How To React To Size In The Order Book Market Depth Map BookMap And Footprint Chart

www.orderflows.com/oft6.html
Resting liquidity refers to buy and sell limit orders that are placed and remain in the order book waiting to be executed. This pooled liquidity helps provide market stability and facilitates trading. Here are some reasons why resting liquidity is important:
1. Provides support/resistance - The unexecuted limit orders at different price levels create "soft floors" or zones of buying/selling interest that provide support and resistance. This helps contain price movements.
2. Smooths volatility - With resting limit orders in the book, buy and sell interest exists ready to participate as prices fluctuate up and down. This helps dampen volatility.
3. Creates certainty - Traders can visually see the amount of buy/sell interest at a given price level via the depth of market (DOM), providing certainty around where liquidity may emerge.
4. Cost efficiency - The presence of resting limit orders means less need for market orders to drive price discovery. Paying liquidity providers with limit orders means less spread/fee costs.
5. Keeps markets stable - Pools of resting liquidity prevent huge air pockets devoid of any buying/selling interest from occurring, which causes dangerous volatility.
In essence, resting liquidity helps provide a stability buffer for markets - smoothing volatility, containing prices, creating transparency, and promoting cost efficiency for traders. It is the “reservoir” of tradable depth that keeps markets functioning effectively.

[@lkdash]

Sir those resting liquidity acts like magnets that shows us direction to trade. Your chart here from bookmap clearly shows resting liquidity idea on bookmap working well. We understand clearly support and resistance ice berg order on bookmap. Bookmap works well for stocks like tsla. Gocharting your tool clearly fails delta rise. Tsla goes up your chart shows constant negative deltas. Sierra chart Nija traders all lost customers to bookmap. Bookmap is L6 tool. Tbh its expensive as well..

[@442soccer]

great video, i got a question what is setting for YM on the Order flow market depth? if you can make a video about it too that will be awesome

[@bxnxjmin]

yeah that was pretty much the conclusion i came to using book maps. It basically just gives a false bias. It typically blows through the limit orders and then gives a reaction, a lot of the time it blows through with no reaction at all. Like it didn’t even exist. Bookmap traders think the historgram is the holy grail but in reality, it’s honestly pretty useless. In my experience. Just gives false confidence

[@nyamtullahkhan3800]

Make a indicator in gocharting like u r previous one...please...❤

[@exoticbirds8461]

That is why you scale in lite and not heavy. Or you wait on what happens when price hits that heavy price level

[@darkhorse1144]

Hi Mike, thank you for posting this video, IS the Market Depth Map your proprietary software or something you can get from NT8? Is it as good as the Bookmap software? Thank you

[@blitziam2105]

i bought the market at the low of the 12:05 candle. The real resting liq. was below the 12:02 candle... wont say why