IN THIS THREAD: IronFist learns (the elusive) PRICE ACTION

Quote from IronFist:

In for info about this.

DOM looks like random noise to me. I don't see any patterns. The movement appears to be random. To make things even more confusing, I see price jump +/- 5-10 ticks at a time on the DOM when there were bids in between.
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That market price action you are seeing in the DOM is the same market you are trying to trade with a chart. The only difference is the DOM is present tense and the chart is past tense. Length of bars/candles is a direct reflection of the action that just took place in the DOM. A lot depends on the time frame you are trying to trade and what your expectation per trade is. For longer term moves I would not use the DOM. But for shorter term trades I think it is the way to go.
Gotta run, be back later.
 
Quote from Bingoking:
That market price action you are seeing in the DOM is the same market you are trying to trade with a chart. The only difference is the DOM is present tense and the chart is past tense.
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That is not precisely correct.

What charts are composed of are T&S, actual trades.

The DOM (Depth Of Market) is the Market Makers order book. It only shows Limit orders.

There is a lot of 'noise' on the DOM because orders are continually being placed and canceled.

There is also a certain amount of 'faking' (orders that are placed but never intended to be filled) going on for various reasons.

For example, orders are filled by computer matching on a FIFO basis. MM enter orders at all price levels early so they are at the front of the FIFO queue. Those orders frequently get pulled because MM don't need them all to get filled.
 
Quote from bilbod:

That is not precisely correct.

What charts are composed of are T&S, actual trades.

The DOM (Depth Of Market) is the Market Makers order book. It only shows Limit orders.

There is a lot of 'noise' on the DOM because orders are continually being placed and canceled.

There is also a certain amount of 'faking' (orders that are placed but never intended to be filled) going on for various reasons.

For example, orders are filled by computer matching on a FIFO basis. MM enter orders at all price levels early so they are at the front of the FIFO queue. Those orders frequently get pulled because MM don't need them all to get filled.
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Exactly! That's why I'd like to know how Bingoking uses the DOM and I don't mean in a deratory way. I sometimes just use the price, the actual price of the stock, and because I tap into numbers very well, it sometimes works as well as trading off the chart.

That's why I'd like to learn how do to the same with the DOM. I think there is a pattern and psychology to the mix of fake and real moves on the DOM, but I haven't grasped it. I'm always looking for tips on how to get a grasp of it.
 
Quote from vingbel:

Exactly! That's why I'd like to know how Bingoking uses the DOM and I don't mean in a deratory way. I sometimes just use the price, the actual price of the stock, and because I tap into numbers very well, it sometimes works as well as trading off the chart.

That's why I'd like to learn how do to the same with the DOM. I think there is a pattern and psychology to the mix of fake and real moves on the DOM, but I haven't grasped it. I'm always looking for tips on how to get a grasp of it.
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It starts with hours of screen time watching. I will say up-front that I am not a full-time trader. You might want to start here:
http://www.interactivebrokers.com/en/general/education/priorWebinars.php?ib_entity=llc
If you scroll down there are two webinars in particular by Jack Broz. One on Feb, 14, 2008 and one on Feb. 8, 2007. These will get you started in the right direction. I suspect there are some others on this list.
 
Quote from Bingoking:

It starts with hours of screen time watching. I will say up-front that I am not a full-time trader. You might want to start here:
http://www.interactivebrokers.com/en/general/education/priorWebinars.php?ib_entity=llc
If you scroll down there are two webinars in particular by Jack Broz. One on Feb, 14, 2008 and one on Feb. 8, 2007. These will get you started in the right direction. I suspect there are some others on this list.
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Thanks for the tip. I couldn't find the webinars, though. I saw others on that link, but not those. Do you have the links for those specific webinars?
 
Quote from bilbod:

That is not precisely correct.

What charts are composed of are T&S, actual trades.

The DOM (Depth Of Market) is the Market Makers order book. It only shows Limit orders.

There is a lot of 'noise' on the DOM because orders are continually being placed and canceled.

There is also a certain amount of 'faking' (orders that are placed but never intended to be filled) going on for various reasons.

For example, orders are filled by computer matching on a FIFO basis. MM enter orders at all price levels early so they are at the front of the FIFO queue. Those orders frequently get pulled because MM don't need them all to get filled.
More...

Ah, the DOM shows both, doesn't it? I mean it shows the last and its size and the current inside price, and also the orders stacked above and below, doesn't it.? At least mine does. I do find, particularly with some platforms more than others, that there is a little delay in the chart movement compared to the DOM. This can be bothersome in a fast market if you are trying to scalp off the chart. In fact it seems to me successful scalping off a chart in a fast market is impossible. You need a good fast DOM for that.
 
Quote from Bingoking:

Sorry about that.
Click on the tab "Industry Sponsored" - they are on that list.
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Do you know if it's possible to save these videos so I don't have to stream 66 min of data every time I want to watch it?
 
Quote from IronFist:

ok, question for all you PA masters.

What is going on here? Depending on how I look at it with reference to highs and lows, what is happening here? Should I be preparing to go long because price is making HH/HL and starting to go up again?

Or should I be preparing to go short because price is making LL and LH and about to go down again?
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Suppose you wish to buy a bicycle.

You might begin by defining a bicycle.

<img src=http://www.backyardlivingmagazine.com/photo-gallery/Sunflower-Power/album/slides/Sunflower-With-Butterfly.jpg \img>

A sunflower is not a bicycle.

Neither is a butterfly... in my opinion..

..although after 47 pages of EliteTrader.com some readers might identify a sunflower as a bicycle.

You might consider your need to be confused.
 
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