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@flipper26, Its similar to a point and figure chart. It creates a new bar each time the price reverses by a fixed amount. For example if you set the reversal amount to 3 a new bar will be created whenever price pullsback by 3 ticks. If there is no pullback the bar will continue until there is a reversal. I use it instead of the NT point and figure chart because there are filler X and O's for each reversal. It helps to track the price action movement and better see support and resistance levels IMO.
Just wanted to say great job on this Dom. It is really a valuable tool.
I had a thought about something that might be a value to add . A ratio of standing orders from the bid ask. Example. 2:1 bid to ask. That way at a glance you could see the pressure of standing orders.
Anyways I just wanted to throw the idea out there if you find it interesting great if not no big deal..
Thank you very much for your indicator and your tech support discussion. I'm learning your 1LDOM as well as the GOM indicator using my account with TD Ameritrade (TDA). Attached is an image of my NT DOM, Level II and your 1LDOM. Apparently TDA doesn't provide much market depth for Bid/Ask data or is there a way to adjust that? Also, in comparing the NT DOM and the 1LDOM, the values in the Bid and Ask columns are different. Anyway, I'm just learning about these indicators, trying to decide which time frame works best and what all the parameters in your indicator mean. You made a great indicator!!
@PHXtrader your request is noted. I will see what can be done, at this point I'm a bit stuck for time, I'm buried 10 miles deep in a bunch of stuff with chart controls and I'm kind of in the zone at the moment. When time frees up I will look into it.
@winsor, is it consistently incorrect? Or sometimes, there is differing screen refresh rates depending on settings, they can appear out of synch if one is much faster than the other. If it's not this then i will need to dig a little deeper and see if I can get access to BAC, I've never tried it on stocks so could be some nuance I didn't account for.
This is my first try; so I'll give it some time and I'll check out different instruments. I'll get back to you in a week or so. Thanks for your consideration. I still have a lot to learn about both 1LDom and GOM. I'm reading through all the discussion threads about them.
Yes I find it invaluable myself, you use it for some time and it starts to unlock some real mental doors, for me it helped really to move my understanding of market mechanics to a deeper level. If you watch particular markets on a daily basis you will also begin to build mental liquidity maps which for me are now a large part of what I base my micro trading decisions off of.
The thread is not specifically technical and anything related to using or trading with an order book I would encourage, in fact I would prefer. There is not a great deal of talk of order books in the privateer space and so when I released this it was with the intention of finding some other like minded traders that see the value of it and wish to engage in discussion, by all means please post your observations. I am not an expert by any means but have spent nearly 2 years on the book myself trading every single day full time so I can offer my take or try to provide some insights if it is helpful.
I think the basic and most obvious approach is to find signs of weakness for a possible reversal. trying to show an example what I'm looking for. lots of action on the bid side. but it seams endless demand on that level. you can see that with the ladder:
now with your dom you can see the same thing plus you're able to see how the bid gets filled up again and again. you can see all the trades hitting the bid, but more and more buy orders are added to the bid.
not saying that approach alone will generate only winners. I like to have some more evidence. but it certainly is a tremendous help. also great for exiting a trade.
the first step is like you said to get used to it and observe. and there're lots of other ways to use this great tool.
and here's a trade from this morning using that approach: