Welcome To The World Of Bookmap
The images below are examples taken from the bookmap that are showing particular points of interest where orders had come in at specific zones. The idea is to train your eyes to be aware of the behavior of the commitment of traders at particular points so that you as the trader are able to establish the relationship between the interest at one point in the bookmap against another.
Testing Previous Support
The image above is showing how the bookmap orders were previously filled around the 60600 zone. The principle behind this is to train the eyes to be receptive as to when this sort of play happens, chances are price is going to show support at these zones, which in turn will lead price to return back up.
As you can see,price had come down towards those previous orders, but did not hit that zone. This is something to be aware of. They do not need to hit those previous zones, keep in your mind that if an area is to show support, the orders of limit buys may come in sooner. You can see how price has moved higher.
A Whole Move Up And Down
The image above shows you the journey of price in the book map where the start of the W formation shows a vast amount of orders that were resting within the book map. The principle is if price is to return towards this zone, we would see an influx of orders to contain this zone. As you can see, the big V formation presents itself and goes straight back into that zone. Focus on the volume bars below, notice the amount of interest that came into this zone.
Pick points in this chart to help you understand where price turns in the book map that is implying the interest of traders at particular points in the chart.
The chart below will give you the result of what happened next.
Pay close attention to this image. If you can recall, I always discuss the importance of Wicks. Notice how from the image above, the big V shape play returns price back towards the highs and we witness the “pinning the highs” in the order book. The candlestick you see is a 1 Hour candle. Now notice how price has now travelled all the way back down to the wick. This is the imbalance that is being restored in price.