Bookmap trade before NY open using order flow

Instrument : YM 06-21 (dow jones futures)

Date : 2021.04.16 15h06 (UTC+2)

Below is an analysis I did to take a long trade using Bookmap. If you don’t know hat Bookmap is yet, it is a nice order flow tool that displays the limit orders book in a visual way showing all the history. Also it has some nice plugins to display the iceberg (hidden) orders and a lot more.

Order flow analysis

  1. The first thing we noticed (between 14h55 and 15h00 on the chart below) was that we had big buyers. That was more than 100 contracts shots at every green bubble and that is pretty nice for this instrument (mini DOW). This can be indicating that buyers want to break the 14000 psychological level. But we some confirmation…
  2. Price went up and the retraced to 14000 and we saw again some big buyers coming at this level
  3. Then some sellers came through but couldn’t drop the price a lot
  4. Finally the price started to go up again around 15h15. I bought at 15h16, and this is where Bookmap is very powerful, because I saw some big liquidity added in the order book around 33970. That buying pressure helped the price to go up.

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