How do you read lvl. 2 when the action is so quick?
- Thread starter cashclay
- Start date
Fast markets like NQ, FDAX and these days even the ES are too fast to really "read" the DOM. In these markets, for me the DOM is more for getting a feel. By watching it countless hours you get a feel for what is happening there, just by the overall movement, the speed, the changes from second to second.
In slower markets like FGBM, FGBL or ZN you can actually try to "read" what is going on in the DOM, because the action stays around a few ticks for quite a while and the action is not very fast. There is lots of bullshiting and fakery going on in the DOM, but if you sit there all day through a session, a few times a day you might get a good nugget of information, a hint that might help you to scalp one or a few ticks. But in these slow markets, it takes lots of patience.
I don't think reading level 2 is a reliable or even a viable strategy. The human eye and brain simply can't compete with computers. Besides, there are dark pools where big lots change hands.