Working with an Order Book is essential for a deep understanding of the market or markets we are trading. It supports our day trading by providing essential information because it helps us to survive every day in trading your markets, either we trade Future, Stocks or Forex. DOM Bookmap Order Book
- Buying or Selling Pressure
- Order Book Imbalances
- Pulling or Stacking of traded orders
- Refreshed trading volume
- Traded Volume at levels of interest
- Deep insight of the order flow
- Seeing and adopting the information to the historical chart
When I realized the advantages of a DOM my education begun with Jigsaw Trader as an add-on for Ninjatrader 7. Needless to say that at the beginning it wasn’t easy to understand and grasp what these numbers are all about. The real meaning of BID and ASK, etc. It was stress to follow the Order Book when I was trading Nasdaq, Oil or Forex pairs like EUR/USD futures because numbers are flickering and moving too fast to follow and it seems that an Order Book doesn’t make sense at all.
Hold on! Have a look at high liquidity instruments like ES, ZB, ZN, ZF, ZS etc. These instruments for example are providing vital information about the current and future state of the market. That is valuable information you won’t miss the more you study it.
Advantages of DOM Usage
Most traders do not use the DOM for several reasons. The most mentioned reason is that the DOM is of no help when it comes to real trading. Additional arguments come in place like: difficult to read, demanding, too fast, DOM is anyway a “part of the price ladder” and so on.
An advantage of having and observing a DOM on Bookmap™ workspace is evident:
Bookmap™ translates Order Book (DOM) information into its graphical workspace!
This is much easier to read than staring at numbers and watching them flickering.
Let me help you to set up a standardized DOM in Bookmap™ in few fast steps:
- Download my Bookmap Workspace Definition here:
- Follow the instructions “How to install BMCS files in Bookmap™”
- As the file is loaded, your workspace will adjust immediately according to the predefined settings.
- If you have more than one chart open, you can use “Inherit Chart Settings from…” to easily adjust every chart with your origin one.
Standard DOM Comparison Jigsaw with Bookmap
That’s it! DOM Bookmap Order Book
Watch my instructional video:
Additional Informational and Supportive Bookmap™ Sources:
Bookmap Forum at OptimusFutures
Visualization in Trading
Why Confidence Matters