Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- discounts are available after registering.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
For those trading purely off the DOM: How do you differentiate between aggressive price movement that signals true momentum (likely continuation) and aggressive movement that's actually an exhaustion spike about to reverse? What specific cues in the order flow, liquidity changes, or pace of the tape help you make that distinction in real-time without chart context? Looking for specific DOM observables. Thanks.
Look at Ask / Bid imbalances for tip off. If there is no obvious imbalance (30% difference), Fade the Move. If it's an area of breakout and there is a strong imbalance, take the trend.
I look more at the chart for these, but on the DOM is would be a heavy tape movement that isn’t fully continuous and surges then pulls back a bit (momentum & continuation) versus a sharp movement thats more deliberate and quick
