No for bigmoney traders. For beginners and intermediates, they do not know the games played (3 to 4) on the DOM by "big money" traders. As you see here very few know how to read the DOM for any reason much less carving turns. most people cannot even understand the presentations of how to read the DOM. I mentioned what the questions are that have to be answered to rank activity types in the markets. mostly no one knows what is the subject of the questions. The most active parts of markets are the presursors to actual trading. for example stops cannot be used by "big money" at all. At this point you may not know what "cascading" means in markets or even know how to take the measure of cascading. Reading markets has two major aspects: beofre the Present and at the Present. I trade a 100 contracts in the ES. And I use 94% of capital as my standard buying power. I trade on a MAT level with about 10 accounts. Also I am an amateur expert trader. As a consequence I have to know that I know ALL OF THE TIME. The market never sits in one place. It has a bar- to - bar VOLATILITY. So does the trend and it respective SENTIMENT. Most people never "SEE" the operation of the market. As a consequence they never "SEE" the market's continuing offer either. THe DOM and the T&S taken as a combo can tell an expert trader a lot about what is going on. The words you use "huge fill" are not something an ignorant person has to deal with. Most trading is chicken feed trades. My fills are always combo's of chicken fedd coming to me because my 10 accounts "ripple through becoming "active" and the level of buying power is a multiple of the chicken feed. MS here is a chicken feed type trader., for example. Eeach of my accounts take several chicken feed traders to fill the exit half of my reversal; the same is true for the re-entry on the opposite side of the market sentiment. I go through two series of fills to reverse. So I need to fill 100 exits and 100 entries to do a reversal. When I trade on a turn to carve it I have to begin BEFORE the new sentiment side zero's out and price begins to move with my new hold. If I postpone hitting "T" too long my partial fills are less profitable on both the exit and the entry. I trade with a buy and hold strategy. Most do exit, wait on the sidelines most of the time and enter and then just hold briefly based on their pain threshold for placing the wrong bet at the wrong time. Then they do a pain level exit. the DOM dictates the market sentiment through the repeating action of the BBid/BAsk. I am a parasite to that activity as explained in Harris's chart on page 199. and part of my classification is "frontrunning" the market dynamic. I reverse and immediately get "pushed" by the HERD until the segment shows an End Effect which is mathematically determined very precisely. So chance happenings like "accidental huge fills" never happen for two reasons: 1. the right to have a big account only comes to "big money" who has earned the right through a sales and marketing program (this is the purpose of the Financial Industry"). 2. accidents are prevented by pulling orders that are unfilled in the face of sentiment change. (I explained simply the sentiment change measure before for you in this thread) Pulling orders that are on the wrong side of the market suddenly is one of the two most active parts of the market. (The reason is FIFO. FIFO demands that orders on a given limit value beplaced well in advance so they are executed. Orders are pulled in andicipation of sentiment change near the end of a trend segment. As an expert I trade only in the "fast lane" with market orders and no stops (I am too large to use stops). I HIT T when I can still carve on the last tick of a move. I am penalized one tick because of my order type (Market). So what; thus I do not have to deal with FIFO by being in the fast lane. It is best to have your DOM close to the "HIT T button, that way you do not have to turn to look. I remove the turning to look three ways: 1. Placement of panes adjacent ly so I can "sweep them" See the nine tables of my "sweeps chart" thay are in the order of the rainbow by color. 2. I have my screens set to a level by a cabinet maker so I look ahead as the same level at a bay of screens set in a five part arc (White oak (knot free and finished in a Nrwiegian oil blonded color9Memmonites cabinet makers)). 3. I have artificial concentric plastic lens that are concentric trifocals with only a hair line scar on the outside half perimeter. My corneas were removed and were regrown for the outside in ward to be compatible with the trifocal surface changes. Lastlly I condust my plan's strategy with MADA and I never do CW's OODA which is a bet and hope strategy. Big money does not place bets and leave the bet at a time when sent bet sentiment has changed. you query comes down to not knowing how the market works nor knowing how the financial industry works. The CEO of BTL invented a "noise formula" for transmission of information bandwidths. Kelly's formiula is now being misapplied by the FI and "big money" to deal with the "noise" that exists in OODA's bet and hold. OODA is a fighter pilot trading term. There is no noise in dog fights since the world is moving past piloted planes since they "lose". Sentiment changes in dog fights faster then fighter pilots pilot. I do glider piloting without any power but solar power. Because I am old I onlt do acrobatics at a max of % G forces. But I flight strategicallly with out a plan to have to defend myself ever. I have never landed anywhere but the intended place. I fly from market close until after sunset when thermals expire. Each time you ask a question you reveal your talents, your skills, and your knowledge. You have no learning plan and no one to grade your work. As a consquence you have a belief system that is not based upon market or trader knowledfge. Thus you cannot use experience to acquire skills. I do answer your questions on wekends since this thread is an important tooling thread for those who wish to carve the market's offer. trading hold/reversal requires that a person "know that he knows at all times" It is a probability state where the risk and money management have dropped out of the picture. Knowing that you know is a prerequisite for a lot of things. The betting and hoping of CW's OODA has a statistic. (90% of beginners are learning failure primarily). They learn sufficiently to fail with certainty. There was a thread here that died quite promptly. It was on probability. I contributed calls and annotated charts to show what the fat tail of probability is. My calls always were correct and they were displayed to show the OOE's of the five parts of the system of how the market operates. Those with little knowledge and skils could not comprehend my calls and anotated charts. So they did their thing to change the thread and were never seen again. Keep posting and copy my posts, please; then you will have them when they get deleted as a consequence of complainers. and good luck to you.
Successive derivatives (time rate of change and acceleration/deceleration?) of what in DOM compared to what in T&S? Thanks for the reply.
Same. You then have two pairs to compare. this is why I mentioned the Johari windows. cros the signs of velocity and cross the signs of accel/decel for the pair DOM and T&S. T&S is trading, the third most active part of market activity. The first and second most active parts are adding and pulling limit orders (both leading indicators of the dependent market variable price. you can also cross the first and second deivatives of either T&S or the DOM. what you find is a slight asymetry for longs versus shorts in trading. you make money faster on short positions. Who cares since being all in all the time is the most important aspect of making money. The Kelly formula heisted from information theory (at BTL) does not apply to what the uninformed believe is "noise" in markets. As the system design proceeds in learn how markets operate three things (myths of CW) are grdually eliminated; they are: noise, flaws and anomalies. If any or all of these remain the learner or developer is just not finished with the reasoning process. Your market displays are not optimal for viewing markets in the first place. this is caused by tradition and thinking in conflict where tradition is what sells and gets clients and the FI's major source of revenue: sales and marketing.
If something is easy to buy or obtain and hard to sell or dispose ofâ¦.then prices and value will decline. If something is hard to buy or acquire and easy to sell or dispose of⦠then prices and value will increase. â Gerald Loeb
Use a four cell window. On the side place a + at the upper row. On the lower row place a -. Across the top the columns are + to the left and - to the right. Let velocity be the rows and let acceleration be the columns. fill in the cells by using a sine wave of the DOM. Repeat this process for other aspects of things like any two things we have spoken off. Dicovering the operation of the market is fun. you can find all the pieces and then put them together. Today, I am teaching Pekelo how to read a print (elsewhere). Have a laugh. He doesn't know when commissions are charged and he doesn't know whan or what settlement is. Hey Zeus!!!
Ok so I was watching the CL and the DOM today. What is going on here: How are trades occuring above the bid and the ask? If someone comes in with a market buy order doesn't it fill at the ask, and if someone comes in with a market sell doesn't it fill at the bid? How do you sell above the ask?
What kind of imbalances do you guys normally see in the ES? In the last few days I haven't seen more than 13,000:11,000 levels which is like 1.2:1, hardly the 2:1 I hear people saying to look for.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3784452> If I am right, velocity is color and acceleration is increasing decreasing. You have covered extensively on DOM. Thanks. How do I read the velocity and acceleration on T&S? Probably the last question on this subject.