LIVE Tape Reading Using Bookmap

in this video i'm going to show you live trading examples and live recordings of the tape going over bookmap whether you use bookmap or you use just a classic level 2 and time and sales with volume this video is going to be very very powerful and i'm going to show you live actual recordings of what i saw on the tape with specific trading setups that i use on a daily basis and actual trades that i have taken now you will see me reference the discord a lot and i will say the discord is available only for investor trade course members there will be a link in the description below and also in the description below i'm going to link my instagram at investortrade i definitely recommend following me on here i post daily trading recaps and very good trading tips and tricks that i guarantee you're not going to find anywhere else the link will be in the description below at invest the trade you're seriously missing out if you're not following it but now let's get right into these live examples the first thing i want to show you all is pull this up here the pre-market plan just to show you the levels so you could understand the context backing the setup i will pull that up after so essentially what we were looking for was a break below 3908 on the s p 500 this was a level from the day prior this was something that we bounced off of yesterday and this wasn't necessarily a demand zone however it was an area that the market found buyers the day prior it also was a gap from the weekend found buyers at it yesterday found buyers at it overnight and what we were watching for was the market to either hold above 3908 to play long or sell off and break three 908 to play short what happens here on bookmap is the market comes down i'm gonna pull up the powerpoint again break below 3908 the target was the three eight seven five demand zone pull this up again here that 3 908 support level from yesterday's holding overnight we're balancing in between and above it's hard to be bearish above this level for continuation and if we could successfully break 3908 and the market leading equities continue to sell off i'll be open to playing puts or playing short first targeting three eight seven five demand and then the three eight three five demand zone to the downside so what we're gonna see here before i show you bookmap is we're gonna see some large passive buy orders at 3918 and 3908 now this could be a true buyer in the market loading into a very big large position long position or it could be a seller closing out his short position so what i wanted to see today pulling up bookmap here is what my thought process was as we were coming into this area we also rejected supply was i wanted to see this buyer get filled his large position whether it be a short closing out his his sell order or a new buyer factored into the market i wanted to see this buyer get filled and the market to go up passed this aggressive sell order that we saw earlier in the day at 3926. in fact in the discord i was watching to play the market long off of this level if we could get above 3926 we never did and this validated that this may have been a short closing his long position because if it was a true buyer all of these passive buy orders would have got filled they got hit by aggressive sellers the market would have came up because this large buyer would have shown effort to bring the market higher the market moves based off of effort versus reward if i'm watching a level i want to see this level hold and buyers show effort to bringing the market higher we could have targeted the supply above in fact that that's exactly what i was watching going to a one minute chart this is what it looked like market sold off basically this is where the passive buyer was loading into his position or closing out a short and i wanted to see the market get above this aggressive seller at 3926 we failed to which made me not play the market long and which validated my point that this may be a seller closing out a short position which is just going to help fuel the market lower because the market cannot sustain on shorts covering it could only sustain on new buyers in the market and how i view new buyers is if demand does form on the way up so then the market got to 3908 and this was the cleanest setup of today we get below these passive buyers and this is something that you want to see if you're scalping on bookmap or just reading the tape here we have our 3908 level we get below it with aggressive selling prints again red bubbles are aggressive sell orders coming into the market we hit a very large passive buyer he gets filled then the market comes up 3908 now is acting as resistance we get below it more aggressive sellers coming into the market come back up look exactly where we reject 3908 come back down then we see a very weird bracketing order over here 3908 we're still below it then boom we crack 3 900 aggressive seller comes into the market and we have a free fall consolidation more aggressive prints coming into the market all the way into our 3875 target which hit perfectly so that's an example of showing you the aggressive selling that you want to see if we're breaking below a demand zone or breaking below a key level or something in that nature indicating that sellers are more aggressive in the market you add on the context that not only do we reject supply but we're also not forming new demand and sellers are aggressive and it gives you a high quality setup and it hit our target at 3875 i wish this was a demand zone because this bounced off of it perfectly and i wish it just wasn't an area to scale out of a short cover the shorts i wish this was an area to get long because we hit it and then we hit the supply zones three different times from this drop so this is the consolidation area right here this drop validated the supply zone we wait for the market to retest and later in the day we hit the zone and uh reject show you what it looks like on bookmap over here all day 39 30 acted as resistance and as we came into the zone some large buying into it yet a very passive seller up there basically stopping price for moving higher market pulls back from it and then all afternoon every time he came back into 3930 uh we rejected and sold off multiple times from it and we hit it end of day and closed higher so that was the setup from today and i also want to show you a setup um aggressive selling hit the market remove liquidity bookmap broke below 3908 this validated confirmation to become a bear and play short strong selling until three eight seven five target hits now another way i use bookmap is to view trapped participants this is very very key i want you all to think a little differently than retail traders 90 of them fail so put your mindset and your perspective in not that retail trader mindset and understand the true auction of the market so how the market works is we move up until the last buyer buys and the market moves down to the last seller sells that's how any market works it's whether you're talking about a car market you know real estate stock market whatever the market moves up until the last buyer buys and the market moves down to the last seller sells when i see a large buyer trapped at the high especially at a supply zone and there's no follow through to the downside or to the upside it's a very strong sign for a potential short-term reversal now what i mean by this is whatever the market's going to do whatever it takes to put a large buyer under pressure force them to close their position causing more of a sell-off large trapped participants recognize this and they put that participant under pressure however if that participant continues to put pressure on the market then we may see continuation in that direction what i mean by this is nasdaq from yesterday now is that from yesterday i'm going to actually pull up the nasdaq chart here and this is based off of that key supply zone that i mentioned earlier we hit it three different occasions on three different days and sold off on it so obviously an area where sellers are very strong they're holding the market down it's tough resistance and extremely strong supply then yesterday on monday may 23 2022 the market had a strong rally making higher highs making higher lows and we hit that same exact supply zone at 12045 and three quarters now what this looks on bookmap the example that i showed you earlier is we're going to see a very large trapped buyer at the highs when you add on the context of we're at a supply zone it makes it a higher quality of a setup if i've seen this large buyer at the high randomly and not at a supply zone yeah i might have taken the trade but it just adds more pieces to the puzzle gives me more confluence and makes it a higher quality of a setup so the market came up into the supply zone a very large passive seller this is on nasdaq and 200 lots is is decently heavy size uh it's actually very aggressive size on the nasdaq came into the supply zone hit the high of 12050 the market moves up until the last buyer buys we have a very large trap buyer over 238 lots at the high and now the market recognizes this and if we are below this area and the market puts in lower lows lower highs and we put this buyer under pressure the market is going to continue to sell off because it's going to force this guy to close out his position sell his long position and that's just going to cause a further sell-off in the market same thing for the flip side if we see this on the demand side and we see a large seller trapped at the lows and we're doing everything to put him underwater and put him under pressure it's a good sign the market's going to reverse to the upside however for the supplies side and at the supply zone we have a large trap buyer market does everything we could to put them under pressure and we got a clean sell-off from this area about 40 or 50 points from that the market also puts in a lower high we stay below this area then the market comes back down and dips even further and this provided a nice high quality setup on nasdaq just off of this supply zone nice double top going into the end of day so this is just using different tools to validate some trades at a supply or demand zone but ideally you want to put them under water because he's going to start sweating if you're a large buyer and you're let's just say you're long right 200 lots someone could do the math on nasdaq that's a really big pocket if we're long up here really really large size and the market starts coming down we're going to start freaking out because our position is on the water and that's just going to cause a further sell-off especially when we double top and pull back from it so trap participants very very uh very very key so now i'm going to show you some live videos i these are all trades from the past some i've taken some are just based off of analysis but i got six good setups of live recordings on bookmap so putting the pieces together so far oh and one thing i do want to mention is support and resistance is different than supply and demand there are different topics i have a video of this on my youtube people get these uh confused supply and demand is different than support and resistance so here this was back in i want to say january the market was downtrending putting in lower lows putting in lower highs and we had the fomc meeting on a wednesday and the market sold off from this fomc meeting formed supply at 4 4 12. so now we got supply of 412 and the next day the market sells off it formulates demand in this area and rallies back inside of the supply zone now what's key here is not only was it done on higher volume it was from fomc and it was near high in the market where obviously large participants are active with fomc from this large drop i mean this is a 160 point drop on on wednesday right here the next day we form demand and come into the supply zone and we sell off from it now what this looks like is intraday perspective this is the same supply zone at 412. is we see a nice rally inside of the supply zone we form a high we dip down and then we break the high which is a failed high a day breakout and we start moving lower and then on this move lower we see a wedge and we market start selling off from this and i said in the pre-market plan um i post pre-market plans in my discord every single day and in the pre-market plan from january um i said we had key supply at four three nine six and four four twelve this can very well reject and we'll be on watch to find selling activity to play puts so now here's a live recording of what we can see on bookmap and what i want to show you all here is as the market comes up into that 420 area we're going to see a very large passive seller get filled gets filled some here then the market comes up there's some aggressive buy orders that come through inside of supply at this point we're breaking above the high a day so if we have a high a day or a low a day you want to see increasing volume above that high or increasing volume below that low increasing volume on a breakout usually means continuation and if you see us break a high and there's lack of follow-through and lack of volume it's a good sign that we're going to see a rejection so as the market came up broke the high here what it looks like on the chart is right here came up we broke the high sold off then we start selling back down the key point i want to make here is as we break the high offers step in so now we have 4420 we have some trapped buyers at the high the market sells back down and as we start moving lower now this book kind of flips and there is a seller basically reloading his position from earlier and forming a big area at 4420 that the market's gonna have a hard time getting above offers step in and as long as now we recognize this my job is to find prince intraday that sellers are removing liquidity from the market stepping into the market aggressively and then it's safe for me to personally play the market short place by puts whatever instrument you trade in this case and as soon as you see aggression here you could get short your stop is above the high at four four two oh you're risking about seven or so points and i forgot where the nearest demand was but then we come back into four four two oh and look it acts as resistance come back into it four four two oh another large buyer gets filled acts as resistance aggressive prints coming through and we're about 20 points off the off the high here and then we get a sell-off even further uh with more aggressive selling prints coming through so it's just recognizing at supply at this point some trapped buyers at the high a very large passive seller showing his intention there and then aggressive participants coming into the market after that passive seller shows his intention to the downside and then it's safe to play the market to the short side then i i didn't get a recording of the wedge break um but we also broke the wedge and you may have looked to play the market short there as well another setup was a demand bounce and then we retested this level so essentially what we're going to see here is this is the fomc drop this was the next day we have the fomc drop which forms supply to the downside we have that demand that formed here we have that wedge and that failed higher day break then the following day we sell off into this demand zone pre-market and then we start moving up this area right here where my where my mouse is is moving over actually formed new demand from this move up right here then the market pulled back bounced off of this new demand which is already inside existing demand and found the bid looking at a intraday perspective i don't really remember this was back in january what i saw that really screamed algorithmic but not always i said this leads to a reversal and i was watching for a 4300 break to scalp into v-wop to play to the upside and this is what the picture looks like intraday market opened up hit this demand zone bounced out of it and actually formed new demand so look at what it looks like on bookmap now again everything's going to come together with all these examples everything that i've been explaining so the market sells off we have demand at forgot the number exactly we got demand at two nine six so now we're inside of this demand zone and what's interesting here is look out how the market basically is bracketing inside of this demand zone so we're in a very tight consolidation range and i think this is where a large participant basically was leveraging into a large position or trying to get filled and as long as the market can move back above this 4300 mark which was not only the consolidation high but it also was a whole number with large passive sell orders on the offer uh as long as we could get above that then we could expect a quick move up because we are at this demand zone so this is what it looks like on the chart right here basically consolidation uh and then on bookmap this is the consolidation that we just saw then the market consolidates i think we break okay then we pull back into 4920 or 4290 more passive buy orders get filled aggressive sellers are hitting that order and we're consolidating in this range for like 15 minutes then we break the low and aggressive selling prints come through remember what i said earlier if we're breaking a key level or a low or high you want to see follow through in that direction with that participant that broke that area to keep putting pressure on the market in this case we got below the low we broke below it more selling comes in and what's interesting here and really what kind of put the cherry on top of this analysis was as soon as we broke the low not a second later a passive buyer basically was acting like a floor down here as soon as that sell order got filled which made me think that there was a very large buyer looking to get filled the position and as long as we could break above that 4300 mark i was open to playing longs we break above it briefly we pull back now depending on how you trade in your analysis even if we pull back into this range our analysis is still not proven wrong especially with the buyers basically defending their position morse buy orders get filled and then watch what happens when we break 4 300 after even more buy orders get filled for about a 30 minute period aggressive buyers come in and we played the market long targeting vwop which i think v was 4 3 14. it was a quick 14 point scalp we we identified very aggressive buy orders coming in above 4 300. with the context that i just mentioned before of a buyer loading into a very large position and that context along with those aggressive buyers on the break to the upside kind of validated the setup and we got that clean pull uh rally into four 312 and i think v was four three twelve yeah v was around four three twelve we got even a further rally to four three forty but you followed your plan and you stuck to your targets uh yeah we gotta even further move up uh to four three twelve but there's another setup with this so what i just explained before about that large buyer basically getting into a position this consolidation area and that aggressive prince above 4 300 basically validated that this was a demand zone to the upside and it was gonna form if the market pulls back it's safe to say we have new buyers factored into the market around that area and we want the same buyers to defend this position not only because we have new buyers factored into the market and new demand but we also have a bounce out of the old existing demand zone that formed in the pre-market so then as the market pulls back into uh this 4296 this area this was around 10 30. look what happens on the tape here passive buyer shows up an aggressive seller hits his passive buy order we start consolidating more we pull back into this range right 4296 is where this area was around 10 30 10 45. right here this was 10 30 10 45 when we pulled back into this range and watched the aggressive participants come into the market watch this move see how we start having aggressive buyers coming to the market with the previous context and the current tape i'm okay with taking the market long stop below that area where that buyer found value before and you could get a quick 40 points scout to the upside i'll take that all day long if i'm risking you know eight points or ten points in this case okay here's another setup this was also an interesting one so this was back in january as well and what we were watching for was a sell-off into this demand zone uh actually no this is the exact setup that i was just explaining before just on a smaller time frame so here's that consolidation area this is off of a one-minute chart this is where the new demand formed this is the rally that we took out of 4300 earlier right where my cursor is at scalping at the v wap for a quick scalp eventually the market pulled back down and this consolidation area from earlier where we saw that strange buying activity was defended and we retested this buyer he proved to be strong and this is where we saw those aggressive prints coming into the market we broke above that wedge we had some nice volume coming into the market and we could spot this all aggressive orders right here see those aggressive very large green bubbles that's supporting our thesis to the upside and in the discord i say a possible trade scenario i'm watching for is the area to hold on a pullback 42.99 to low a day if this does not hold i'm not interested in longs as the market will either balance or sell off we pulled back into this 4299 and we found a nice rally out of that area okay this was another setup and this was a very very interesting one because this was extremely large size so let's see what we got here so we had a very large trader basically defending his position the s p hit this demand zone bounced out of it and it looks very similar to the setup i just explained earlier where we pulled back and we've retested this area and found a bit off of it however on bookmap and again you could use other volume profile tools or other order flow tools don't have to use bookmap we could see on the volume profile here a 3600 lot seller or a buyer excuse me at 45.35 and what's interesting here is that's a very large discrepancy because what hit the bid at that price was only 660 and then a tick below that was only 1500 so this is a little bit of a discrepancy and how i basically read the tape or even bookmap is i just look for things that are unusual or weird or out of the ordinary and i see how i can relate that to my analysis put myself in the perspective of whatever participant that person is whether they're a buyer or seller and i figure out how i could trade on the same side as them or where they're going to be in the most pain because those two pieces of information right there where they're going to be in the most pain or where they're going to be the most rewarded gives me a really serious edge in itself so in this example we had a very large buyer at some point earlier in the day at 45.35 this also aligns with a demand zone which started at 45.38 so at 45.35 we have a very large buyer and what's extremely interesting here is i want you to keep a note on the size so right now it's 3 600 lots what we're gonna see here is as the market pulls back down into this 4535 there isn't any passive buyer shown on the heat map here or the level 2 basically providing the liquidity to hold the market above 45.35 so watch what happens here we pull back into 45.35 and there's going to be some aggressive sellers hitting the market yet there isn't a passive buyer uh basically there to support the market at 45.35 and we come into this level multiple times here's a second time he's at 3700 lots we defend it and i think we pull back in it one more time yep we pull back into 45 35 one more time there isn't a passive buyer here yet the market could not get below 45.35 so i don't know if it's this buyer doing whatever he wants to do to defend that position or if it's somebody else but we really could not break below 45.35 and if i'm recognizing this intraday and i'm seeing this weird discrepancy of look at this price action i mean just we're hanging out here at 45 35 and we're not selling off after such aggressive prints and every time we hit it we try to move up so when i see that i recognize that and with the context that we are at demand this gives me a solid setup to potentially play the market long if we start seeing aggressive buy prints to the upside for more risk but a better probability of it working out or i could even get long with this guy basically trade with him but that's a little bit of a lower probability but the risk will be extremely tight because we're getting in you know five or six points lower then we see the prints start coming through we pull back down and look what happens pull right back down into 45 35-ish 45-36 again he's doing whatever he could to defend that position then aggressive buy prints come through and the market has a clean rally as soon as we spot these buy prints i'll let this play out so you can see them form in real time here's 45.35 here's that large buyer and here we got large prints coming through it validated that trade off of demand and it gave us a nice set up to play the market to the long side uh and then we hit a high at uh 45-56 we pulled back and look what happens he defended his position on that pullback the market came back up solely off of a large buyer defending his position 3 800 lots someone could do the math on that and at the same point uh to give it more confirmation of exactly what i said earlier tesla a major mark leading equity and nasdaq also bounced off the man with it uh tesla hit the demand zone strong buying volume quite a bit off this demand zone whether you trade tesla itself you know go for it uh but if you're trading a market leading equity or a market leading indices es nq uh if we see this type of action on on tesla and this day apple did the same thing microsoft did the same thing and it gave added confirmation to take this market long so we got three pieces of information here we're bouncing off demand we got a large buyer defending his position we got a large buyer in the market and we have other market leading equities bouncing off demand as well gives us a nice trade now this was a losing trade i remember taking this setup and in my opinion was a really bad setup yet i let my emotions get involved and i took a trade um that i should not have taken reviewing the chart after the fact but everything looks good in hindsight and in my opinion i think this was an emotional decision and i should not have taken this trade but essentially what we're gonna have here is the market dips into this demand zone and we rally out of it and we come into supply of 404055 now what's important here and my mistake is i take the market long inside of supply i should have never done it i don't know what i was thinking here but what we're going to see here is on bookmap we're going to see a very large seller at 40 40 50. and as you can see as the market's coming up to 40 50 we basically have a ledge right here right hot a lower volume above it higher volume below it there's 4 700 lots getting absorbed on the offer which means there's 4 700 lots so far today at 40 50 which is not bringing the market higher so what that tells me is there must be a seller passively selling to all those aggressive buyers over 4 700 lots at that level so what i was watching here for and my mistake was i was looking to play the market long if we could get above 40 50. now the mistake here was i did not recognize we were at the supply zone i got no business taking the market long at supply however i expected us to keep bouncing or keep rallying off of this supply zone and then validating it because we did bounce off a demand pre-market however watch what happens when we break above 40 50 right inside of supply watch what happens here so not only did 4050 act as resistance the offer stepped back in after a large position got filled the market moved back lower aggressive prints came through i want you to see what happens at 40 50. now we got 40 50. now we got 5 300 lots at that price now we got 5700 lots now we got 6 000 and look what happens an offer reloads here now two ways you can look at this you could look at it as hey let's play the market short we're at supply we're putting in a lower high at supply we obviously have a true seller in the market and if we do break the high give it a little wiggle room to break attract a bunch of longs and then dump the market because we are at supply remember what i told you guys earlier think differently than retail if we are at supply think of ways to play the market short instead of playing long if sellers are present if buyers are present it might be a different story and you might want to avoid the short and focus on longs however my stupidity is i was looking to take the market long above this supply zone or above this 4050 seller to put him under water and i didn't give it enough wiggle room at this point we got 50 or 6 700 lots of the offer it just keeps getting absorbed we're failing to break above it this is a red flag if you're a buyer uh and like i said if we break above it give it wiggle room let it attract longs long's buying inside of supply is a recipe for a reversal the market needs our liquidity if ninety percent of retail traders lose ninety percent of retail traders are giving their liquidity to big money who is basically on the other side of their trade doing the opposite so they could use our money to get a gain fill their position and gain liquidity in the market so the market broke above 405.00 i took the market long right here right as we hit the supply zone at 405.55 never got above six to eight points which basically shows acceptance of that level a seller basically got filled as uh offer stepped into the market and this was a major fake out to the upside the offer when we got back below 405.00 got back in and showed more intention over there at 405.00 then the market dipped and i stopped out of this position i should have waited and i should have not thought like a retail trader although i have taken setups like that which have worked out before but it was a perfect supply rejection and how i view this is a bunch of retail longs got long above supply inside of supply and after a large seller got filled the long position then we pulled back into this demand zone and we actually found the bid off at this level and then here's actually a picture of that of that seller 7 500 lots aggressively bought above 4050 broke above it i like to give my trades about six to eight points of wiggle room to basically show acceptance uh of that level and then if it brings continuation four points is a test six points is a acceptance and then eight points is continuation in this case we broke about four points this level got tested and i really should have been looking for ways to get short instead of long but i reviewed it and now i know and i'm prepared for a future trade at some point in the future okay here's a setup i don't have a recording for it um however this was in the discord this was an intraday commentary this is basically where i update my thought process throughout the day um we're watching a bounce out of this demand zone but instead of getting long uh this was at the same point that uh that example i just showed you earlier with the with the absorption at 40 50. came to the demand zone and we were watching a break above 3390 3990 and 4000 and it should bring us some for a move into 4013 and then a move into 40 30. i took the first set up was a losing trade right a lot of people after a losing trade put their head down they freak out i'm red on the day i don't want to lose any more money i'm not mentally prepared if i'm down 500 i don't want to lose a thousand if i take another wrong setup right sometimes the best setups happen after you stop out so if you stop out of his position don't put your head down look at ways to focus on another opportunity because there's always gonna be opportunities in the market a lot of people take a loss they get frustrated they shut their screens down and five minutes later they miss out on a crazy setup that they could have made back their loss and then put more money in their pocket this is a perfect example i took a losing trade instead of walking away shutting my computer down i focused on another opportunity and we took the market long above uh uh four thousand into forty thirteen i don't have a live recording of this but look what happened at three nine nine oh and four thousand look at the aggressive buy-in coming into the market brought us a movement to four 4013 and later in the day it brought us into 40 30 which was our target but this is the type of buying you want to see if you are playing a breakout or if you're trading on the same side as buyers this is the exact uh this is the exact um type of action that you want to see now here we have a lower high at supply and a break of 4 000. this is another nice setup i got one more after this so here we have a lower high at supply lower highs basically just show that buyers fail to provide more fuel to the fire to bring us past the previous high when we see it at supply it's a very bearish sign but instead of getting the market short at supply remember what i said earlier sometimes i don't um sometimes i don't take trades at supply sometimes i you just use it as context and in this example we hit supply i did not get short at supply and then the market started moving down to uh broke below support at 4 000 and we saw aggressive prints at the downside below 4 000. i want to show you what this looks like right here uh so we hit i don't think i have the supply rejection but i do have the 4000 brake so again we have a lower high at supply if we fail to hold and view op and break below 4000 i may look to play short there's not much stopping us from selling off into three nine eight five so a lower high was put in we are watching for a break below 4 000 if we can confirm it by the tape targeting 3985 watch what happens as the market breaks four thousand we have a large passive buyer there if we are trading this we got aggressive prints coming in before the break and then we got more aggressive prints as we break through this level consolidation and this was just a clean fast sell-off below 4 000 for a 15 point scallop into 3985 target bids stepped in as you can see down here here's the aggressive break below 4000 large red bubbles coming in we hit our 3985 target and you move on from the setup it's all you got to do you come up with a plan you sell your position if your target hits or your stop loss triggers anything else is noise you have to follow a plan create a plan and stick to that plan and then this example uh this is the last one i made a video on this on my youtube a while back but basically very strange action here on the lows of the s p 500 what was interesting here and again this is what i mean about looking at the tape to um spot different things that might be out of the ordinary or a little weird and in this case at every one dollar or one point increment there was a sell or a buy order passively for i think it was like 150 or 200 lots at every one dollar increment for 10 points so right there that was a little too clean a little too smooth and something you don't see very often at exact increments for the same size so then the market started selling off and these buyers got filled or this large one order we could call it got filled i'm sure it was one participant and remember that first example i mentioned earlier about you know this could be a short closing out of a position or this could be a buyer looking to get long something the move after the action will explain what it is because this buyer or the seller is going to do whatever to influence the market so in this case this large passive buyer i don't care if it's a short i don't care if it's an actual buyer gets filled his position also had a very weird bracket order and this order gets filled now there's two ways we could play this see if i have a good example of this the first way is recognize this and speculate that new demand is going to form the example i told you earlier is moves to the upside cannot sustain if there's not new buying in the market so when i see this and i see aggressive prints come to the upside and i see aggressive buyers step into the market i personally view it as new buyers in the market as long as this area could hold so you could play it the first way of speculating that new buyers or new demand is forming get in when we start to see aggressive prints come in or you could just wait for a re-test and wait for demand to form and play a re-test speculating that this buyer is going to defend his position and later in the day not only did we bounce out of that area but look what happens the market pulls back and where this strange algorithmic large buyer large seller action was we pull back into it bounce out of it perfectly and rally about i don't know 40 50 points from that area so you could play it long speculating that it's gonna form right here or just wait for a re-test re-tests are obviously better they provide higher quality setups uh and i haven't done enough testing yet but that type of action may formulate stronger demand zones because later in the day we pulled back into that area this is what it looks like on a candlestick chart and rally from that so that was just a large bracket buyer slash algo however you want to view it and that's just how i view the market so that's pretty much all i got on my end it's just combining supply and demand you could use any order flow tool you could use bookmap but volume is very important and market context is very important bookmap just kind of adds the cherry to the top of the cake time and sales level two it doesn't matter what you use the premise is supply and demand is very powerful when you combine multiple tools and when you focus on organic price action while maintaining your emotions coming up with a plan and trading your edge or your strategy every setup that i take and i lose on 90 of them 80 of them um basically are trades that i did not trade my setups or what worked for me the best and there's nothing more frustrating than taking a setup because i expect something happen to happen in the market up or down i think it's going to go up i think it's going to go down and we enter a trade based off of that thesis there's nothing more frustrating than a loss that way but if you focus on your setups you trade your edge and you're very patient for your setups to trigger then you'll have a lot of success in the market but you also must master your emotions maintain them and focus on psychology so i'm going to leave you all off on that note i hope this helped definitely check out the links in the description below follow me on instagram i'm open to any questions there um and check out also the link to the course in the description below and if you're interested in bookmap they hooked me up with a discount code for you guys let me know if you have any questions in the comments uh and dm me on instagram if you do so so i'm gonna hand it back over to bruce i'm not sure how this ends but go ahead bruce

Channel: Carmine Rosato

Views: 39,592

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, bookmap, Tom B, Bookmap pro, live trading, live trading examples, live tape reading, reading the tape, level 2, time and sales, how to read the tape, tape reading examples

Id: NUp-QHxjICc

Length: 43min 51sec (2631 seconds)

Published: Thu Aug 04 2022