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Colorado, US
Experience: Advanced
Platform: NinjaTrader
Broker: AMP, CQG
Trading: e-Mini S&P & Treasuries
Frequency: Daily
Duration: Minutes
Posts: 92 since Jun 2011
Thanks Given: 101
Thanks Received: 60
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I realize I'm a little late to the discussion but as someone who has recently completely discontinued using charts in favor of the DOM I had to comment.
In reading through this post it's pretty clear that y'all want to convince yourself the DOM is useless but guess what? You're completely wrong. That is, unless seeing that orders have dried up at a certain price is useless but I don't think you could find anyone to agree it is.
My only reason for this post is to let anyone new to the DOM know that what they have read prior to this post is only the opinion of the person posting and absolutely should not influence their opinion of the DOM. These well intentioned people obviously do not understand how to use the DOM and you would benefit from ignoring them entirely to do your own investigation into the value of the DOM.
Charts can only show you what has happened in the past. And, since you cannot trade in the past it would benefit you to use something that shows you the present like the DOM (make sense?). Someone can show you where a support/resistance level held to the tick and someone else can show you where it completely failed. Lines on a chart can only be used as a reference and nothing more. What you see on a chart is nothing you can't see while watching the DOM. When price is selling into the offer and the offers dry up, it's not moving anymore and that's as clear as day in the NOW, not the PAST.
I could go on but if you're new do yourself a favor and look into the DOM yourself. Decide for yourself because in the end, you'll only have enough confidence to pull the trigger anyway if you did the legwork.
For reference, 'watching the DOM for a while' shouldn't be anything less than six months before making a decision and I'm pretty sure nobody who has posted in this post prior to me has done that. I can tell by their opinions.
Best of luck!
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