Bookmap Basics | My Bookmap Settings

in this video i'm going to go over the bookmap basics a lot of people see the bookmap platform they get confused they think it's a solar system and they think it's a very large learning curve it's very simple i'm going to break down what i look for and the basics to what's on my screen how to get your bookmap set up like mine and basically the basics to the market auction and how i read the information i perceive from bookmap i will say if you want to follow along and you have thinkorswim just contact thinkorswim support you could get a free version of bookmap you could follow along and you could try it out yourself i also will say bookmap is a very good order flow tool it is not a necessity you don't need it to be successful however it visually represents data that i look at on a daily basis more visually pleasing to my eye and it sometimes gives me information that i may have missed if i didn't see something off of the chart it's going to give us information off of candlestick charts that we can't see off the chart itself i look at order flow and bookmap as looking behind the scenes or looking behind the actual things that move the market that are behind the candles that we cannot see from a chart it's very very powerful and i also posted a uh a video on my instagram i definitely recommend following me on here at investortrade i'll post the link for it in the description below to follow me on there you're definitely missing out if you aren't but i posted a video basically breaking this down a little while ago about something that i did see on the tape and i have live recordings of my actual book map if this is something that you want to see with actual trade examples that i have taken let me know in the comments and this is basically like the first video it's a basic one going over something that maybe you might not know about it and now the next video if there's enough interest in it i will post actual live recording of trades that i have taken of the setups just let me know i would appreciate any feedback but after you follow my instagram let's get right into the video now when you first get bookmap it's going to look a little differently than what i have on my charts right now but i'm going to show you my exact settings and what information i personally look at to come up with a trading decision but before i just need to get into the basics i don't know if you have any knowledge with the market auction or you have some knowledge but the market is an auction place just like any other auction the car auction the housing auction and the same principles apply and platforms just like bookmap there are other order flow platforms that track the market's auction but specifically for bookmap this shows true organic price action based off of the market's auction what we have to understand is there are two different types of orders that influence the market put myself over here the first one is a passive order this is basically a limit order and we buy or sell at a specified price we are being passive if apple is trading at 150 bucks right now and we say okay i want to wait for apple to come to 100 bucks i'm passive i'm patient what i could do is i could put a limit order at a hundred dollars and wait for apple to come to a hundred bucks now by me doing this and be me putting a limit order onto the market it's going to be shown on the order book and everybody else is going to see it that someone is looking to buy x amount of shares at a hundred bucks this could be seen from the level two in fact everything that we see on a normal level two is a passive order the second type of order is a market order this shows completed transactions i want to buy passively and i'm patient for apple to come to 100 bucks well guess what when apple comes close to 100 bucks someone has to aggressively sell to my buy order for me to get filled my position and for me to own apple this is seen from the time and sales these are completed transactions and we get to see these by these large bubbles on my bookmap and the lines in the background the heat map is basically the level 2 or the order book current and historic passive orders i will say limit orders add liquidity to the market and market orders remove liquidity from the market because you are hitting the market a market order hits a limit a limit order cannot hit another limit and a limit order cannot hit another market order a market order hits a limit because this shows a sense of urgency to someone who's being patient the first piece of information that i do get from bookmap and one of the most important ones is bookmap represents a heat map of the visual current and historical order book slash level 2. so going to bookmap here what we're going to see is i'm actually going to remove my volume dots and what we're going to have now is basically a heat map of different passive orders that can be spotted on the level 2 in the background i will say before we begin if you have think or swim and you want to follow along with me all you gotta do is go to support up here where i'm hovering my cursor hit the support contact them and ask them on thinkorswim uh if they could add bookmap to your account you could get a free version of bookmap it's totally free and you'll be able to see the s p 500 apple and microsoft for free no charge just contact support they will add it for you they're going to ask you do you want a free version or a paid version ask for the free version try it out for free if you like it and you find use out of it and you make money off of it i have a discount for the in the link in the description below for the standalone bookmap platform which is what i use because they do offer more tools but i recommend beginners try it out for free on think or swim just contact support it's very easy and then you can also follow along with me in this video but besides the point what bookmap is going to show me is a heat map now what makes bookmap interesting versus any other platform some some do offer this but if i were to pull up a normal level 2 i could only see what's going on right now at this moment i can't see what happened back at 10 o'clock when the s p 500 bounced off of demand i can't see that i can only see what's happening on the level two at this current moment right now bookmap i can not only see what's happening right now by going to the current data but i could also go back to 10 o'clock this morning when the s p 500 bounced off demand and see what type of liquidity was shown when the market bounced off demand as you can see we had very large bids passively looking to buy as the s p 500 came into this demand zone so very very powerful now not only visually but also uh or not only historically but it also shows the current order book visually in a different way like i said you can use other platforms bookmap is one that just represents information we could get from other tools visually in a different way that's all bookmap does and we could read liquidity at specific levels dark colors are basically more liquidity at a level more passive orders think of it like a wall of support if we're coming down to a level and we see a lot of orders doesn't mean the market's going to bounce it just means there's more liquidity at that level and there's more bidders looking to buy at that level and when there's less liquidity don't think of it like the market's just gonna shoot pass through it but it just means there's less passive orders at that specific level represented by dark or light colors every order above the current price is a passive sell order this is the offer or ask on a level two and everything below current price is a passive buy order these are bids or buyers in the market it's very very simple and what i mean by above or below current price is going back to bookmap here what the lines in the middle are going to show us is basically the best bid and the best offer it's all it's going to show us best bid or best offer and everything above that is a passive sell order and everything below that is a passive buy order on the bid now i'm going to add the second piece of information which are my volume dots because this is going to give us more information that we're not going to see elsewhere what the volume dots are going to show us is volume volume is extremely extremely extremely important in all my analysis it is the most leading indicator i cannot stress how important volume is and bookmap represents and shows volume in a way that for some of my trades gives me more added confirmation and gives me more conviction to get long or short setup what the volume is going to show us is volume dots these are completed transactions now it's going to depend on how you zoom in or how you look at the charts let me just move myself over again we can zoom out and some dots are going to be larger like as you can see down here there's a large red dot but if we zoom in we can get more information out of that dot and there's further we zoom in we're going to get more information we could actually hover over it and if you look at that little bubble where my cursor is at it's going to tell us the volume and the price so at 4069 and a quarter someone aggressively sold which hit the bid 133 lots of the s p 500 and there was a bid down there for about 120 lots if we zoom in even more now we're going to see even more in-depth information that at one point there was 120 lots 121 lots and the orders actually were split up this is now 124 lots and 8 lots and i bet you if we zoom in even more we could see a bunch of other orders split up so it really depends on how you zoom in and what you're looking at but the main piece of information is volume dots are completed transactions they show market orders which either hit the offer or hit the bid passively and a market order is aggressively doing so it's removing liquidity from the market what i mean by removing liquidity is if i want to get in right now and i'm looking to buy something i'm buying from a passive seller it's removing that passive seller's liquidity then we could start to see the colors change when that order gets filled what's also very interesting here is it's going to show us like i said historic data so if i were to pull up a normal level 2 i can't see what happened 30 seconds ago if i missed it if i missed the move or my eyes weren't on the level two at that point i can't go back and see it bookmap i could go back right over here and see okay look at this perfect example there was a seller here for 345 lots about a passive seller got hit by an aggressive market buy order his order got filled how do i know it because now there's not a mutton enough heat map here there's not enough liquidity that his order didn't get filled and price actually hit that diminishing his passive sell order by a market buy order and then the market moved lower because of that for by a few points so it's the market auction it's very complicated there's more to it this is just the basics what it's also going to show me is a time and sales now these are completed transactions everything that we see on the time and sales is going to pop up on the volume dots so what i'm going to do is i'm going to go over here i'm going to click insert column and i'm going to right click this and click time and sales so what's interesting is some platforms do this some don't bookmap sorts data by bid and ask thinkorswim does not do this unfortunately so every green thing every green order we see come through on the time in sales is an aggressive market buy and every red is an aggressive market sell we can sort by buys we could sort by cells we could sort by all data we could also sort by minimum size so if i'm looking at larger orders i'm going to go to like 75 and above maybe 50 and above depends really on the volatility but now i can sort by orders above 75 lots of the s p 500 and what we're going to see is you'll see orders coming through on the time and sales you'll see them being represented by bubbles on the um on the bookmak heat map and by the bubbles so it's not a necessity to have the time and sales up um i will have it up on a separate platform but everything we see on the time in sales is going to be represented from what's on the heat map on the uh heat map i will say every data point we have we can get the same information from a level two when a time in sales but it it's the way it's displayed to us visually um so we could see the same data no matter what platform or no matter what tool we use but some are going to visually represent it in a different way for those that use other order flow tools and like i said i will be adding videos to the course pretty soon on different order flow techniques that i've never posted about on my youtube before but some people use let's just say footprint map um charts some use volume profiles some use a time and sales with small orders versus large orders there are many different order flow tools some use cumulative data there are plenty of different tools that this will show you but it all tells us the same information just visually in a different way and that's why i like using the bookmap platform now what i've also have added to my charts is a svp which is a session volume profile and i also have a cvp which is the charts volume profile so now going back to my bookmap i've basically cleared this out so what it's going to look like when you guys first enter bookmap and i have pretty much the basic settings bookmaps standalone platform has different indicators which i haven't tested or used myself really fast i just want to note uh look how fast that order book got changed when there was a 2100 lot seller right here so there's a very large green line 2200 lots looking to sell on the s p 500 guess what happened a very large market buy order for 2 300 lots outweighed that passive seller someone was aggressively buying from a passive seller wiped away that liquidity we could see the liquidity getting wiped away because we don't have a red line to follow and there was a very large green bubble wiping away taking liquidity away from the market and then we moved up right after that by about four points so that's just a quick little off track but this is what your book map is going to look like my settings are standard i don't use any of the indicators although i just never tested them i'm not against them i have success without them so i have a philosophy of not changing something if it's not broken but what i did do was i changed my contrast so when you get your bookmap it's going to look you know something maybe like this but what i did here was the top little slide of the contrast i made like this so now it's contrast is all the way up because now i could really pick out areas of liquidity that may look a little confusing to me if i don't have that on what you're going to see when it looks like you know this it just looks a little more confusing it's too bright and it gives me a little bit of a headache i'm not gonna lie so i just lowered my contrast still gonna tell us the same information uh and it's it just makes the charts cleaner and i have the volume dot size a little above halfway on the slider and now we have the current order book this is the level two this is the passive orders redder sellers greener buyers bids and offers above and below current price now what i did was is i added a column so we can add different little tools you could add a time and sales if you'd like you could add the current order book i have the current order book and i also have inserted a column and i have added a volume now we could right click this it's going to standard to a cvp what i've done was i've configured it and i've added a split display so now it's going to split the data between bid versus ask and you could close it out and you can make it smaller so now what a cvp is going to show us is the chart's volume profile this is going to show us volume done by price if you don't know what volume profile is this is going to show us volume done by price and this is a cvp so this is going to show me what i'm looking at based on my chart if i zoom out it's going to tell me more information because i'm seeing more things on my chart if i zoom in it's going to show me less information because it's only showing me what i have on my chart right now i'm going to insert another column and now i'm going to add a session accumulated volume profile now what this is going to show me is the full session of today now i have a session volume profile for a regular trading hours and then i have electronic trading hours which this i go to configure i go to split display i want to make sure it's split and then i could reset it um whereas reset configuration i can reset the data at the session start right here which is 9 30 eastern so what this is going to show me is regular trading hours session volume profile i could actually go like this make them a little smaller and now this is going to show me the full session from 9 30 eastern when the market opens my time to the session end volume profile i've also added another column for svp the same exact thing but this one i have for electronic trading hours and regular trading hours so i could see what happens overnight and i could also see what happens during the market open in a volume profile now these are going to be important because the market basically moves off of value and this lines up with supply and demand this is not how i draw my supply and demand zones it just gives me a reason to enter a trade at a supply or demand imbalance now if we zoom in a little bit we're going to be able to see more in-depth information by the price it's going to look a little cleaner we can move it lower and we could start to see where a lot of volume was transaction transacted where a lot of liquidity was where maybe participants saw something as fair value unfair value it's very very key it's very very important and uh this will also help me you know for example if i'm looking to maybe long something out of demand zone or something like that and i start to see a lot of aggressive sell orders coming to the demand zone and on the volume profile what this is going to show me is completed transactions by price so as a market buy or sell order hits the market not only are we going to see it on the time and sales not only are we going to see it on the on the um volume dots but now we're going to be able to see and and look basically at the footprints or the or the tracks of the buyers and sellers now we're going to be able to see the completed transactions on the volume profile we may have missed it at some point in the past but if i start to see like an anomaly or something out of the ordinary at a demand or supply zone or just at an important area of interest that i may have missed off the chart off the level two of the time in sales then i could go see it on the volume profile because it's gonna show an anomaly in my in my data so there are many ways to do it this is just the basics first video of this if you guys want it i will post every uh a video on actual trading scenarios with live recordings of my trades using bookmap in conjunction with my trading strategy if that's something you guys want let me know i if i need them in the comments uh if that's something you guys actually do want just let me know like this video comment if you have any questions and check out the links in the description below try this out for free on thinkorswim contact support and then if you do like it after you do find value in it use the discount code it will be a much cheaper version with bookmap but i'm ending it peace out

Channel: Carmine Rosato

Views: 91,893

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

Id: SaMqBYy1lZc

Length: 22min 11sec (1331 seconds)

Published: Fri Jul 29 2022