New to DOM reading, some questions and advice please

[Z2TT]

Hi All.

Trading on the ES500 and Crude mainly.

I analyze order flow on the time and sales. Once the price has reached a certain resistance level that I want to trade, short for example, I now want to use the DOM to give me an extra layer of information.

Here It's hard to find traders who use the DOM extensively, it's not a widely discussed subject.

As I'm new with not much knowledge - this is my take on it so far, so any tips or advice greatly appreciated

My take on it would be, if I was short, I'd want to see heavy selling pressure lined up at the best Offer, giving me extra confidence that if price breaks through resistance, there will be sellers who will aim to shoot it back down or hold it back.

On the bid, I'd like to see lighter buying pressure compared to sellers, as I'm going short and heavy buying interest can shoot the price up.

In terms of the nearest 5 levels on the bid and offer - here is where I'm lost. I'm only looking on the two inside levels at the moment, knowing that the DOM often can and does get spoofed.

Cheers.

 

[murray t turtle]

%%
Having canceled orders sometimes myself, for good reasons, gest way to extended too fast; +that is why I use charts much more...………………………………………………………………………..

 

[Turveyd]

DOM only shows why the price has moved down, outside of tiny scalps it offers no prediction ability that i could see.

 

[sillyw10]

Hi All.

Trading on the ES500 and Crude mainly.

I analyze order flow on the time and sales. Once the price has reached a certain resistance level that I want to trade, short for example, I now want to use the DOM to give me an extra layer of information.

Here It's hard to find traders who use the DOM extensively, it's not a widely discussed subject.

As I'm new with not much knowledge - this is my take on it so far, so any tips or advice greatly appreciated

My take on it would be, if I was short, I'd want to see heavy selling pressure lined up at the best Offer, giving me extra confidence that if price breaks through resistance, there will be sellers who will aim to shoot it back down or hold it back.

On the bid, I'd like to see lighter buying pressure compared to sellers, as I'm going short and heavy buying interest can shoot the price up.

In terms of the nearest 5 levels on the bid and offer - here is where I'm lost. I'm only looking on the two inside levels at the moment, knowing that the DOM often can and does get spoofed.

Cheers.

fairly new here myself..if you really want some feedback on what you are doing then you need to put some time into presenting your scenario for discussion..in short..post pictures of what you are talking about..far too many posters here who just ramble on about nothing and just waste their time..and others if they are silly enough to join in

so ..let's see what path you choose?

 

[sillyw10]

DOM only shows why the price has moved down, outside of tiny scalps it offers no prediction ability that i could see.

how does it show why the price has moved down..everyone knows price moves by buyers and sellers acting..but the reasons why they act are..well..varied..and not published along with the trade!

 

[tiddlywinks]

Here is an OLD thread worth reading, complete with valid links to other (old)threads.

https://www.elitetrader.com/et/threads/dom-acv-and-bid-ask-wall-used-tgether.103293/

Trade On!

 

[maxinger]

Hi All.

Trading on the ES500 and Crude mainly.

I analyze order flow on the time and sales. Once the price has reached a certain resistance level that I want to trade, short for example, I now want to use the DOM to give me an extra layer of information.

Here It's hard to find traders who use the DOM extensively, it's not a widely discussed subject.

As I'm new with not much knowledge - this is my take on it so far, so any tips or advice greatly appreciated

My take on it would be, if I was short, I'd want to see heavy selling pressure lined up at the best Offer, giving me extra confidence that if price breaks through resistance, there will be sellers who will aim to shoot it back down or hold it back.

On the bid, I'd like to see lighter buying pressure compared to sellers, as I'm going short and heavy buying interest can shoot the price up.

In terms of the nearest 5 levels on the bid and offer - here is where I'm lost. I'm only looking on the two inside levels at the moment, knowing that the DOM often can and does get spoofed.

Cheers.

Many traders want to improve their accuracy of trading. They wanted acccuracy close to 100%.
They want to have confirmation and double confirmation and triple confirmation.
So they check and counter check, and they check this and that.
They wait till all the planets are aligned, then enter the trade.


If you surf internet, go bookshops, forums ... you probably will get info on now to read multiple levels on bid and offer. I can see that you are already doing that.
Good luck to you.


After my decades of trading, I can tell you you just need one nearest level on the bid and offer.

___________

 

[Z2TT]

I scalp on the 10s Chart, using order flow and identifying absorption to find an entry, what I want to do is use a quick look at the DOM to add a extra layer of power to my trading, I don't want to stare at the DOM or simply trade off the DOM. Hoping to find a screenshot for example, but simply say finding a resistance level on a sideways market and going short.

Too much confirmation unfortunately can work against you. I'm too a fan of using only the two inside levels but others will mention to use the closest 5.

My take on it is, manipulators are more likely to spoof on the outer levels than the inner two levels so they have time to cancel when they intend not to get filled.

2nd - the representation shown on the outer levels can change while you're in your position, where as the two inside levels give a greater bearing of market sentiment in the then-and-now as you are about to either decide to enter, or not enter. I'm not looking for any secret number games but simply gauging market sentiment using the DOM to add some more power to my plan and wish to see how others use it to learn new things

Thanks maxinger for you words of support, just trying to get my head around it.

Thanks

 

[Turveyd]

how does it show why the price has moved down..everyone knows price moves by buyers and sellers acting..but the reasons why they act are..well..varied..and not published along with the trade!

You can see the buyers and sellers that made the micro move not the reason or the reason why it then reversed and ran up 5pts.

Although on a move down, it isnt caused by sellers its caused by nobody willing to buy.

 

[sillyw10]

You can see the buyers and sellers that made the micro move not the reason or the reason why it then reversed and ran up 5pts.

Although on a move down, it isnt caused by sellers its caused by nobody willing to buy.

glad you cleared that up..some might get the wrong meaning..some use DOM to try and identify when momentum is building up..or flattening out..imo..using DOM without charts is not the best way to use DOM..just my opinion of course!