Large orders on the DOM - Commodities Futures Trading | futures io social day trading
futures io futures trading


Large orders on the DOM
Updated: Views / Replies:3,506 / 17
Created: by ncsutrader Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Large orders on the DOM

  #1 (permalink)
Elite Member
Lenoir, NC/USA
 
Futures Experience: Intermediate
Platform: NT
Favorite Futures: ES, ZB
 
Posts: 9 since Nov 2012
Thanks: 6 given, 1 received

Large orders on the DOM

I have noticed this pattern on the DOM while sim trading NG. There will be large orders (120-300 contracts) that pop up at certain prices. It seems more often than not that price goes through the level with a large amount of orders instead of away from it. For example, this morning there were 350 contracts for sell at a particular price. When the price hit this level, the orders were not pulled. Market orders were flashing on the time and sales of 30+ (way more than the average order size on the time and sales) contracts wiping out the seller stacked at this level. Is this a known pattern?

It seems like it is best to buy when you see an unusually large number of sellers, and sell when you see an unusually large number of buyers.

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Phoenix, AZ
 
Futures Experience: Advanced
Platform: Multiple
Favorite Futures: CL, ES
 
rubyslippage's Avatar
 
Posts: 76 since Jun 2012
Thanks: 26 given, 487 received


I trade CL and notice this frequently as well. Although I don't use it as an entry signal, if I'm already positioned and there's a price level with this large size showing, I often hold the position until the level is tested because I noticed that either it's real, gets eaten up and price blows through it, or it's a spoof, disappears at the last second and price blows through it. Only on the rarest occasions (usually at a big round number) does large size getting chewed through actually contain price.

I'd love to know what the intended effect of these large orders is because they almost never act as a barrier to further price movement, even if that further movement is only 10-15 ticks.

Reply With Quote
The following user says Thank You to rubyslippage for this post:
 
  #4 (permalink)
Trading for Fun
Canada
 
Futures Experience: Advanced
Platform: Ninjatrader Metatrader
Favorite Futures: Forex futures
 
Posts: 58 since Aug 2010
Thanks: 2 given, 31 received

It means there is a large seller order at that price where the seller didn't bother to use an iceberg order.

It could be a take profit or entry position.

Use technical analysis to guide you, dont enter blindly on those orders.

Reply With Quote
 
  #5 (permalink)
Elite Member
Luxembourg
 
Futures Experience: Intermediate
Platform: Ninja trader, Metatrader.
Broker/Data: NinjaTrader Brokerage
Favorite Futures: FX, CL, GC.
 
yiehom's Avatar
 
Posts: 54 since Dec 2012
Thanks: 10 given, 40 received

What I have noticed on crude as well is that these huge orders act like magnets. No matter if they stop the price or not, price will often blow thru them and retreat, some times for good and some times temporarily before continuing.



rubyslippage View Post
I trade CL and notice this frequently as well. Although I don't use it as an entry signal, if I'm already positioned and there's a price level with this large size showing, I often hold the position until the level is tested because I noticed that either it's real, gets eaten up and price blows through it, or it's a spoof, disappears at the last second and price blows through it. Only on the rarest occasions (usually at a big round number) does large size getting chewed through actually contain price.

I'd love to know what the intended effect of these large orders is because they almost never act as a barrier to further price movement, even if that further movement is only 10-15 ticks.


Reply With Quote
 
  #6 (permalink)
Elite Member
San Diego, CA
 
Futures Experience: Intermediate
Platform: x_trader pro, Excel
Broker/Data: Advantage
Favorite Futures: CL
 
baywolf's Avatar
 
Posts: 47 since Sep 2009
Thanks: 24 given, 24 received

I just replied to another similar thread as to the mechanics of this. The orders on the books aren't actually getting wiped out, the quotes are just shifting faster than your retail broker can provide you quotes. HTH.

Spread Trading

Reply With Quote
 
  #7 (permalink)
Elite Member
Bend, OR
 
Futures Experience: Intermediate
Platform: Sierra Charts, TOS
Broker/Data: TOS, Global Futures/OEC
Favorite Futures: CL, GC, NG, YM, 6E, ZN
 
Tap In's Avatar
 
Posts: 913 since Feb 2013
Thanks: 2,069 given, 1,860 received

I see this phenomenon all the time.

If there are a lot of large orders stacked up on the offer, for example, I am very confident that at some time during the day price will rise and go get those orders. It's usually not a question of "if" but "when". So much so that I have incorporated it into my trading method as bias or to stay in a trade.

These orders are definitely being filled and not pulled. If you watch T&S or Cumulative Delta it is clear that a large number of orders are hitting the offer as price moves up through these levels. Same is true of the bid on the downside.

Spoofers are easy to spot. They don't sit on levels for long periods of time and pull when price gets within 2 ticks. Spoofers are usually behind price movement, not in front of price movement.

I have yet to hear a good explanation for the phenomenon. My theory is that the market makers have a job to do, and when big players want their orders filled the market makers will strategically push price around to eventually get the job done. Once the large orders are completed, price might reverse (if the big players have initiated new positions) or just languish around (if the big players have exited their positions).

Reply With Quote
The following 3 users say Thank You to Tap In for this post:
 
  #8 (permalink)
Elite Member
Netherlands
 
Futures Experience: Master
Platform: Sierra Chart + jigsaw
Broker/Data: S5
Favorite Futures: Rates
 
Posts: 79 since Mar 2012
Thanks: 23 given, 133 received

If you could trade size what would you do?
Sliding in.....hitting out.
Discretion would be wise on entry.
If you are controlling the micro move then it'll go where you want it to.
This behavior is classic MKT to LMT.Basically this is what having control of a market short-term looks like.
Those heavy LMT's will be liquidation on STP's.
Rgds


Last edited by switchtrading; March 28th, 2014 at 02:31 PM. Reason: Clarit
Reply With Quote
The following 2 users say Thank You to switchtrading for this post:
 
  #9 (permalink)
Elite Member
London + UK
 
Futures Experience: Advanced
Platform: Proprietary Analytics
Broker/Data: Multiple broker + Multiple feed
Favorite Futures: Currently European and US equities
 
sands's Avatar
 
Posts: 432 since Dec 2013
Thanks: 223 given, 205 received

The spoofing occurs to push the price to get it to where the HFT's can enter of exit their genuine strategies, as they are only interested basically shaking the tree to make it look as though the market is moving in one direction and then massively betting in the other and effectively roping in as many small traders to profit against. Then when the price moves in their favour they are out with the pennies and job done.

Reply With Quote
The following user says Thank You to sands for this post:
 
  #10 (permalink)
Elite Member
Vinnitsa Ukraine
 
Futures Experience: Beginner
Platform: NinjaTrader, CTS T4, Sierra Chart, TOS
Broker/Data: AMP/CQG
Favorite Futures: CL
 
semoa's Avatar
 
Posts: 117 since Aug 2012
Thanks: 225 given, 189 received


On DOM there was huge offer at 99,55 and you can see huge delta there.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following user says Thank You to semoa for this post:

Reply



futures io > > > > Large orders on the DOM

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Large Traders JohnBly Traders Hideout 10 February 25th, 2013 02:59 PM
Converting unfilled limit orders to market orders toddma MultiCharts 1 January 14th, 2013 10:11 PM
DOM that allows more than 3 profit targets for multibracket orders rowdy Platforms and Indicators 10 November 30th, 2012 10:23 AM
on NT7 - Anyway to make market replay have orders sit on the dom/ move stop loss? Itchymoku NinjaTrader 4 May 13th, 2012 02:50 AM
large orders at key level kalbo Stocks and ETFs Trading 1 January 25th, 2012 07:11 PM


All times are GMT -4. The time now is 06:59 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-18 in 0.14 seconds with 19 queries on phoenix via your IP 54.163.209.109