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

Bookmap-Masterclass

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Bookmap-Masterclass

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 152 Supply Imbalance Auction is „skewed“, seeks balance through price reevaluation Liquidity pulled, Spread widens as Best Bid drops 2 Ticks

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 153 Price Moves – Transacts on the Best Bid Aggressor hits the Bid with a Sell Market Order, with volume of 1 contract 3 Tick vacuum created between BBO

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 155 • Means that market makers are adding to bid / offer to support one direction of the price • Mind changing • Gives mostly a reliable view of the price development Book Flipping

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 160 • Bid and Ask side are managed separately according to similar logic • Each side resets to zero whenever the best price changes • The Quotes delta displays cumulative size change of the price level since the last reset • It is a simple adding and subtracting • Because changing of volume happens fast Quotes Delta: Pulling & Stacking Confirms Absorbtion!

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 164 • Load the book in one direction and remove the orders before execution. • Goal is to manipulate the price action swelling the volume of the order book above and below the current price. • Under the 2010 Dodd-Frank Act spoofing is defined as "the illegal practice of bidding or offering with intent to cancel before execution.” Spoofing or Layering

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 169 • Intent to keep the price within a price range in order to get filled on certain price levels • Goal is to manipulate the price action WITHIN the range • Text of Rule 575 – Disruptive Practices Prohibited • All orders must be entered for the purpose of executing bona fide transactions. Additionally, all nonactionable messages must be entered in good faith for legitimate purposes. • A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution; Channeling

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 172 • Part of HFT trading • Quote stuffing is the practice of quickly entering and then withdrawing large orders in an attempt to flood the market with quotes, causing competitors to lose time in processing them. • High-frequency trading in and of itself is not illegal. However, stuffing takes place when traders fraudulently use algorithmic trading tools that allow them to overwhelm markets by slowing down an exchange’s resources with buy and sell orders in securities. • Only market makers and other large players in the market are capable of executing these tactics, since they require a direct link to the securities exchange in order to be effective. Quote Stuffing

•Identify Basic Market Mechanics examples in Bookmap replay mode •Markup several charts • Variations of how price moved •Draw conclusions from the examples, noting the different times, markets and varying liquidity • Begin anticipating Basic Mechanics in real time Training exercises Understanding these market mechanics are critical. This will lay a solid foundation for future lessons. 12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 177

Bookmap™ Part 5 – Order Book Visualization

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 179 Syllabus Absorption Liquidity Strategies Correlations Auction LOB Exhaustion Adv. Analysis Tools Book Flipping Spoofing /Layering Quote Stuffing Stop Runs Bookmap™ Oganization and Data Presentation Data Feed CVD Large Lot Tracker Ice berg Detector Volume Imbalance POC Sweep Practice Practice Practice Practice

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 180 • Order Book visualization with Bookmap™ • Why visualization? • Advantages of LOB visualization • Bookmap™ design and set-up • Dot, Bid, Ask • Liquidity level • Time Slices, Macro- , Micro View • Settings Goals

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 181 Data Visualization Data Visualization allows us to • Structure, evaluate and better comprehend the meaning of displayed data • Define terms for a common language • Develop rules based on the defined language and act accordingly across all platforms

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 182 • Visualisation is relative to the selected time frame!! • Small Dots – small volume! • Large Dots – large volume! (Large Volume Cluster) • Liquidity level are RELATIVE • Related to the zoom level • Related to the time frame • Density of liq. is defined by color • From light to dark(er) (high liq.) Historical Chart Structure Everything is relative!

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 183 LOB Long Term High Liquidity Book Flipping Pulling Stacking Short Term High Liquidity Pullback Sweep Absorption Volume Profile Historical Data Traded Data Depth of Market (DOM) Limit Order Book (LOB) LVN LVN Cumulated Volume Delta

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 184 Meaning of Dots = Volume • NEVER TRADE WITH BUT AGAINST BIG VOLUME! • Pavlovian reflex! • Trap for most traders at highs and lows. • Stops were hit or they must cover/flatten their positions • This panic supports the counter move

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 185 Date & Time BID 42 at 2593.00 Volume: 122 at 2592 Date & Time ASK 44 at 2595.00 Volume: 191 at 2595 Liq. relative to time frame!! Liq. relative to time frame!! Ask Bid

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 187 Trading Advice Use higher time frames and don‘t lose yourself in MicroView! You want maximum profit with just a few trades!

Bookmap™ Part 6 - Strategies

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 189 Syllabus Absorption Liquidity Strategies Correlations Auction LOB Exhaustion Adv. Analysis Tools Book Flipping Spoofing /Layering Quote Stuffing Stop Runs Bookmap™ Oganization and Data Presentation Data Feed CVD Large Lot Tracker Ice berg Detector Volume Imbalance POC Sweep Practice Practice Practice Practice

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 191 Liquidity Absorps Market Volume Liquidity Volume Absorption • Whenever market volume and limit volume collide, volume or “energy” is taken out of the market – “Energy” is absorbed • Less (!) “Energy” aka Volume remains in the market Limit Order Market Order

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 192 Strategy Symbols Large Volume Cluster Liquidity (Long – und Short Term) Traded Volume Divergences Pullback Correlations Reversals Sweeps

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 193 Meaning of Dots = Volume • NEVER TRADE WITH BUT AGAINST BIG VOLUME! • Pavlovian reflex! • Trap for most traders at highs and lows. • Stops were hit or they must cover/flatten their positions • Supports the counter move

Bookmap™ Strategies Part 1 Liquidity, Sweep Trades, Pullback

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 196 • Applying strategies based on the studied market mechanism • Active and passive indicators • Understanding strategies and their execution • Liquidity • Sweep trades • Pullback • Additional analysis methods in the second part Goals

12 December 2019 © 2019, TTW Trading Services Ltd. based on Bookmap™ 7.1.0 197 Liquidity as Target • Liquidity acts as „magnet“ for all markets • Without Liquidity no trading • Liquidity is providing or taking „Energy“ • Absorption (taking volume out of the market) • Book Flipping aka Support or Resistance • Order Book Imbalances (Support or Resistance) • Use Liquidity as your guidedance / orientation throughout the trading day

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