DislikedHey Pryme, thanks for the vid link. Maybe its a bit of topic,but combining AMT (VP to be specific), and using Jigsaw Tools, a lot of time you actually see the orders being siphoned into the market at a support or resistance zone, and actually see when the market jumps a few ticks higher/lower, suddenly a massive amount of orders get pulled into the system. See the term Iceberg orders. Understanding how retail traders (herds) think, and knowing where they place their stops for both longs and short, institutional (Other Time Frame) traders effectively...Ignored
Hi Springger !
Yes , a high volume or increasing vol. at levels of interrest .. like support or resistance etc.. with price practically going nowhere is actually nothing more then
"absorbing" from deep pockets,
i used vol. as part of my trading in the past .. but vol only adds to a story told thus far , it can and will help in the situation u described i. etc but all
in all . only price matters .. ie if there is a change in behaviour.. ie the supply and demand game.. u will notice this by observing price movement aswell.. i used to
tarde off the DOM , aswell as bar charts with vol.. but as of know iam happy with only bar charts.. and do quite good at . judging the market
orderflow is whats happening behind the curtain and it is indeed good to know the inner workings , but to execute and trade management .. its not neccesary
one can simply judge the market by price alone.. ie. what its cappable to do and what not.. etc..
however to know how orderflow works and what other "informed" traders do with that knowledge , helps one in anticipating and judging the markets action nontheless..
OTOH if one trades purely of the DOM/Orderbook . its crucial to read the orderflow and PA in realtime ...
if one sees that price approaches a res. level.. with a HUGE OFFER side , ie making the market "look" weak .. but actually u see some contracts hitting the BID
but the BID size refreshes and we stay BID at the price.. u can anticipate something is in the making (breakout) .. yes the market looks weak but we stay BID, we
see a refereshing of the BID u should get suspicios and should be ready or be placed allreayd for abreakout to the longside.... as soon as the OFFER size gets
Pulled.. price breaks resistance... and shoots .. up.. and if the momentum of the breakout starts to slow down u should get out.. , thats scalping just using the DOM
so orderflow is essential if u scalp using the DOM .. but if u r trading longer TFs etc.. its not completely necessary , but good if u know how orderflow works and what one might anticipate at certain levels.. and the behaviour at such a level.. etc..