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 -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Is DOM worth using if I only have access to best 5 bid and ask levels?
Hmm, again in my personal opinion, DOM is just one of the new trends in the "tools" market. It will also pass like many did, after having its honeymoon period.
What I'm trying to say there is, not to invest too much time and thought into it if its not easily available to us atm. When it is, sure, we will look into it.
Think of it like this, I feel average number of traders in US making money are probably not going to be far off from what we have in India, of course in % wise of whole. And I've no data to back this up, but just an overall observation on communities I'm part of. Assuming DOM being the new hot thing in the market, I would like to also assume that DOM is something which is used heavily in the US.
So, while it could be misrepresenting of some math, wrong assessment on correlations and wild assumptions on my part, but DOM probably hasn't brought any ground breaking new thing to traders arsenal, so no reason to lust after it.
That makes a lot of sense, thanks! I had one last question, as per my understanding, people generally use orderflow to look at the bid/ask imbalance to see if buyers are more aggressive or sellers are more aggressive.
So what exact advantage does the DOM provide over footprint charts? don't footprint charts also give you the same information (footprint charts show the active market orders while DOM shows the passive limit orders, so shouldn't footprints be more useful when it comes to trying to understand what kind of traders are currently dominating the market?)
And I've seen some traders that use both DOM and footprint together, so what need does the DOM fulfill that footprint doesn't and vice-versa?
No idea what you want to tell us??? As Pete already said, DOM is nothing new, I trade since 15+ years and always have used the DOM, I couldn't trade w/o a DOM.
The DOM contains a number of components - but it's all about the right now - but it's not about looking for imbalances. Like for example - you will almost always see offers stacked at the high of the day - doesn't mean it'll hold, doesn't mean anything really.
It's about pace and volume trading right now.
Like for example if a move is under way and it's all 1's and 2's - there's no interest. If it's all 100's and 200's trading - that is of interests. So (for example) as price climbs and we are seeing good participation, then falls back with low numbers trading - you are safe in your long generally speaking. LTQ column in TTs DOM did that, Jigsaw invented the current trades columns that do it in a way that's more visible - because I couldn't read LTQ and I wanted more like a time & sales within the DOM.
The advantage over FP charts is you are seeing here and now - on the FP, it's very timeframe dependent. Let's say market moved up on strong volume on your 5 min FP, then started to fall back - it would be updating the same values and you'd need to have a trick memory to see that the values being updated are being updated by small amounts vs big amounts. The DOM doesn't have that issue - it's all about right now, and sticking with momentum moves.
Also - it's just a tool, like a chart - it isn't a methodology. Hence different people use it in different ways, the common misconception is that it's for scalpers only.
To a chartist, it is a challenge because it moves up and down (just like the market), whereas charts move left to right and up and down.But the left to right is an optical illusion created by mapping ovet time. It's not that charts are bad but I see prop traders with 30 DOMS and about 4 charts up and flipping between markets depending on where the flow is.
If you have any questions about the products or services provided, please send me a Private Message or use the futures.io " Ask Me Anything" thread
"New tech" there meant for Indian markets, its the buzz right now in the retail world. Just like Market profile was for last decade and order flow is for this. Again talking for Indian market only, don't know about US/EU.
Also, if you are wondering, there is nothing called DOM in the prop firms or large trading firms here.
So the relevance is for the OP just like me since we are from same place. Not necessarily for others.
It's great if you can trade without it, but many people rely on it and some use it exclusively. And a bit ignorant to assume that it's just a new trending tool, it's been around for years.