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

Comments

1. I trying to connect both Level two information with an actual trading chart & when to enter and exit a trade. Thanks 4 your video.
2. Thanks a lot dude!! This was such an eye opener!! Gonna check your website now!! :)
3. nice job, one question, how did you get a market profile to show up on the far left?
4. So...at the end of the day a DOM without the "inside market" information would not provide much information?
5. Excellent details explanation. Appreciate your time in sharing this video. Thanks John!
6. Great Video John!
7. This is such an excellent video thank you for taking the time to do this.
8. Simple & elegant, a very effective explanation to the complexity of order flow. THX John!
9. John, thanks for this very good video about order flow! Great work man!
10. fantastic introduction to order flow and market mechanics!
11. Very useful to recap the base for new learner!
12. beautiful video and thanks for contributing your knowledge to trading community.
13. Simply awesome!!
14. hey John, on your site it says that you have basic and intermediate courses, but I found only basic, is that enough to start trading? BTW your free videos and website material are awesome, but to start learning I need to get DOM first , correct? thanks a lot for your time
15. How do you trust the DOM with phantom orders playing such a big part of it?
16. Hi Mr.Grady - simply an awesome video you've made for especially newer scalpers. It's we'll explaned, easy to grasp & a must see in order to succeed :). Unfortunately i haven't been one of your students, and learned it the hard way - but you know EXACTLY what you're talking about....
    
    Thumps up!.
    Best regards
    /Hr.Flow
17. Buen video y mu necesario pero lo malo es que no se hablar ingles. Será posible traducir al español?
18. It just intro to DOM reading, nice explained.
    I suggest take Nobsdaytrading course, its worth it.
19. Great video thanks very much John 👍👍
20. This video is Well Explained for anyone wanting to learn
    Order Flow