A fine ETer pointed me to the depth of market ladder view and possibility of trading with it, and pointed me to no bs day trading on youtube for discussions of it. Example: Fascinating stuff, especially what he says about the true traders at prop firms and what not not really looking at charts but all using the DOM ladders. I'm curious what everyone thinks. I'm not sure I've seen using to DOM to trade really discussed to any significant extent. He doesnt say he never uses charts or that they can never work, but he seems pretty critical of their predictive capability. As a side question, its fascinating to hear the games tbe big players play trying to make other players "puke out". Sell hard into the bid, keep pressing price down, start getting past the support and hitting the stop orders, which triggers more sales, sales compound and at this point the persons who started the whole thing start covering and buying at the much reduced price lol. My question on this front - he makes it sound like 90% plus of the volume in the markets are big players playing games like this - he talks about these same games in the several videos I watched. I guess I had always envisioned almost the opposite - like 90% of the volume was from persons that did not have the power to or were not otherwise inclined to play these games - mutual funds just trying to invest their holders money, retail, etc., and that the remaining 10% were these big players trying to play these games, and maybe trying to make money around these large mutual fund type investors by trying to get in front of them, for example. What do yall think is closest to the truth? Does it vary among markets? I would think it would have to. I suppose to the extent the markets are in essence controlled by these huge game players who use their giant size to move the markets in their favor it would make it that much harder to win! Thanks!
He is selling trading education, not sure why you would take his words seriously without doing research first. Lots of people trade big money using DOM or charts or fundamentals. Yes it works if you can make it work. Like charts. Like fundamentals. Given that the first caption I see on their site is "Live webinar - Real trading. Real money. Participants see how order flow strategies are executed in a real time live environment." why don't you pretend to be an interested client (you probably are..) and ask for full recordings of say last 2 weeks (perhaps with audio muted out so no "paid secrets" are revealed) and you can see how they trade and if profitable or not. Cut through the BS straight to results see if they can walk the talk. As for him saying traders using only DOM at prop firms is BS. He is talking about those shops that sell/train/churn traders and they typically teach predominantly DOM yes that is true. Real traders in real prop firms they with all kinds of indicators, charts, fundamentals.
Many thanks QuasWexExort! No, I am NOT paying for any education on this, the very helpful ETer just pointed me to that to kind of get up to speed how it works and some considerations around it. Good to know it does get pretty widespread use. In my mind, a ton of what shows up in the DOM (the inside numbers at least) gets carried over to the charts, so they are just different representations of the same data. But I think where the DOM might have an advantage in its favor in at least one area that my watching it you can see how hard the bids and asks are getting pounded when its occurring - I don't think that will get carried over to the charts in true form. Thanks!
There's a thread here on ET titled "Market Depth Patterns" or something like that, plug "market depth patterns" into the search you'll find it. There's some very interesting stuff in there about scalping and DOM.
^^ Thanks! Love coming across additional content by Jack. The depth of his understanding of market structure, trading and willingness to share is quite unique. Another thread in the same domain. https://www.elitetrader.com/et/threads/what-kind-of-techniques-do-heavy-scalpers-use.91543/
Doesn't really give a look into the future, maybe 20seconds as orders change, get cancelled, get filled, more come in on either side. I'd say it's useful only for news related really fast price movements big 1's, where you want to jump in and use the DOM to time a sellers are growing time to take profit and also justify entering part the way through the move ( like 10seconds into )
The DOM shows both trades done and trades yet to happen. Charts only show trades effectively executed.