ORDER-FLOW EDUCATION
Reading Liquidity on a Bookmap Heatmap
A practical framework for separating displayed-liquidity observations from assumptions about future price.
Start with location and change
- Mark where liquidity persists relative to recent structure, not simply where color is brightest.
- Observe whether size builds, holds, moves, or disappears as price approaches.
- Compare the executed volume and subsequent response before forming a conclusion.
Displayed liquidity is an input, not a promise
Orders can be modified or cancelled. A responsible reading describes what happened, what evidence supports the interpretation, and what would invalidate it.
Review step
Save a before-and-after capture, then review the observations against the rules written in advance. Do not redefine success after seeing the outcome.