Dom

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nirav34

How do you look at the DOM in futures to determine where the price is headed? I understand supply and demand, but when I see large order of ask than bid, it doesn't always move down. So help me better understand what to look for when watching DOM, cause right now I'm just looking at it and can't see a trend.
 
Quote from nirav34:

How do you look at the DOM in futures to determine where the price is headed? I understand supply and demand, but when I see large order of ask than bid, it doesn't always move down. So help me better understand what to look for when watching DOM, cause right now I'm just looking at it and can't see a trend.
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At least with stock DOM, when you see larger bids than offers it's generally bearish, and when you see larger offers than bids it's generally bullish. The reasoning is that if the seller is showing large size, he's doing that because he believes there's a buyer who will fill his order thus he has no need to be sneaky. Whereas the guy with the strong hand does not want to give his hand away by showing large orders that will only chase the price against him.
 
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