4.2.1. Live Dom Indicator

LIVE DOM INDICATOR ( part of PACK 2):

 Live Dom is the histogram indicator for  passive / waiting/limit orders on Level 2  

Live Dom indicator helps to detect real-time orders :
- waiting for a while,
- Newly added
- Pulling and Stacking Orders 
- Liquidity levels
- Support and Resistance in real-time 

What's the Live dom?

 LiveDom indicator is a Depth of Market (DOM ) indicator that accurately displays the highest quoted bid and lowest quoted offer for a given asset at any given time (also called the best bid and ask, BBO, or simply the spread).

Live DOM refers to passive, limited orders placed ahead of time and awaiting execution at the current price. 

The Last Dom histogram represents a collection of orders above the price line (sellers in red) and below the price line (buyers in blue or green). 

The histogram displays the total volume of orders waiting at a particular price line. The more volume, the longer the red or blue line is. Shorter lines represent less total volume.

• Bid in red - resting sellers' orders on level 2
• Ask in blue or green - resting buyers' orders on level 2

Resting orders are placed ahead of time by "Limit Orders" and wait until the price moves toward them. Resting limited orders get activated by the market with aggressive side orders.

Orders interaction between the Aggressive and Passive sides of the market:

• An aggressive buy order is matched with the passive, resting sell order below the price line. 
• An aggressive sell order is matched with the passive,  resting buy order above the price line. 

The LiveDom indicator helps make trading decisions easier and faster.  Livedom is a better representation of SuperDom.  LiveDom is quicker and consumes fewer computer resources than the SuperDom indicator. 

PULLING AND STACKING ON LIVE DOM

Pulling and Stacking refers to the actions traders take to adjust their limit orders within the order book. Pulling and stacking refer to the movement of liquidity, which involves the number of buy and sell orders in the order book at a specific price level. Pulling means removing or decreasing liquidity, while stacking means adding or increasing liquidity. These actions can signal potential price movements and trading opportunities.

PULLING liquidity is the process of removing or decreasing orders at a specific price level in the order book. It suggests a lack of interest or confidence in that price level, potentially indicating a weakening of support or resistance. 

STACKING liquidity is added or increased at a specific price level in the order book. It suggests a strong interest in that price level, potentially reinforcing support or resistance.

Pulling and stacking are analyzed separately on the bid (buy) and ask (sell) sides of the order book.  Pulling and stacking actions provide insights into the intentions of market participants, revealing changes in buying or selling pressure and market sentiment. 

Pulling and stacking can be used to anticipate potential price reversals or continuations. It is beneficial for scalping on a short-term trend momentum.

• Pulling is the act of removing orders, and it creates a vacuum on the side from which it is removed.
• Stacking creates pressure from the side to which it adds orders.  

LIVE DOM PULLING STAKING TOTALS

Time in bars:
Totals provide a quick summary of the number of levels you want. On this diagram, totals are calculated for 14 price levels (30-second timeframe for ES and NQ  example)

When you need a visual assessment, there is no time to make calculations.

Totals provide a quick snapshot of the situation and market sentiment.

Reset:  Totals reset after a designated number of bars to keep the situation current. 

You can configure a reset on 1 or 2 bars, depending on current volatility, for example. 

Totals pulling and stacking are great tools for scalpers and momentum traders. 

Strategies based on Level 2 indicators that include Live Dom, Past Dom, delta 2, Pulling and Stacking, Big Trades

LIVE DOM VIDEO + PDF MANUAL

Manuals / Instructions / Explainer about how to set up Footprint:

1) Download PDF Live Dom Manual