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Read Bookmap Heatmap Like a Pro | Bookmap Heatmap Software | Liquidity Trading Strategy | Episode 7 — Transcript

by Keshav Jindal · 9,912 words · 1,463 segments · language en · Watch on YouTube

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0:00Friends, I don't remember where I came
0:02from. He sent me and didn't tell me
0:04anything. I don't remember how I spent
0:06that day. It was like an illusion or a
0:08miracle. I came with life, after life.
0:12I was after life, to know life. I took
0:15charge of life's path. I will remain
0:17awake every moment after I die. I wrote
0:19this when I was at the lowest point in
0:21my life. I had only one option: either
0:23die or do. I had decided that life is a
0:25struggle. Life is a field where we play
0:27. I am not going to give up, I will
0:29finish the whole game. Ever since I
0:31started doing, I am doing. So I
0:33understood it very closely. I had
0:34decided that I should not move from my
0:36place. Dying is not an option. Working
0:39is an option. Moving forward is an
0:40option. Anyone can die, but the main
0:42game within the struggle of the players
0:45will be the work that will rise from
0:47the bottom. So what is a heat map?
0:49Today we are going to learn. What is a
0:50heat map? I'll reveal all its
0:52intricacies and pieces. You'll learn
0:54every single thing about the entire
0:55heat map. Whether it's trading, trading
0:58, trading gold, currencies, or crypto,
1:00you can do anything. Everything is
1:02possible with a heat map. So, today,
1:04let's learn what a heat map is. "A heat
1:06map is a visual representation of the
1:08order book that displays where large
1:10pending buy and sell limit orders are
1:12placed in the market." We learned about
1:14the order book, or DOM, in the first
1:16episode; this is its visual
1:18representation. It transforms complex
1:20order book data into easy-to-read color
1:22zones, allowing traders to instantly
1:24identify areas of high liquidity and
1:27potential price reaction. Now, look, we
1:29didn't have Einstein as our father,
1:30which is why we remember numbers so
1:32well. A normal person can't remember
1:34numbers well. But our brain remembers
1:37colors very well. That's why a heat map
1:39of this entire set of numbers was
1:40created. Liquidity walls have been
1:42created, allowing our decisions to be
1:44made much more instantly. Unlike
1:46traditional chart analysis, a heat map
1:49lets you see liquidity walls directly
1:51implying predicting where they might be
1:54. It tells you not to predict. Like
1:56what people do today? They start
1:58predicting, "There's liquidity here.
2:00There's liquidity here. There's
2:01liquidity here." Brother, your father
2:02left behind a prediction that there's
2:03liquidity here. Rather than relying on
2:05assumptions, indicators, and someone
2:07else's opinion, traders can observe
2:09where significant liquidity is actually
2:11resting in the order book. You must
2:13have seen traders nowadays—take every
2:15trader's live—liquidity, liquidity,
2:17liquidity sweep, liquidity gap. Brother
2:19, where does liquidity gap come from?
2:20Where does sweep come from? You don't
2:22even know their meaning. When I explain
2:23it to you today, I'll explain it to you
2:25. Liquidity sweeps happen everywhere,
2:26liquidity disappears everywhere.
2:28Liquidity is present throughout the
2:29chart, so you should say liquidity
2:31everywhere; why are you only talking
2:32about the top or the bottom? Or why are
2:33you talking about zones at the bottom?
2:35People don't understand. They'll just
2:37tell you something to run their
2:38business. You'll get caught, and their
2:39work will be done. This is because heat
2:42maps are widely used by professional
2:44traders and institutional market
2:46participants to better understand
2:48market liquidity and make more informed
2:50trading decisions. Even the big players
2:53use these things. They use liquidity
2:55walls and liquidity zones, through
2:57which they can make informed decisions
2:59and read the market's liquidity, which
3:01greatly enhances their trading. You can
3:03see this in this area. I'll play it
3:05here. This is a liquidity wall where
3:07buying orders have been placed since
3:09around 2009. Price is coming in here.
3:11After this, see selling orders coming
3:12in. How aggressively, but below there
3:14is a passive order liquidity wall. It
3:16absorbed it, causing the price to start
3:19moving up. Because there were so many
3:21orders, there was a shortage of
3:22aggressive orders, and the passive
3:24orders below were more, which led to a
3:25surplus of pending orders, and from
3:26there, the price reacted, pushing the
3:28price up. This way, you'll start
3:30enhancing your trading today. Top Three
3:32Order Flow and Heat Map Software. While
3:34there are many software available for
3:36order flow and heat maps in the market,
3:37the primary ones we're using are these
3:39top three. We're using Bookmap first,
3:42which has an advanced heat map. We're
3:44using Motiva as a standard, which
3:46allows us to create an order flow plus
3:48a complete system all in one. Etask is
3:50quite advanced, allowing us to create
3:52advanced heat maps. We'll also find an
3:54advanced order flow tool within it.
3:56Once we figure out the costing, we'll
3:58see you'll avoid any problems. I'll
4:00tell you where to get it. Bookmp costs
4:02$ 13 per month, which includes the
4:05platform itself, a $ 50.00 feed, which
4:07costs $ 34 per month. Pro Trader is a
4:10plugin and add-on through which we
4:12refine our bots. Now, this entire
4:14package I've described is per month.
4:16It's regular. It's not discounted. What
4:18about the discount? You'll get one for
4:20one month. But I've calculated regular.
4:23Talking about eTask, eTask is currently
4:25offering one. I've spoken with them.
4:27Although I don't have any referrals, I
4:29spoke with them just to explain.
4:31There's a firm called Pro Trader, where
4:33you can get an account for as low as $
4:3613 with a rhythmic field. Within this,
4:38you'll also get Level 2 rhythmic data.
4:40If you email them on their support chat
4:42and ask them to activate it, they'll
4:43activate it. However, you'll get Level
4:451 data. Their regular price is $ 32 per
4:48month. Currently, there was an offer
4:49for $ 13. You can see that. Talking
4:51about Motive, it's $ 7 and $ 63. Now
4:54it's $ 63. This is CME's offer for ES
4:57and NQ. But if you want to go Gold,
4:59you'll need to buy the full bundle. Now
5:01, talking about software, you get $ 50
5:03lifetime with Lucid Flex, provided you
5:05don't breach your account. You'll also
5:08need to get a level 2 field if you want
5:10to run a heatmap. In the following
5:12videos, we'll learn how to create a
5:14heatmap within Motive and how to set it
5:16up. For now, we'll only talk about
5:18Bookmap, as I'll be explaining it first
5:19. I personally use it. The fundamental
5:23themes are almost the same. You just
5:25need to understand. It has an Advanced
5:26Hitmap. You can do all-in-one with
5:28Motive within it. It has a low lifetime
5:30cost and is the best value. Ask it
5:32completely. Now let's see where to buy
5:35it. Look, I've reached the Bookamp
5:36website. I clicked on Pricing. You'll
5:39see a website like this. You'll see
5:40three plans here. Scroll down three or
5:43four times and you'll see Pricing. You
5:45shouldn't take the Digital Plus plan.
5:47The futures included in it won't work.
5:49Their monthly plan is $ 49 per month
5:50for Global. If you buy Yearly, it'll
5:53cost $ 39 per month. If you buy
5:56Lifetime, it'll cost $ 99. Don't go for
5:58Global Plus. It won't be useful.
6:00There's no benefit in paying extra
6:01money. You have to buy this one. If you
6:03want to buy it, then let's talk about
6:05futures, stocks, and crypto. This is
6:07the feed below, there are three types
6:08of feeds: one is Rhythmic, one is DX,
6:10and one is Bookamp. I prefer the
6:11Bookamp Data one; there's no benefit in
6:13buying Rhythmic. You can also see the
6:16historical data within the bookmap.
6:19They have ongoing offers, like 50%off
6:20for the first month. As I mentioned, it
6:22starts at $ 17, but the regular price
6:25is $ 34. If you're trading ESNQ, you'll
6:28need to select CME Group, or the CME
6:30field. If you're trading Gold or Silver
6:32, you'll need to select COMX. After
6:34doing this, your bookmap will open. Now
6:37let's move on to Motiva. Let's learn
6:39about Motiva's costing. Look, we know
6:41its one-lifetime cost. So, the order
6:44flow subscription costs around $ 600
6:46for a lifetime. Speaking of iTask, I'm
6:50going to buy it for a lifetime after
6:51some time because I've completely
6:53shifted to iTask. It's quite good. It's
6:55quite smooth. I can execute orders. All
6:57the work is done. So, I'll take this
6:59Pro version in the future. I've already
7:01purchased this one-month paid plan from
7:03here, and it's much better. The future
7:05data in this plan will be connected.
7:07This plan won't be available in these
7:07plans. Future data in these plans can't
7:09be connected in real time. So, if you
7:11want to test it for a month, you can
7:12get it from here. This is one way,
7:14you're buying it directly on the
7:15website. Okay? What I mentioned is the
7:18shortcut from here, which will cost you
7:20$ 3 per month. Later, you'll have to
7:23pay $ 32 per month. So, this is a
7:24pretty good way. It's for one month.
7:26But if you want it for life, I'd say
7:28you can go with it completely, because
7:31I'm going to. Anyone who doesn't have
7:33the money right now should avoid it.
7:35Start here. Earn money gradually. Learn
7:37from my video, and then we'll move on.
7:39So let's take a quick overview of the
7:41Hitap bookmap to help you understand.
7:44Click on it and it will open as follows
7:46. Once opened, three options will
7:48appear. You can see that within a few
7:50moments, three options will appear. One
7:52is simulation mode, where we perform
7:55normal analysis. Another is trading
7:57mode, where we can also trade. Another
7:59is replay mode, where we can record
8:01data and play it back in replay for
8:03analysis. You need to select simulation
8:05and click OK. As soon as you click OK,
8:07it will open immediately after a short
8:09time. You can see it opening. Once open
8:11, it will show you something like this:
8:13On the right side, you can see the
8:15current order book or volume profile.
8:17Here, you will see the overall
8:19liquidity. Above this option, you will
8:21see a connection option. From here, you
8:23can choose your feed, which I mentioned
8:25. For example, I clicked on connection.
8:27Here is my bookmap data feed, which I
8:29mentioned. If you want to buy, it will
8:31be displayed here. You'll need to
8:33connect to it, along with Rhythmic.
8:35Let's assume you've purchased Level 2
8:37data from Lucid or from For Prop Trader
8:39. Now, let's assume you have to choose
8:41between a Rhythmic connection or a
8:43Bookmap data connection. Go to Add
8:45Connection. After doing this, Bookmap
8:47data is already selected; if you use
8:48Bookmap, it will already be available.
8:50You don't have to do anything in this
8:51case. Just click OK and click on the
8:54connection from here. It will connect.
8:57If you want to buy from Lucid or any
8:58other platform, how do you do it? Look,
8:59I've already done it here. Go to Add
9:01Connection. Similarly, this window will
9:03open. Click on Platform at the top.
9:05Select Rhythmic here. If there are
9:07different fields for Rhythmic or
9:08anything else, you can select them. You
9:10can use Binance. If someone is trading
9:12crypto, they should trade Rhythmic.
9:13After doing this, enter any name here:
9:15"Connection Name." It doesn't matter.
9:17You can enter your username. You can
9:19also enter Rhythmic's password. Go to
9:21System and select "Likely Trading."
9:23Enter your gateway and click OK. Once
9:25you click OK, go to "Connection." All
9:27these elements will have been entered.
9:28As soon as you click on them, as in my
9:30case, I clicked on "Bookmap." It
9:32automatically selected after clicking.
9:34Now, don't forget one thing: What does
9:36this plus icon do? Click here to add an
9:38instrument. For example, "Gold,""Silver
9:41," or any other instrument you trade.
9:43You need to select the platform name.
9:45For example, "Bookmap." We have
9:46attached the "Bookmap" data feed. If we
9:49attach Rhythmic, it will also display
9:51Rhythmic's name. When you select "
9:52Rhythmic" from the profile, you'll see
9:55a separate symbol under "Symbol." I
9:57clicked on futures, I'm trading futures
9:58. I clicked on the exchange, I clicked
10:00on comex, because I'm trading gold.
10:01Then I do CMA, then I do ES NQ. Now I
10:04clicked on gc q6. Look, I've entered gc
10:07q6 here. This is the codeword for gold.
10:10Gold's codewords keep changing. Who
10:12knows, in your case, it might not show
10:13anything, or it might show you
10:15something blank. All you have to do is
10:16enter this code and subscribe. These
10:18codes change all the time. Every few
10:20months, you'll find these codes on
10:21their website. After that, you just
10:23need to subscribe. As soon as you do,
10:24it will open completely. For now, we'll
10:26cancel it. So, here it shows you all
10:28the liquidity. So, I'd like to give you
10:30an overview. This area above is the
10:32entire settings area. Okay? The area
10:34above. On the right side is COB. COB is
10:36the current order book. Here you'll
10:38also see the volume profile on the
10:40right side. If you want to cut it, you
10:41can do that. This is all the liquidity.
10:43You'll see a line in the middle. Look
10:45at this line, this line is visible. All
10:47the data to the right of this line
10:49represents the current liquidity in the
10:50market right now. The data behind this
10:53line is the liquidity that has passed,
10:54the orders that were placed, the orders
10:56that have disappeared, the orders that
10:57have been lost. That's all the
10:58liquidity. The liquidity in front is
11:00the resting liquidity of the current
11:02market. Now, what is this COB? It's the
11:04current order book. Let's do one thing
11:06with it. We open Motive and compare
11:08both data points once to see if they're
11:10accurate or bad. You can see there are
11:1317 orders placed at 4184. So let's move
11:16to 4184, brother. So let's move down.
11:18So, look, there are 17 orders placed at
11:204184. Similarly, let's move up. There
11:23are 28 orders placed at 4198. So let's
11:25move to Motive A. So, 4198 is going up.
11:29We're going up to 4198. So look, 28
11:30orders were placed. The exact same data
11:32matched, right? If there's a single
11:34feed from the COMEX exchange, and all
11:36the data comes in, it matches. So,
11:38they've displayed this COB in this way.
11:40For example, the Ask area above is
11:43shown in red. The Buy area below is
11:46shown in green. This is exactly the
11:48same. There's no difference. Then they
11:50created a visual representation of the
11:52entire COB current order book. Now, if
11:54we look inside, there's data. But if we
11:56look at this, we'll see exactly what's
11:57happening. Look, there's the most data
11:59here. The more red, the bigger the
12:01order somewhere. I'm showing you this
12:04by clicking on this area. There are
12:06different colors here. I often select
12:08this. This helps me read my mindset.
12:11There are different colors inside it.
12:12One is red. Red means the most
12:14liquidity area. Yellow means orange.
12:17The next orange means slightly less
12:18than that. Yellow means less than that.
12:21White means more than that. We're going
12:23down completely like this. Similarly,
12:25if you look here, there's an option. In
12:26your case, you might see a heat map
12:28like this. What am I doing? I'm turning
12:30off the lighting effect of this area,
12:32the contrast, because I don't need it.
12:35I just want to see it as liquid. Below
12:37this, there's an order of bubbles. If
12:39you move these bubbles back and forth,
12:41their size will increase or decrease.
12:43You can select this accordingly.
12:44There's a pen setting here. It's
12:46useless. It's a drawing tool. You have
12:47to draw on it. This is a setting. If
12:50you click on it, your server will be
12:52activated. So you can see your balls,
12:54like these balls. You can see the order
12:56value of this ball. For example, you
12:57can see the volume of this ball, 61 on
12:58top of it. For example, this is
13:00liquidity. This is an order value of
13:0128. I click on it. Look, I took it to
13:03this area. So here you'll see Ask 5,
13:06different areas. Here's Ask 10. It
13:09doesn't show here right now. It shows a
13:11little bit back. Here's Nine. Here's
13:1411. Here's Eight. So you take all this
13:17resting liquidity over the bolus. So it
13:19shows their volume. This helps us
13:21determine how much volume has entered
13:23the market. This is a time slice.
13:26There's no time frame within it.
13:27There's no 5-minute, 10-minute window.
13:29These are time slices. The window
13:31divides them into time slices. Click,
13:33let's say we need 5-minute slices. So,
13:36one 5-minute window is automatically
13:38cut. Okay? Similarly, if you make it 20
13:40minutes, each window is cut to 20
13:42minutes. There's no fixed time limit.
13:44You can move it back and forth. You can
13:46deepen it as much as you want, like I
13:48did this. So, liquidity will be
13:49displayed to you like this. If you zoom
13:51in completely, the bots will also be
13:53shown within the liquidity. The deeper
13:55you zoom in, the more detailed the
13:58liquidity will appear. The more you
14:01widen it, the more you will see large,
14:03major volumes. Now, there's a lock here
14:06. Clicking on this lock allows you to
14:08execute orders. I'm closing it now.
14:10After that, there are different options
14:11. Mainly this option and this option.
14:14This option is called Studies
14:15Configuration. You click on it. So,
14:17here are all your studies, like volume
14:19dots. Now, listen to the settings for
14:21volume dots. Volume dots are volume
14:22dots. This volume is like the big
14:24trades we saw. There are two settings
14:28here. Under the volume display option,
14:30there's 2D bubbles. Look how bad the 2D
14:32bubbles look. They're not that good. If
14:34you look at the 3D bubble, it will
14:36appear clearly 3D, allowing us to
14:38easily find liquidity or aggressive
14:40orders. This is very useful for the
14:41mind. There are two options below. One
14:43is for total volume and the other is
14:44for volume delta. Volume delta is the
14:46ask minus bid. So, you need to keep
14:48this selected. Regarding size, the size
14:50is the same. This and this are the same
14:51size. You can control it here as well.
14:53Look at the transparency, I've set it
14:55to zero so that I can see the bubbles
14:57clearly. If you move it forward, they
14:58will become a little transparent. You
15:00can see it. If you move it backward,
15:01you will see them completely enlarged.
15:03In this type of clustering, you should
15:05place a smart cluster here and increase
15:07its bar to 20 so that everything is
15:09easy to read and you don't have to
15:10interfere with anything else;
15:12everything else will remain active.
15:14There are no other settings inside. If
15:16you want to open a candle here, you can
15:18do so. I'll click on "Cumulative Volume
15:20Delta." Then, "Delta" appears below. "
15:22CVD" appears. You can see it completely
15:23. I don't use it. If you want to use it
15:25, you can. Okay? I'm telling you what I
15:28use. I'll close it. Click here to close
15:30it. It's completely closed. Now, look,
15:33this can be a little difficult to see.
15:35It was like this before. Now we've made
15:36it like this. Now it's a little refined
15:38. Now, look, there are a lot of bots in
15:40between. These small orders you see are
15:43bots. All these bots place orders
15:45automatically. And look, this small
15:47liquidity in between creates problems.
15:49It doesn't read well. So, if you
15:50enqueue ES, it's free of cost. The data
15:53will appear in front of you in this way
15:54. You can see a new window. I've
15:57clicked on it. After clicking, you'll
15:59see how clearly this window appears,
16:01showing you the best liquidities, major
16:03liquidities. For example, it's red,
16:04blue, and yellow. There are no bots in
16:06between. It's easy to read. We'll
16:09refine it to work. You can make the
16:11bubbles bigger or smaller. Now, where
16:13did I get this from? How did I install
16:15it? Look, there's another option on the
16:18right side of this configuration:
16:20Configure Addons. I clicked on it.
16:22After clicking, it's free for those
16:24using ESNQ. Trader Map Lite: If your
16:26Trader Map Lite isn't showing here, you
16:28need to go to Manage Addons. Once
16:30you've managed it, look, this is Trader
16:31Map Pro. Lite. Now, Lite is free. It's
16:35only for ESNQ. But if you want to trade
16:38gold or crypto, you'll need to buy
16:40Trader Map Pro. It costs $ 50 per month
16:42, which is quite costly. So I say using
16:44another platform is better for you. But
16:47Bookmap is the complete industry
16:48standard. It's goat-level. So, you
16:50can't deny it. Anyone with the money
16:52can buy it. If someone doesn't want to
16:55use it normally, they can. It's a
16:56little difficult. It'll be better if
16:58you refine it. For example, I've
17:00clicked on this. If you use ESNQ, I'll
17:02explain its settings. Click here. After
17:04clicking, go to TraderMap Pro Lite.
17:06Click on it. In TraderMap Lite, keep
17:07the standard settings. It will
17:09automatically activate and everything
17:10will start showing. If you use
17:12TraderMap Pro, its settings are
17:13slightly different. Now, first, click
17:15on Create. Then, enter a name here. You
17:18can enter any name. Okay? After that,
17:20you'll select whatever you've chosen.
17:23For example, if you've chosen this,
17:25enter it. After doing this, the Bot
17:26Remover will appear. You then need to
17:29set its threshold. The threshold needs
17:30to be set forward. I'll close it once
17:32and run it again. As I clicked, it
17:34stopped. You can see. To run it, I went
17:36to Pro in Trader. Here, I deleted its
17:39threshold. Its threshold is already set
17:42. So, I clicked on it. As soon as I
17:44clicked, a new window will activate.
17:46The new window will activate and it
17:47will start displaying all the liquidity
17:49in front of you. You can see it
17:50completely. It will show you this way.
17:52So, this was a complete overview. We're
17:54going to delve into it further: how to
17:57read liquidity, how to build the entire
17:59system, where to enter and where to
18:01exit. Now let's talk about Dome and
18:03Tape versus Heat Map. If you want to
18:05trade with a heat map but don't know
18:07why you're using it, your game will be
18:09ruined. Then you should stick to ICT.
18:12As you can see, on the right side,
18:14there's an order book called DOMB. We
18:16discussed this in the first lecture.
18:18This is the resting limit order
18:19provided by the exchange. It shows us
18:22liquidity. We can't make any decisions
18:24based on liquidity; we can only read it
18:26. Now, this liquidity, and the
18:28liquidity it shows you, is all the same
18:30, in different colors. As I told you,
18:33using this liquidity, they created a
18:35type of liquidity here, which we call
18:38depth of market. They created a visual
18:40representation of it and color-coded
18:42the liquidities here. On the right side
18:45, you'll see a tape. Tape means
18:46executed trades, meaning volume. In the
18:49past, heat maps didn't exist. Older
18:52players had to guess. They had to be
18:55decoded. How did they manage the entire
18:57system? Let's assume there's liquidity.
18:59This liquidity and this liquidity are
19:01the same. This is a tape. The tape and
19:03these bubbles are the same. Because
19:05these are executive trades. Aggressive
19:06trades. Cumulative trades. Now see how
19:09they figured it out. Let's assume the
19:11liquidity keeps moving up and down like
19:12this. It keeps moving. Let's assume an
19:15order of 17 is placed here. Now the
19:16price is coming down, coming down,
19:18coming down. Hit the liquidity of 17.
19:20As soon as it hits, the price might go
19:23up or break it. How did they figure it
19:25out? As you can see, there are red
19:27orders here. Here's a green order here.
19:28Here's red, and here's green. Let's
19:31assume they've been executing orders of
19:32this type from the top, and they've
19:33been executing them, and they've been
19:34executing them. And after this tape
19:36reaches this area, let's assume the
19:38price is stuck at this area, but the
19:40orders within the tape are coming in
19:42aggressively, green orders. Green
19:43orders are coming in. Green orders are
19:44coming in. Green orders are coming in.
19:46Ten orders, eight orders, one order.
19:48This tells them that large orders are
19:49coming in. But the price is staying put
19:52. Meaning the price is still holding
19:54above 17. Which means there's an
19:55iceberg here. Which means there's more
19:58liquidity here. Because of this, the
20:00aggressive orders—ten orders, eight
20:01orders, or even large orders—are
20:03coming in one by one. They're unable to
20:04break this liquidity. The price is
20:06still holding up. They used to decode
20:08this and trade based solely on these
20:10two. But today, this liquidity heat map
20:13has made things so much easier. The
20:15tape inside it also shows you where and
20:18how much liquidity is being hit. I'll
20:20show you a couple of examples right now
20:22. For example, if this goes up, it hits
20:23this. If it goes down, it hits this.
20:25Understanding the dome and tape is
20:26crucial. If I don't explain these, you
20:29won't understand their significance,
20:31because we get everything ready-made.
20:33How is the data being generated? If we
20:35don't have the decoding for that data,
20:36we'll be left behind because I'm
20:38explaining this. I'm just giving you a
20:40few examples. When I open the entire
20:42list in the future, you'll wonder what
20:44I've explained. For that, you need to
20:46have a clear foundation. Now, pulling
20:48and staking. Pulling and staking is
20:50something we're only looking at a heat
20:52map for. If we don't understand pulling
20:54and staking at all, there's no point in
20:56looking at a heat map. The very meaning
20:58of a heat map is to look at pulling and
20:59staking. Pulling and staking describes
21:02the continuous flow of liquidity in the
21:04depth of market as traders actively
21:06modify their pending limit orders. What
21:09happens? Let's assume there's an order
21:10book, also called a DOM. Within this
21:12DOM, there are different levels of
21:13liquidity. As you can see, there's 16
21:15here. Now, from 16, who knows, it might
21:17become 14, or the price might change by
21:19the time it reaches this level. Now,
21:21look, it's decreased here. Let's move a
21:22little lower. Look, it's decreased here
21:24. It might become 15, meaning it might
21:26increase or decrease. This means that
21:28by the time the price reaches this
21:29level, who knows, liquidity might
21:31increase or decrease. This is called
21:33pulling and staking, where orders are
21:35placed or placed. Pulling orders occur
21:37when market participants cancel
21:39existing limit orders before execution,
21:41reducing the available liquidity and
21:44weakening that level. What happens next
21:46? Let's assume there's an order for 17
21:47placed in this area. You can see the
21:49live market is currently running.
21:50Pulling means pulling. It means there's
21:53a lower order than 17. Right now,
21:54there's an order for 17. Let's assume
21:56the price is stuck in the middle. As
21:58long as the price drops, it'll drop to
22:00this level. Who knows, there might be a
22:01nine order left here. Who knows, there
22:03might be a seven order left here. And
22:04who knows, all the 17 orders might
22:06disappear. This is called pulling. It's
22:09possible there was an order for 200
22:10placed, but by removing them, it's
22:12reduced to 17. The price hasn't already
22:13reached this point. This is called
22:15pulling. It weakens the area. Because
22:18if there's liquidity of 200 here,
22:19there's an order for 200. This means
22:21it's a strong area. If liquidity is low
22:23, remove them gradually, weakening that
22:25level. That level will weaken. Stacking
22:27occurs when market participants add
22:29more limit orders at a specific price
22:31level, increasing available liquidity
22:33and strengthening the limit level. Now,
22:36what happens is, let's assume we're
22:37moving similarly to this level. Just
22:39now, an order of 17 became 15. This
22:40means they were pulled somewhere. If
22:43these orders increased from 15 to 17,
22:45then suddenly this means they were
22:46stacked. It decreases. If they were
22:49pulled, then pulling occurs. Repeated
22:50pulling occurs. Stuck means the order
22:52is repeatedly increased at the same
22:54price level. For example, here, there's
22:56an order of 14. We'll track it now at
22:58this price level, 4184, and move down
23:01from there. Look, it's 16 and we'll see
23:03. If it increases, it means they're
23:05getting stuck. It means they're
23:06increasing. Orders are being placed,
23:08reaching 20. I'm showing you a live
23:10example. It's 20. This means there's a
23:12buildup. When there's a buildup, it
23:14means liquidity is being added to that
23:16area before the price even hits. This
23:18means increasing the available
23:19liquidity and strengthening that level
23:21as the price moves towards that area.
23:23For example, if we consider this
23:25completely within the bookmap, you can
23:27see this area. Here, you see 25 orders
23:29at the lower level. You can see that
23:31the level below might be 25, but now
23:33it's 26 all at once. By the time the
23:34price reaches this level, there's major
23:36liquidity. There are 22 orders.
23:37Although not large, it also depends on
23:39market conditions. There are buy orders
23:40. As long as the price is here, two
23:42scenarios can occur: either it will
23:44draw out all the liquidity, or it could
23:47increase. The more it increases, the
23:49stronger the wall will become. As you
23:51can see, this wall starts strengthening
23:53from here. This means that orders have
23:55started coming in continuously from
23:56here. As you can see in this area,
23:58there's liquidity somewhere high. For
23:59example, look at this area, there were
24:01a few orders here. Later, they broke,
24:02became weak, and then decreased a bit.
24:04Orders decreased. These thick walls
24:07that you see mean that there's a lot of
24:09stocking going on here. This broken
24:12wall in the middle means that orders
24:13have been pulled. The simple logic
24:15behind this is this: By monitoring
24:17pulling and staking, traders can
24:19observe how liquidity is evolving in
24:21real time rather than relying on
24:23solarisi on static order book data.
24:25This way, we can easily see pulling and
24:27staking. Let's say your name is Ram,
24:30Shyam, or anything else. Mohan, Sohan.
24:33I tell you, brother, do one thing:
24:35don't keep trading all day, keep
24:37trading. This liquidity will now be 19.
24:39Previously, it was 15 or 16. Track it
24:41all day. Track it every once in a while
24:43. Track it after every few minutes. For
24:45how long will you track? Take a pen and
24:46paper and start writing numbers. Okay,
24:48at this time, after 5 minutes, this
24:50much, after 5 minutes, this much.
24:52You'll write down the pulling data
24:54separately, and your stocking data
24:56separately. How will you figure it out?
24:58It'll be mind-boggling, brother. So,
25:00because of this, the heat map that we
25:02have here comes in handy. Or, whatever
25:04historical liquidity we have, the area
25:06is already increasing. Let's assume
25:08this is an area where an order was
25:10placed before, then an increase, then
25:12an increase, then an increase, then an
25:14increase, then an increase. When the
25:16price is increasing like this in an
25:18area, it means there's a wall somewhere
25:20, a genuine wall, that won't break. It
25:23will impact somewhere, react, and even
25:26act as a magnet. I'll also return to
25:28magnets, like the wall below. It's
25:30quite strong. Look, this wall just
25:32formed. It's an order of 22. Who knows,
25:33it might disappear by the time the
25:34price comes down. That's also possible.
25:36But what you see is a whole wall,
25:37stretching from front to back. The
25:39price is moving in long stretches. The
25:41bigger the wall, the farther it goes.
25:43As if there's an option here, I'll show
25:44you. It's gone backward. Look, this is
25:46the area. There's also a one-hour
25:48timeframe here. If I extend it to 6
25:50hours, 12 hours, or 48 hours, you'll
25:52see even larger liquidity walls. Price
25:54hasn't yet reached there. So, it could
25:56be a genuine liquidity wall. Price will
25:58come there and behave like a magnet.
26:00The bigger the liquidity wall, the more
26:02it attracts like a magnet. Now let's
26:04move on to our note. Now, let's
26:06understand this here. This provides
26:08valuable inside whether a liquidity
26:10wall is stronger, weaker, and
26:11disappears all together. All of this
26:14shows that it has disappeared suddenly,
26:16is becoming weaker, or is becoming
26:17stronger than before. Now, look, this
26:20example is completely about pulling.
26:22Let's understand pulling. Then we'll
26:23understand staking. Now, let's assume
26:26someone placed an order. It could be
26:29you, it could be me, it could be an
26:30institution, because we are not
26:31liquidity providers. Institutions are
26:33also not liquidity providers. They are
26:35different. What is an institution? They
26:37come to trade. Now, let's assume a big
26:39player placed an order in this area.
26:41After placing the order, a significant
26:43red wall is visible. What happens after
26:46a while is that the -60 wall starts to
26:49fade. You can see the color. It starts
26:50to fade. These types of orders started
26:52coming in. Meaning, somewhere, they
26:54started pulling. 30, then minus, then
26:57-30. So you can see the liquidity wall
27:00weakened. When the liquidity wall
27:02weakens, its color will appear
27:04yellowish. Or white, meaning white is
27:07very low. But a little yellow is normal
27:09liquidity, like 5 or 10 orders placed
27:12here. You don't need to give it too
27:13much importance. The price will react a
27:15little, and then it will break down.
27:17Okay? Now, we've learned about pulling.
27:18What exactly happens in pulling? You
27:20place a large order. Then you withdraw
27:21it, or you place a smaller one, and
27:22that order is withdrawn. The large one
27:24was placed, and there was a very large
27:25red wall. It's gradually fading. We
27:27call that pulling. What is stocking?
27:29Within stocking, you can place orders
27:30from small to large. You can place
27:32orders from large to large. It can be
27:33anything. For example, look at this
27:34area. First, white liquidity was
27:36created. This meant an order of eight
27:37came in. It wasn't very large. Then,
27:39after a while, another order of 14 came
27:41in. This meant the yellow was
27:42increasing slightly. As I've explained
27:44the color codes. Then came orange. An
27:46order of 22 came in, a little larger
27:47somewhere. After that, a 35 order came
27:50in. Now, look at this yellow area,
27:52which is a slightly less liquid wall,
27:54where it's not very strong. This orange
27:55one is stronger than that. So, together
27:57, this strong wall was formed. Pulling
28:00orders from within this strong wall
28:02caused it to weaken. If all the red
28:04orders were placed, it would have
28:05become red. What happened inside it?
28:07Smaller orders were placed. Then more
28:09orders came in. This meant the number
28:10was increasing somewhere. Liquidity was
28:12building. So, this orange one was
28:14formed. Now let's understand further.
28:15Our second example is staking. Here,
28:17orders from one to 35 come in. This is
28:19good. Quite good. Then an orange wall
28:21forms. This is also quite good. Again,
28:23an orange wall forms, and again, a red
28:25wall forms. So, in comparison, more
28:27orders have come here. So, the color of
28:30the liquidity wall is also quite good.
28:32In its case, if you look at the next
28:34one, a big order comes in for 70. Then
28:36comes another for 45. Then comes an
28:37orange order for 45. It can change. Who
28:39knows, a yellow order might also come
28:41in between. Anything like this could
28:43happen. But ultimately, a lot of orders
28:45are coming in. Finally, a big order
28:47came in. This means the liquidity wall
28:49has become quite strong. Look at its
28:51color, which you see in the red-coded
28:53area. If I open this area a little, you
28:56will see how much red you will see. If
29:00you go very close to it, you will see
29:01only red. There is white. There are no
29:03major orders. But look at this price
29:04level alone, there are five orders of
29:0628 here. There are six here. If you
29:08look above, there are six. So, the more
29:10red and the longer the wall, the
29:12greater the impact. Now, liquidity
29:15pools versus garbage liquidity. In this
29:17, we'll learn about both liquidity
29:19pools and debunk some myths. A
29:22liquidity pool is a price level where a
29:24large number of resting limit orders
29:26are concentrated. It's a place where a
29:28large number of resting limit orders
29:29are concentrated. As I mentioned, this
29:31red wall, with 2001 or 1001 orders, has
29:34been forming here for quite some time.
29:37Because of this, the large limit orders
29:39here have become concentrated, meaning
29:40they have settled inside it. It appears
29:42as a bright and thick liquidity wall,
29:44indicating significant buying and
29:46selling interest and that price. This
29:48means, as you can see, this area is a
29:50bit faded. If you look at the entire
29:52chart, you'll see a brighter, thicker
29:54area where the majors are. This means
29:57that some of the larger participants
29:59are interested in buying at this area,
30:01which is why they've created the wall.
30:04This level often attracts price. It
30:06attracts price towards itself. For
30:07example, if the price is stagnant here,
30:09it's possible that the price is
30:10stagnant here. There's not much
30:11liquidity here because the market needs
30:13liquidity. Liquidity is the fuel for
30:14the market. So, if there's not much
30:16liquidity here, or a garbage area, the
30:18market may be attracted to it. And this
30:21can act as a reaction zone. Although
30:24they don't guarantee a reversal, this
30:26could become a reaction zone where the
30:28price could react, move down, or even
30:31go up. But there's no guarantee that
30:33this will work. We have to look at many
30:35things for that. That's why we complete
30:37the system with order flow. Let's
30:39understand garbage liquidity. Like the
30:41liquidity pool we saw below, this is
30:43the liquidity pool. Okay? Similarly, if
30:45you look above, this is all garbage
30:46liquidity. Garbage liquidity is also
30:48called liquidity noise and liquidity
30:50clutter. As I showed you inside, if you
30:53go to the bookmap, you'll see clutter.
30:55You can see how much clutter there is.
30:57It's embarrassing to even look at it.
31:01So, look here, there are so many bots
31:02and such. There's complete clutter here
31:04. Even if you widen it a little, it's
31:07clutter. Nothing makes sense. Now, when
31:09I widen it a little, I understand that
31:11there's a thick wall at the top where
31:12orders are placed. There's a larger
31:14wall at the bottom where orders are
31:15placed. In the middle, there's all the
31:16garbage. So, garbage is the area that
31:18represents the clutter, referring to
31:20many small limit orders scattered
31:22across multiple price levels. For
31:24example, let's look at different levels
31:26, like in the order book. So, there's
31:28an order placed here, here, here, here,
31:30here. There are many smaller ones in
31:32between. So this would be a cluttering
31:33area. Price often consolidates in these
31:35areas, and if the price direction
31:37should be in your favor, assuming your
31:39bias is to the upside and there's
31:41liquidity, you can counter it. On the
31:44heat map, this appears as a dark band
31:46spread through the order book rather
31:49than one dominant wall. On the heat map
31:51, this appears as a dark wall. It was
31:54looking bright for us. It looks dark.
31:55It looks dark. It's dark. It's not a
31:58good color. It looks thin. There will
32:00be thin walls. Thin, just like orange.
32:02If you decode it, it will appear even
32:04thinner. If you widen it, it will
32:05appear thicker. This thin wall will
32:07appear like a garbage area. As you can
32:08see, this area. There was a significant
32:11wall below and a garbage area above.
32:12Price had been moving in this range for
32:14quite some time. Price couldn't decide
32:15on a direction. But my bias was
32:17downward. My proper setup was forming
32:19with the entire order flow system. Just
32:21look at this liquidity heat map, and
32:22you'll be able to counter this area.
32:24You'll know it will attract you like a
32:26magnet. Since the liquidity is
32:27distributed instead of concentrated,
32:29there's one thing called distributed.
32:31What does distributed mean? At
32:32different levels, there are some orders
32:34here, some here, some there, some there
32:36. They're fragmented. As we understand
32:38it, let's zoom in a little and see.
32:40Look, they're fragmented. Wherever
32:42there's a red, orange, red, orange, and
32:45a boat scuttles in the middle. And
32:47similarly, when we go down a little,
32:49look, a thin line appears. This is
32:51concentrated. And this is our
32:53distributed market. The distributed
32:55market automatically becomes weaker
32:56because it's a garbage area. The price
32:58there will fluctuate, consolidating up
33:00and down. You'll also notice it in that
33:02area. I don't want to enter here
33:04because it's cluttered. I'll clear my
33:06bias. Then I'll hunt it. Resistance and
33:08are generally less than true liquidity
33:11poles. These small resistance and
33:13support don't matter much. Our main
33:16game is liquidity true poles, called
33:18pools. Now, I've seen a lot of people
33:20on social media asking them what
33:22liquidity pools are. What do they say?
33:24Pools are where most orders are
33:26executed. Brother, pools are where most
33:28orders aren't executed. Because where
33:31most orders are executed, volume is
33:33generated. That's where the zigzag
33:34garbage area is. Where orders haven't
33:36been executed, there are liquidity
33:38pools. Pools mean a whole pool of big
33:41fish. So, there's a big fish here. If
33:43the price reaches a big fish, it won't
33:45stop. It will either break it and run
33:47down, or it will trigger a click above
33:49it, and run up. So, I busted a myth:
33:51people think a pool has formed above.
33:53Nothing like that happens. Where you
33:54see a strong red line, there will be a
33:56large order, maybe multiple orders, but
33:58it's not like the price is moving there
33:59. The price won't move there; the price
34:01will drive it away within two minutes.
34:03So, let's understand an example of this
34:04. Let's go to the bookmark. I've
34:06created an example here; I already
34:08recorded it to a file. I clicked on
34:11Open Data File and inserted the
34:12recorded file here. There are two cases
34:15. If you go here, all the data will
34:16appear distorted. You can see this type
34:18of data, where you'll be completely
34:20confused. I've applied the bot remover
34:22to make it look like this. I'm opening
34:24it now. You can see this is 12:00 PM.
34:27You know consolidation occurs when the
34:29London session opens. You'll understand
34:30the reason. The market started here and
34:33is slowly consolidating. Now, look at
34:35the market, there's a lot of minor
34:36liquidity below. There's an order of
34:38seven, an order of three. Above,
34:40there's an order of 33. So, you can see
34:42another liquidity coming in somewhere,
34:43like a 33. It will go to these and work
34:45like a magnet. Now, watch the price,
34:47I'm speeding it up a bit. Now, watch
34:49the price come in slowly. There's no
34:51liquidity here. The market needs
34:52liquidity because it's the fuel for the
34:54market. The market hit this liquidity
34:56high. As soon as it hit, buyers were
34:57quite aggressive, and look at the price
34:59, it hit the other one as well. It
35:01absorbed the price as soon as it hit,
35:03and the price started to fall. After it
35:06hit, you can see that it wasn't getting
35:08much liquidity at the bottom. And
35:10because of this, there's minor
35:11liquidity. There's also an order of 15
35:13here. It's not a big order. But the
35:14market needs liquidity. Where there's
35:16more liquidity, the market will move in
35:17that direction. So, you can see that a
35:19garbage area of consolidation has
35:21completely formed here, because now,
35:23look, it hit this, first broke this,
35:25then hit this. Now, look, it went up
35:26from here, and hit this. After hitting
35:28this, the price came down and stopped
35:29here. My recording stopped here. This
35:31helps us understand this. When the
35:33market is in a consolidation area, and
35:35you know that liquidity is high and
35:37there's nothing below, you can play a
35:39counter move up. Right? In the garbage
35:40area, you need to wait. Keep your bias
35:42clear. Inside the garbage area, you
35:44have to be patient and wait. Check if
35:46there's any liquidity below. If there's
35:48any liquidity here, the market could
35:50hit it somewhere. I'll explain this to
35:52you in the magnet example. But this was
35:54an example of consolidation here,
35:56followed by a hit on liquidity. Then,
35:58after consolidation, liquidity was
35:59found at the bottom. Then, liquidity
36:00was hit again. When a large order of 77
36:03was received, the market would hit 100
36:05orders, 77, 80, and then the market
36:07would come down. This can vary for
36:10different instruments, such as ES NQ
36:12Gold. Some may have 1000 orders, some
36:14500 orders, 100 orders, and 150 orders
36:16are very large orders. Now, let's
36:18understand how liquidity attracts price
36:20. How does liquidity attract price?
36:22Using the iron ball analogy. As you can
36:25see, this is a magnet. This is price.
36:27Price is standing here. These are
36:28different magnets. These magnets are
36:30liquidity. For example, this magnet has
36:32a pull force of 10 kg. This one has 2
36:34kg, this one has 5 kg, this one has 50
36:35kg, and this one has 100 kg. I've
36:37created these according to how strong
36:39each liquidity is. This is the
36:40strongest. Then this one is the least
36:42strong. Then this one is even weaker.
36:43Then this one. Then this one. Now let's
36:45see how this works. Because you've seen
36:47that there are different walls at
36:48different levels. You can see inside
36:50the bookmap. There's a different wall
36:52here. There's a different wall here. Or
36:53if you zoom in, you'll see many walls.
36:55There's garbage. There's a lot of it.
36:57We'll remove the garbage. There's no
36:59need to look at the garbage within the
37:01different systems. As for the main
37:02liquidity, you can consider this to be
37:04the price. The price is being delivered
37:06from here. It's coming from this type.
37:08Now the price needs liquidity. Let's
37:10assume there's nothing here. Maybe one
37:12or two orders. But according to the FK,
37:14it's still fine here. Here's blue. Who
37:16knows, there's not much happening in
37:17blue. Here's white. Price came here.
37:19Price reacted. Price, using liquidity,
37:21started moving from here. Now, price is
37:23looking for which magnet is nearby. Now
37:25, show price that this magnet is nearby
37:27. I mean, it was already nearby. It's a
37:29little distance away. So, price came
37:30near it and came above a 5 kg pull
37:32force. It consolidated above yellow and
37:34started moving up. Then it came like
37:35this. Then it has to find liquidity.
37:37Now, it found this. 10 kg pull force,
37:39so it stuck here for a long time. Then,
37:41somewhere, it got removed and suddenly
37:43started coming here. Because there were
37:44more orders here, pending orders
37:46remained. That's why the market is in
37:47consolidation. Now, there's nothing
37:49here. There could be a boat here. Boats
37:50don't make any difference. Small orders
37:52keep getting executed. Now the market
37:54is looking for major liquidity. So, the
37:56market saw some white liquidity
37:57somewhere here, in the middle. There
37:59was blue liquidity somewhere above here
38:01, circulating near them. Then, the
38:03market suddenly saw liquidity. The
38:04market completely came to this point.
38:06Now it works like a magnet. You've seen
38:08how well a magnet works. Now it's above
38:10this point. Now, after reaching this
38:11point, who knows, the market might rush
38:13higher. It's also possible that it
38:14might go much higher. But in my
38:16experience, what does the market do?
38:17Look at this area of the market.
38:19There's a pull force of 100 kg. I'll
38:21pull it and bring it a little here.
38:24Because liquidity doesn't exist like
38:25I've shown you in the drawing. No, it
38:27exists at different levels. This is the
38:29way to explain it. As you enter the
38:31market, gradually analyze it, and then
38:33you'll understand, because people don't
38:35learn overnight. Now, what happens in
38:37my case? Let's assume there's a pull
38:38force of 100 kg here. There's a pull
38:39force of 50 kg here. Now, observe what
38:41happens in the market. The market was
38:42moving here. There's a pull force of 10
38:43kg here. There's a pull force of 5 kg
38:45here. What happens to the market
38:46because of this? If the market is to
38:47move, it needs a good pull force
38:49somewhere. It needs a good liquidity
38:51magnet. Small magnets stick to them.
38:53That market then consolidates.
38:55Ultimately, the market has reached this
38:56area. Still, there's good liquidity.
38:58Now, what happens in my case? I observe
39:00. The market doesn't just tap above
39:02this level and move up. It might move a
39:04little once. But if there's significant
39:07liquidity immediately below this level,
39:09the market will break it and come to
39:11this level. And there can be two
39:12scenarios here. Either the market will
39:14perform a liquidity sweep. You may have
39:15heard of a sweep. This means the market
39:17has performed a liquidity sweep. It has
39:18destroyed all this liquidity. Below
39:20this, there were SLs of big players
39:21because different institutions attack
39:23each other. They also trap retailers.
39:25Retailers also use them. Many people
39:26use bookmaps and other similar services
39:28. So they can be trapped as well. By
39:29trapping, liquidity was swept. Then,
39:31there was a sudden move. This could be
39:32one possibility. Another case could be
39:34that the market did not sweep it at all
39:36. The market simply came over it. This
39:38created a big bubble here. After the
39:41formation of a big bubble, what does a
39:43big market bubble mean? Aggressive
39:45orders came in. Meaning, sellers are
39:46exerting pressure. Here, a selling
39:47order came in. But what kind of
39:48liquidity ball is this? It is a buying
39:50one. Due to which it got trapped in the
39:52market and the market suddenly hit it
39:54hard. Due to which the price went up
39:56and started running. In all the trades
39:58I place, I do not ignore liquidity. I
39:59observe it carefully. This is how the
40:01market works. There are different
40:02liquidities in the market. Not all
40:04liquidities are playable. Now, the
40:06people in the market drive you crazy.
40:08They only show it on charts. There's
40:09liquidity here. Brother, liquidity
40:10exists everywhere. Where isn't there?
40:12Without liquidity, the market would be
40:14dull. The market can't function. For
40:16example, I'll give you an example from
40:17this morning. I'd like to give you an
40:19example here. Let's go to the bookmap.
40:22This is an example. Okay? In this
40:24example, you can see there's liquidity
40:26below. The price is currently at the
40:27current market level. I'm zooming out a
40:29bit. Now it will become clearer for you
40:30. An order of 102 is placed. How many
40:32are there here? There are six orders.
40:33Two for two, two for two. These are all
40:35for selling. Upwards. Above the current
40:37market, your ask will be here. Below
40:40that will be the bid. An order of 17
40:41above that is still fine. But the
40:43market will definitely come here. If
40:44there's no liquidity in the market,
40:45it's empty above. There's no ground at
40:47all. The market needs fuel. The market
40:48will come to fuel it. They could be
40:50anywhere. Who knows, if there was fuel
40:51here, it would have taken it too.
40:53There's fuel here right now. So I'm
40:54playing this a bit to understand how
40:56the magnet works. I've set it to 32 so
40:58it's a little faster. The price is
41:00coming here. Coming. Coming. Look,
41:01there's a case where the price tapped
41:03above it. It started going up. Now
41:06there's a lot of garbage in between.
41:08But we have to focus on major liquidity
41:09. Look, the price held this for quite
41:12some time. Okay? You can place an SL
41:15completely below it. Now look, the
41:16price has started going up. So you can
41:18capture the move. You can get
41:19confirmation, you can scalp. You can do
41:21everything with it. This is why the
41:23hitmap is called a goat if you're using
41:25a book bookmap. Now look, the price is
41:27coming again, but reacting and running
41:28away again. Because once the liquidity
41:30has disappeared, right? This means the
41:32price will now start moving in a
41:33completely different direction.
41:34Attractions happen in different ways.
41:36Right? The closer the price is, the
41:38more it will attract. But remember,
41:40where the magnetic force is stronger,
41:42liquidity will come and return. This
41:44can also happen. Let's assume this
41:46force could also be here. Let's assume
41:48there's a red area here. Let's make it
41:50like this. There's one here. This can
41:52also happen. Both are fine. So what
41:54will the market do? Let's assume the
41:55market had previously reached this
41:56point. First, by consolidating above
41:58this point, it removed this liquidity
41:59and disappeared. It disappeared. It
42:01swept it. After that, the market will
42:03suddenly run above this point. If
42:05there's liquidity below this point, or
42:07if there's similar liquidity below this
42:09point, the market can come and
42:10disappear above that point as well. But
42:13if you learn to see these liquidities,
42:15your trading will be enhanced. You'll
42:18know when you're making the wrong entry
42:19. Don't buy here, where to enter, where
42:21to place an SL, it will be enhanced.
42:22It's going to work very well. Two
42:24things emerge from this. One is
42:26liquidity sweep versus liquidity gap.
42:28In the market, liquidity sweep and gap
42:30are often considered the same thing. So
42:31, today we'll bust this myth. They
42:33simply don't understand. They're only
42:35interested in saying it, not
42:36understanding it. A liquidity sweep
42:38occurs when price moves through a
42:40visible liquidity wall, consumes most
42:43of the resting limit orders, and then
42:45quickly reverses. The liquidity wall is
42:48swept away, leaving little or no
42:50liquidity behind, often trapping
42:52breakout trades. What happens in this?
42:54Look at this example. The market is
42:56consolidating here. It's been
42:57consolidating for a long time. But what
42:59happened? This liquidity in the market
43:01was suddenly swept away. A large order
43:03came in, breaking the entire range.
43:05After the break, all the SLs below were
43:06empty because there were major SLs
43:07below it. It hit and people immediately
43:10sold here. Those who had SLs below it
43:12were also empty, and those who were
43:13trapped below it, they sold here too.
43:14You can see, people. They trapped
43:16everyone. A sweep occurred suddenly.
43:17You must have seen a move in big
43:18markets. It goes down suddenly. A big 5
43:21-minute, 2-minute candle forms suddenly
43:22. Then a full rally comes. This is a
43:25complete example of that. A liquidity
43:26gap arises when the price touches and
43:28briefly trades into a liquidity wall.
43:31Like the example of the gap I just gave
43:33you recently, the price started moving
43:35up only after hitting it. An order was
43:37executed against it to fill a large
43:38position, but it did not consume the
43:40entire wall. Let's assume this is the
43:42case. Price crossed it, as we just
43:45learned. A large order is being
43:47executed. But the wall is so strong. It
43:49consumed the entire aggressive order,
43:51and the price moved upward from here.
43:53We call this a gap. When the price went
43:56down, it was called a sweep. As you can
43:57see in this area in the image, the
43:59price was moving upward from here.
44:01Large green orders also came in. This
44:04red liquidity wall consumed it, and
44:06from here, we call the liquidity
44:07disappeared. Gap means to withdraw.
44:11Pending orders remain. This is called a
44:13sweep. Breaking it and then moving
44:14upward. It picked up orders from here
44:16and started moving downward completely.
44:17Okay? Now we're going to look at more
44:19examples of this. Let's understand it
44:20completely first. The remaining
44:22liquidity stays on the heat map, and
44:24the price quickly reverses after
44:26collecting the required liquidity. This
44:28means that the price hit above this
44:30point. The price gapped. Now, the price
44:33didn't have enough strength to break it
44:34. The wall absorbed it all. From there,
44:38the price moved downward. Now, the
44:39price moved downward. How far it will
44:41go depends on the strength of the wall
44:43and the number of orders. After moving
44:46downward, it will slowly start
44:48gathering more liquidity along the way.
44:51If it needs fuel, assume it needs to go
44:54down. But if there wasn't enough fuel
44:57to go down, the market will go down.
44:59Then, it will find liquidity here as
45:01well, and small amounts will be created
45:02here as well. Then, the market will
45:03slowly move downward, following the
45:05flow of new passive orders. It will
45:06start pulling the market downward. I'll
45:08show you just an example of this. Look,
45:11this is just an example. Look, maybe I
45:13zoom in on it completely. What will
45:15happen by zooming in? You'll see the
45:17details. You can do that too. But I
45:19would say that if you zoom in, you
45:21won't see an overview of the market.
45:22You can zoom in later. First, zoom out
45:24and look at the major liquidity.
45:26Because major liquidity will push you
45:27up or down. Because major liquidity
45:29won't do that. The market price is
45:30static. Price can't stand still near
45:32major liquidity. It will either push
45:34the market up or down. The market will
45:36consolidate only where there are
45:38garbage areas. Now you can see in this
45:40case. I'm zooming out like this and
45:43playing it. It's fast forwarding a bit.
45:47Now you'll see that despite so much
45:49consolidation in the market, it's been
45:51consolidating for so long. After
45:54consolidating for about an hour and a
45:55half, the market has come to hunt this
45:57liquidity. This is an order of 203. But
45:59it still hasn't hunted properly. Let's
46:01zoom in a little to this point. Now,
46:03look, the price has come here. More
46:05liquidity is coming here, trying to
46:06push it up. But the price can't move
46:08higher because the fuel requirement is
46:10right here. It was also moving higher,
46:12but the market didn't go higher, but
46:13liquidity will come to pick it up. You
46:15can see, let's fast forward a bit. The
46:18price is moving higher. Let's fast
46:20forward a bit more. So, the price
46:26hasn't reached its peak yet. And we'll
46:28zoom in a little bit to get even more
46:30clarity. From here, let's zoom in a
46:33little more. See, all the liquid has
46:36come above it. It's been swept. Look,
46:37it's been swept. After the sweep, the
46:39market is consolidating like this.
46:41After the consolidation, the market
46:43suddenly goes up, and you can see a
46:46significant move coming. So, the market
46:48stagnated here for a long time because
46:49the sweep was done. Everyone was taking
46:51out their SLs. They kept selling here,
46:52thinking that a breakdown had come from
46:54here. Sell, sell, sell, immediately,
46:55the market took a swipe. Look, the
46:57market took a complete hit, and from
46:59there, you'll see the market slowly and
47:02steadily moving upwards. Then, after
47:04hitting this liquidity, it will come
47:05down a bit, and passive liquidity will
47:06come in, following it, the market will
47:08break down and keep moving upwards. So,
47:09friends, this is how the entire market
47:11works. I hope you enjoyed my concept.
47:14Thank you for watching this video,
47:15brother.

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