Quote from jsmooth:
For those that trade CL using the tapeâ¦.What type of size do you look for on the DOM during the trading day and how do you react to that? ...I watch T&S, but it seems like that cant give you the real picture because large orders will get broken up into a lot of small trades on execution, so watching T&S really doesnât tell the whole storyâ¦
Actually finished an automated method of doing what you are inquiring. It seeks percentage changes from one price level to those around it. Most of the changes occur but just a "flash" and taken off. Most of these "flashes" happens so quickly up/down the DOM, almost impossible of seeing them, especially during the day session, but my program keeps memory of where they happened, as price gets closer to these areas, at certain level it will buy/sell into or towards these areas going for a handful of ticks. They are most powerful when price is headed to S/R.
But if you are going to day trade it manually, day session is almost impossible unless you trading in direction of trend, it is much easier to do in the middle of the nite when you see volume double of areas around it and can easily snap up 1-6 ticks. But luckily most are sleeping. This occurence doesn't just happen in Crude oil but in several markets but certainly not the currencies.
Trading off the DOM for me is easiest during last 35 minutes of day session in ES, but having a one minute chart helps to show me where trend is.