This is the "Trade not taken" ... I had a long bias in intel and I wanted to be long but the liquidity in the heatmap was nearly non-existent. Price steadily climbed higher and then just SHOT up in a 2minute period before just going "yah I'm done". Really clean orderflow. Nice size volume etc. I really just didn't get any liquidity insight and while price action followed a decent trend it was below vwap and the lack of liquidity. I'm glad I didn't take it, I definitely wanted to. Trades like these I've used the options complex for. Risk defined way to play an educated guess basically. Oh well.. cool orderflow
Jec Bookmap journey
- Thread starter defnotjec
- Start date
Here's a trade from Yesterday where MSFT stalled out. We were on both sides of the trade. You can see it's a micro double bottom push up. I was looking for support as the previous liquidity point which we got at (3). From there I'm watching and scaling out of my position after we target liquidity and push up, adding back in on a support at that level. You can see CVD (5) flatlining indicating potentially waning support which we see at (6) with a large sell volume orb. We get a strong rejection below VWAP and find support with ANOTHER Lower High. We shorted at this point and added in on resistance above on VWAP at (8). We targeted the lower liquidity levels and again scaled position out as we descended. Went completely flat at (11) with the double bottom.
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ES on 2-27. Clear uptrend at the ORL/IBL. We went long on the support hoping for a midline play. Scaled out at midline and we got further support long at ORMidline retest targeting ORH. We break all the way through and you can see the "white dots" at the top indicating a sweep of those levels near a key gama level. We exited at this location and noticed we formed 3 Lower Highs and I decided to fade the move back down hoping for midline exit on orderflow. Massive imbalance happened and price reverted to the ORL completely. It was a fantastic setup and I wasn't ready with the proper ordersize.
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Here's a great example of an uptrend orderflow with Bookmap and clearing out liquidity in the book on the way up... you can clearly see we establish support and push further each time and then when we don't price fails and rejects back. We took this setup both directions.
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Here's a MSFT fade we took in both directions. We were long on the momentum up with the rest of the market and on weakness after clearing out the liquidity in the orderbook above we started failing. Waited for the failure to develop and shorted with a small position. When failure broke below vwap suddenly then found it as resistance we added to the short
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So what does Bookmap tell you the price is going to do tomorrow, as you look at all the colorful bubbles?
mannnnnnn I wish it told me what price was going to do tomorrow... I'd just short/long whatever and collect bank!
Jokes aside, IV is compressing and we're descending. We're positioning for a weak weekly OpEx this friday and it seems like the market is pretty resigned to the down trend. The early high at 3976 was a high volume area two days ago, I doubt we see that at all tomorrow. I think the level we ended at around 3956 or so is probably going to be the max high I'd expect honestly. I'm expecting ~3954 and ~3934 to be kind of containing us... we'll see early though, maybe orderflow will push us lower.
And then a Fed guy says he wants just 25BPS at 1:30 PM and zoom, your idea is crushed. Pretty incredible.
happens all the time.. gotta have a plan going in tho lol. Notice after price rocketed up it retraced back to the level to go up again lol. Interesting thing is... nothing he said was any different than anything we thought beforehand. Now we play these levels and see if the market goes sideways here or if we descend lower or if the market just rockets up. I'm not surprised overall. I had a resting buy order on the other side of that 3956ish level after we kept trending up and it filled and took profit incredibly fast. Didn't really have time to tab away from my movie 