Here's the first spot I would like to consider in my videos.
From technical point of view its a resistance area in a downtrending market (see pic.) - good spot to go short, lets see what can be noted from DOM/TAPE aroun the 66/75 lvl.
Here's the video:
00:00 - 00:45 see how price approaches the top, 1371 trades go off at 66.75 price pokes through to 67.00 and only 33 trade there, around 00:33 we see 1500 flash at the inside bid at 66.50 and then someone sells into the level this would be a first chance to go short by hitting 66.50 or 66.25
from 1:00 to 2:00 i see that selling in the tape and dom is much faster than buying. Selling happens almost immediately, while it takes some time to buy out the level.
6:00 mark - a lot of selling, someone slams 812 agains 66.00 bid and 2000 treade at this level, then look how bids are being pulled from 65.75 - they go from 1700 to 900 this is second cahnce to go short. Same pulling is seen at 65.50
6:10 - 6:30 - pullback, tape turns green, price goes up to 66.25 notice how during this time bids are stacked as seen in the snapshot field. At 6:28 bids are pulled from 66.00 - and active seeling starts, its another place to short, but happened very fast - need good reaction
IF I look at the tape here, I don't see much - its very choppy throughout the video. Only around 6:00 mark it accelerates and prints a lot of red. Bloom, please tell me what do you see in tape in this example.
I took this trade but ended up with 2 tick profit, as i put my SL to BE. Reason I post it here - I want to analize how breakouts work. See pic. It was a breakout of EU low.
Look how during the first minute of the video no one wants to buy - tape is red and accelerates towards the low, DOM prints a lot of sells but small buys (current trades field).
At around 1:16 tape slows down and we see a lot of trading going on against 64.50 inside bid, look how bids below are also being firmed up. IS this someone defending the level, or luring in buyers? Later same thing happens but at 64.75 bid. Tape goes back and forth but mostly red. Then around 3:10 it stops, price touches 64.25, offers being added bids being pulled.
Actual breakout happens at 3:32 when someone slams 1370 contracts against 64.00 bid. Price momentarily follows through. Too fast to enter in my opinion, but any earlier entry i don't see.
First spot i would like to consider today is on the pic. I missed entry there, but technically it was justified (see pic). Lets look if it was justified from the Tape/DOM point of view.
FDuring first min of the video I see how 59.00 lvl is holding towards 1:00 mark it gets broken, andI see a lot of red in tape, looks like someone is buying with limits at 58.50 - 59.00 price levels. Very little contracts trade at 58.25 bid though.
From 00:50 to 1:10 look how quickly 58.50 offer is bought out two times. Then till aprox 1:30 tape stalls, at 1:33 look at 700 offer pull from 59.00 and 300 from 59.25 and later at 1:47 look how bids stack up - four levels below inside bid get on average 400 orders stacked. This is a place to go long definately. Hitting 58.75 offer is the trade.
Look at DOM again around 2:06 - offers are being pulled from higher levels. This is a second spot to go long 1 tick worth if previos would've been missed.
Here's another interesting spot (unfortunately the last one, since i've stopped recording DOM after that and missed all of the ones which came later on)
Price has been trading above POC for some time and the level has been defended.
LooK at the action around 40 seconds mark - 1539 and 1000 print in tape against bids at 59.50 and 59.25 right after that price ticks down to 59.00 but no trades go off there then 59.25 offer gets bought out - go long! At 1:10 same thing repeats but 1 price level higher: no trades against 59.25 bid, 59.50 offer gets bought fast - second chance to go long.
I took this trade because 1464.50 was a local swing high formed on EU session, which price tested during the open and then i saw following DOM actionin the video:
Look how trading is going on around 1463.75 lvl - whenever price ticks up very little trades go at 1464 offer, someone instantly sells through the 1463.75 bid and then fast buying happens against same offer. this keeps on repeating several times. also notice that there are much more offers in dom than there are bids in first three price levels from BBO. Tape is mostly red too. All this favored short.