Heatmap Trading Examples for Beginners
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- Опубліковано 30 чер 2024
- We answer the question, what is a liquidity heatmap? And what's heatmap trading? We also look at the advantages of using a heatmap and trade examples.
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⌚ TIMESTAMPS
00:00 Intro
00:23 What Is a Liquidity Heatmap?
01:17 The History of Market Data Visualization
01:58 Advantages of a Heatmap
02:56 Heatmap Trade Example
06:46 Summary
ABOUT BOOKMAP
Bookmap is a cutting-edge trading platform that lets you visualize market liquidity and gain incredible insight into the order book.
Trade with confidence as you watch the market evolve in real-time at 40 frames per second. Identify market trends, discover hidden price patterns, and understand order flow like never before.
GENERAL DISCLOSURE
All Bookmap Ltd materials, information, and presentations are for educational purposes only and should not be considered specific investment advice nor recommendations. Live trading is in simulation demo paper trading mode, and strictly for educational purposes. Live trading executed in simulation cannot accurately represent realistic trading performance.
RISK DISCLOSURE
Trading Futures, Equities, and Digital Currencies involves substantial risk of loss and is not suitable for all investors. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security nor life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
#bookmap #orderflowtrading #daytrading
Bookmap is the jam! So glad you guys made such an amazing tool.
Love Bookmap! Thank you guys!
Us too! Stay tuned for more videos like this.
Great video!
Glad you enjoyed it, stay tuned for more
How do you convert e-mini SPY futures prices to SPY? For example 4000 on the e-mini futures would be what on SPY?
Can someone please kindly explain what on the book map screen shows the liquidity on offer vs bid? And, when someone says liquidity on offer, does it mean that the seller will only sell the units when their offer is met? And how does one relate it to the colors on the chart- please explain.
Hi, please watch this video, it should answer your question
bookmap.com/en/learning-center/getting-started/liquidity-heatmap/heatmap-overview
These are snapshots not live feed examples. Also, what timeframe are they on? Are these examples tradeable or did orders flash in so quickly that it's too quick to enter before price takes off?
The lines are limit only orders they usually stay longer bcs passive sellers/buyers use them
Does this work for forex pairs?
When I watch bookmap and think its going to turn around at a place where there is "heat", it just goes through it more often than not, so I don't see how this tool is helpful at all. How do you know when a yellow/orange/red level is going to hold and when its not??? Plus it simply looks like a hot mess. Help me out here, talk me off the ledge. lol
I'm wondering if the size of shares have something to do with it. I'm going to journal the share size at the red walls to see how they react.
Those “heat” areas act like magnets…but you have to watch how the buyers and sellers act at that level…look at the CVD and see if the buyers slow down and the sellers grow stronger. When you see the reversal in real time you will understand how powerful this tool really is!
@@swooopg thanks for the info. I'll keep watching and hopefully learning 👍🏻
@@JK-nd1oo it’s like watching a boxing match and when one side starts to win, it just grows bigger and stronger. You can tell when the momentum shifts
You are making the mistake of thinking the heatmap is the holy grail. Understand that the heatmap are just the passive orders which in many cases are the fewer orders. On top, many orders remain hidden as icebergs or dark pools. The heatmap, with market pulse, absorbtion and sweeps on, should be your confirmation, but it is all about location. Look at a blank chart and then see where the heat map shows liquidity. Does it make sense for the market to stop there. If yes, wait for extreme volume, sweeps and/or absorption - this would suggest the table might have turned. I trade futures and on a normal day, I walk away with anywhere between 50 and 100 points (NQ) using what I just told you. And yep, it took time, a few subscribe/unsubscribe to bookmap but just give yourself the time to just sit, observe and theorise. Sooner or later it will start to make sense.
Note also that what you see, they see. So often you will see frontrunning or a sweep thru the level and bounce so if your stop is disproportionately small to the atr it will get blasted. On a normal day, 25 pts (100 ticks) for NQ and 5 pts (20 ticks) for the ES is about right.
Also note, I don't use the volume dots. I just use a line for the last price but that is irrelevant. What I wrote is applicable to reversals (all I care about).
If you trade breakouts, apart from location (top priority always), you want to watch the delta per bar (you need this flattened out) and the speed of tape. As soon as the delta is borderline dead from bar to bar (wild swings indicate absorption, not consolidation) and the speed of the tape is slow as a snail, then you have yourself a trade. Anyways, I can rant for days...it all comes to observing and waiting. Just be patient with yourself.