I feel like I'm missing something. I'm trying out Bookmap and I was hoping that by seeing where the orders are I would be able to anticipate where price MIGHT reverse. Sometimes it reverses and sometimes it plows right through.

What is everyones favorite way to read Bookmap to make trade decisions?

From my experience with trading in general (as well as using Bookmap in the past), a lot of price action/market structure is actually a trap.
What I mean by this is that the support and resistance that you think is there is not
actually real/strong and price will ping around in a rather unpredictable fashion which is what you're experiencing.

Focusing on just bookmap is a mistake in my opinion as it doesn't tell you the areas that you need to be looking at to trade where price will move in a more predictable fashion.
I assume you're trading the ES (most people do?).

Try the following. Look at 2 minute charts (1 min is too choppy).
Make a mental note/Mark on the chart/however you want to do it when noticeably large volume comes into the ES. You don't need fancy indicators beyond a traditional volume bar.

The volume I'm talking about should stand out from others around it/nearby.
Look to see how price reacts. Is it a pin bar in an area of interest? Or is it a strong engulfing bar etcetc. You can use this to trade with as you're trading in the direction of bug volume in areas that make sense.

Also (and this is the key point), wait for price to reach these large 2 min volume areas if price has moved away. See what price does when it comes into these zones.
Look at bookmap to see if it will help you in these zones.

In my opinion it is kind of useless unless you have identified key zones of interest.
The way I've described here is a great way to do that.
Hope that helps.

One more thing. Bookmap really encourages you to look at very short term price movements. Drives you bonkers IMO!

Thank you for replying. I really truly appreciate it. I'm going to try your suggestion.
The common theme seems to be supply and resistance.

Keab 

From my experience with trading in general (as well as using Bookmap in the past), a lot of price action/market structure is actually a trap. What I mean by this is that the support and resistance that you think is there is not actually real/strong and price will ping around in a rather unpredictable fashion which is what you're experiencing. Focusing on just bookmap is a mistake in my opinion as it doesn't tell you the areas that you need to be looking at to trade where price will move in a more predictable fashion. I assume you're trading the ES (most people do?). Try the following. Look at 2 minute charts (1 min is too choppy). Make a mental note/Mark on the chart/however you want to do it when noticeably large volume comes into the ES. You don't need fancy indicators beyond a traditional volume bar. The volume I'm talking about should stand out from others around it/nearby. Look to see how price reacts. Is it a pin bar in an area of interest? Or is it a strong engulfing bar etcetc. You can use this to trade with as you're trading in the direction of bug volume in areas that make sense. Also (and this is the key point), wait for price to reach these large 2 min volume areas if price has moved away. See what price does when it comes into these zones. Look at bookmap to see if it will help you in these zones. In my opinion it is kind of useless unless you have identified key zones of interest. The way I've described here is a great way to do that. Hope that helps. One more thing. Bookmap really encourages you to look at very short term price movements. Drives you bonkers IMO!

Am curious, how are you finding it?
The 2 minute volume idea works for me as it gives you an anchor in terms of how to look at different areas which can be hard to do in a trading day. Let alone with all the info that Bookmap throws at you!

H Keab , I am just started to look into Bookmap . I want to use it to when price is at my target from regular charts if you can tell if any big orders against that price . Bookmap looks like info overload . Any suggestions on how to best use if for that ?

hoppy123 

I want to use it to when price is at my target from regular charts if you can tell if any big orders against that price . Bookmap looks like info overload .

@hoppy123,

You're asking exactly the right question - and the info overload feeling is completely normal. Almost everyone who opens Bookmap for the first time feels like they're staring at the Matrix. The good news is you don't need most of what's on screen for what you want to do.

Here's how to cut through the noise:

Step 1: Strip it down
Disable everything except the heatmap and volume dots. That's it. Two things. The heatmap shows you resting limit orders as colored bands - brighter/denser color means more orders stacked at that price. Volume dots (red and green) show actual market orders executing in real time.

Step 2: Use it at your targets
When price approaches a level you've identified from your regular charts, look at the heatmap at that price:

• Bright, dense band at your target = significant resting orders there (potential resistance/support)
• Watch if those orders stay put or get pulled as price gets close - this is the key behavioral tell
• If liquidity disappears as price approaches, the level is likely weak regardless of what it looked like on the chart
• Volume dots slamming into a wall of resting orders that holds = genuine rejection

Step 3: Connect what you already know
Since you use volume profile, think of it this way - VP shows you where volume traded historically, Bookmap shows you where orders are sitting right now. When a high volume node on your VP lines up with a dense liquidity zone on the heatmap, that's a strong confluence.

One warning: not all big orders are real. Spoofing happens - someone places a large order to attract attention, then pulls it before it fills. So watch the behavior of orders at your level, not just their size. Orders that hold as price tests them are more meaningful than orders that look impressive from a distance.

The Record & Replay feature is great for practice - you can study past sessions at your own pace without the pressure of live markets.

-- Fi
"The best filter for information overload is knowing what question you're trying to answer before you look."