Hello MMT Nerds!
We have a lot to cover this week - from navigating market crashes to optimising your heatmaps for clearer visibility of spoofed orders.
Key Insights
Bitcoin drops below $80,000 and Ethereum drops below $2,400 as $1.4 billion worth of leveraged longs are liquidated. Over $100B in market cap was lost over the course of 5 hours.
Silver saw its largest intraday crash in history on Friday 30th January, plunging as much as 35%. Despite this, prices still closed January in the green - up 19% for the month. That marks 9 consecutive months of gains.
Coming This Week
NFP (Non-Farm Payrolls) - First Friday of the month (Feb 6th)
Earnings to watch:
• GOOGL (Alphabet)
• AMZN (Amazon)
• AMD
• ARM
• QCOM (Qualcomm)
NFP this Friday is the big one.
Alpha Of The Week
Alpha of the Week highlights one actionable edge - a tool, technique, or setup to sharpen your trading. This weeks will cover how to use the footprint & heatmap in a combination to spot spoofed orders.
Add a orderbook heatmap to the chart, through the MMT Official indicators list.
Select the Footprint cluster or footprint profile mode from the chart dropdown list.
Go into the settings for the footprint, enable custom ticks and change your tick size to 50 for HD heatmaps or 250 for non HD heatmaps.
Note, the settings above are specific for Binance Futures BTC ticker.
For ETH please change your ticks per row in the footprint to 100 when your heatmap is non HD mode. For HD mode change the ticks per row to 25.
This will allow you to precisely match footprint binning to that of the heatmap. You will be allowed to see how footprint fills compare to that of the orderbook heatmap itself.
This allows you to exactly 1 to 1 match to see whether a resting buy/sell wall is filled when approached.
example of buy wall being filled and not pulled
Extra alpha - You will sometimes get slippage. Meaning the buy wall itself may not look like it filled directly at the binned heatmap level, but is spread out across multiple bins. Look for a surge of high volume heading into these large buy/sell walls.
Trade of the Week:
Silver saw a 38% rejection from its all time high (Thursday 29th Jan).
It all starts with the simplest break of structure, followed by a lower high which then lead to the aggressive down move creating headlines over the weekend.
This trade could have also been taken on GOLD which also saw a violent downturn in the retracement of all metal markets over the weekend.
The trade itself had the risk of seeing Silver continuing to new all time highs, as metals have been aggressively trending as of late, but with risk comes reward and the break in structure was followed through with major downturn.
What’s new at MMT this week:
Dual Cluster Mode!
You can now view Delta and Volume clusters together, making it easier than ever to validate price action by seeing who is trading alongside how much is trading.
You can adjust the different cluster modes so you can choose between any combination of cluster types you like.
Widget Linking!
Widgets sharing the same colour are linked. When you change the pair on one widget, all other widgets with that colour will automatically update to match.
Built for Traders - Free to Use.
If you would like to try out a terminal with desktop performance right in your browser.
Here’s our layout of the week for you to try:
The layout uses the alpha of the week and puts it into a neat layout for you to try, automatically matching the bin options for you between heatmap & footprint.
When you’re ready Pro unlocks HD heatmaps, aggregated footprints, TPO charts and MMT Academy - complete with live streams and a full education library to help you master order flow
Love
The MMT Team