Order flow basics - What is the DOM? Why is it useful? What do the numbers mean?

Part 1 of this video covers the absolute basics of order flow. It explains what is shown on the DOM (a.k.a. depth of market, ladder, order book, depth and sales). Many new traders want to learn more about order flow but they don't even understand the basics of limit orders vs market orders, uptick/downtick, why price changes, etc. Part 1 explains all of this in great detail and after watching it, you should clearly understand what you are seeing on a DOM.
Part 2 explains why the DOM is useful.
Part 3 explains the impact of unnecessarily giving up the bid/ask spread
Experienced traders who understand the DOM and price movement may want to jump straight to Part 2.
Intro
04:11 - Part 1 - The Basics
42:55 - Cumulative volume profile
46:45 - Placing orders
55:20 - Part 2 - Why is the DOM important? How is it helpful?
1:23:11 - Part 3 - Giving up the bid/ask spread and its effect on P&L

Пікірлер: 319

  • @broker7781
    @broker77815 жыл бұрын

    I am a full time order flow trader and I found your video one of the most useful, clear, to the point video around. good job and thank you very much!

  • @PeaceNinja007

    @PeaceNinja007

    Жыл бұрын

    Hi I’m new. Is it possible to trade completely on order flow and without the use of charts ?

  • @ro542

    @ro542

    10 ай бұрын

    @@PeaceNinja007yes

  • @karthikeyansrg2370

    @karthikeyansrg2370

    6 ай бұрын

    ​@@ro542Hi Brother, Can you suggest Any free platform DOM!

  • @willywhite9633
    @willywhite9633 Жыл бұрын

    When the student is ready, the teacher arrives. This is where I'm at, going to the next level and you explained this so perfectly. I'm gonna be watching this video during the sessions for the next few days

  • @sajrobyn
    @sajrobyn10 ай бұрын

    The BEST video on reading the DOM and understanding order flow I have ever seen. Thank you so much for the information.

  • @billa7687
    @billa76876 жыл бұрын

    This is by far the best video I've seen on order flow, great job

  • @Reloadeez
    @Reloadeez5 жыл бұрын

    This video is pure gold. Don't listen to people who dog this trading style. Go look at high volume large trader setups and see what they are monitoring on their screens, it's not 15 charts with a million different indicators that looks like my kid finger painted it. They are watching depth and order flow. I know the use of automation and algorithms has changed the game some, but there are things humans can do that they can't. They can't process the broader economic and commercial landscape. also would like to add that this takes a shit load of time and commitment to learn.

  • @carljustinemosquida9614
    @carljustinemosquida96143 жыл бұрын

    The youtube algorithm must recommend this for all new traders. This video is a hidden gem. Thanks for sharing your knowledge.

  • @user-lz2xf6mm4w

    @user-lz2xf6mm4w

    Ай бұрын

    I know right!

  • @benjaminchia8202
    @benjaminchia82027 ай бұрын

    New futures trader here. No idea how this video could get so few likes and views since 2016!!! THAT'S CRAZY!! Kudos to the video and thanks for the work

  • @jasonscott4621
    @jasonscott4621 Жыл бұрын

    My imagination is fulfilled, I always thought that there was something more. Thank you, and God bless you. I learned a lot.

  • @EthanNoble
    @EthanNoble5 жыл бұрын

    Excellent video. This is timeless gold. Thanks so much

  • @ajayvallab
    @ajayvallab5 ай бұрын

    This is pure gold. So very well explained. Thank you !

  • @martinhabib8203
    @martinhabib82037 жыл бұрын

    Simple & elegant, a very effective explanation to the complexity of order flow. THX John!

  • @leetrevino8022
    @leetrevino80223 жыл бұрын

    I almost feel like I am trading blind without the level 3/depth of market. I love having it and seeing all of the resistance and support levels before everyone else. great video and information.

  • @maxwellmccloud5325
    @maxwellmccloud5325 Жыл бұрын

    Wow. This really opened my eyes. Thanks for making this.

  • @jessyopoku3458
    @jessyopoku34589 ай бұрын

    HALF way through and I'm already satisfied, Thanks Boss!

  • @GOLDROGER-xt3bx
    @GOLDROGER-xt3bx Жыл бұрын

    I will watch this video 3-4 times will make notes Because i think i found the right lecture Thanks sir , not found any body who explained in such detail dom

  • @comathisen
    @comathisen Жыл бұрын

    Amazing video, by far the best one that I have seen on the DOM. Many thanks!!

  • @johny-ip3sl
    @johny-ip3sl6 жыл бұрын

    Great intro into the fundamentals of using a DOM. Overall, well constructed and one of your best videos.

  • @javier33133
    @javier331337 жыл бұрын

    Thank you for taking your time and making this excellent video. I needed it to understand better how supply /demand interact in the market. Great job.

  • @unknown-lg9jj
    @unknown-lg9jj4 жыл бұрын

    Tons of eye opening revelation from this noisy technical world.. god job sir

  • @bmrao
    @bmrao7 жыл бұрын

    Excellent details explanation. Appreciate your time in sharing this video. Thanks John!

  • @ilarioengler7003
    @ilarioengler70033 жыл бұрын

    thanks a lot for those great explanations and offering this lessons for free!

  • @mouhcinewakach5036
    @mouhcinewakach50362 жыл бұрын

    Best video about the order flow, thank you so much.

  • @davekoehler1125
    @davekoehler11254 жыл бұрын

    Thank you for explaining this in such clear detail. Great video!

  • @ratsword200
    @ratsword200Ай бұрын

    Such a good video to explain how to not only read the DOM chart but also great tips to improve trading using order flow. Thank you for your creating this video

  • @jeffbrown6880
    @jeffbrown68807 жыл бұрын

    Great explanation, with plenty of detail. Thank you.

  • @BNNNB
    @BNNNB7 жыл бұрын

    this video is packed with info. Going to be watching this video a few times for sure. Thanks!!

  • @InnovationPro
    @InnovationPro4 жыл бұрын

    Simply brilliant! As knowledge is power, thank you for empowering the people who want to realize their dreams.

  • @mylove1618
    @mylove16184 жыл бұрын

    This is One of the best videos I have ever seen on trading . Amazing detailed explanation. Good job

  • @SteveSlavin
    @SteveSlavin6 жыл бұрын

    I came upon some of your videos on KZread about order flow and I thought you did a great job teaching and explaining. Your website has some of the most refreshing, honest writing I've read in a while. There's no magic way to riches trading markets and it's clear you work hard and continually learn and adapt. More videos please -- love 'em. Nicely done, John

  • @bammylarsen1260
    @bammylarsen12606 ай бұрын

    🤠 This is the best teacher on DOM out there no cap. I repeat the BEST.

  • @kin-c72
    @kin-c72 Жыл бұрын

    Thank you for a great video. I was worried that I found you so late as the video was made in 2016 but with all the recent comments, I know that this video is still gold. Thanks again and I am off to your website to gain more knowledge.

  • @BeGoodNow5
    @BeGoodNow5 Жыл бұрын

    You've done me a great favor, I now understand it. Thank you.

  • @JayJay-tb2rc
    @JayJay-tb2rc Жыл бұрын

    BRO THANK YOU SO MUCH- ive been looking for a video that ACTULLY EXPLAINS THIS in a very simple way. i need simple. ur very talented and will definitly take any course you have. this content is amazing !!!! plus its free !!!! wth

  • @erikjon8432
    @erikjon84324 жыл бұрын

    Awesome video...something new I just learned and Happy New Years!

  • @drawn01
    @drawn012 жыл бұрын

    Excellent video. Thank you for taking the time to make it.

  • @sithtrader7021
    @sithtrader70215 жыл бұрын

    Well said Sir, thank you for your explanation of the order book.

  • @thousandlocks3258
    @thousandlocks32585 жыл бұрын

    Thank you so much. This is what I've been looking for.

  • @drkushal6032
    @drkushal603210 ай бұрын

    Very well explained. Thank you.

  • @zhiqiangzhao4412
    @zhiqiangzhao44127 жыл бұрын

    fantastic introduction to order flow and market mechanics!

  • @grant4458
    @grant44587 жыл бұрын

    This is such an excellent video thank you for taking the time to do this.

  • @Ganesh-Kannan
    @Ganesh-Kannan3 жыл бұрын

    Excellent video, and thank you for sharing this great education material with us.

  • @LightningTrader
    @LightningTrader7 жыл бұрын

    This video is Well Explained for anyone wanting to learn Order Flow

  • @tomanz368
    @tomanz3683 жыл бұрын

    Newbie here, and thought instead of relying on indicators which only shows past and average, being able to read DOM is much more beneficial, but I could not find any good videos that explains DOM for beginners. This video was perfect for me who does not know anything about how DOM works. Thinking about buying your course.

  • @sukhmaidickoff
    @sukhmaidickoff Жыл бұрын

    I´ve been working a lot with trading based on EMA-cross-overs. I think I might be able to add a dimension to that by also looking at the orderbook / ladder. Great video by the way - explained in a very down-to-earth manner. When I first saw the ladder in a trading-platform i said to myself: "I will never learn to understand what that shows", however now it makes more sense

  • @ca_life4915
    @ca_life49154 жыл бұрын

    the Best explanation ever seen! Good..!

  • @QueDeussejaofoco
    @QueDeussejaofoco Жыл бұрын

    Thx a lot From Brazil 🇧🇷 Part 2 pls haha thx man God blessed you! I try find this information on internet I only find you! So pls keep doing this videos! 🙏

  • @maca3930
    @maca39302 жыл бұрын

    Quite frankly, I wish I had learnt this 13 years ago! - This video is gold dust!.

  • @shanshan-wj7of
    @shanshan-wj7of6 жыл бұрын

    very clear, explain in details. thank you so much.

  • @bobcolorado3491
    @bobcolorado34916 жыл бұрын

    This video should be included with the Jigsaw software. Great job John.

  • @WhateveriwanttowartchYT
    @WhateveriwanttowartchYTАй бұрын

    Loved the yt video even though it’s 7 yrs old, and how you covered the chart to make us use our brains. Hope you keep making yt videos🙏

  • @thedaytrader2841
    @thedaytrader28415 жыл бұрын

    Thanks mate stand up the level of order flow traders

  • @popemartinfrankenstein7301
    @popemartinfrankenstein73017 жыл бұрын

    Great explanation and info on a needed topic. Thanks for NO BS man! :D

  • @jasonjohnson6216
    @jasonjohnson62165 жыл бұрын

    Wow!!! Thanks john, can't thank u enough for explaining this, really means alot

  • @andrinratiste6756
    @andrinratiste67567 жыл бұрын

    John, thanks for this very good video about order flow! Great work man!

  • @romansergeychik9565
    @romansergeychik95655 жыл бұрын

    Pure gold. Thank you!

  • @AsiaStreet365
    @AsiaStreet365 Жыл бұрын

    Very good information, this can be part of my edge I think.

  • @TheLoneComic
    @TheLoneComic6 жыл бұрын

    Appreciate this video a lot. Really helped explain DOM as well as the added value of explaining trade mathematics saving you money at the end. Recommend animating the DOM logo with a climbing/descending stick man indicator. The LC

  • @TKO47
    @TKO476 жыл бұрын

    Best DOM video ever

  • @EGTGUY
    @EGTGUY Жыл бұрын

    Great video No BS! Very informative, especially the paused orderbook explanations. I will deffo try apply what you show. I have an OB platform, and have been watching the MES for 2 months now, but despite this and the multitude of videos about it, you literally have to be a machine to be able to meaningfully enterpet and react to the continuous movement at the tick level. It's almost impossible to make snap judgements on direction despite the ever changing numbers in the book.

  • @oscarcuban1319
    @oscarcuban13194 жыл бұрын

    Good stuff .... most excellent explanation .... much appreciated

  • @gerardofierro379
    @gerardofierro3796 жыл бұрын

    Great work!!! I been using the matrix in Tradestation to strengthen buy and sells and been looking for videos to learn more...just subscribed to you

  • @DrissArfal
    @DrissArfal6 жыл бұрын

    Many traders does not consider Super Dom, or DOM, as an usefull tool, but I think it's very usefull. Not enough to trade, but helps to improve entrances and exits.

  • @timbo337
    @timbo3376 жыл бұрын

    Very helpful video. Thanks.

  • @SpiTukas
    @SpiTukas6 жыл бұрын

    OMG. You are a star man !!! Very informative video.

  • @geoffreykivuva4055
    @geoffreykivuva40553 жыл бұрын

    I am here De2020. This is the best of the best

  • @trader819
    @trader8194 жыл бұрын

    JOHN CFU!! Very lucky to discover your training and i hv improved tremendously!!

  • @UnkDrefinest
    @UnkDrefinest Жыл бұрын

    I appreciate you this is great information, Thank You 👌🏾

  • @vuknuk
    @vuknuk2 жыл бұрын

    GOLD. Thankyou so much. You rock

  • @SumitSingh-tv4xu
    @SumitSingh-tv4xu5 жыл бұрын

    Great Job @Nobsday trading.. Market Depth was greek to me before watching this video THanx to u i think i can understand it now

  • @nettube37
    @nettube37 Жыл бұрын

    Great video and very explicative. I have been studying for the last 12 months Technical analysis mainly understanding wavecounting with Elliott wave theory. I still feel I'm missing something when I do a wave count and and then in order to take a position on a trade. When is the best time to enter, etc.?. What a dilema! Now after checking out Order Flow this seems to be the missing link I needed to be able access the market geometry and the order flow mechanics to take a far more probabilist view in taking a trade. Now I have a far better understanding of how the market works with the order flow and how it effects the daily positioning of the market and when best to enter and exit. Can't wait to view the 2nd video. Thank you

  • @davidplyler8173
    @davidplyler81732 жыл бұрын

    Excellent sir !!

  • @machotoejam
    @machotoejam4 жыл бұрын

    amazing instructor - thank you!!!

  • @lockdown24v74
    @lockdown24v744 жыл бұрын

    Thank you very much for this video. It was very very helpful. I found you through chat with traders the other day, and great interview btw.

  • @NoBSDayTrading

    @NoBSDayTrading

    3 жыл бұрын

    Thanks. Glad you enjoyed the interview.

  • @creebuddha
    @creebuddha18 күн бұрын

    I paid $1300 to learn this n u just taught it in 1 video iAppreciete the extra understanding and depth of bid and offer n the terms you've taught me

  • @jutublizard

    @jutublizard

    14 күн бұрын

    1300?

  • @guyredares
    @guyredares4 жыл бұрын

    Thank you, very well explained. In reality these numbers change so quickly it is really hard to follow what is going on

  • @NoBSDayTrading

    @NoBSDayTrading

    4 жыл бұрын

    This reply should answer many of the comments. The more you watch, the more skilled you become at following the activity. You obviously cannot track every single change in volume but the idea is to follow the more noticeable changes and see the liquidity as a whole. We are not just watching the bid/ask even though there can be useful information there. We are also watching the actual volume transacting and how those transactions are affecting price movement. Many new traders miss this point. They think it's all based on watching the bid/ask and then say the numbers change too fast or there's too much spoofing so it's useless. They do not realize that the core information is actually the number of contracts trading and whether there are a lot of market orders executing (faster periods) or whether everyone is trying to work limit orders and not pay up/down (slower periods). When things started to get volatile in late February, you could clearly see the liquidity disappearing in the order book. This was a signal that the markets were most likely going to get even more volatile in the following days. It's an extreme example but a good one nonetheless. These changes in liquidity are normal throughout the year and being aware of the changes can be very helpful when implementing strategies (or when deciding to maybe stay flat and not trade at all). You also see these changes during number releases (employment data, retail sales, GDP, etc) or during notable news events such as an announcement about oil production. The imbalances in the treasury markets are often very clear. It's something which separates them from other futures markets and one of the reasons I primarily trade them. The ideas apply to all markets but every market obviously has its own nuances so adaptation is necessary. These concepts do apply to stock trading as well but, again, it takes some adaptation. The point here is that there's no reason to not look at the order book if you're day trading. The information is available so why would a person not want to incorporate it into the decision making process? The majority of technical analysis indicators are made using the information which is first in the order book. Indicators look at the amount of volume trading along with time and price. This information is extrapolated and turned into graphics (charts, moving average lines, bands, etc.). So why not go to the source material?

  • @fromnorthindia3862

    @fromnorthindia3862

    4 жыл бұрын

    No BS Day Trading thank you

  • @momomimi5853
    @momomimi58533 жыл бұрын

    Excellent video thank you very much indeed but not easy to digest in one go this has to be seen more times to be able to make it stick so to speak but more videos of the same will help more enrich our technical brain. much appreciated.

  • @vansolo9794
    @vansolo97945 жыл бұрын

    People who do not realise the DOM benefits are usually the indicator gang that believe in lagging information is of benefit to them. The DOM is the heads up of trading as it is real time information. Some of this stuff can be a bit confusing so they do not bother and make pathetic claims about its usefulness. These are the people I trade off...they are the ones filling my positions !!

  • @NoBSDayTrading

    @NoBSDayTrading

    5 жыл бұрын

    You are also being filled by institutions as they are involved all day. It's not just retail traders. The majority of volume is from banks and large principle trading firms. I have another video called "Sharks (Facts/Myths)" which is about institutions trading against one another. It's a presentation I did for futures.io. Worth watching as well. kzread.info/dash/bejne/oIV5y6h8mbuegdI.html But yes, the order book is always a useful tool and anyone trading for a firm will attest to that.

  • @whereintheworldisbrennan3363

    @whereintheworldisbrennan3363

    5 жыл бұрын

    Yep. they're using descriptive stats for predictive purposes which doesn't really work when you're looking at a chart.

  • @leone1995

    @leone1995

    4 жыл бұрын

    @@NoBSDayTrading Hello ... thank so much Sir Sorry I am using mt4 , where I can find this order book for free please ?

  • @KLiCuk1
    @KLiCuk16 жыл бұрын

    Thank you - excellent content

  • @anhvunguyentran
    @anhvunguyentran Жыл бұрын

    Very helpful. Many thanks. :)

  • @MrAzizHaque
    @MrAzizHaque7 жыл бұрын

    Simply awesome!!

  • @johnle9143
    @johnle91437 жыл бұрын

    beautiful video and thanks for contributing your knowledge to trading community.

  • @JcMrry
    @JcMrry7 жыл бұрын

    Great video thanks very much John 👍👍

  • @ZM-xf8yy
    @ZM-xf8yy4 жыл бұрын

    Very informative. Good video. 👍

  • @bangkokskater
    @bangkokskater5 жыл бұрын

    wish had started watching this since beginning... gj

  • @dvs7440
    @dvs7440 Жыл бұрын

    THANKS SO MUCH FOR THIS VIDEO, SIR. THIS IS SO WELL EXPLAINED WHERE ALMOST ANYONE CAN UNDERSTAND SHOWING THAT YOU TRULY UNDERSTAND IT. YOU HAVE HELPED ME IMPROVE NOT ONLY MY FLOW OF TRADING BUT MY CONFIDENCE AS WELL, AS I HAVE PUT THIS TO PRACTICE AND CLEARLY SEE THE ADVANTAGES YOU NAME IN CONJUNCTION WITH TECHNIAL ANALYSIS, MARKET INTERNALS V/MKRT PROFILE. THANKS ONCE AGAIN FOR THIS!

  • @NoBSDayTrading

    @NoBSDayTrading

    Жыл бұрын

    You are very welcome

  • @Twist-Trades
    @Twist-Trades6 күн бұрын

    Great Video! thank you for this!

  • @kenndogg1965
    @kenndogg19653 жыл бұрын

    One of the best I've found on day trading...and none better!

  • @antoniogade9075
    @antoniogade90757 жыл бұрын

    Thanks a lot dude!! This was such an eye opener!! Gonna check your website now!! :)

  • @jigsawtrading
    @jigsawtrading7 жыл бұрын

    Great Video John!

  • @adamsykes7162
    @adamsykes7162 Жыл бұрын

    Really great thanks

  • @sophiegee9713
    @sophiegee97133 жыл бұрын

    wow. thank you so much. thanks a million.

  • @Pranatesh_V
    @Pranatesh_VАй бұрын

    gold, thanks so much for putting it out there

  • @gonzo719
    @gonzo7194 жыл бұрын

    Great video! Learned a lot

  • @PatrickCrisp
    @PatrickCrisp5 жыл бұрын

    Excellent! Thanks!!

  • @ugotpimped415
    @ugotpimped4155 жыл бұрын

    thanks for this vid, great info!

  • @iljafritzler6823
    @iljafritzler6823 Жыл бұрын

    Thanks for that deep explanation of DOM. Are you also adding bid volume and ask volume on each price level to see which price levels are dominated by buyers or sellers?

  • @deepbrar9750
    @deepbrar97503 жыл бұрын

    thank you very much for your time. it was really helpful and simple the way you explained sir.

  • @AchrafDhayni
    @AchrafDhayni Жыл бұрын

    thank you so much

  • @thepamon98
    @thepamon983 ай бұрын

    Thanks for all. and i have some question that what program i can test DOM same demo in this youtube.

  • @khalifarmili1256
    @khalifarmili12564 жыл бұрын

    Woow you rock maan. Just Brilliant !!