BOOKMAP for learning Level 2 and T&S

[mlestina 6]

Alastair,

Thank you very much.  I really appreciate this.

You are not overwhelming me, but it may take me some time to chew on it and go thru it.

Matt

[Alastair 114]

Additionally some of the difficulty in reading Lvl 2 and T&S also stems from how fast the info changes and the flashes / changes of the colors in Montague (can be at a dizzying  speed for some).....this is my humble opinion only. 

 

Generally in my days of software dev and screen design (many moons ago, b4 we had spc UI designers) I used the basic theory tht 90% of population is taught from birth to read LEFT to RIGHT, then TOP to BOTTOM, turning the page (or taking an action. button click or trade) at bottom of page/screen.

 

Based on tht thesis my chart & screen layout is higher TF to lower TF, with 1 min then T&S and then montage, kinda like BBT Jarad, as shown below. NOTE: He only uses of 4 or 5 color bands and his choice of pastels colors (reduces shock of the flashes), all a personal preference, u need to find wht works for ur eyes.  also LU and LD r in default white which seems to be system set, so do not use white.

 

 

 

Try to focus ur eyes on the T&S toplines reading the cents change and vol size and let ur peripheral vision watch the chart candles to left and montague to the right. Other methods may work just find the one tht works for u.

Hopefully the above helps in ur config decision making process.

 

Edited September 4, 2020 by Alastair

[mlestina 6]

Alastair,

I do have a couple of Questions:

1. There seems to be an inconsistency as to what the different colors mean on the T&S tape.  That first ToS video cited in your postings, starting at 5:55, the presenter says emphatically that the green and red colors on the tape are an indication of whether the sales price rose and fell (green means price rose and red means price fell and are not an indication of a buyer or a seller).  However, the link you posted for William's video of BBT states starting at 1:53 that the different colors on the T&S tape indicate whether someone  bought or sold (green means a buyer and red means a seller).

Could you please explain this apparent contradiction as to what the different color mean on the T&S tape?

2.  When I listen to the SMB tapes you provided, they keep pushing this free webinar at Tradingworkshop.com.  Has anyone attended one of these?  Are they as good as Mike Bellafiore says they are?

 

A couple of other observations regarding T&S tape reading skills:

1.  Mike Bellafiore's book One Good Trade has Chapter 8 dedicated to "Reading the Tape"; 

2.  He also has another video on tape reading, link = 

 

Matt

 

 

[OTC 27]

I will make first attempt to answer your questions. I’m sure Alastair will chime in later as he is pretty awesome about responding to Qs. 
 

Tape Reading: 

The colors do not, I repeat, do not specifically tell you whether someone is buying or selling. In fact every time and sales (T&S) print is a transaction of a buyer buying what a seller is selling. When people specify "buy" or "sell" in a comment or in a recap video it’s typically because they have learned to interpret signals that ‘tell them’ that a stock is trending up or down based on their interpretation of T&S. The best thing you can do for yourself is stop trading and interpret PA and T&S for a day or two or 50. Even so far as to look at T&S only and guess which way PA is moving, then look at the charts and see if you were right or wrong. DAS has a better T&S system than Think or Swim (TOS) that allows you to color code T&S activity. Right click in one of your T&S window 'hit' configure and adjust the color scheme - look for yourself, attached image. Change the colors. I have 'above the ask' in purple and 'below the bid' in orange. Pay attn to what is happening with PA when several below the bids print at the top and bottom of a range. What do you interpret?
One example to watch. When a stock is selling off and it approaches an important level (daily level, PDC, or MA on the 5-min or 15-min chart) watch how the tape starts showing a lot of green and purple indicating that many people are willing to pay a higher price because buying pressure is taking over, in other words people are willing to pay at ask or above ask - at the upper end of the spread.  If the colors are confusing you, change them, invert them and pay attention to what you-see-good experiment. 

Ultimately, reading the tape takes time to learn it. Repetition and experience with many days of reading T&S/PA is the only way to become an expert tape reader.. Give it time, it will come if you make an effort to learn it. Unfortunately tape reading is not something you can learn from a book only from repetition.

"Depending on the trading platform you're using, the transactions shown on the time & sales may show up as red or green. Most traders see this and wonder why, since it takes both a buyer and a seller for every transaction. The reason is because these transaction are red/orange when they executed at or below the best bid on level 2. If they executed at or above the best ask, they will be green/purple on the time & sales."  https://masterthemarket.teachable.com/blog/198305/level-2-and-time-and-sales-for-beginners (note: I added orange and purple to the text, all else is from referenced link).

Books and Webinars:

As for Bellafiore's book it is an excellent book and worth the read. I always recommend 4 books in this order: Disciplined Trader, One Good Trade, Trading In The Zone and A Complete Guide to Volume Price Analysis. 
As for SMB Capital's webinar(s), I found both the trading and the options webinar to have useful information and some good examples of trades performed by their top guys. They are long webinars and they try to sell you a lifetime membership at the end...similar to BBT's. That part was not for me but tempting since SMB Capital is a world renowned Prop Firm. Andrew is now forming a Prop Firm, it seems like Mike B. and Andrew A. are trading business plans....SMB is trying to get more online user friendly and create an online presence through a membership program where as BBT is forming a Prop Firm - coincidence? maybe or maybe not.

Edited September 7, 2020 by OTC

[Alastair 114]

Hey Matt and OTC,

OTC welcome the contribution, many thks. Always encourage knowledge sharing here.

Question#1.

Matt, as OTC mentioned T&S is showing transactions which are made up of a BUYER and a SELLER.  Hitting the ASK price with a market order is an AGGRESSIVE (green in above example) move at that moment in time, (remember the BOOKMAP course).  Hitting above the ASK is VERY AGGRESSIVE (purple in above T&S example) move at that moment in time. 

DAS T&S allows trader to color code to show this so u can anticipate if price will move up based on momentum, it may not, but u will be watching the price/size (in montage and T&S) to gather info. So T&S tape allows u to show or highlight the more aggressive part to the transaction.

Normally when u see traders hitting the ASK that is buying pressure/momentum and if it continues the ASK will lift.

 

NOTE: The contradiction comes from traders putting own spin on something that is to be simple.  Pls apply ur "LOGIC FILTER" to everything u learn on internet (including this)......this is not MIT backed content.  Even if it was I would still question it until I could see tht it is logical and makes sense.

 

Question#2.

I think in my early days of learning to trade Equities (12 mths ago) I visited the site, but honestly I do not recall anything about it.  Been trading FOREX and FUTURES full-time since 2007 so I was laser focused on tape reading, volume and scalping since I did not utilize these aspects previously.   Marketing stuff on these vids I really do not see or hear, I tune out.....LOL.......trust me all YouTube ads I do not see, I skip, click 'X', etc.  I am too focused on the content, banner ads get the same treatment.  Sorry advertisers. 

 

 

Edited September 20, 2020 by Alastair

[Alastair 114]

Recently came across this vid that summaries all that has been discussed in this thread regarding TAPE READING.

Watching this vid and the above list from OTC should cover the process and what u are looking for.  This should be logical.

 

[Alastair 114]

Another vid jus released......

 

 

[smishra 0]

Are members using Bookmap finding significant value over Das Trader Level 2 for real time trading?

Bookmap is a great visualization and enables one to see the levels very quickly. The ability to zoom in and zoom out and look at individual ticks down to milli second level is good. Its utility for algorithm and quant developers is great - it is like a visual debugger for the market.

Bookmap service together with DXFeed costs about $170 on a monthly basis - $119 for DXFeed (NASDAQ, EDGX) and $49 for Bookmap Global

For the beginning manual retail trader is its cost and attention required worth it? I am on the fence, hence asking the opinion of more seasoned users.

It definitely makes visualization easier, however I have not taken any trades with it that I would not have taken otherwise.

Thanks

Edited March 15, 2021 by smishra

[Alastair 114]

Bookmap is great to see the levels, but I am not sure how many BBT users utilize it for this. 

Once u understand what the market is doing and u learn DAS L2 u can have the same edge as BOOKMAP provides.

 

[smishra 0]

At my current skill level, the advantage of Bookmap is that it makes the levels easy to visualize in fast moving markets such as at the open.

In DAS Trader, the L2 seems to be continually moving up and down as the Bids and Asks come in.   In slower moving markets I can follow the L2 in DAS.

Maybe I will get better with using DAS L2 in fast moving markets as I gain greater experience with the software.

[KyleK29 260]

On 3/20/2021 at 11:15 AM, Alastair said:

Bookmap is great to see the levels, but I am not sure how many BBT users utilize it for this. 

Once u understand what the market is doing and u learn DAS L2 u can have the same edge as BOOKMAP provides.

 

On 3/27/2021 at 6:12 AM, smishra said:

At my current skill level, the advantage of Bookmap is that it makes the levels easy to visualize in fast moving markets such as at the open.

In DAS Trader, the L2 seems to be continually moving up and down as the Bids and Asks come in.   In slower moving markets I can follow the L2 in DAS.

Maybe I will get better with using DAS L2 in fast moving markets as I gain greater experience with the software.

 

DAS is supposed to add a large-bid/ask level highlighter to L2, but not sure when.  It'll work like the current MMID highlighter, but for lots at a price level above a certain size/qty. This won't be as clear as Bookmap's historical heatmap, but it should help on faster moving stocks.

I like Bookmap (currently testing it to do a Webinar), but my big issue with it is the price. I'm sure if I was a baller like Andrew, that'd be nothing. But $50/mo is fine for Bookmap, it's the extra ~$130 you have to pay for the data .. at ~$180ish per month, you have to really find value out of it when starting out if you're using it as a secondary tool .. and I don't like the interface to use it as trading platform (instead of DAS). If DAS added a paid chart study to DAS Trader Pro [kinda like an L2 VPA study] that did the same thing (since they basically have the feed already), I'd pay for that for sure.

Edited April 8, 2021 by KyleK29

[Alastair 114]

10 hours ago, KyleK29 said:

It'll work like the current MMID highlighter, but for lots at a price level above a certain size/qty.

If u watch SMB L2 videos u will see this is exactly how that SMB platform works also......it seems to have similar roots........DNA .........as DAS trader pro. 

One day would like to understand the history, origins of the code as I see a few other trading platforms will similar look/feel as DAS e.g. Sterling, but slight differences.

[MIGS 3]

Discovered Bookmap just last week and subscribed to Global+.....

...gives an amazing visibility to the liquidity and how it moves in real time for L2 scalping...

….I’m still in SIM but my P/L ratio has improved dramatically…

 

Reading L2 in DAS in a useful way is impossible unless you are a robot with bionic eyes….in Bookmap  you get instant graphical visibility to where the big $$ levels are IN REAL TIME to enter positions or placing profit limit orders....no more guessing, no more using lagging indicators.

They have a number of add-ons depending on your strategy/markets....For what I'm trying to do I'm  considering their "TTW-MarketVolumePro " add-on tool ...anyone using it???, they don't seem to have a trial version.

Tool to  read how the volume changes in real time, explained starting minute 21:

 

Edited May 27, 2021 by MIGS

[Roberto 10]

I'm taking a hard look at Bookmap as well. Keep posting your findings.

[BrandonB 4]

@MIGS are you still using DAS for order execution & Bookmap for L2? Are you using CMEG or IB?

 

 

Thanks!