How to use Bookmap

What is Book Map and How Does it Help Traders?

Bookmap is a tool that traders can use to visualize the order book and make better trading decisions. It is a heat map that provides a visual representation of the order book and can help traders see where the big sellers and buyers are in the market. This makes it easier for traders to identify key areas of support and resistance.

The Benefits of Using BookMap in Trading

Traders can use book map to gain more cohesion in their trading, as they can see all the big sellers and buyers in the market and know what to expect when prices reach certain levels or areas. This can help them make better decisions when placing trades.

ES S&P500 futures bookmap — In this example on ES, we can see that there is a “sell wall” above or a passive seller looking to sell 66 ES future contracts around 3978. And then there is a “buy wall” below around 3971 where a buyer is looking to purchase 87 contracts.

Using BookMap in Thinkorswim

Bookmap is available in a variety of versions, including a version that is installed directly in Thinkorswim. This version costs around $30 to $40 per month, but traders can also use the free trial, which comes with three tickers. However, traders should note that the full version of book map includes more information than the version that is available in Thinkorswim.

Tips for Using BookMap in Trading

To use bookmap effectively, traders should focus on the big orders and liquidity zones. These are areas where there is a lot of trading volume, which makes them more likely to influence the market. By paying close attention to these areas, traders can make more informed trading decisions.

Bookmap on NQ nasdaq 100 — Sellers on NQ (Nasdaq 100) Getting aggressive and hitting the bid to enter the market

Other Features:

Cumulative Volume Delta (CVD)
Volume Dots (Showing aggressive buyers vs sellers)
Current Order Book (COB)
Drawing Tools (Trendlines, Boxes, etc)
Volume Imbalances

Conclusion: BookMap as a Valuable Tool for Traders

Overall, bookmap is a valuable tool for traders who want to improve their trading skills. It provides a visual representation of the order book and can help traders make better decisions when placing trades. While there are a few limitations to using book map in Thinkorswim, it provides enough information for many traders’ needs.

Video example using bookmap and a live trade taken on AAPL using it.

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