GOM Ladder vs Order Flow Analytics? | Trading Reviews and Vendors


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GOM Ladder vs Order Flow Analytics?

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Elite Member
Johor Bahru, Malaysia
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: NinjaTrader Brokerage, Continuum
Favorite Futures: FESX, FGBL
 
Posts: 85 since Apr 2013
Thanks: 21 given, 140 received

Both useless


For scalping purposes, I feel both are useless. You need to be reading the actual DOM. I think a lot of people mistake looking at footprint charts and DOM reading are the same thing, but is really night and day.

The footprint chart only shows you what 'actually' traded, it doesn't give you an idea of the 'intent' of the market players.

I give you an example to help illustrate. Let's say you're trading the ES, all time favorite instrument. So the ES goes Boomzzzz, it moves up like 12 tics. And you're thinking to yourself "Man, I missed that run up and now I need to look for quick counter trend short scalp". So you look at your Order Flow Analytics, GOMzzzz Ladder, or Market Delta footprint charts (Or maybe you even have all 3 up!!!), and you're looking for a big ol' block of sell orders to hit that bid, but you wait..... and wait... and wait... and you see nothing.... And then the ES drops a quick 8 tics.... and You're sitting there and you're like... WTF!... how did I miss that?? how come I didn't see any sell side orders on my Footprints? There was selling, just that you couldn't see it clearly on the footprints. There was an iceberg order sitting at those .75s that kept refreshing itself as soon as buyers took it bid. What you saw on your footprint chart was a 2500 lot buy order @ .50 and a 5000 lot buy order @ .75 and your thought to yourself "man the buyers are going to take this higher, I better hold off" What you didn't see was 5000 lots trade @ .75 while the offer was no more than 200 at any one time. The intent of the players, someone was trying to unload a lot of size @ .75 while trying to entice buyers into thinking that the market was pushing higher, and get all the late comers on board.

After switching from footprint to DOM, I come to the realization that looking at Footprint is almost the same effect as looking at RSI (ZZZZZOMG)... I hope I didn't offend too many people here... But man, it's just all lagging data by the time you see it on the the footprints. Who cares about what happened 3 bars ago?

But wait, before you all start your personal attacks on me, I want to emphasize that I'm only talking from scalping perspective, since this is what the poster asked. Perhaps if you are using it for other purposes, like swing trading or long term investing, than yeah, I guess the footprints are useful.

Hope it helps.

Cheers!

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