Let's learn/discuss how to read the DOM and Time and Sales

Quote from jack hershey:

Thank you for making the effort.

If you mark the sine wave with 1, 2, 3, 4 as a locus for the begining of each quarter of the sine wave, then these four numbers would be placed at the extreme limits of the window at compas points N, E, S and W and returning to N. The route shaped liike an "O" would result. You show the lissajoux pattern that is found as the ratio (1:2) of the thre most prominent trading values:P; V; and A/D.

the optimum hold for longs and shorts respectively would be segments of the "O". I chose to enter late and leave early to take advantage of "compouding" while making money.

For longs hold through the angle from 290 to 70 degrees on the compass. For shorts hold from 110 to 250.

All of this explains the relationship of bar volatility to bar overlap.

Digging deeply into the operation of markets is very very rewarding. The market "tellegraphs" its offer.

As you know this provides an Order of Events that is more than high probability. My stuff was purposely deleted from a now dead "probability thread. So this commentary will be deleted as well because the moderator will agree with complainers who are ignorant of how the DOM and T&S connects to "calling the market" based on the probability science of Orders Of Events.

The market OOE has, roughly six elements. I could take a cube and market each on the die. A coin does not work since it lacks four elements. The sides are: P1, T1, P2, T2P, T2F, and PEP.

THe CW uses the die and makes 20% a year. I posted 2 trades from the open on 9APR13 and made 8% of capital.

The die shows how random elements are created; from this you may conclude that the market is NOT random in any way.

SCT shows how OOE's are THE form of the market's operation. The situation is one where probability is turned into certainty. Magna could not grasp this concept elsewhere so all of my "calls" and backup charts were deleted.

the die contains the elements the market independent variable goes through. The die is simple rotated in one and only once sequence. Probability in markets becomes certainty of an order of events. The mind cannot "get it" because the mind is usually full of crap that makes people whine and whine and whine.

The DOM shows a sine price that most trades can see. WALLS are not surmounted, thankfully. Wall represent what CW people call support and resistance. The reason is the level of intelligence of the WALL builders; it is not sufficient up to now in the industry. They pile up more limit ordrs than can be processed, i. e., the T&S velocity is LESS THAN the DOM velocity.

So the tellegraphing of the independent variable by systematically locking in the OOE to form the sine wave of price. It is seen as a parallelogram container: point 1, point 2, point 3 and the Failure To Traverse.

These four dependent variable points are in correspondence to P1, P2, T2P, and P3P. P is peak and T is trough.

As obvuscating as this seems up to this point, it is necessary to mention the "pieces" before they are put together.

The rule is this: If you know what the parts are of anything, then you may be able to put them together by just thinking.

In markets mostly only direct relations exist. Inverse relations are rare.

A chart of velocity and acceleration was presented and corrected. (thank you for the effort). we know their relationship to price. the DOM shows price.

Everything is falling in place. A person here almost presented a volume statement, but he did it incorrectly. That is because he is searching for an unknown solution by randomly trying what comes to his mind.

Here, I work "purposefully" and this process is known as a "dedicated" effort.

You can use the DOM to trade market moves called trends. trends follow the sine wave. on three levels. Price, the dependent variable moves the slowest. WE now have a Johari window of velocity and acceleration and it is observable on the DOM.

WALLS are located at W and E on the Johari window. we see a long move off the BID Wall starting @ then just above it. as time passes the velocity goes to a max and the accelration, naturally declined from its max to zero. Price is now 1/2 way to its trend ending and it moving through price (upward at its best clip so far. (very low overlap bar-by-bar and maximum length price bars.

NOW you kep holding as you see acceleration become deceleration and the velocity goes from max to zero as you see the ASK wall approaching on price by getting closer and closer on each tick. The WALL is the excessive concurrent targets of CW traders who are going to not get filled and get left at the gate..... lol ... it is the usual whining that will follow and they will not get out later at BE because they are so low as recent arrivals in FIFO. But their stops are there and will geet hit because the limit order becomes a market order and cascades to the low quantities of DOM (the stop is near first in line and the target not hit was removed by now.

So you now can watch the DOM and use the compass values to go in by market and exit by market for a long.

My two trades on the (APR13 FF 4 chart show how I aced a going into a short @ bar 1 (9:31) 110 degrees and held to 250 degrees. (9:37).. Then @ 290 degrees I entered (a few tcks below my prior exit) and held on the DOM to 70 degrees.

This is very rhythmic. moving forward tick by tick is a repetitious DOM pattern. At the wall the rhythm stops.

you go to the T&S or an OTR chart and see the "dominance of the "two pairs" shift in sentiment as you carve the turn at the WALL.

here is a reminder; when you are learning or self learning, you have to be so thorough that you do check you work to be sure you are correct. this is what lucrum Magna, Atticus and Pekelo have failed to do in using "plain vanilla math". they keep fucking uo and they do not check their work. They cannot receive corrections to their fuck ups. Why is it not possible in the Education section to fix the permanent mistake filled first thread? One reason, no thoroughness is in place.

Complaints do not do thoroughness.
Corrected...Mod, I am on the topic. :D

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nice to see jack hasn't lost his sense of you more.

of course, imo the whole presentation is a jokes on you kinda thing.
 
Quote from 1a2b3cppp:

What is going on in this thread?

Can we get back to talking about the DOM?

you asked how to :

1. Read the DOM

2. read the T and S.


These are tools created by inventors.

The tools have been given to you.

Now you know price is shown on the DOM and T&S.

Now you know Price has two derivatives.

Now you know money is made using the 2 trends of the price cycle.

The tools can be read by your eyes and you use "inference from your long term memory to have PERCEPTION.

I To trade you may come to an EXIT.

II Later you may Enter.

III After you enter you hold.

You know this trading regime.

I uses the DOM and T&S to perceive the turn of the exit by using price and its two derivatives as PERCEIVED on the DOM and as PERCEIVED on the T&S.

The rotating circle shows you the Order Of Events of the first and second derivative in price as OBSERVABLE on the DOM.

Price velocity is either increasing or decreasing (See the two symbols, + or -, respectively.

So is acceleration.

you can see the changes in the symbols in your mind once you have the long term memory there in your mind.

you tell us it is NOT there. We beleive you.

consider putting this stuff in your mind by reading the DOM as RTH flows through the day.

Keep drawing where you are on the circle.

Each lap change color of your ball point.

Post your drill results for two months.

So choose to keep experimenting of choose to invent the use of the DOM tool and the T&S tool.

this is your thread.

go in your direction.

Others have given you input on the topic of the DOM tool and the T&S tool.

We all do I, II and III in that order. We use DOM and T&S to carve turns and beginnings and ends of trends. Monitoring and analyzing trends is doing anticipation. Trend following is too late to make mucch money.

I do reversal/hold to stay in the market from open to close. III to I quickly and II for the full offer of the market.

I use DOM and T&S all the time as tools.
 
So I notice that the ES barely gets unbalanced (sometimes it will be like 15,000:20,000 for a moment, usually closer to 18,000:20,000).

Some other instruments get big, 2:1 or more imbalances, such as gold and CL.

Their volume is also much lower. The CL might have 200-600 contracts on each side and gold like 50-150.
 
I have not read this entire thread, but I used to trade the ES. I was profitable, but not enough to make a living so I gave it up. My take on this is this: this is too big an instrument to really make heads or tails of it from the DOM. Better to trade this sucker off daily charts, or at least 10 or 15 minute interval.

Too many big players use this to HEDGE other positions. Say some broker sells a million MSFT shares, so they are now short MSFT. So they buy long ES to be neutral on the trade. IMO, this is not so much a directional instrument as used for hedging. Like I said, better to try and get an understanding of the overall daily direction. Hour to hour, I bet very few people really make any serious money.
 
Quote from jack hershey:


I uses the DOM and T&S to perceive the turn of the exit by using price and its two derivatives as PERCEIVED on the DOM and as PERCEIVED on the T&S.

Thanks for your input on this topic, Jack. I have a question: how do you measure the first and the second derivative of the price (velocity and acceleration)? I've been using the differences between the exponential moving averages for these purposes. For example:

Velocity = EMA(N) - EMA(M), where N < M.
Acceleration = EMA(N) - 2 * EMA(M) + EMA(K), where N < M < K.

What do you use? Thanks.
 
I've noticed that gold has been around 1:2 bid:ask for a while yet is continuing to go down.

Look at the huge number of orders at 1,732.5. Does that mean anything?

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