The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.

Home Explore Bookmap-Masterclass

View in Fullscreen

Bookmap-Masterclass

Like this book? You can publish your book online for free in a few minutes!

Related Publications

Discover the best professional documents and content resources in AnyFlip Document Base.

Published by cntttam, 2023-04-18 13:19:15

Bookmap-Masterclass

Pages:

Bookmap-Masterclass

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 103 • Absorption is not ALWAYS a reversal or trading signal!! • It is important what happens next: • Short Retracement • Retracement up to next Liquidity Level • Break Through • Liquidity act as Support, Resistance • Absorption Reversal, Continuation Absorption: Application

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 104 Absorption: Pattern Absorption – „short“ Retracement Indicates strenght in the price movement Small short covering NO Liquidity above or below Price drops Absorption – Retracement Short Covering Liquidity above or below Price seeks Liquidity Liquidity acts as Resitance or Support Absorption – Break Through Massive Sell Off Liquidity = Covering Price seeks final Support (Liquidity) or Resistance (Liquidity)

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 105 Absorption: Pattern Absorption – Reversal Firm Liquidity on Limit Site Stacking in LOB LOB – Market Order are absorbed LOB reading Absorption – Continuation Liquidity was absorbed Book flipping LOB reading – Market Order indicates the strenght of current market

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 110 • Exhaustion is a depletion of market orders on the last ticks or price. • We observe decreasing volumes. • Exhaustion is a price level of last seller in a downtrend and a price of last buyer in case of an uptrend. Exhaustion

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 123 • Trading through 1 or more price levels very fast • Big aggressive market orders • Leaving unfinished auctions (Low Volume Nodes – LVN) • Fast and powerful refusal of prices • Speed of price action is important • [Stop running] Sweeping

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 124 • Fast and powerful moves are initiated (ignited) by algos at exogeneous events like sudden political or economical issues. • Prices then sweeps through a range of prices leaving an order vacuum in it‘s wake as time goes on. • New orders come into the void • Large market orders arrive so fast that the queue does not have time to equilibrate between their arrivals. • Market making programs see the orders and they seek to execute them so price retraces. Sweeping or Big Moves

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 131 All liquidity taken – 15 lots trade 50 lot order is now 35 lots Aggressive sell order hits bid againat next price level, spread widens 1 Tick

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 132 All liquidity taken – 18 lots trade 50 lot order is now 17 lots Aggressive sell order hits bid again at next price level, spread widens 2 Tick

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 133 17 of 22 lots trade – 5 lots remain on Best Bid 50 lot order is now completely filled – Best Bid remains on current level 2 levels of the order book are quickly swept, vacuum between BBO VACUUM

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 135 Trading Advice Never trade in the direction of a Sweep! Avoid the „Pavlovian Reflex“! A sweep must be traded AGAINST it‘s direction – at the near end of the move.

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 144 • Stop runs are bottom or top formations that shoot beyond an absorption level to trigger stops in the immediate area of the absorption or breakout. • Stop Runs triggers stops which are immediately executed at market • This triggers a fast counter movement, which is intendent. • It is a Slingshot Move • Sweeps are the most causes for Stop Runs Stop Runs – Stop Losses

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 147 • Liquidity • Absorption • Exhaustion • Sweeping • Stop Runs Active and Passive Indicators • Order Book Imbalance • Pulling / Stacking • Spoofing • Channeling • Book Flipping • Quote Stuffing • IceBerg Trading Indicators Confirmation Indicators

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 148 • Indicates a change of expectations or mood of market participants • Why does the price drop? • Because there is no BID (!) • High Liquidity on Limit Offer means more resistance • Less Liquidity on Limit Bid means less resistance • Why does the price rise? • Because there are sufficient buyers willing to lift the offer • High liquidity on Limit Bid means strong support • Lower Liquidity on Limit Offer indicates low resistance • ALL these „intentions“ are indicated by the „Order Book Imbalance“! Order Book Imbalance Why does the price move?

Pages:

Click to View FlipBook Version