What’s the value of a traditional DOM? Compare with Bookmap’s Heatmap

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What are the challenges using a traditional DOM? Well, it’s limited only to current market data. Once the numerical values update in the DOM, then the data is lost. We’d have to memorize what occurred at these specific price levels, track if liquidity was pulled, added, or transacted.

But what if we could record all of this activity and graphically plot in on the chart historically? It’d certainly be easier to read, but could also allow for many other insights:

  • We could easily see how long the liquidity stayed in the market and verify if it was pulled, added, or transacted.
  • We could easily spot specific larger players and algorithmic activity
  • We could begin reading the context of the liquidity compared to the aggressive volume, and price structures for both low and high time frames.

Bookmap’s heatmap and volume visualization allows traders to see all of this. In addition, traders can easily spot areas of absorption, exhaustion, and critical price pivot areas.

Moreover, you can zoom out and see all of this phenomena on much higher time frames. Try using the DOM on higher time frames; it’s nearly impossible.

Bookmap-Heatmap-DOM-compare.png


Take a look at a few specific video examples, and share your thoughts!
https://www.bookmap.com/dom_compare/
 
@Bookmap:
That looks interesting, does your platform also support CME level 3 data ? In Trading Technologies TT platform, I can see the position of my orders in the queue (PIQ), does Bookmap offer this data too ?
 
patrickrooney said:
There's quite a bit more in the view on MD Trader than you're showing here.
More...

This post is about comparing Bookmap to traditional DOM's, which basically only displays a snapshot of the current market.
  • What about where traders previously bid and offered? It's hard to recall all that.
  • What about behavior around the BBO? Did they pull liquidity, add it above or below the current price? this gives insight to their intent to trade.
  • How long was the liquidity resting in the book? Is it a single larger player or an algo? Or both?
  • Where's the context with price structure and transactions?
  • What about higher time frames? You can't zoom out and use the DOM on higher time frames. This is a big distinction.
These DOM disadvantages are overcome with Bookmap's Heatmap and visualization.
Click here to see it in action: https://bookmap.com/dom_compare/

Note: Bookmap also connects to TT X_Trader Pro's API, so you can access Bookmap this way as well.
 
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CALLumbus said:
@Bookmap:
That looks interesting, does your platform also support CME level 3 data ? In Trading Technologies TT platform, I can see the position of my orders in the queue (PIQ), does Bookmap offer this data too ?
More...

Yes, Bookmap supports full market depth data, and now Market-by-Order (MBO) data as well. Bookmap also gives your estimated position in the order book queue as a graphical representation in the histogram in data column.
 
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Knowing how the market behave gives me a clearer look of it. Even if the liquidity is pulled the heat map enable to know where there is support or resistance.
 
Hi Cornerstone,

Yes that's precisely right. This is where a traditional DOM breaks down -- it cannot display the not only the liquidity, but neither the price structures, nor the context of the aggressor volume within the price structure and liquidity. In essence, the complete picture of the Order Flow.
 
Bookmap said:
Hi Cornerstone,

Yes that's precisely right. This is where a traditional DOM breaks down -- it cannot display the not only the liquidity, but neither the price structures, nor the context of the aggressor volume within the price structure and liquidity. In essence, the complete picture of the Order Flow.
More...


does bookmap have a programmable order system similar to tt's adl?
 
Bookmap said:
Hi Cornerstone,

Yes that's precisely right. This is where a traditional DOM breaks down -- it cannot display the not only the liquidity, but neither the price structures, nor the context of the aggressor volume within the price structure and liquidity. In essence, the complete picture of the Order Flow.
More...
this is a much better answer regarding the benefits of Bookmap then mine :thumbsup::thumbsup:
 
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