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Sierra Charts
% numbers on the DOM? What do they mean and are they a useful trading tool? They change quickly -can you create an indicator with the percentages and then a moving average of that indicator?
Can you help answer these questions from other members on NexusFi?
They are the % of the bid and ask of the level II data, it can be usefull to see if there are more offer or demand. I think is not possible or at least not graphically simple, cos the level 2 data changes continuosly, and the chart need at least a tick to move. Anyway there are already a study called Bid&Ask Depth Bar, that show the change in the level 2 data for every bar, works only in real time. Otherwise there's a study called DOM Data to use with the woorsheet.
Thanks for your help.
I would like to reduce the size (height) of the studies windows so that the price window is the majority of the height on the screen. How do I do that?
aquarian, they show you just what the DOM would show you, except on the chart. I recently came across "jtRealStats" for any NT user which does the same thing and more. IMO it's marginally useful. Resting contracts on the DOM don't mean much, because those contracts can be pulled and are often done so in lightening fast fashion by automated trading systems. I used the DOM yesterday to observe that as the trade moved in my direction, some of the contracts on the opposing side were removed, and this was helpful. But otherwise, I don't really use the numbers, and I have found on my chart that I will use them at levels of high interest (like the high yesterday in crude oil), but it was more of a novelty to observe than an actual benefit. You're looking at potential orders, not placed orders--better to use speed of the time and sales IMO.
Thank you very much for your reply.
You get to the heart of the matter ("more of a novelty to observe than an actual benefit.) which is do these numbers really mean anything useful to the trader. With your reply I recall a video in which an educator/trader was showing how he manipulated DOM numbers to lure buyers/sellers into his trade and then pulled them. (He used this just before opening) "if you see this its probably me fishing for orders.."
So do you use "speed of the time and sales" and if so how (not giving away any secrets please)?
Do you have a link for a T&S indicator for NT6.5?
(I currently use NT6.5 free version -for graphing. I was impressed by the comments of SC robustness by SC users after the SC webinar and I am slowly trying to transition over to SC for one feature I saw on the video - the idea to run both concurrently until I have figured out SC. NT6.5 crashed again the other day - and these are warnings to me to switch.)
I looked at the old chart posted and then went to see what happened.
(I'm not sure about timing because on day four of "my journey to SC" I figured out how to get the time to be CT - set the time zone onto the data feed of IB)..
My (tentative) conclusion: - perhaps its worth a pt or so to the nickle and dimers -not of real interest to me - but perhaps it will beginning of the path to fortune for s.o. else?
I just did this video today for another thread where I examined what appears to be programs trading, maybe HFT, from last Thursday on oil. Notice particularly around the 6:00 mark where it looks like it has a purpose. Alas, I cannot explain what the algorithm is doing for sure.
I have had many issues with NT7, but the DOM in particular, while it has its issues, is the easiest to use from what I've tried and its integration with chart trading makes it the best option for me. I briefly used SC for a week or two and while I fell in love with it quickly, it was mostly the DOM that turned me off for some reason. Also, something about the way it uses templates or something, that I never quite connected with...? At any rate, you must use what works for you!
I have not used NT6.5, but in NT7 I just click File->New->Time and Sales and it brings up the window. It's nothing magical and many people use it. It just shows every execution that took place. Due to the way the CME does things now (at least with the emini indices like s&p, nasdaq, dow), t&s is no longer reliable for seeing "large orders" because one tick does not necessarily equal one market order, as it used to (say, a market order to buy 100 may show up as 100 ticks of 1 contract if there are 100 separate limit orders to match it with, or it may show up as 1 tick of 100 contracts if the next limit order in the queue is for 100 contracts). However, you may see a large number show up, in which case it was a large order. But the absence of large orders doesn't mean there wasn't one.
So, I use it more for momentum... there's no trick to it, and I have a lot to learn. Basically, does it show activity, or is it meandering? Was there a quick flurry of orders when a particular price was traded to? Does the overall pace of orders flowing by increase as we approach a key level of interest? After a breakout, is there follow through with buyers or sellers taking it further, or at least, the other side not pushing back? Price will tell some of the story, but there can be a flurry of activity with price not budging a tick. I would advise just being mindful of it and watching it, and see if it helps. Many people don't use it because they glean no useful information from T&S and find it distracting, but some do, just do what works for you. In the above video near the end I discuss a trade I took on the breakout and you can see how the T&S gets very quiet near the breakout point, and then a quick burst of orders, and away she goes.
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