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This has been exactly what I have observed in the DOM which is why I made an excel dom to track total volume on each side and their ratios. It doesn't work every time but it is a good indication of what is going on. Good post.
Can you help answer these questions from other members on NexusFi?
With regard to DOM analysis, one of 3 DOM trend indicators in FutureScalper is the BBI (Book Bias Indicator).
FutureScalper Theory posits that Price moves toward Price Tiers with greater aggregate Size on the DOM. However, FutureScalper is able to evaluate whether size is "real size" through normalization of resting Size at each DOM Price Level by its Variability.
Think of a quote as "more significant" when it has less variability. This is, in fact, the basis of the concept of "spoofing" that when sizes vary, resting buyers or sellers limit orders are less "solid". A solid quote has less variability, even when we are discussing the aggregate size present at each DOM price level.
So, the interpretation of Size on the DOM is a complex process. Both smaller and larger players' resting sizes are amalgamated in a single size value, at any instant in time. Those aggregate sizes change over time, so that analylsis over a suitable window in time can tell us more about decomposition of size into smaller vs larger players vs Market Maker generated size.
According to FutureScalper theory, a general principle is that "Price moves toward Persistent Size" on higher or lower tiers of the DOM.
This is actually a "work in progress" as R&D extracts increasingly useful information from the DOM ladder itself.
DOM Trend Analysis has nothing to do with actual Trades executed. (That would be Inventory Analysis, or Automated Tape Reading.) DOM Analysis is independent of actual trading. It represents, if you like, Market Makers' positioning in preparation for a future price move, and quote sizes which are somewhat reactive to ongoing trading.
Here is the indicator that uses the ZondorRecorder (.
Zondor is traveling, really curious what he has to say on this. I stopped using DOMBands as I read the DOM when able and can sort-of remember the order flow. …
Both are Elite only by choice of the author, the late ZTR.
Dear ZTR, good day.
As per info of Goldstandard, some time ago you loaded DOM indicator.
I tried to down loaded but for some reasons could not.
Could you inform if it is still available to check it with tick speed indicator.
Thanks.
I've never met someone like ZTR before. He is going thru hell but determined to live, but not only that - he has a positive attitude to boot. Clearly it is "mind over matter" for ZTR, his strength …