Did you buy his product? It looks interesting to me since the material cover many concepts that I only have a superficial understanding of.
Thanks,
LF
How to use DOM primer?
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Did you buy his product? It looks interesting to me since the material cover many concepts that I only have a superficial understanding of.
Thanks,
LF
On IB's website there still may be some archived webinars on "Reading Order Flow".
I think Dan Gramza was one of the instructors. The DOM tells a lot. Pretty much for short term, in-and-out stuff. Once in a while you get a good position. Reading the DOM perhaps is similar to "tape reading." Do a Google search (or search here) for "Tape Readers Bible" and download the free PDF. Old but good.
I was led to the DOM from having hung around with a couple pit traders. They don't sit and stare at charts and indicators all day.
I think Dan Gramza was one of the instructors. The DOM tells a lot. Pretty much for short term, in-and-out stuff. Once in a while you get a good position. Reading the DOM perhaps is similar to "tape reading." Do a Google search (or search here) for "Tape Readers Bible" and download the free PDF. Old but good.
I was led to the DOM from having hung around with a couple pit traders. They don't sit and stare at charts and indicators all day.
I scalp the ES market grabbing most of the time 1-4 tics, maybe twice a week several tics, but overall just a few tics. I do approx 20 to 40 trades a day (I am too old to do more) so I am not one who does 150 trades a day as I have witnessed other to do. I use charting as to when to start looking for a trade and use the DOM to getting a tic or two better fills. After watching the Dom for years, I have been able to discern just a few patterns that are reliable for me, but here the thing, they occur for a few seconds, just long enough to hit the bid/ask or get in at bid/ask and takes much concentration to continually to do so, extremely draining on your eyes and I believe over long periods, very unhealthy.
Offend times the larger the volume on either bid or ask at five levels is like a magnet, but it is not total volume I watch as I see this to have little value for me, but I watch at each level if bid side at five levels have at least 1000 more than ask side levels, very good occurrence that price will go down and I need to get short if that is my original signal. If I see the ask two closest level fall under 1000 whereas the bid side maintains regular volume, price most likely will go down. "Rotation" term I use if say ask side is 1000 of more initially larger than the bid side, and price is just alternating back and forth, after maybe 20 seconds, ask/bid get even in volume then very shortly ask side has less volume, price generally goes up, I will either try to get in at bid level or hit the ask.
These are the three I use the most, there are others but they occur much less frequent and much more difficult to explain.
You can always tell when a report is due to come out, all levels drop from thousands to a few hundred as big boys pull there orders.
But I think if you are a trend trader, this intense style will not matter, and yes, there are times that above doesn't always work or huge orders comes in and I am not quick enough to take advantage, once market has gone away from me 2 tics, I have to pass on the trade.
I am sure this works in all other markets, but at even a more quicker speed, and in some markets like crude oil, it is almost impossible to be quick enough to take advantage.
I don't recommend to anyone to scalp, I just never found a consistent way to day trade ES by trend. There are much other better markets to day trade for trend trading like currencies and crude oil. Also, if you are retail trader, I have never seen anyone scalp successfully paying retail costs.
Offend times the larger the volume on either bid or ask at five levels is like a magnet, but it is not total volume I watch as I see this to have little value for me, but I watch at each level if bid side at five levels have at least 1000 more than ask side levels, very good occurrence that price will go down and I need to get short if that is my original signal. If I see the ask two closest level fall under 1000 whereas the bid side maintains regular volume, price most likely will go down. "Rotation" term I use if say ask side is 1000 of more initially larger than the bid side, and price is just alternating back and forth, after maybe 20 seconds, ask/bid get even in volume then very shortly ask side has less volume, price generally goes up, I will either try to get in at bid level or hit the ask.
These are the three I use the most, there are others but they occur much less frequent and much more difficult to explain.
You can always tell when a report is due to come out, all levels drop from thousands to a few hundred as big boys pull there orders.
But I think if you are a trend trader, this intense style will not matter, and yes, there are times that above doesn't always work or huge orders comes in and I am not quick enough to take advantage, once market has gone away from me 2 tics, I have to pass on the trade.
I am sure this works in all other markets, but at even a more quicker speed, and in some markets like crude oil, it is almost impossible to be quick enough to take advantage.
I don't recommend to anyone to scalp, I just never found a consistent way to day trade ES by trend. There are much other better markets to day trade for trend trading like currencies and crude oil. Also, if you are retail trader, I have never seen anyone scalp successfully paying retail costs.
Handle123,
Thank you for the very to the point information. I appreciate it.
I have been trading oil for few years using charts and TWS. Even though i have looked at DOM in past, never quite understood it. Now in the process of looking for cheaper commissions i am forced to look at DOM again. For the last month or so i have been looking at DOM.
You are right that DOM is useful only for scalping but i daytrade (a little longer than scalp but not quite all day position). I don't normally do scalping in oil but i may find it better to combine the charts and DOM to get better entry price and then stay in position based on charts.
The general observation you have given that if volume is on bid side it is a short and if ask side it is long is my observation too so far (contrary to what the logic would say). I want to fine tune the process of final trigger pulling. Is there anything else you might suggest.
Whenever you have some more time, if you don't mind, can you please expand some more on those not so common set ups. Thanks.
AS far as NoBSTrading.com book. I just got done reading it twice, seen the video too. This book (very bold print 63 pages, at normal type it would perhaps fit on 15 pages) gives a little bit of info about general things about futures trading and then talks about his method of SCALPING TREASURY BONDS. That is it. It basically tells the same thing that Hanle123 has done in one paragraph. I don't know if it will be useful for me or not, time will tell.
Thanks.
Thank you for the very to the point information. I appreciate it.
I have been trading oil for few years using charts and TWS. Even though i have looked at DOM in past, never quite understood it. Now in the process of looking for cheaper commissions i am forced to look at DOM again. For the last month or so i have been looking at DOM.
You are right that DOM is useful only for scalping but i daytrade (a little longer than scalp but not quite all day position). I don't normally do scalping in oil but i may find it better to combine the charts and DOM to get better entry price and then stay in position based on charts.
The general observation you have given that if volume is on bid side it is a short and if ask side it is long is my observation too so far (contrary to what the logic would say). I want to fine tune the process of final trigger pulling. Is there anything else you might suggest.
Whenever you have some more time, if you don't mind, can you please expand some more on those not so common set ups. Thanks.
AS far as NoBSTrading.com book. I just got done reading it twice, seen the video too. This book (very bold print 63 pages, at normal type it would perhaps fit on 15 pages) gives a little bit of info about general things about futures trading and then talks about his method of SCALPING TREASURY BONDS. That is it. It basically tells the same thing that Hanle123 has done in one paragraph. I don't know if it will be useful for me or not, time will tell.
Thanks.