Original subtitles

hello everybody how is it going today

so welcome back to lesson number four of

the 17 lessons that we'll be going over

together

and in this particular video we are

going to be talking about the level two

order book

and what that refers to so what the

level two

order book refers to is the bids the ask

and the actual order history and it's

very important that we understand the

concepts between

or behind what the level 2 order book

does

and how it interacts with the market and

how

prices can move up and down depending on

who puts what and where and it also

gives us a very good

visual representation of where these

walls actually are i'm sure you guys

have heard of the concept of a wall

but for the people that i haven't heard

of the concept of a wall

and what it actually refers to is simple

is

is this right think of a wall as an

impassable

barrier that's having where that the

market is having a lot of

trouble getting higher than right

so let's just go over what the order

book is

i'm in a position right now and i'm

always going to be in positions in front

of you guys

and you know you guys might actually see

me wear some things differently in the

same video because a lot of these videos

actually take a lot longer than one day

to actually make

so what the level two order book refers

to

is this right here so for example

on this side right here it is the people

that

are buying okay these are what we call

the bids

right over here and this side right here

is what we call the

asks okay so the people that are bidding

right here are the people that are

buying so every time

you guys are actually selling something

you're going to be selling it

to the side where the people are bidding

right now every time you are buying

something

you are buying something from the side

where people are asking

for a price so that's simple these are

the people that are selling

so if you're buying you're buying it

from the people that are selling

these are the people that are buying so

every time you're selling

you're selling it to the people that are

buying

right over here and if you guys look on

here this is the

trade history right here so what the

reason why

we want to acknowledge and give respect

to this

level two order book is because it tells

us

in real time the momentum change

in the market and what people are

actually doing

at that specific time it will give us a

very good

gauge of the momentum change and the

price action

in real time now it is personally to me

my absolute favorite way to learn

and to engage with how the market is

moving

at what specific time right so if we

notice right here

okay i'm just gonna take a snapshot so

um so

we can actually see it a lot better

right here okay

so there we go so if you guys notice

this guy right here right he has

right here 95 000 orders

so we're going to actually go over every

single column and what they actually

refer to okay

so if you look on this specific side

right now we're looking at iota okay

this specific side right here refers to

the amount

that is at this specific price

right so if we see for example this line

right here

only what we see is that at two dollars

and fifty eight

four one right right there we see that

there's nine thousand

seven hundred and forty right that is

the total amount

at this specific price and right there

as well

now if we take a look right here right

this refers to the amount

right this one right there at that

specific price

if we look at two dollars and 50 cents

the next one underneath it

we see that there's only 11.6

iota that is being sold at that price

now what this does is this column to

total right here

it takes both of these numbers right

here okay and it generates

this number right here to tell you the

total

so the next column it will take actually

all three of these

right right here and that will give you

this column right here

to tell you the total amount so this

line right here

just the 135 is how much is being sold

at that specific

price but if you take this right here

that is called the

cumulative price the cumulative price

gives you

an idea of how much total there is

actually being sold

so for example if i were to go all the

way down here right

we see that at 338 right here there's

338

that's actually being sold at 2.57

right there right but the total all of

these columns right here

okay that will actually equal this

number right here

we added up right so what we see with

this

big number right there 95 000 is that a

single

person is actually stacking up

95 000 coins altogether

which is a very big amount so this right

here would be considered a wall

a guy is single-handedly trying to move

the market right now by himself so these

are very important concepts to

understand

because when we see a single guy trying

to buy

95 000 coins we will automatically

assume that he's a bigger player in the

market and he's a market mover

right so he's actually trying to

manipulate the market

in some way with a strategy of his to

try to drive up the price

so let's actually close this now and see

what this is actually at

so what we what we saw that earlier was

that he moved it up to above 57ish

but what we're seeing is it's actually

reaching kind of high rsi

and it just doesn't look like he's able

to maintain the price any further right

now

so it looks like this is almost ready to

actually go

down in price right here right so i'm

actually very comfortable to add another

thousand

to my position right here okay which i

will

actually be live trading in front of you

guys quite often as well okay

actually i'll add 2 000 to my position

right here

okay i'm going to add another four

thousand actually this is five thousand

dollars right here all right

so let's see if i can actually make some

small profit here in front of you guys

as well

and we're going to go over the level two

order books and

immense detail in front of you guys so

you have a very broad understanding

of exactly how these level two order

books can actually

impact your day-to-day trading and we're

also going to go over it

and when we're trading we're gonna go

over it specifically from the level two

order book right here and try to read it

together

out loud professionally as well without

a lot of jokes to see

what kind of price action we can

actually end up getting

so what we're seeing right now on this

side as you guys can see

is that there's more red than green

right

there's more red than green so this is

actually going to be showing

that more people are interested in

selling than buying right now

but right now we see just very little

quantities right

this refer that we just see a guy just

sold 1

000 coins right 1 278 coins that he just

dumped

you guys see me right there so i'm a

little bit of a bigger player

as well that has dumped 2 000 on the

market right here

and you know when people see five

thousand dollars dumped onto the market

it might actually encourage

other people to start selling as well

now you guys

need to make sure that you really

understand the concept

behind these right here okay so notice

that a lot of people are actually

selling now

right lots of people are actually

selling their orders right here okay

they're definitely interested in dumping

the market

what if we pause it and take a look at

it right you guys will see

in real time that a guy just sold 22 000

of his coins

then sold another 44 000 of both of his

coins

so this generally to me will mean that

the market is very interested in it

moving down

so if you guys see a lot of these reds

on the screen

in the order history this will show you

in real

time what people are more so interested

in doing

so if you guys saw a lot of red on the

screen right here

would you think that more people are

interested in buying

or in actually selling definitely you

would think that people are interested

in selling right now right

so we don't know exactly what's going on

but what we do see

is that from the level 2 order book that

more people

are interested in selling some people

are buying right here

right and make sure that you guys

understand the concept of a wall

every single exchange will be able to do

this here as well

okay now my order is actually just

literally

right there in front of you guys okay so

i've actually made a hundred and two

dollars

right here in front of you guys during

the level two

order book right so that's a pretty

decent profit

even though i'm playing a fourteen

thousand dollar position okay

um i i'm playing uh i played a fourteen

thousand dollar position

um how much profit that i make right now

102 divided by fourteen thousand

i made literally almost a one percent

profit

which is really not that big of a profit

whatsoever

right but nevertheless this is what we

do for my strategy

as well okay for my strategy that i'm

always employing

what we like to do is we like to make

sure that we

enter okay now we're going to go over

the trade of mine as well okay

the trade of mine the reason why i

entered it right here

was very much so simple okay i entered

the trade

because i was starting to see the rsi

very high and now i'm also starting to

see

it bearishly diverge right here okay

it started to bearishly diverge and it

was reaching

some very high highs okay so because it

was reaching high highs and we actually

got a lower

rsi right here right that's why i

entered the short position right there

and now we're just going to keep reading

the level 2 order book together to give

you guys an idea

of how it's read and why it is so

important that you guys

learn how to read it did you guys notice

before when i was saying that hey

i dumped 2 000 then a guy dumped 1200

after

maybe i was the guy that actually

signaled to the market to start selling

a little bit right

maybe it was me and then after that we

saw like a guy dumped 30

000 and then 40 000 right so when you're

seeing people

sell that amount right there it signals

to the market that we might want to be

going down a little bit right

maybe i actually closed my position a

little bit too early i could have taken

my profit at a different time

but regardless right this is a level two

order book

and we need to make sure that you guys

understand how

important this i know i've said it like

a hundred times now but guys

this is the bread and butter right here

okay this is the pudding this is the

cherry on the top this is the icing on

the cake

we need to understand how to read these

together right

so as soon as it dumped my position we

started to see

and i closed my position we started to

see

more people actually end up buying and

that's why there's more green

if you guys actually trade on bitfenix

just as an example

or whatever exchange there's usually

some book for market

depth visualization okay make sure you

increase your position

right here increase or decrease

precision right here

okay if you guys actually zoom in and

out notice the shape of the red

the green changing right i zoom out it

gets smaller i

zoom in it gets bigger think of these as

a

tidal wave okay think of the level 2

order book as a tidal wave and the side

that has a bigger tidal wave it will

it will eat over to the side it'll cover

over and splash over to the side with

the bigger wave

so imagine if this side right here had a

lot of people okay

it had a lot of people that wanted to

um that wanted to sell so this is a very

big

order right here okay just to give you

guys an idea

if this was very much so red on this

specific side

you would actually end up seeing it

devour over

to this side right here right but if you

saw this side was much more green

for example then this side was red then

the side with

more green will actually end up

devouring

this side over here okay that's well

that is what's gonna happen so once

again if this side was more green

with a bigger tidal wave right where it

showed more green it'll end up devouring

to this side

but if this side was actually showing

more red

then it would actually end up devouring

over to the side

so this is the importance of how to read

the level 2 order book

and there's going to be so many more

examples that i'm going to give you guys

in real time

so stay tuned i'll be back in a little

bit let's get into

more of reading the level 2 order book

so right now i'm in a trade for eos

right here okay so once again just as a

reminder

the level two order book refers to this

right here this entire screen

where we are looking at momentum changes

right

now it might be a little bit advanced

right now to talk about reading

the level two order book but i think

it's very important for people to get a

good

grasp on how to read this at a very

early

stage in my personal opinion right the

earlier that you guys learned how to

read this

much better it's going to be overall so

here i am i'm possibly about to make a

very quick trade i entered it more so

just so i could make this video

but i think it's really important that

we get a good gauge of how to read it

early

so this side right here refers to the

people that are actually buying right

these are referring to the bids

and on every exchange that you guys

trade on as well

you're going to have access to this

order book that's going to show you the

history

in real time so make sure that you guys

always know where to find this

information on your particular exchange

so this side right here it'll have a bid

side and on the bid side it's gonna show

the people that are buying

so the people that are selling so let's

say that you're selling

right if you're selling you would be

selling it to the guys on this

side right here that are bidding on a

particular price

now if you are buying then you would be

buying from this particular

side right here right that's going to

make a lot of sense and then this right

here

shows you the trade history of

everything possibly going on

and we see that right here for example

we see that the price has

spiked up to about 11.5 and now it's

simply just going back down this kind of

on a teeter-totter right now

so let's just keep going very quickly to

see where this is actually going to

trend

and we're just going to sit here and

we're going to read it together

so let's look at this together and see

how it's possibly doing right now

so what we see here is there's a lot

more people

buying than they're actually selling

right this gives you in real time

we see people buying a guide to spot at

you know 11

or so 16 and 8 to 8 cents

at 300 right here if we zoom in

and every single exchange will also have

this right here right

we see that there's a lot more pressure

for it to actually go down

than for it to actually go upwards right

here because we see that this side it's

kind of got the bigger

tidal wave if you guys remember me

referring to that so the side with the

bigger tidal wave

will tend to devour the side with a

smaller tidal wave

so there's a lot of pressure right now

for it to go down but still

even though one side actually has a lot

more pressure

for it to actually go down what we see

is it's actually not going down right in

fact we look on the order book right

here

and we see a lot of people wanting to

actually buy

right we see a lot more green all across

the board right here

which is actually a very good sign right

now so i'm not really

up a lot of money right now but i just

want to make this

video to be very informative for you

guys to get a good grasp on how to read

the level 2 order book and you guys

wouldn't really believe me if i were to

actually tell you this but

i don't really lose too many trades

whatsoever

we see a lot of green right i still lose

trades but not a lot at all

we see a lot of green across the board

more people are buying right here

than they are definitely selling which

is a very good sign

that it's most likely going to end up

going upwards

we see this right here that this is a

kind of a small wall

right we were talking earlier about how

people are stacking up these bids right

now but they're slowly chipping it away

as you guys have noticed and i should

close my order

in in a few seconds i'm guessing in a

few

not even a minute and i should be able

to fill this up

very very quickly in a very short amount

of time

and there we go and now i just made a

quick

63 in front of you guys right

not really a lot of profit but it's just

a trade that i wanted to show you

how we could actually profit by reading

the level 2

order book right i sold mine a little

bit premature

i definitely could have made a lot more

money on this particular trade

but now if you keep looking at the order

book even though once again that this

particular side right here

there's not really a lot of people that

want to push it to that side right or

sorry

there's a bigger amount of pressure that

wants to push to this particular side

right

it wants to push down here because we

see the wall

a little bit bigger right now right so

this will be implicative that eventually

that it will

push it down guys it will simply just

push it down

so if you guys see really quickly there

in literally seven minutes

i made seventy dollars like that some

you know this

if you're averaging it out to ten

dollars a minute it's actually

very respectful right even though i'm

playing a larger position

um a fairly large position for for what

i actually did there

i was playing a position of um you know

but i make these trades multiple times a

day right let me just grab my calculator

out to show you my position

size that i played i played 16.917

multiplied by 500 so i played an 8

500 position but if i take 63 divided by

you know

8 500 that's about zero seven or point

seven percent right

it's point seven percent but let's say

now

okay let's just say for example you made

ten of these trades a day right

where you're making ten or even twelve

percent of these a day right

it was actually 0.7 whatever 72ish 0.72

multiplied by say 15 of these trades a

day which takes very minimal amount of

time

that's 10 of your money right so if you

actually had a thousand dollars to start

and you you actually made you know you

were following my system there

you can grow it by ten percent a day

very very very

very easily guys okay um back in the day

when i actually first started

youtubing i had a series and it was

called

200 to starting with two hundred dollars

grow it from two hundred dollars to nine

thousand dollars

in 90 days and it actually only took me

like um

i can't remember how long it took me

like less than a month or something to

do it

but i've got a lot of different

tutorials out there and i also have

tutorials where

um that were out before that taught you

how to grow it from two thousand dollars

to

three thousand five hundred dollars

in about six hours of actual trading as

well

but anyways um let's just keep reading

the level two order book so you guys can

get a very good grasp on this okay

so i'm going to close my position right

here right

there i just took my profit in front of

you guys it wasn't really a big profit

or anything

but the reason why i entered that trade

which we will actually get to

in level 17 is simple guys we're going

to get to level 17

i simply bought it because the rsi was

actually very

very low right the rsi was super low

so i bought it and it fit my criteria as

well

of buying it on the actual bounce right

i bought it on the bounce just

down over here okay over here because

the rsi was getting incredibly low

so now we keep reading the level two

order book and what we see

is a lot of people are actually buying

across the board

right tons of people are buying right

now looks like it's actually going to

end up

spiking pretty well in price right

there's lots of green

across the board you guys don't really

see that many red cellars

okay now there's a little bit of

pressure for it to go downwards right

now we're seeing a big balance because

you see this side

the green is equal to this side as well

the red

so now there's a very equal balance in

pressure

and yeah that's how we basically do it

right we just keep going back and forth

like this

on a wall and we have to make sure that

we read

these level two order books very often

because it will

give us the best gauge of what is

happening

in real time so when i first started out

trading and the best advice that i can

actually give to people is to

focus on this right here if you are a

day trader

if you guys actually watch this enough

so you

a lot of the times you don't really need

to watch this right here

because this level 2 order book will

actually paint

a very vivid image in your head and if

it's painting a very vivid image

in your head you can get a really good

gauge of what is happening in real time

and this is why i love to focus on the

level two order book

i don't really care too much about the

price action sometimes

when it comes to watching the one minute

chart right

i personally love to watch the one

minute chart

in terms of for day trading but when i'm

watching

the level two order book it gives me way

better

real-time coverage of what's going on

because i can start to visualize it in

my head

and it paints the picture very vividly

for me and this is a skill that takes a

very long time to actually develop

i've spent probably more than i'm

guessing um

you know what i'm i'm guessing i've

spent more than like 5

000 hours of watching the level 2 order

book here

but i just want to give you guys a very

good introduction of how to read it

so as we saw earlier when i was

mentioned we saw the green green green

green green

and then all of a sudden we saw it red

right we saw it red

and then people just ended up dumping it

downwards right

and that's why it changed the momentum

all of a sudden changed

in real time so we see right here people

are slowly buying but it's starting to

slow down right

these guys on this side right here are

starting to

stack up a little bit more which is

starting to drive it up

but now a lot of the bears are defending

and the people on this side see see the

people on this side

what they want to do is they want to buy

to go long and if they want to go long

it means they want to buy

cheap and they want to sell it high

right but the people on this side

they might be worried that hey it's not

going to get any higher

so let's actually start selling some of

our stuff right here right now

right so the people on this side they

decided to sell it because they believe

it's actually not going to go any higher

and when they decide to sell it they

might want to be buying it back at a

much

cheaper price so we're always going to

have these battles of the bulls

right who want a profit by buying it

cheap and then selling it high and then

the bears as well

where they want to actually drive down

the price of the market

because they believe that the price is

not going to get any higher

and that they can buy back their coins

at a much

cheaper price so these bears between the

bulls

and the bear sorry these wars between

the bulls and the bears

you can see kind of like a tug of war

right there are people who are wanting

to sell there are people who are wanting

to buy

so when supply meets demand or demand

meets supply

right that's where we find an

equilibrium in the market

and that's where it can go sideways for

a little bit until

one side eventually overpowers the other

side

so right here what we're seeing is i can

just tell by looking on

the one minute chart right it's

definitely trending

in a way where it looks like it's gonna

possibly just go sideways for a little

bit or even

go down because it doesn't look like

it does not look like um there's going

to be a lot of potential

for it to go up right now so now we're

seeing it

at a 16.9 a lot of people actually ended

up buying right now

right but i believe that just based on

how everything is looking

they're simply just going to get slammed

back down so always keep an eye

on the level 2 order book and i'm going

to go through another example when i

have a live trade for you guys and we're

going to narrate this for

an incredibly long time until it starts

to stick

because the ultimate goal guys is to

honestly turn you

into a much better trader and this right

here is a very

vital skill it's not all about patterns

guys it's not all about

learning how to read charts and doing

technical analysis

it's the small details that will make

you a much

more successful trader and i firmly

believe that if you guys

invest your time in learning this level

two order book

and you invest tons of effort into it as

well

try to get a competitive advantage try

to do what a lot of people

are not focusing on and a lot of people

are not focusing on

learning how to read this level to order

book so i need you guys to commit okay

okay you guys are my students and i

really want you to commit

to learning how to read this level two

order book

on whatever exchange you are on

wherever it is guys it's gonna be the

exact same format

where it will have the bids where it

will have the asks

where it will have the orders as well

and if you guys have seen a lot of my

live trading videos

just as this one right here for example

you're gonna

clearly and easily see very often that

this is my favorite screen to be looking

at and i'm on it

all the time right it's definitely my

absolute favorite screen

and my eyes are just completely glued to

it and i see this like a

story that's being told i see this like

a tug of war

i see one side as the bulls i see one

side as the bears

and they're just constantly fighting to

go back and forth back

and forth and people are selling people

are buying

one side wants to drive it down one side

wants to buy it upwards

so when we get a very good grasp of this

guys i promise you it's gonna

change the way you guys day trade and

you guys are gonna be able to tell

in very quick real time what is

happening

in the market and you will be able to

make decisions

like that on the fly so let's get back

to it when there's another example okay

i'll be back later thank you guys okay

let's talk more about reading the level

two order book

so i am in a position right now for iota

i'm in a position for about um i think

25

000 and we're just gonna keep reading

the level 2 order

book so once again this side right here

are the bids

side okay the bids where if you are to

sell

you would be selling to the people that

are bidding on this particular side over

here

that if you are selling then you'd be or

sorry if you're buying then you would be

buying from these guys over here so this

is called the level two order book

and this right here is the history of

the trades

so as you can see i'm in a position

right here with my particular price at

two dollars and three

seven three cents for like something

like 16 000

whatever i could have filled there so

then

we're just gonna see if this actually

ends up bouncing at

all okay so we see that a lot of people

are interested

around the 237 level range right here

okay we see a big guy that's

stacking right that we see on iota right

over there lots of people are stacking

at that particular price

right sorry i'm just gonna

get this a little bit bigger here for

you guys there we go

okay perfect so we see some people are

interested at 237

right one guy just sold right here but

we got a really big whale

who's stacking about two hundred

thousand dollars trying to move the

market

upwards it's what it seems over here

right i'm just trying to look for a very

small scalp opportunity here

hopefully i can get it to something very

reasonable maybe if even if it was like

um

you know two dollars and forty cents

there i'd be making about two three

hundred dollars of profit

which will be a very good profit in my

opinion we see more people

interested in buying here we don't

really see

a lot of people too interested in

selling which is the good part

right a guy just ended up buying quite a

few at 37

right there 2.37 there's only about 68

orders left right here so once again

right

this side right here where it says the

amount

and this side where it says the amount

that is the total

number of people selling at that

specific price okay whereas the total

side

is the cumulative price so it adds up

all the amounts

that are sold prior to that okay so we

simply can't break above 237 right now

right and there might be something

called a hidden wall there okay

a hidden wall is something that we don't

see

right it's used in this particular order

right there where we go hidden

so we don't actually see it according to

the public right

so as you guys can see there's a lot of

people that are buying

at the 237 level but we simply can't

break it

well where is 237 right where is 2.37

people are buying at 2.37 but there's

actually

no orders here in the book at 2.37

so what this implies is there's a guy

with a large

amount of iota okay really large amount

of iota

where he's actually not showing his

order and because it's hidden

he's usually some sort of whale who's

got a ridiculous amount that's not

letting the market go

up in terms of price so as you guys can

see

people are buying right now at 2.30

but why is it not actually going up in

any way at all right now

right why is it not going up so it's

it's

usually because i'm also just don't mind

me i'm also just checking the price here

of eos so where is it okay do you guys

understand the meaning of a hidden wall

okay let me go over it again okay it is

this order in here

hidden and what it says is this option

allows you to place an order into the

book

but not have it displayed to other

traders okay

so what that means is you place it here

in the book but it's actually not

visible

to anybody in the in the public because

the order is so

large that he doesn't want these prices

to actually get affected like he doesn't

want people to see

these orders at all so it's a very good

strategy where if you have

a very large amount okay you've got a

huge amount

of whatever coin that you're trading and

you don't want the public to see

because if it's big enough let's say he

actually had an order of 500 000 iota

which is like a million dollars

well that's something you definitely

don't want the public to see

because it's going to scare off the

market right

so instead of actually letting it be

displayed in the

order book he makes it a hidden order so

people are not going to get too scared

off right

so let's just keep taking a look here we

can see

tons of people as you guys can see

buying at the 2.37

range but it's actually not breaking

whatsoever

right so now we're just going to keep

taking a look at it

and i'm going to narrate it for you guys

as well as we go through this

so keep in mind that this is very

important for you guys to

to learn how to read the system okay

whatever exchange that you're on

you're going to see it as well okay

you're going to see it on whatever

exchange you're on

whether it's you know binance or or

bittrex or

gdax or poloniex or anywhere you trade

upbeat jubil

hubble whatever it's called right these

order books are always going to be there

so make sure you're familiarizing

yourself with it the concepts are the

exactly the same

where this side here are the bids this

side here

is the ask do you guys see all these

people buying at two dollars and 37

cents there

ma massive hidden wall right you sit in

walls sometimes take a while for it to

break

and we don't exactly know when it's

gonna break or how much he's got there

but clearly he's got a fairly decent

amount there since we keep seeing these

orders

at two dollars and 37 cents but they're

not being broken

see this guy bought eight thousand this

guy got bought eleven

ten thousand this guy bought about um

ten thousand again

but we're still not seeing it shatter

that specific price

so until we see a price higher than two

dollars and 37 cents

that's where we're going to know it's

actually broken but as it stands right

now

it's being really really low right now

the price as you guys can see right

we're getting kind of a sideways

movement right here where it's not going

up

or down massive hidden walls here the

guy simply does not want to let on

that he's going to let the price pass so

even though

these guys over here are stacking higher

than it they might not actually know

what's going on at all this is more of

an experience strategy that you make

note of

so we just got to simply wait and see so

we're still seeing a 237 right here

is it actually going to get broken it's

just a matter of time

until it actually gets broken because

it's not like the guy is going to have

you know

500 million stacked on there right so we

just got to wait and we just got to be

patient

and the reason they do this sometimes is

is a big strategy where

they're trying to get the amount of

sorry demand to actually dry up so if

the demand dries up

a lot of the times what could happen is

he's actually

entering a short position instead of

going long

right so he's people are actually buying

into a short position

and they're gonna end up dumping the

market to catalyze

a very large downtrend

so let's see what happens let's just

keep taking a look at it here

so we're still at 237 as you guys have

noticed right

very large hidden wall here

still at 237 everybody's trying to buy

at 237 but nobody is letting on right

now

nobody's giving up right now lots of

people are hammering away

at this with fairly large amounts as

well

i think that the volume is slowly

starting to pick up as well

let's see how high this or how low this

could be driven

one way or the other so you notice how

many 237's right there

are being bought right 237 237

the concept of a hidden wall is

extremely important because

it it's a strategy used to manipulate

the market

and if you can spot these hidden walls

you might actually save yourself from

a lot of hassle and heading and from

being trapped right

so as a player myself who does this

quite often

not with that big amount but usually my

friends and i will tag team

we'll work together we'll actually get

it started right

we'll we'll get the ball rolling we'll

actually join in together

see now more people actually bought here

at 237

right this guy actually bought about 20

000

worth twenty two thousand dollars worth

lots of 237s here

so still nothing happening yet it's

still fairly balanced right if you also

look on the one minute chart if you guys

are familiar with this already right now

okay so even though i might be talking

about some

fairly advanced concepts right now the

point of this

exercise and the point of this

particular lesson

is so you guys can start familiarizing

yourself with how to read the level 2

order book

it is by far the most essential

fundamental and necessary part of

training

because once again it gives you real

time

momentum changes a momentum change is

where you're going on an uptrend for

example right you're going on an uptrend

and you want to know where all of a

sudden it starts to switch to a

downtrend

based on how much red we see in the book

or if you're going on on a down

on a downtrend right you're going on a

downtrend

and then you're seeing a lot of red on

this particular side

right it's red and then all of a sudden

you see it start to turn green

in the order book right at a very low

price

you start to see turn green that might

be a very good signal

that people are actually going to start

buying

still so many people i'm actually really

glad that we caught this right here at

this particular price

this is clearly a really large whale i'm

guessing he's got about 90

000 or so that he's selling or maybe a

hundred thousand because i know for a

fact that

a hundred thousand is the most you can

actually snack on there

so check out this hidden wall here it's

it's quite fascinating right

to see so every time you place an order

in the book you should be able to see it

right

but because you don't always see every

single order

um this is usually what ends up

happening if it's a hidden order

so now we're just going to keep waiting

around and i'll be back in a few minutes

when there's more of an update kind of

want to bore you guys with this okay

so here we are still back at it right

now whereas people simply just cannot

break above this 2.37

range now if you guys are familiar with

charts thus far

i'm just going to assume that a lot of

you guys might not be familiar with them

since

this is geared towards most definitely

beginners and we haven't gone over any

charts yet

but this sideways movement right here

where it's neither going

up or down it simply implies that we

cannot

break it whatsoever right so because we

can't break it whatsoever

people are more inclined to sell than

they are to actually buy

so right now some people are trying to

buy it

but i tweeted about it and it seems like

people are really not sure

how to handle this right now okay

so we're still seeing a lot of people

buying right some people are finally

starting to undercut

and they're realizing hey this actually

might not get any higher right now okay

so we see the five minute chart here as

well it is extremely low

on rsi right this is extremely low on

rsi

and yeah anyways this is about level two

though right

so we're just gonna sit here together

still and we're gonna try to read this

level two order book here

and make sense of it just to give you

guys gauge of how

important it is to learn how to read

this i think that

i honestly think that if you guys spend

a lot of time learning how to read the

level 2

order book you guys are going to become

a very good trader

because a good trader should be able to

read this

very well and once you have a lot of

hours under your belt

of learning how to read this and just

grasping the concepts of it

it's going to paint a very vivid picture

in your head

and you're going to have some skills

that a lot of people won't actually have

a lot of people just simply focus on

things like um

how to you know draw patterns right and

stuff like that

but if you guys just focus on the basics

like that then

unfortunately you're not gonna be as

good of a trader as you can possibly be

i assure you guys that get this concept

down guys

trust me okay get this concept down of

learning how to read the level two order

book

and it's really going to change the way

you guys actually trade

it's gonna honestly for the people that

are even um you know

past beginner level or intermediate

level and if you're more so advanced but

you're not familiar with this concept of

the level two order book yet

i kid you guys not that once you learn

it my goodness it's gonna

change your life guys with how simple it

is to read this

and how fluent trading will become

because you will know in real time like

it's just you guys are gonna

feel it surge inside of you when these

momentum changes

actually happen

so we just simply cannot see it break

right having a lot of trouble

breaking right now the 2.37 range

so once again i'm gonna go over the

concept of a hidden wall okay

because it might seem very simple but it

is

not simple at all a hidden wall

is something where people are using a

hidden order

that does not show in the order book

here

right we do not see it in the bids we do

not see it in the ask

this 2.37 range right here

is completely hidden from the public and

we don't

see how much he's actually selling we

don't know the total amount he's selling

at that price

we don't know the cumulative amount as

well

either so do you guys remember test

yourselves okay

what does this column refer to what does

this column refer to

if you guys said that this column right

here that amount

right it refers to the amount that

is being sold at this particular order

at this particular price right here okay

now this right here is the cumulative

amount okay

so for example if we go all the way up

to 5100 right here okay

it will take everything it'll add up

everything up to 5

100 and then this will be the total

amount okay

so this line here or this line here the

amount

is just the amount of orders at that

particular price

right but the total refers to everything

up to that specific price in the line

that we're in

so getting a gauge of how to use this

specific order book

right it's going to really change the

way you guys trade

because it will allow you to time and

position

yourself accordingly so if you are

playing with a certain amount

you you'll know exactly how much more

until

your orders are actually filled so i'm

just going to leave this here for now

just the way it is and i'll come back to

it if there's any more progress

but other than that this will conclude

this particular section of this lesson

but this this lesson will be longer when

i have more examples i'll come back and

add to this video so i'll see you guys

very soon

hey guys i'm back actually finally we

broke out of this

2.37 range it actually took

an incredible amount of time for us to

actually

break above it so let's see if this will

actually be able to do anything now

all right let's see if we're going to be

able to spike it up to a specific price

i mean the highest that it went right

now was wasn't really much

wasn't really that high guys like um it

feels like the liquidity

is really high right but now the demand

is actually

incredibly low and not too many people

want to be

selling it right so i i personally

believe now that um

yeah it's not that many people are

interested in buying it right now okay

so as you guys saw what happened to the

level 2 order book there

a lot of people were trying to smash

through

that 2.37 range

but you know nothing nothing really

changed too much the price actually

ended up going

down instead of upwards which is um

kind of crazy when you think about it

like that right

so yeah sometimes that's what happens

right now so we see a lot of people who

bought

and they broke through that 2.37 range

but we also saw a lot of people just end

up selling it to the red now right

so you see a lot of red on this side

which means that more people

are interested in selling it than

actually buying up the price

even though we broke that barrier right

there that was quite a bit of coins that

people wanted to try to break through

there

so make sure you guys just keep

practicing reading the level two action

right you're going to be able to get a

good gauge of the momentum

that's happening in real time so i just

wanted to wrap this up very quickly with

this particular

2.37 range for iota and when i have more

examples i'll come back to it very soon

see you guys soon okay so we're going to

talk more about reading level 2 right

now

i'm currently in a trade and we're in a

trade right now

for bitcoin cash and

it's if you guys notice here it looks

like there's a channel that's forming

right here right

there's a channel that's forming right

here and it's fairly

parallel you can see right so it hit the

peak

around there that's where i decide to

short it so i'm in a position right now

for roughly i think um

i don't know 25 000 or something like

that

and we're just gonna take a look at the

level two order book

so what we see is we see a lot of people

still buying up right now

it's going to 1706 right it went from

1704

people were selling at 1704 ranges and

now we're going up to

about 1706 right here

now there's not too much action going on

it's still very slow and steady

but we see the level two order books

here the bids and the asks are

always changing right they're always

changing because people are constantly

updating their orders

left and right so we have to make sure

that we're very diligent when it comes

to updating our orders

so now we see people selling at 106 over

here

someone's buying at 106.8 sorry

when i say 106 i mean 1706.8

so someone's selling at 1706 1706.7

very very slow sideways trend where did

we see the big wall

remember how i was trying to teach you

guys always make sure

that you're zooming in and out of these

at all times okay

zoom in and out of these at all times

and we see that there's a fairly

big wall on this side right the wall

is much larger on this side and remember

we were talking about the tidal waves

from before right the tidal waves

the ones on this bigger side will

usually end up devouring the ones on the

smaller side

so let's see how this is doing in a few

more minutes

all right so we're still taking a look

at this right now

and we see that a lot of these bots are

actually

kicking in keep in mind that we're

playing against a lot of bots at the

same time right

and because there are a lot of bots

they're naturally going to be

buying at specific price points and what

we're seeing right now

is a lot of action at the 1700

range right you guys see a 1700 right

over here

lots of bots but now we're actually

seeing people sell

to the range right so it's actually not

that bad right now if you take a look at

my position i'm only down you know

literally one percent which is really

nothing to be worried about too much at

all right

i'm in a short position from right

around here i shorted it a little bit

early right

but i kind of figured it probably wasn't

going to break above

this channel resistance right i was

noticing that

there's pretty much a channel over here

already that was forming

very very unlikely for it to break so

now there's a really big

battle between the 1700 range actually

1699 and the 1700 range

so now it's just gonna go back and forth

for a little bit in my opinion

and we never know how this is gonna end

up there we go

seventeen hundred dollars just got

shattered if you guys saw that right

a lot of people just decided to dump

right there we saw that really big

wall of red that you guys saw right now

we're at the 1698

range now let's see who is going to sell

more

there we go we're now at the 1694 range

so it's actually breaking down even

lower right now

we see huge walls of red right now which

automatically signals to the market

and to me and to anybody watching the

level two

that more people are interested right

now in selling

than they're actually in buying right so

it just goes how it just goes to show

how sometimes the market actually is so

i'm just going to try to actually break

even right here because i'm not sure

if it's actually going to fall below

here so i'm just going to keep

actually you never know we're now at 94.

okay we're getting even lower

getting much lower than that right here

i'm i'm um you know

i'm that's my breakeven price right

there at 1690

right so let's see how much lower this

is going to go

do you guys think think with me right

now if it's actually going to break up

below here

so i'm only about 50 off right now

right from my breakeven price um if

this is actually factoring in a bunch of

fees right but let's just see

how low this is actually going to go so

it might even bounce

right off of the trend line support

right but if we actually take a look at

all of these other factors right now if

you guys notice right here on the rsi

we're getting a triple peak i know you

guys might not be familiar with this

concept yet

but this is what you call a triple peak

right there one

let me just make sure i stay in drawing

mode here

stay in drawing mode there we go one two

and three right there so these three

peaks to me it signals to the market

that we're actually going to end up

downtrending pretty hard

so now let's just take a look there we

go there we go we are actually

dropping right now like a rock so it's

looking very good right did you guys

just see that massive dump that just

happened right here okay

we're slipping below the ones the 16

89 range right here okay and we're most

likely going to break actually this

channel resistance in my opinion

or channel support rather right so i've

got my

mine at right around 16 81 right here

okay

now there's a really big wall if you

guys notice right

really big wall here it's um remember we

were talking earlier

about the side with the bigger tidal

wave it tends to devour the side with a

smaller tidal wave

so if this is the bigger tidal wave side

right it's got a lot more red

on the side you can zoom in in and out

however you wish over here

and you can easily see that this side's

got a much bigger tidal wave which is

most likely going to end up devouring

the side with a smaller tidal wave

so mine is just at about 1681 right here

right so if i were to close my position

i'd be making about a hundred dollars

140

or something like that which i'm happy

with because it's actually

nine in the morning right now it's not

in the morning and i actually haven't

slept yet so

i think it's actually gonna break well

below that so let's just keep taking a

look over here

and let's just see how this is gonna

play out okay

so there we go it's it's really dropping

right now it's it's

it's really dropping because bitcoin is

probably dropping two i'm guessing

that's usually how it goes so let's see

if this is going to bounce here

we're right at the support right now as

you guys can notice

right right at the support let's see if

there's actually going to be a wick

right so i want to put mine that

actually has 680.1

there we go 680.1 just above this guy

over here who's got a little bit

let's see how this is actually going to

do but the reason why i don't know if

it's going to close

and bounce off of here or it might not

bounce off of here is simply because

there's actually the one minute chart is

very very very oversold right now

and it simply just might not make it

there right so let's just see

how this is going to do but this is a

fairly red candle guys

it's definitely a fairly red candle it's

definitely on a massive downtrend right

now just based on how

everything is looking so it doesn't look

like it's going to bounce there right

but you know regardless if it does or

doesn't i'm actually just going to close

my position because

yeah i'm a little bit tired that's the

truth right

a little bit tired and i might want to

end my position right here we see a lot

of people coming into the defense

right at the support right here right

you guys see that we're reaching the

channel support here

so there's a good chance that we're

actually just going to bounce off of it

so let's see how the market ends up

reacting to this all right

there we go so you see people are

actually buying up right here okay

you guys see on on the one minute chart

i know it's a one minute chart right

it's a one minute chart

but i'm actually going to close my

position just to break even

and there you guys go well i didn't

exactly break even i made 42 dollars

right

it wasn't really a lot of money but um

you know what

i i didn't want to take the risk right i

didn't

i didn't actually think it was going to

break below it i think it's going to

bounce up here

so i think it was in my personal best

interest to

definitely just close my position and

move on so i think you guys get a very

good idea

of what level two is now right we've

been talking about it for a fairly long

time

in these videos now so i think i'm going

to conclude

this lesson for lesson number which what

number was it again let me just double

check here i don't even remember

my apologies this would be level uh

lesson number four

reading the level two order book

understanding

bids and ass and you guys are going to

see me

go through these level 2 order books

much much

more often down the road so thank you

very much for joining me for lesson

number four

and i look forward to seeing you for

lesson number five which will cover

what is going on what is going short

what is margin trading

but it's also leveraging and just on

another quick note guys

have you noticed how i said it was most

likely going to bounce

and take a look guys it actually ended

up bouncing very very heavily

right off of the support channel right

so in my opinion

i think that i actually made the right

choice to decide to

break down from here and actually close

my position

if i hadn't i would have actually been

down about 400 dollars right now

so yeah so thank you very much once

again for joining me i hope that i've

given you

lots of insight in regards to what

reading the level two is

what the bids are what the asks are as

well

and especially just in general getting a

really good idea

of how to read momentum changes on the

fly

so i'll see you guys for lesson five

thank you very much for joining me and

have yourselves a great day

bye now