Why DOM is Deceiving

[thesecrettrader]

Quote from Paulds11:

Hmmmm.. interesting.. "there might be gold in dem der hills".. this general approach may have some legs.. but IMO I still think too much faith in DOM is misplaced

Gottta love MACD, when I first stumbled on it, it had 3 times the impact when compared to discovering Bollinger (no.. not the drink!) as a fresh newb on some price action... "wow look at that!" he said breaking out into song...

"I can see clearly now the rain has gone......"

acv ratio augmented with MACD may require some study....

regards
Paul

Even better..acv ratio (as price trades to size) with a Stochastic signal confirmed for entry by a MACD trigger..works extremely well.

 

[jack hershey]

Quote from buzz:

FS

The majority always has to be "on the WRONG side". There are still so many traders believing a big fat bid means price goes up and vice versa. From time to time I post live trades trading ES. Next time im in ET Chat room I will show you how its done....Im off now to have a few beers, don't waste to much energy thinking about Volume you don't really need it, price will do, it has served me well over the last 19 years or so. Remember volume can also confuse you!.

Buzz

You are right on the mark for front running the "book".

The DOM is verey counterintuitive for making money. Many statements here are out of line.

 

[rickcremer]

Quote from jack hershey:



It is like how jet pilots use propulsion surges to to go places and do things in the flight line.

Would you care to explain what, exactly, a "propulsion surge" is?

This old retired jet pilot ain't never heard about using "propulsion surges" in the flight line. I have used jet engine propulsion (and L=T/D max) to go a lot of places but never recall having surged about in the flight line. <vBg>

Best

Rick

Airline Transport Pilot DC-9, B-757/767 (Retired)
YM Day Trader (Full Time)

 

[jack hershey]

Quote from rickcremer:

Would you care to explain what, exactly, a "propulsion surge" is?

This old retired jet pilot ain't never heard about using "propulsion surges" in the flight line. I have used jet engine propulsion (and L=T/D max) to go a lot of places but never recall having surged about in the flight line. <vBg>

Best

Rick

Airline Transport Pilot DC-9, B-757/767 (Retired)
YM Day Trader (Full Time)

I guess it was a bad example. Sorry.

 

[tyler19]

Hello I have exported my trading pad into Excel. Can you explain to me what the columns labeled LEVEL are that go horizontal.(pictured below)?


My main reason for exporting to excel is so that I can get the ACV Ratio on the DOM. What are the calculations to achieve the ratio?

Thank you!