$111 Million Order Scalping RESISTANCE Using Bookmap

yo what up everyone in this video i want to review a trade that i took by reading the tape the level 2 in time and sales i have a live recording on bookmap of what i saw on the tape the confirmation signals on why i took the trade along with understanding what happened because these patterns consistently repeat themselves on a daily basis it's how the market facilitates trade and how it auctions so i'm going to break down all this and show you exactly what i saw but all i ask is if i provide any value to your trading i'd appreciate it if you could subscribe to my channel and drop a thumbs up on this video and if you haven't already followed me on instagram at investortrade i'm gonna link it in the description below i post daily trading recaps on here along with very good trading tips and tricks that i guarantee you you aren't gonna find anywhere else the link is in the description below you're seriously missing out if you're not following it but now let's get right into this recap by the time you're watching this video this was a trade that i took last week on february 15th and right off the bat there was really not much going on this day let's go over the pre-market plan just for some context i post these every single day in the discord for investor trade members and there was really not much going on yesterday we bounced at this 4367 demand zone down here bounced at it and overnight we were trying to rally inside of the supply that we had at four four seven one four four eight three and four four nine six which was from friday's sell-off friday being february 11th this is going to be key any rally here that fails the market's going to move back down it's going to sell off however if buyers find value above we can rally and we had demand lower at 4408 and that one zone from yesterday at 4 4 seven or four three six seven so now going to a one minute chart there was not much going on the market opened up we had supply above we had demand below and we were just trading what i call to be no man's land where we're not at an imbalance there's nothing of significant volume and there's really not much going on my edge is not very present in here so this is where as a trader you have to be disciplined and wait for a better opportunity that something jumps out at you that presents your edge that you feel comfortable taking as long as it makes sense from a risk to reward standpoint at this point 20 minutes the market opened up balance conditions were developing unless we got another move within you know 30 minutes of this action so we were getting balance conditions right off the start we had a large market sell-off and how we see this on bookmap is this sell-off right here is when the market started coming down from that high i just showed you on the chart so this sell-off right here is exactly what we see on bookmap like this and the point i want to make here is keep an eye on this 4450 area on the chart i have it marked as a yellow resistance line but what i want you all to understand here is what price does as it comes to this resistance line i will note this resistance line was not here prior to the market opening this was developed by watching the tape in real time and spotting a very large passive seller so what we're going to see here is as the market on bookmap was coming up to the 445.0 area there was a decently large seller you're going to see him add liquidity to the market you're going to see a very large or very thick orange and red line indicating large passive sell orders which is above the price and also what you're going to see is very large green dots indicating very large aggressive market buy orders coming into the market for every transaction there's an aggressive market order that hits a passive sell or buy order so in this case we're going to see market buy orders hitting very passive sell orders so as the market's coming up watch what happens there's going to be a very large buyer coming into the market and the market could not get above the 445.0 area you're going to see him here right here large bubble very large volume you can see it down here so there's a strong buyer trying to get price above four five four five oh he's showing effort but he's not getting rewarded that's how the market moves for him to start showing more effort we would want to see more aggressive market buy orders come above that level the seller go underwater and the buyer showing effort if he shows effort he's going to get rewarded but in this case we could not get above 4450 at this point this was really not an important area for me you can see this you know this happens all the time but when we have multiple tests of this happening the seller now passively adds to his position hasn't hit it yet he's just passively you know adding into the market market comes back down and what's key here is look what happens we go back to test him again and there's another large buy order coming through yet price could not get above it so how i read this as you see the volume is building large buy orders coming through yet we really cannot get above 4450 so how i read this is a large buying coming into the market yet we cannot get above that level there's a seller who's basically acting like a really big brick wall that is not letting price get above that and yes despite there is large buying there's that seller who's passively outweighing all those market buy orders so now the market comes back down and he that seller right there 4450 is adding to his thing another two three minutes later same exact thing this happens about four or five times he's adding to his uh passive order over there and now going to the chart you're going to be able to see this visually on three different candle equations before 10 o'clock we hit it three times those are the ones that i just showed you and we didn't test him again until 10 16 10 17 and 10 18. so what i just showed you on bookmap looked like this yeah we could spot resistance at 4450 but when we see the intention and what is actually going on behind the candlesticks we know that there is very large buying coming into the market yet we cannot get above 4450 we could kind of see that on the chart but not too much we can't really tell if there's a large passive seller sitting there we just know that price cannot get above it so then 30 or 20 or so minutes later we come back at 10 16 to test it i want to show you what i saw on the tape 1016 is right here so as we get close to him make this bigger as we get close to him look he's still there very large size sitting on the offer he's passively selling there and the market comes back up to test it some orders get filled same thing we can't get above it look at this testing it testing it can't get above it we fail buyers are showing effort they're just not getting rewarded at all and this is exactly what it looked like i took a screenshot right there and i posted it in my discord at this point this is at 10 21 when the market looked like this right here posted a screenshot and i said on es there's a large seller at 4450 if we can aggressively put pressure on him a test to 4460 highs is very possible this is exactly what it looked like and i pulled it up over here so without looking at the live video you could see it just to recap it again without repeating myself large aggressive market buy orders coming through at four four five oh and the market could not get above it as we come back down that passive seller that was acting like a ceiling i guess you could call it reloading but he was just adding to his position every time price got closer and think of it as a ceiling we just cannot get through the ceiling despite all the buying that we have think of i don't know a bunch of people rushing through a brick wall if there's not enough people to put pressure and you know gravitate enough force to get through the wall the market's going to move lower this is what we see here that seller is just adding bricks to the wall he's adding his leverage and the market cannot get above it so how the auction works is like i said earlier comes down to effort versus reward if buyers are showing effort and they're not getting rewarded then we're probably going to see an inverse effect but if buyers are showing effort and they start to get rewarded then the market most likely is going to continue in that way and that large seller that is now filled large size i mean i could go back to the live recording and try to pinpoint exactly how much size was done at that point um but there was large a seller got filled a lot of shares or a lot of lots on the ee mini and price cannot get above it so what we want to see at this point once we've identified resistance same thing on the flip side for support what we want to see is we want to see a lot of market buy orders come through above that price find acceptance above it and if we come back down to retest it you want it to act as support with the bids stepping up and adding to their position as price gets closer now another thing to note to add context to this was we were bouncing off of v wap and we actually were bouncing off the low of the day at the open so this kind of gave it more leaning towards the bull side that we were bouncing off view off we were holding the low we were consolidating and the market wasn't getting freaked out from that seller acting as resistance so now in this case you know we could look to play a breakout as long as we start to get some large aggressive buy orders and at this point you know for a target standpoint if we could get above resistance with large market buy orders i don't see why the market can't test the high of the day around four four six oh four four six two i don't see why it can't and then if we could get a rally and find acceptance above that we can rally into supply at four four seven one for another you know ten point rally from that so at this point watching the tape i'm really watching some aggressive market buy orders trying to come through at this level and at 10 23 i took it long i took the e-mini long uh when the market looked like this i thought after the fourth or fifth time we were gonna break through it i guess we could argue my entry was a little premature because what happens is uh we pulled back a little bit right into vwop show you all what it looked like we pulled back i entered at 10 23 when the market looked like this and we pulled back two minutes after back into view op and again kept holding it some nice lower wicks around view op buyers are now defending the lows and buyers are now buying the highs so we obviously have large buyers or large buying factored into the market and watch what happens when we break above the 4450 level we are now above it that passive seller is gone he's not you know showing more size a little higher we got some stops being taken out 565 lots 575 some nice volume coming through finally above that 4450 area some nice market buy orders coming through and just to fast forward it what i said earlier was if we come above that level you want it to retest it so what happens here is uh here's that break right where my cursor's at we break above it with some market buy orders some stops get fueled or some stops get hit when shorts cover when any buy market stop order gets triggered that's bullish the market's gonna fuel on either or can't keep going up on shorts covering but a market buy order is gonna fuel more buying to the upside so we break above the high find some resistance at four four five five and we pull back into the four four five oh area remember what i said earlier with house resistance become support break above that level that's that break we saw saw the resistance around four four five five come back and look what happens that 4450 now becomes support and how we see this on the tape is if you break above a level you would want to see bids stepping in and large size coming through on the bid indicating that as the market pulls down buyers are passively buying at it you don't want to see heavy size on the offer and you don't want to weak see weak size on the bid so how i view this now is that's that 4450 break is now acting as support bids are stepping in as you can see now size over here nothing crazy nothing significant it's only like 190 or 200 lots on the bid so nothing crazy at all but it acted as support as we came back you could consider this a flag consolidation i love seeing that especially if you've been watching my videos i love seeing that acted as support and then look what happens we break that level boom more market aggressive market buy orders come through 4460 target gets hit and we see some pretty heavy size there but i want to make a point that uh so we hit our target of 4460 i got out 75 of my position at this point a couple runners in case we want to hit supply uh a point i want to make here is my risk to reward really wasn't the best i was risking about eight or so points to make about 12 or so points not the best risk the reward but i'll compensate it for a high quality setup especially when i'm scalping because like i said there was nothing once we got above that resistance and put pressure on that seller there was nothing stopping us from from testing high a day nothing at all so we hit the high of the day uh pictured above is aggressive buying being hit into a large passive seller yet price cannot move back above four four five oh so a large seller is into the market every time price comes back into it he defends it ideally what i would like to see is follow through above 4450 with strong aggressive buy orders if playing long for a scalp failure to get above here in the next five minutes indicates weakness and the market may pull back that was sent at 10 25 and the break happened at 10 28 3 minutes later so i was giving this a little room wiggle room forever said the market is in discovery mode look at the market as a tug of war battle you want to be in the battle when one side is winning over the other that's how you gain an edge and that's how you win scaling out some of my position here stop loss is a little above break even okay the point i want to make here is the market is currently lacking volatility and balance this is where context this is where understanding the conditions come into play when the market lacks volatility and when it's balanced conditions you have to treat your trades a little differently you're not gonna get a lot continuation you're not going to get big moves if the market's imbalanced so i treated this trade like a scalp because we are going to lack proper follow-through unless proved otherwise right now i don't know what the market's going to do i took a trade when i saw something of interest and right now i don't see of anything of interest see how fast things could change throughout the day be open to any possible scenario as soon as you see your trigger signal get in don't hesitate don't think about it less thinking is more you know this this happened very fast it's not something i planned out for i'm just reacting to what i see on the tape and i'm taking a valid trading decision off of it eventually you know that buying pressure continued until we got to about four four six five-ish and we found the high temporarily and the market really did nothing all afternoon we consolidated sideways nothing's going on here this is where you're gonna force trades if you didn't take that original break you're gonna start freaking out you're gonna start wanting to make money and now you're gonna force trades based off of your emotions not off a valid reason for entering why i entered that trade was price and volume confirmed my thesis i didn't enter that trade just randomly like i see a lot of people doing and we really consolidated didn't do much all afternoon and uh that's pretty much it it's just spotting what you see on the tape understanding the auction theory of the market there's a full tape reading section to the a to z course for those that are members definitely go back and refresh that because exactly what i talk about in those videos happened here whether you're looking at book map or whether you're looking at the time and sales in level two i just like using bookmap because you know visually if you miss something on the on the level two or you miss something on the time of sales we can go back and it provides a heat map and historical data that we're not going to be able to see in real time so great trade executed it perfectly the analysis worked out perfectly in the discord and it was just a clean setup i love taking trades like this that are stress free and work out right away so i'm going to end it on that note if you learn something from this video drop a like comment if you have any questions and be sure to check out the links in the description below i offer a very in-depth and educational course that comes with access to the discord at no extra charge prices will be going up soon but peace out

Channel: Carmine Rosato

Views: 38,267

Keywords: carmine rosato, supply and demand, ricky gutierrez, learn plan profit, ross cameron, warrior trading, tim sykes, day trading, stocks, stock market, day trading recap, trading recap, thinkorswim, tdameritrade, how to read the tape, tape reading, bookmap, level 2, time and sales, live trading

Id: QKe6Oz1D9I4

Length: 17min 46sec (1066 seconds)

Published: Wed Feb 23 2022