I'm an intraday scalper trading CL and ES (10-25 trades daily) using a DOM to place and manage trades. I'm considering switching to trading directly on the chart. I'm looking for feedback from experienced (>3 years) intraday futures scalpers who've traded on a DOM and directly on a chart comparing the pros and cons of the two methods.
Hi, I trade off 1 minute charts, and do use a number of drawing tools. While having looked at a few platforms that provide trading on the charts I have always felt that in addition to the drawing tools it just added clutter and /or took up space. I would think that it is just a question of which you are most comfortable with and which causes the least distraction from your focus on price movement. But after using charts to trade for close to 40 years before trading on the charts came about maybe using such just doesn't suit me. Giving trading on the charts a try for a week or so should answer your question as best could be I would think.
I prefer using the DOME, I can see when I should hold off even putting in an order in ES/CL when there are occurences of strange volume on a certain price level. It has saved me many more losses than lost profitable trades. Also, am sure you been there when you simply didn't remember about a report coming out, the DOME will have greatly reduced volume as the hedge funds pulling orders. I like a clean chart when I trade and seeing the extra junk on the screen messes up my brain, especially if you doing more than a handful of trades. But, give it a shot, you don't know unless you try it in sim.
Chart trader, there's nothing of value in the DOM anymore, those cummulative #s and flashes don't mean a thing anymore.
I agree. And I have found that using chart trading adds another degree of discipline... a good trade is one where you follow YOUR OWN rules, win lose or draw. Chart trading gives a visual of those rules with none of the near worthless DOM numbers and color changes.
Donna, return that prom dress immediately!!! Trading off the dom just whizzes by my comprehension. HA!!
I have SO been there and you are absolutely right, the sudden eerie absence of liquidity saved my arse on a few occasions I've spent several hours this weekend practicing NT's replay and my experience basically reflects the above feedback. The chart clutter is a bit disconcerting. However, trading on the chart, I had no temptation to trade anything outside my plan. The extra steps of placing orders via the chart seem about balanced by the fact that DOM orders require the dilution of focus because of cross-referencing levels on the chart before placing an order. Thanks for the feedback
dom tells you where you are at. Especially where you are at in line. Someone may come up and say, "Let's get out of here." And your reply may be, "I've waited here this long, and I'm next in line." That doesn't mean it's going to be a good show. You'd get a better idea if it is worth waiting for by talking to the people that are leaving. But before you leave, try to sell your place in line. After all, your time waiting is worth something.