I said institutions usually place larger orders in a hidden mode And at times even they slice their orders. There are a lot of execution algos are there like vwap algos twap algos order sweeping algos liquidity hunting algos So usually they'll be slicing the orders into small packets and execute at various timings and stop loss orders So some people had a very weird thinking like somebody is seeing my stop loss But let me tell you something the moment you are placing a stop loss order Let it be a stop loss market order or stop loss limit order Exchange provides a complete production. Nobody can see your stop loss, right? But people generally keep their stop loss at round numbers yesterday's high yesterday's low But if you're placing a stop loss, nobody can see an exchange Particularly in India so exchange maintains a book called stop loss book like how order book is maintained exchange also maintains a stop loss book So once the trigger is done, then only it will convert into a limit order or a market order So it's completely hidden for privacy purpose exchange maintains that secrecy So that uh, I mean you can safely trust exchange Uh, many many traders beginner level they have that very weird thinking like oh somebody seeing a stop loss somebody's hunting my stop loss So that is not the case here, right? So these are very basic assumptions which I also had in the past when I started trading initially So then when it comes to data types, you need to have a fair idea about what kind of data that we've been using So typically level one is the data which is used by most of the popular softwares Even for Indian market also at this point we are using level one data only in level one data Only top bit and top asked from the order book for means and other This level contains the top 20 levels. So this is level three data however The level one shows only the top one level only the very first level only which is what we call as a depth of the market and that is More than enough to plot the book map to visualize the market order Level two data or level three data is what it is required to visualize the limit order as well So when it comes to at this point in time Petru data and book map have they had partnered and then they integrated level one data. I'm sure level two data uh or level three data Couple might be giving you later on some brief idea about uh, how uh, what what he is planning to do But at this point in time what I'm going to show you is like with level one data What are the facilities that we can use in book map and how to use those information? And how to decode those information like going forward? I'm sure once More and more Or traders are interested. They might be going for level two or level three data also. Who knows And I think already there is some bsc level two data. I'm sure like Couple might be testing it out. I might couple might later on give some brief idea about that So level one data when it comes to Indian market Is nothing but uh, every one second we will be getting one Uh, every one second we'll be getting one tick data. So means I'll show you from the book map screen I'm sure you might be able to see my screen. So this is the book map screen of Uh nifty here. So what I can show you here is like, uh, I'll I'll just uh zoom it out. It's kind of an uh Every one second you can see that a new information keeps coming in every one second once It keeps on printing new information So what does this means is like, uh, it prints Uh, every one second I'll be receiving the tick each and every data point is nothing but a tick It arrives in Indian markets every once again once every once again A new information keeps on happening over here. You can see that it keeps on printing Newer and newer information. I can I can zoom it as much I want So book map is typically a non-time-based charts. So you might be watching that The green color blocks, they're nothing but the green color bubbles or green color volume dots They're nothing but market orders So I can visualize the market orders as the time is going by. So there's no five minute charts or 15 minute charts So it's not a traditional charting style. It's kind of more of an unconventional charting style here So where I can see the Where the market orders are coming in and what is the size of the order the bigger the bubble it is Bigger the volume it is getting traded. So you can also see in On the downside you can see some Volume instagrams how bigger the volume instagrams are or you can also place your cursor and you can see Whether the volumes are bigger or not smaller the dots smaller the volume bigger the dots bigger the volume Right and we can uh, I mean if you if you zoom it out And you can see that the charts you can you can see How long you want to zoom it out you can zoom it and you can see the entire price action Very clearly Right, so you can you can zoom out the entire day and you can see the entire day's price action Also, how the entire day is is keep going up. I think since the morning price action has been rising The buyers has been aggressively participating some of the places sellers also participated But they've been getting absorbed later on we'll we'll talk about those things how the entire price action has been happened This is the entire price action since the morning But I can narrow down to the details. I can I can go back and look through the certain places I can zoom it out. I can go and check how the price action went at a very minute levels Now this is with the Indian markets Indian markets right now. They are supporting in one second resolution But book map is capable of doing a nanosecond resolution if in case if you're having a nanosecond data So you can go up to nanosecond resolution means Book map itself built to visualize the high-frequency trading activity so Yes, so that is what the book maps capability is all about and let's go back As I said One tick equal to one second when it comes to Indian markets Maybe if you're using from different countries different exchanges if I think level 3 data, maybe it could be a true a bit of nasty data also All right So this is what currently exchange sends to all the data vendors including true data as well Now how to read the book map charts? So as I said, there are a couple of things that you need to know about here If you are very new to order flow or if you are very very new to book map Then I would say like the first thing is like how this How the price action is getting played how how I can make use of those bubbles And whether it is hitting the bid or whether it is hitting the ask You know, right that there are always two price One is an bit price and then one is a price the buyers At the one the one if I'm placing a buy market order I will be taking the liquidity from the seller If I must sell market order if I'm placing a sell market order, I'm going to take the liquidity from the buy market order Now the very same thing can be get visualized in the form of order flow and on the extreme Right hand side, we can see that there is something called svp, which is nothing but the session volume profile So if in case we are using it for the very first time, I'll show you how we can get it like maybe You can go here. I'll first of all I'll I can always go and hide the column So I can go and Add additional column if in case if I want more and more columns I can right click I can go and select chart accumulated column So scvp mostly stands for that particular screen on the screen presence How the volume is getting distributed over a period of time Right and then svp stands for session volume profile session volume profile typically Shows that entire day how the volume is getting distributed So generally if you're a volume profile trader, you have a fair idea How the volume will be getting distributed over a period of time At any given point, you can see that this is a place that a maximum volume is getting traded over here somewhere around 17,000 516 or 700 500 kind of levels That is why the maximum volume is getting distributed for the day All right, so which one can very clearly visualize by looking into the screen Or there's a session volume profile. Mostly it talks about the screen volume profile So there are two places. We can see high volumes So 17,500 and also around 17,500. These are the two blocks where maximum volume is getting distributed for the day And on the downside, you can see the price action You can visualize in the form of delta So delta We call this a cumulative volume delta cvd. You can see that the term cvd means cumulative volume delta The what does it represent is like who is trying to dominate the market? Whether aggressive seller or aggressive buyer when I say aggressive seller or aggressive buyer, I'm always talking about market orders So cvd itself, it's an uh, it's a it's a control Uh, you can see who is control who's in control of the markets whether buyers are in control or the sellers are in control in the markets So typically you can see that Today at the market opening what happened is like a Lot of sellers showed up can see that a lot of sellers are showing up But despite that market start keeps moving up. Now. What does that means is like the seller activity Sellers are showing up clearly sellers are showing up Throughout the day sellers are showing up But what is actually happening here is like, uh, price start keep on going on the opposite side. You might be wondering how that can happen See aggressors sellers are coming and keep on selling and selling and selling and somebody is keep on observing on the other side Entire activity is getting observed And that is why there is no price reaction is not getting happening always So means the market is totally controlled at the opening markets are totally controlled by limit orders despite huge selling Despite a lot of big selling activity, which has happened Since the morning a lot of lot many places you can see that The sellers came over here and sellers started pushing it down. They're not able to control Big sellers came came but still they're not able to push the markets to the downside not even the day low In fact, the day low today happened in the very first minute price opened very first minute it made the Bottom and it keeps on rising up Sellers are attempt things to sell But the liquidity in the market is very title. So who's on the opposite to the market orders if I am a if I am placing a big seller order It's getting executed means that the transaction who is on the opposite side is the buy limit order So the buy limit order is getting more and more smarter in today's case Right, which I'm going to show you with a couple of indicators. How uh, you can visualize those things how the absorption is happening So what are the locations where the absorption is happening? Right from the market opening the sentiment has been bullish not even a single place Look at that the pink color line. What you're seeing is the v-wap so you can always enable the v-wap by right click and you can you can go to the Uh configuration and from here you can uh, uh, I'm sorry like you can go to the spp You can go to the configure column Now from here you can go back and enable the show v-wap line and if in case if you want to enable the point of control also can enable the point of control point of control will be mostly in and yellow color line So which will you'll be able to see those? point of control as well So the pink color lines Or traditionally the v-wap. I am a very big fan of v-wap when it comes to auto flow Because auto flow there are many days when a trend day is evolving when when price action is going throughout the day The v-wap will not get disturbed much If it is going to be in a sideways market you can see that repeatedly v-wap will be kept on Getting tested most of the times so that is not the case right from the beginning Still the price action is keep going up so far. There is no disturbance towards the v-wap yet Now if I'm if in case if I if in case if I'm looking for any sort of mean reversion Then typically I'll be looking for a pullback towards v-wap. So as of now the auction is still remaining bullish Right. So all the sellers the sellers has been totally got absorbed over here So whatever that the sellers have been doing maybe they got totally got absorbed over here And now later on what is happening later on the delta is keep on increasing so increasing delta means typically The buyers are taking control of the markets The buyers are totally controlling of the market. So by market or by market orders are coming up liquidity is also supporting So they are able to beat the liquidity So price started moving up very good transactions are happening So means very big transactions are happening. What does that means is like The buyers are so far in control of the market. So Morning you can see that always the cvd starts at zero. That means cumulative volume delta starts at zero Right. So every day the cvd will get reset to zero That is what you're seeing over here. It resets to zero and then initially some buyers started dominating later on sellers Sellers are getting absorbed Means what are some smart limit orders? They are coming under continuously. They provided supply and then they absorb the market orders That is what we call as an absorption Now when it comes to order flow, there are always only two kinds of Information that we can talk about one is initiative drive in an initiative drive The buyers here in the case initiative drive is made by the buyers can see that the cumulative delta Is also keep going up cvd goes up Price action also goes up. This is more of an initiative Buy orders are keep on pushing the markets up and the opposite guys Sell limit orders. They're not controlling the markets Who controlled the markets in the morning? the cell Sellers came in aggressive sellers came in big selling quantity got traded which is very much evident from the Blocks, right? So you can you can able to see this from the The big bubbles are the big volume dots that you are seeing Delta is getting pushed down, but prices maintained Sideways to the mild upside Now that is more of an absorption as I said, right? So if you connect If you connect the context you could be very clearly say that Yes morning passive buyers, they control the markets and post 10 30 onwards aggressive buyers Are controlling the markets. So right from the beginning only buyers are the one who is controlling But morning limit orders. They control the markets And uh post 10 30 by market orders are getting controlled Now this kind of visualization you can able to see it very clearly and that too Let me show you with maruti. What is really happening something very interesting happening with maruti? Like since the morning, right? There has been a crazy sweep which has been happened You can see that very big orders are coming in right from the start if you could see Maybe I'll zoom it out since the morning activity. I'll I'll show you So the more you zoom the blocks will get Joint and then it it becomes automatically dynamically those bubbles will get formed based upon How much time frame that you're viewing? maybe Yeah Since the morning you can see that Big buyers started but then uh, big Sellers they kept on pushing them They they try to Dominate over here despite big sellers coming in the price starts keep going up. How that is possible if you ask me like It's nothing but one form of an absorption only So these are the places the sellers try to push down but The liquidity players are coming and absorbing the entire activity So this is more of an it started with an initiative drive Right and then mild absorption in between and once again the buyers are the one who is totally controlling the market, which is very much evident from the community to delta itself So it's been keep on going like in trend a odds where in a trend a like traditionally The viva will not remain tested So right from the open Very aggressive In fact, if you want to see how much aggressive They are what are the places the traders are aggressive. You can always go back to the add-on So you can go and go to the configure add-ons I think this absorption indicator sweep indicator Are available in the global plus package it So you have to go back and uh, let me add the sweep indicators So sweep indicators I can go and say like within uh 2.5 I'm going to say like if at all there is going to be some I'll disable the mode and then I'll say like if at all suddenly if I'm seeing like some Lots of activity Currently a big price action is happening. There's 5000 shares of activity getting transacted within 2.5 I just want to visualize where that such kind of transaction is happening So it's more of an it shows where the aggressive price action is getting formed right if in case if at all anything is there I'll be able to see it over here So this is maruti rates. So I'll go and configure it. I have to configure like maybe I'll make it like thousand Thousand shares So I'll be able to see where the aggressive price action is getting happening over there So where the aggressive players are coming and pushing it out So here you can see that Who is getting more aggressive will be able to see it on the buy side So what is the quantity they've been aggressive within 2.5 seconds? That is 35,000 shares are getting transacted over here Which is comparatively very aggressive compared to the sell side So sell side it is happening, but price is not willing to come down That is traditionally If you look through the absorption indicator, you'll be able to see it in the form of absorption So you can you can see how aggressive the traders are getting formed What is the size of the quantity they've been moving up whether they are moving up or they're moving down You'll be able to see it in the form of visualization So you can you can go back to a certain level and then you can you can narrow it down And at a very granular level we can go back and check this out You can see that the dots for those shows that how aggressive the buyers are And the pinkler dots which shows how aggressive the sellers are And what is the size of the quantity and wherever the rule matches? It just simply it tracks those activity. So tracks those High momentum activity which pushes the price in a greater manner And of course you can you can go and play with various configuration. Maybe if you want This is more of a relative term If in case if you are not very sure about it, you can leave it to an automatic mode It where you can go and change the SD interval and minutes like what kind of minutes that you want to accumulate And then how you want to visualize those things because it automatically comes with an optimal Volume activity if in case if you are very not very sure about that But if you are having a very good screen time Yes, over a period of time, we will figure it out. Okay. So if it is if something like nifty, maybe I'll go to nifty and then I'll go and configure with an configure I'll go and say like I'm going to use an sweep indicator I just want to know where are the sweeps are within 2.5 seconds if there is any 5000 shares are getting transacted I just want to visualize those things So one can go back and visualize the how aggressive the price actions are more aggressive price action that you want to see more aggressive dots It will be keep coming up over here. So these are the places you can see the aggressive Very aggressive dots are coming up Maybe I'll try to zoom it out. I think the three four dots the more the dots it's coming in over here So this one location and very solid aggressiveness has been there Like almost 47,000 lots has been 47,000 and lots has been got traded I'm sorry 47,900 shares has been got traded And the exact opposite to the sweep indicator is the absorption indicator. Let me tell you how the absorption indicator works it shows where the price is not getting moved but still Despite selling The market started reversing mostly it looks for a mean reversion points So I'll go to the I'll disable the sweep indicator I'll go to the absorption indicator like how sweep indicator is having a couple of settings similar settings are available for absorption indicator also absorption indicator shows Where the limit order traders are smart. So sweep indicator shows that the market orders are smart mostly for breakout trading it to be very much helpful whereas when comes to absorption indicator it is more of a place that the activity is getting absorbed that the buyer buying activity is getting absorbed a selling activity is getting absorbed So those information will be able to see it very clearly So here Similar way if at all you can see that if the sellers are getting absorbed We'll be able to see more and more Pink color absorption is happening over here the pink color absorptions are nothing but what We'll be able to see it in the form of something like this So here in this case You could sense that I think maybe i'm Here you can see that the more and more Sellers are getting passively absorbed in this location So a lot of selling activity is getting absorbed in this location. That is what the absorption indicator shows over here The more bigger the absorption it is a bigger the quantity is also you're going to see it over there, right? and more over What is primarily important here is like try to under if you're a beginner in Book map or if you're very very new to the concept of order flow Hey, it's highly recommended to go through some of the very basics of market microstructure like so that that will be definitely Guide you to understand how the flow of order works What kind of traders will be coming and playing in the markets when the day when the market opens Until the market end What are the kinds of traders we've been competing with? I'm going to give an recommendation of one of the book. It's a very important book It's an trading and exchanges the trading and exchanges and very interesting book on market microstructure So this is mostly for the traders who want to get a general idea about how the exchange works So because we might be under an assumption like this is bearish. This information is bullish Um and basic indicators So more than that if you are having a better idea about market microstructure I can tell you like you can have a very fair idea about how the structure is looking like should I have to take an immediate shot So since the morning, I'm just maintaining a tone like Maybe yes, the market is bullish. At least we should not be shorting the markets If at all we've been shorting the markets, we may have to look for certain certain trading opportunities But the flow of the markets throughout the day the volume flow has been Running good and positive A lot of big players has been coming and controlling as I said morning The smart limit orders has been controlling the market second half market orders By market orders has been keep on controlling the markets Now if you want to sense those kind of information like if you even if you want to get a very good idea about What is the liquidity is all about how market market how market makers they play in the markets And how institutions they do big transactions how order slicing will be done how hft play the games So if you want to know the in and out of the trading world Actually, if you want to have a real understanding about the markets, then trading and exchanges is one book that you cannot ignore and Talking about the traditional order flow versus book map I would say like book map shows executed market orders in the form of bubbles or volume dots And pending limit orders in the form of heat map Um, I think once the level 2 or level 3 we've been moving towards level 2 or level 3 You will start seeing those heat map which shows the visualization of limit order as well And right now, I think a book map right now you can go and test it directly um For cryptos for cryptos that you can easily go back and study it And the visualization itself were done via bubbles and heat maps when it comes to Book maps. Whereas in a traditional order flow charts or footprint charts It shows only executed market orders only it doesn't shows any visualization of those orders And even those visualization also done inside the candlesticks Now here even in a book map also if in case if you want to visualize on top of the candlesticks There is a provision to do that. So one can go to the book map now from the book map Cell disable the activity here and if in case if you want to enable the Candles so you can go back you can go to the settings Study configuration from here you can go back and enable the candlesticks However, this is for the beginners. If you are a little bit more advanced, maybe a candlestick may not be an Requirement for you, right? So the more you've been focusing on the internal market structure Uh, let's say you will be staying away from candlestick candlesticks for the people who are very new to The flow or who already get equipped with candlestick. So when I'm trading with out-of-flow information I prefer not to use candlesticks So I would do most likely to go within The natural way of looking into the book map So but if in case if you are a beginner and if you are Feeling like for the first time if you're feeling a little bit uncomfortable And then you want to get a hang out of it for some time. Yes, one can definitely Make use of those candlesticks as well Let's have a quick check on what bang ft is doing bang ft is also more or less It's been trading in the similar way what nifty is doing, but bang ft was like a little bit sideways today So this uh by looking into this out-of-flow right you can look for and very microscopic information like how For example, this particular place how aggressively the traders has been pushing it down What really happened around those levels you can see that the big sellers are pushing down really The cumulative delta is also pushing down So if you are having a very far idea about What the volume profile activity is all about you can look for very you can aim for very very short term targets Probably the holding period if in case I would say like if you are using book map traditionally the the You can attempt like within something like in five minutes to 15 minutes of trades or even The trades can last for a couple of seconds because since we've been dealing with anticlevel charts Like the trade can go as good as leaker a couple of seconds. Maybe something like even some 10 15 seconds are Anything a little more than that like two minutes to five minutes kind of time frame So it's mostly for a very very short term scalpers Of course somewhere That should be an screen time observation if in case if you are practicing for the very first time You have to go through the screen time process That means you need to know how to observe the markets because every day the markets are going to do something different um, so Whichever side the market moves like it always throws opportunity at some point in time So if you are a beginner first thing you have to learn is like where the absorption is happening where the smart money is coming and trading So are there limit orders are getting controlled or limit orders are controlling the markets or market orders are aggressive market orders are moving the markets So i'm sure these are very basic Things that you can learn in today's session Maybe going forward. We can bring more and more Interesting concepts. I'm sure book map is not limited only to this book map does a lot of things in fact In fact book map. They had been beautiful visualization on iceberg trackers stop water hunting and so For everything that should be a starting process. That is the market microstructure here I'm sure Is a very interesting tool you might agree with me once you start using book map Let me know if I have any questions. We can take a couple of questions here. Okay, so let's see. There's um In discord No, just a question about cbd and offering Or filtering for larger larger traders larger players And there is there is a functionality in there in the cbd So and you can put in multiple lines as well. So everybody in uh, um I'll copy and paste it also into youtube here If you'd like to demo it, uh, you can you can do so Regengine, but I can also demo it during the um book map Advanced webinar or a training webinar at 10 a.m Um, there are two questions, uh rose on youtube. Um, so can you hear me? Yeah All right. So first question is what is the best time frame for using book map? Um, can you answer that? As I said book map doesn't come with any standard time frames like It's it's more often tick level charts and then Yes, you can uh, if you are looking for a very very short term information you can You can go to that appropriate level and then zoom it always you're going to look into the complete data set You want to look through that? But the thing is like more you compress uh, it's looked like it's as good as like looking into a higher time frame The more you're narrowing down as good as like, uh, you are uh, you're moving towards and uh, uh, You're just looking into the very microscopic information I'm sure like you can also reduce. I'll reduce the heat map over here So that it'll be very easy to look through the information All right. So, uh, ideally I would say like uh book map is not connected to like five minutes time frame or 15 minute time frame So depends upon what kind of trader you are. Let's say if I am a microscopic trader Like I'm gonna trade like for a couple of seconds Then I'm I'm more interested in what is the nearest spring we're just trying to do in the market Is there any meaningful information? So where is there any buyers are getting trapped or any sellers are getting trapped? So is there any absorption is happening at at that microscopic level? So can I look for any very quick short term trades? So that is what I will be primarily looking out for So if I'm slightly and let's say I want to deal with some five minutes or 15 minutes So maybe I'll zoom it out and then I might look for even more bigger structures Right so but definitely want you to have a top-down analysis view like what is the overall success going on and within that structure Like what kind of opportunity which is coming in let's say when that previous thing high is getting near When how the price is responding to that So that will give you an better idea about So when that level is once again, it is released. Is it an absorption or is it an who's trying to control in the markets? Am I seeing any delta divergence over here? Sometimes the delta divergence might giving an meaningful opportunity over here For example, the prices keep going up whereas the cvd is keep going down. So that's kind of a divergence Maybe there we can look for an turning points If you are if you're seeing that cvd is Going down but the price is making swing highs. That's kind of a divergence Divergence and here and divergence kind of stuff you can try to use it In this kind of cases where you can look for a very short term corrections in the markets because that is what it's it's happening and Very classically we can see that this one place you can see that very very sharp drop is happening So that is more of an aggressive traders are coming and punching orders with a very reasonable amount of quantity Like kind of on sweep is happening out there Does that explains? Yes, thanks Roger. There is one more question for us and that is can you suggest any questions? Yes, there is one more question. The question is can you suggest any book for market profile? I would say like The very first thing So I would like to give some of the guidelines over here if in case if you are using for a bookmark for the first time Definitely one should get some basics at least some basics about market microstructure is enough You don't need to read the complete book, but at least how the order flow happens Like for example, some basic idea is always enough at the opening of the markets the flow of the orders will be very high because a lot of Intrared traders will be entering into the markets and at the closing most of the time Volume flow will be very high because most of the time around the market closing a lot of institutional traders But really mutual funds will be coming in purchasing Institutional activity will be very high around the closing and not one really institutional activity From the brokers at times broker will be squaring up the positions. So those places also will be finding more order flow over there So traditionally doing a little of the day the volume will be getting brighter So these kind of some very basic understanding will help you how the market structure could evolve for the day Yes, it is going to be a little bit of screen time is required to understand this kind of information But somewhere that should be a starting point to know what is truly happening at the market Great. Thanks Rajendra. We have one more question. I think I would direct this question to Kapil Kapil, can you hear me? Kapil, can you unmute yourself? There is one question for us in terms of the data So when is level two data coming? When will it be added to bookmark? Can you answer that question for us Kapil? Kapil, you're still muted. Bruce, can you help in unmuting Kapil? Yes, I'll try here. Kapil, I think you'll have to do this yourself actually. It's in the lower left hand corner Of discord. You'll see the microphone and then just hit on hit that You're probably muted there Yeah, hi There you are. We can hear you Yeah, yeah Yeah, I saw some questions about nifty spot volume Actually, we have been mulling over this for some time But the point is that the other vendors what they have done is they just aggregated the volume Which is actually not the correct thing to do But if you just aggregate the nifty 50 volume, it is that the weightage is not being considered for the nifty It gives an inaccurate picture of the nifty. However Getting the different weightages There is a index called a nifty, you know No weight then there's no weight is considered. So It is easy to do this collating just total it and give it to you But we were trying to, you know, not do that And try and give you the exact weights But it is becoming a little challenging and that's why this time has taken so we have Considered and we are going to at least start aggregating it And so you will get the total aggregated volume Soon that would be available even with book map In the near future with regards to question about BSE Level two and further going on to level three data BSE provides level two data as we are going with BSE We have already started providing BSE for charts and amy broker and excel etc However, that is level one we are working on the level two You know coding part and the same is likely to become that completed Within the next couple of weeks after which it will be integrated with book map also Which could take us a little more time So, yes, we are getting there. We have already launched BSE for level one But for the normal markets It'll come here soon So this So that's it over here Okay, so it needs a lot of memory I am not sure 8 GB RAM and 256 GB Bruce could you help here? Her job gil is asking that it needs a lot of memory and he's got 8 GB RAM. That should be sufficient for running book map. Am I right? Um Yeah, that's I mean 256. Um That's plenty. Um, I mean, that's that's amazing In terms of RAM, I will put the link to The knowledge base in book map. Um, that gives the uh, there's levels of uh, different Specs or recommendations So let me let me find that link and I'll paste it in It starts with basics. Um, or like the kind of lowest bar, uh, and then kind of Middle, uh, and then for high end users as well Yeah, I've got it here. I'll put it into the the chat system and uh requirements Sure, uh, so, uh, have a look at that Her job and I hope that helps you normally, uh, we haven't found Any much issue if you're a good decent pc. It should not happen. Please check Other things in your pc also and see what all you're running and what all is consuming memory normally doesn't Tax your system so much and it is Pretty easy to run Book map with today's uh systems which we have Yeah, of course, uh, this there is tick data. So if you enabled, uh, you know saving the tick data at your end I would suggest, uh, you know, you try not doing that because this history is available for the important symbols Uh, and so you could you know, uh Avoid saving that data if you're doing that and try If you if you do that, I'm sure you're you should maybe solve, uh As I understand try that and let us know how it works for you Yeah, uh, purna, uh, I get it. We are going for the cumulative spot volume Uh, you know, um Because I know trading view and investing and all has started. So you were just trying to, you know, do the best thing possible But it's really difficult to get that Uh, correct volume, you know, updated with everything so cumulative or spot volume is not so difficult and We will be giving it to you soon. So don't worry about that. So that's coming So it will come with the once we launch with bsc will put this also already. We are working on adding cumulative spot volume We'll uh, we'll see later on if we could also do the weightage That would be good. Okay order flow add-on for book map Bruce, could you help me with this? For this what wiki is asking? Yeah, I'm not Yeah, sure. In fact or vashi, maybe I'll hand it over to you and you can kind of go through some of the the details in here if you like Yes, so, um wiki with regards to your question about So wiki is asking if there's an order flow add-on for book map, which is uh, yes, um, can you hear me? I am not sure if there's any other order flow Add-on which you've got here Correct me if I'm wrong, Bruce But uh, can you hear me, Bruce? Yes, I can hear you, uh, or vashi Uh, right. So I'll just give you a quick update about the order flow add-on So we are in talks with the vendor, uh for the Indian market So, uh, our team like the tech team is actually doing the due diligence at the moment So it'll take some more time till we actually launch it for the Indian market. So, um, yeah, that's the update right there Um, we have a couple of other questions actually on youtube as well. So I'll just read them out for you Um This question I'll direct it to Rajanjan. Uh, what is the ideal absorption and sweep setting for nifty and bag nifty? Uh, means we can set a load on the quantity traded. Um, Rajanjan, can you help us answer this question? I would say like it is more of a True term and uh, something like for nifty and bag nifty if it is something like if you are using it More or less for whatever applicable for nifty the same numbers will be applicable for bag nifty as well The reason is more or less the volume flow is very much similar with nifty and bag nifty most of the times So I prefer using something like Uh, uh, 5000 for within 2.5 seconds However, you can go with an uh, if you are a very beginner you can go with an experimentation mode something like you can try with like Automatic mode, but if in case we are using automatic mode, you should try to control the sd interval and sd multiplier. I think bruce might give more um Insights on that Yeah, sure. Um, so I mean, uh, basically, um, uh You know, what I what I've found is you need to just play around with it, uh on the um zoom level, uh, or potentially like, uh The the day or the instrument. Um, this is why uh, as you had covered Rajanjan the, um Automatic mode is really great because it will take the standard deviation Uh of a time interval from the market. Um, so no matter what, um Condition the market is in, uh, you will be able to kind of uh, uh, look at something that should be Inline, uh, so maybe start there With automatic mode and then if you don't like it and you want to, uh, adjust it Then deselect the automatic mode and like try it now, uh, Rajanjan and you'll you'll see that uh, the 5000 up there, um, will turn into something else So turn it turn it on. Yeah. Yeah. Yeah, and uh, and then select it and now see how it jumped up to 55 48 It looks like it is more of a level term based on the last 30 minutes of uh price action Like in the last 30 minutes of volume activity. So it takes a standard deviation and is applying to that That's correct. So this is a way to kind of fine tune it a little bit now If you don't see much on the screen right now, we'll take take the standard Deviation multiplier down a little bit. Um, so what? So yeah, something. Yeah, bring it bring it down to like, um, yeah, something like that now look at the screen take take away the Uh, the window there so we can see the screen For once Yeah, so you didn't get too many readings out of it. Um, if you zoom out, maybe you get more Just playing the phone You you want me to zoom out, right? Yeah, I mean just to just to get some data in there and we can take a look Yeah, so so if this is what you know, you're kind of looking at and this gives you some insight This is the time frame that you're trading then this would be a good, uh setting for you Uh, if you're looking at, um more, uh granular levels then, uh, you would probably want to Reduce the standard deviation multiplier I'll now further reduce I'll look at something at 5.5 something like 6 something. Yeah. Yeah, let's see what it looks like It's time to go and look like a very granular level. Yeah, exactly. So it it the the answer the short answer it depends Yeah, okay. We have a couple of other questions. I'll just read them out for you. Um, so, um Is there any documentation available as a user guide with pictorial pictorial representation for bookmap? How to get it? I'm sure that is a wonderful wikipedia is I mean, uh, Complete study is available there like if you go to like, uh, just I would say like go for a bookmap knowledge base And you should get some interesting knowledge base. It's a good part. It's a good starting point to start here And it connects you to the various locations indicators and uh, different blocks building blocks Okay, uh, thanks Rajendra the next question is can we use bookmap over android, uh mobile phones? I don't think so like Yeah, uh, so you search and to answer your question. You can't right now. It's available only on desktop Web solution. Yeah um, okay When can we get option chart in bookmap? Uh, couple. Do you want to answer that? Couple are you there? Okay, I'll answer this question. So, um, right now we are figuring things out in the Indian market like how we can actually integrate bookmap with options So it's there in our product roadmap for now. So as and when we have a concrete update, I will keep you all informed about it Uh, moving on to the last question Uh, what is the significance of tick size? 5 versus 0.05, uh, Rajendra, uh, this question is for you You see it depends upon which instrument you're trading. So if in case, uh, let's say for Indian trading instrument Then definitely one should go with that 0.05 only high piecetic size Uh, means every five I say the bubble will get generated. Maybe if you're going for a bigger one Size of the bubbles itself will form every 0.5 only. So, uh, I would say like, uh, you go with the standard 0.05 itself But if in case, uh, structure will not change but, uh, you will get more microscopic information if you're looking for more microscopic information then Ideal size of 0.05 is what it is generally required for a basic granularity Something like a usdnr if in case we are going like, uh, it depends upon instrument range generally mostly for, uh, uh, nsc it's going to be mostly 0.05 Sometimes you're going like currency derivatives and if you're going for usdnr Then the tick size will be like 0.0025 That's the minimum price action moment, which is possible Or it's recommended to go with our default size itself All right, great. Uh, I think we've answered all questions. Um, so, um bruce over to you Okay, um, well or vashi, uh, well first off, uh, just, um, uh, thank you very much, uh, regendron. This is, um a really good, uh overview, uh, of book map, uh, and also, um, an understanding of, uh, a microstructure and granularity And how important it is to understand that I I love the comment in the very beginning of Of how traders have different, uh Very different views on an understanding of what what exactly that is and it's not Rocket science here. It's actually very very simple and straightforward Stuff so, uh, thank you for your presentation Uh, very happy to be working with you. Uh and capitol as well, uh from true data, uh, and The the um providing the data behind here, uh, that runs on on book map and bringing you the indian markets I just wanted to go over a few more, uh details on book map, uh, and, uh Where you can find it more information how to get started What are the differences in the different versions here? And, um, uh, I put the link into the chat. Uh, maybe, uh, do you want to explain anything more or vashi? Um, yes, uh, so can you, uh, share your screen drills? Can you open book map dot true data dot in? Yeah, it it should be, um, You should see it there Yeah, and now I can, uh, thank you for that. Uh, so, you know, traders who have recently joined, uh, book map india And don't know like, you know, uh, if we have any offering in the indian markets to answer your question Yes, we do have we've partnered with true data in india and, uh, this is the you know the website that talks about like what exactly, you know We offer in the indian market. So, uh, if you scroll down bruce, uh, can you just scroll down? Can you scroll down a bit more? Uh, what would you where would you like me to go? Um, so I would like you to just, you know, go to yeah, uh, just to the pricing and packages. Yes So for the indian market, we have, uh, four packages, right? So we have lifetime free, uh, no, uh, just like scroll up There might be a little bit of a delay Yes, there is a bit of a delay, right? So So Yes, uh, just yes stand there, please. Uh, yes, so we have four packages in the indian market We have lifetime free package then book map india basic book map india pro and then the data pack for the existing book map users So people who have, you know, like attended this webinar. So I think rajin jinn was talking about the sweeps and absorption indicators So you will get, you know, access to those indicators, uh, with the book map india pro version and you'll also get access to a couple of Interesting, you know, other advanced add-ons also with book map india pro version So if you have any questions with regards to this particular package or the other packages that we have So feel free to, you know, ask our, uh, ask questions in the book map india discord channel So that's, uh, one point that I wanted to cover and we also have the setups and strategies related videos in, uh, Our youtube channel. So I'll post that in some time in discord so you can go through You know how to set up all these advanced, uh, add-ons, uh, in the indian markets context Right. Uh, now bruce, can you go back to discord because I just want to, you know, quickly cover, uh, what we have been doing thus far Right. Uh, so can you go to the text channel of book map india? I think that's open. Right. Right. Right. Okay. All right. So now, uh, We have a couple of new users who have recently joined book map india and are very new to the idea of discord So I'll just like quickly wrap it up for you. What exactly do you get over here in discord? Uh, so this is a platform that we have created specifically for the indian traders, uh, when it comes to the book map india channel This is also a platform wherein you can access not just indian market, but also the global market So we have a couple of different channels wherein, you know, people are talking about stocks futures crypto, right? Um, so all of that is there so you can, you know, uh, feel free to like go through all of these channels We have special events, uh, almost like almost every day Lined up. So that's also there under the events channel. Um, then we have educators based in us who's who are covering, uh, You know, uh, us based, uh, stocks and futures. Uh, now going back to book map india, uh, Bruce, can you scroll up like in the channel? Um, Scroll up in the book map india text channel. Yes Yes, scroll a bit more up Yes, so now, you know, uh, under the book map india text channel, we have created certain sub threads So it's not visible to everyone. So what I would suggest is, you know, uh, we'll post it again for you guys, uh, So just have a look. So you if you need to, uh, you know, participate in these kind of threads You need to click on the particular thread and then, you know, write something So now, for example, daily setups and start strategies thread So we have a couple of traders in the indian market who are sharing their insights on a daily basis So it can be very very useful for, uh, traders who are very new to the idea of book map then, um, yeah So, you know, um, so people who don't have any idea about book map, uh, or want to understand how to set it up on a daily basis Can use this particular thread, uh, and you can see, you know, there is daily engagement that's happening So which is great and uh, we're very active on discord So anytime you have any question, feel free to ask them and, you know, we'll answer all your questions Right, uh, great rules. So can you go back again? Okay, now we have beginners thread as well. So, uh, you know, following after the square after this, uh, webinar If you have any question like how to get started So feel free to use the beginners thread that would be helpful for you If you have any support related queries, we have a support guy who can help you out with that Uh, daily set setups and strategies. I just explained weekly polls is something that we have recently come up with Where in, you know, we ask for insights from users like what exactly do they want to see What sort of content do they want to see? So we, you know, listen to all of you If you have any suggestions feel free to, you know, uh, suggest them to us, uh, you know, we are very open to feedback um And then, uh, I think the last thing is just about webinar registration So this is what I wanted to, you know, convey in the last two or three minutes I think I have conveyed what I wanted to. Um, so that's it from my side. Uh, over to you bruce Okay, uh, let's uh, I think that's it then. Um, and just wanted again, uh, thank, um, uh, Regendron very much, uh, for, uh, for this presentation And capital as well, uh, from true data. Uh, so, uh, we have, uh, a really great trader here We have a great partner, uh, and, uh, and we, we feel we have also a really great platform That can offer you, um, an edge and insight That is, um, very difficult to find, uh, from other platforms So, uh, uh, yeah, if, uh, Regendron, do you have any other parting words or, um, uh, maybe capital Yeah, I just want to thank, uh, Regendron for this lovely, uh, start to this, uh, education series And, uh, you know, uh, helping people understand, uh, the entities of the Indian markets and how to go about using book map effectively For everybody. Thank you. Thank you bruce. Thank you Okay. Well, uh, thank you everybody and we'll do it again soon. Uh, and, uh, look, uh, look for more of these, uh, in the near future Okay. Uh, thank you all and, uh, we will catch up next time Bye-bye Thank you. Bye-bye