Here's the 3rd of 4 trades I'm sharing today with how they setup. I typically use NinjaTrader8 for my traditional charting and order routing. Everyday, after the market closes, I check the days "volume profile" and highlight specific areas where high volumes of trades occur. These are "high volume nodes" and I'll refer to them as HVNs. I move these forward in time until we pass through those areas and there's "no trading" happening when we do. This gives me an expectation or explanation if price goes sideways briefly. One of those nodes is near an area we took the previous trade that I moved to my Bookmap chart. You can see the area in horizontal pink. That's a node I've been tracking. See how price goes from one end to the other and when it breaks it comes back to "retest" that break. That blue channel in the traditional chart is the same as the yellow channel in the bookmap chart. With the bookmap chart you can see I'm looking to follow through to those lower liquidity points. After every impulse tho I'm expecting a pullback or small reversion. When that reversion is "too much" I'll scale out completely until then I'll leave my trade going and move my SL behind my "swing highs" in this case.
So .. pre-market prep identified a lower level Key Gamma point at the 4010 ES L4. Coming into the day I was expecting that to be much too far for the overall day but I wanted to keep track of it. As we continued pushing lower the potential for getting to this point was VERY real. At post lunch 12:30 CST (first circle on the left) you can see a clear impulse movement THROUGH liquidity and finding support at that level. I entered here short looking to push the horizontal yellow line. I stopped 1 tick short (above) the yellow line for my TP. I scale out entirely as this is a "final target" entry. Because of the impulse movement I'm expecting a retrace, we get it and I look for support. You can see above the 3rd circle we have support above in the heatmap and I enter again, and again the target is the yellow line. This time we consolidate AT the line and push lower to lower liquidity but I'm not concerned with that, I've scaled out. At the 5th circle you can see "a double bottom" in the orderflow and I'm looking to fade the move BACK to my target line and we get a massive stop run making quick work of the trade. 7th Circle you can see we're forming equal highs as previous and have setup into a "range" structure horizontally and we're essentially looking to fade the moves from top to bottom each time. We hit this trade 7 times for 4+ points EACH TIME. Technically it went an 8th time but I typically try to be flat in the ES during MOC because of the increased volatility. You can see in the traditional chart almost every entry lined up perfectly with a PATs 2E as well! What this trade setup shows is a few things... * Watching orderflow with market participation (heatmap) can provide context to your entries and exits. * Pre-market prep is often the most important thing you can do to have a successful day. * Dont be greedy.
As always, if anyone has any questions please let me know and I'll try to answer them and provide examples! Thanks team!
Two great setups for bookmap today! 1st.. Late afternoon OR Low support. We were met with heavy sell sweeps pushing price drastically down. When we saw this we stayed in the trade longer and targeted the lower liquidity point. You can see the CVD decreasing -- which is just a fancy way of saying "Cumulative Volume Delta" aka downtrend from orderflow/footprint. These setups were great with footprint but watching them was a bit tougher as you're staring at numbers instead of the volume dots. You can see at 13:43ish we reached our target. Shortly after, price formed a double bottom and rejected up as there were no more aggressive sellers hitting into the bid. Great setup honestly and didn't expect it so late in the afternoon. The binary event really threw things off I feel.
This was the trade of the day easily though.. AAPL setup mid-morning. Price clearly sideways, finally breaks above OR Low AND VWAP and finds support. Moves through multiple liquidity levels before finding support again, this time at the OR Midline and pushes into two more liquidity points. Failing to make a new HIGH and being close to news I flattened my position and sat on my hands. Had this been a normal day I'd have used options for this one but it wasn't a pretty day honestly for IV and I didn't want to eat premium with longs. Great setup though for shares so I'm glad I went that route, just not as much leverage. Thanks team. My friends appreciate seeing the bookmap images so I hope others are able to see how orderflow in BM is pretty easy to use.
Little late from yesterday... I took an "evening nap" that just turned into "evening sleep" lol Here's a set of trades in two parts. First the traditional chart .. we triple topped at a key level TWICE and triple Bottomed at a key level once. I don't take the first but the 2nd and 3rd I definitely do. I caught the impulse move down and followed it up with 3 more trades in there at 2nd Entry shorts off key trend line and EMA support. Textbook PATs entries I feel. Bookmap had a beautiful setup. We had some hedging flow indicating a potential reversal. That level at the bottom is a key level of Gamma support so we were expecting price resistance there and potential reversal. We got Higher Highs and Higher Lows. I entered off that point in the image marked and watched the uptrend develop. I exited around 4010 which is the SPY put wall area and the area price revisted before continuing it's impulse down. Price did continue up some, but I'm really happy with the trade overall.
This was META. I was seeing a potential reversal in ES which means Major Tech stocks might follow. One of the signs I saw was a huge CVD increase after a steady decrease in meta. This indicates a posible reversal. we see the stock bottom out at about 169.5 and retake taht liquidity at 170 with the orderflow. My key entry was if we push through that liq and then hold it as support which we did at 11:14. I entered there ... clear uptrend all the way to almost 173 where I exited. Bookmap made this one really easy honestly... easier than footprint ever did for orderflow.
Last trade I want to share for the day. Took the downtrend in google to 90 and that's a major psych level. Saw clear resistance breaking through that massive liq there. Higher lows and a significant amount of guying dots. Was already looking for reversals in tech/major index stocks. Pressed the YEET LONG button and set my stop at that liq level of 90. Caught a clear uptrend and exited this one at about 91.2-91.3. I went flat almost all at the same time for all my trades in the mid afternoon. Lastly, Sorry for the late posts... like I said I passssseeddddddd out last night. Needed the sleep. Thanks for watching
Good evening (or morning as it's 2am).... Here's a trade setup that showed up 15minutes into RTH for GOOG. It was a strong impulse down, past the vwap 2nd standard deviation. I like to play these back to VWAP and reduce/scale out size. If I see another entry I can add more. What you see here is... After that sudden opening impulse down a solid CVD increasing after consuming that liquidity, price failed to make a LL (this is where I scaled in ~89.04). We moved up and finally reached vwap (scaled out heavily) and then went sideways. We were still CVD positive so I didn't flatten at 11:30 when we resistance, price followed for a divergence long still. Climbed back above the opening range low and found support FINALLY at 3pm market time. This trade was 3 hours in the making. I exited after we claimed liq at (9) on the bookmap chart you can see cvd flattening and dying out.
Trade 2 was a fantastic setup. Big two legged impulse down and consolidation directly below key level. Several attempts to push significantly lower and failed. Increasing CVD (more bullish orderflow volume over a long period). Price finally broke above the OR Low (didn't retest yet). And once it retested my key levels I entered long. My goal was the OR high. Price actually climbed slightly higher after but I took profit and sipped coffee. This trade was one of the more proud ones for me because it hit key levels dead on with my expectations and I was able to follow a really good entry and trading plan.