PRIOR KNOWLEDGE CHECKLIST:
$$ \LARGE\textsf{THE DOM, THE ASK, AND THE BID} $$
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$$ \LARGE\textsf{HOW THE DOM WORKS PT1} $$
The Depth of Market D.O.M. is rightfully labeled as one of the best ORDERFLOW tools you can understand.
While the Footprint shows you where contracts have been exchanged, the DOM shows you passive orders that have yet to get filled.
Combining the DOM with a Footprint is one of the most common methods of ORDERFLOW trading.
If we draw a line everywhere the Bid and Ask has been, we get two lines stretching across the screen. This is helpful for representing what you are looking at historically.
The left column on the DOM is the Bid. These are passive (limit order) buyers waiting to get filled.
The right column on the DOM is the Ask. These are passive sellers waiting to get filled.
$$ \LARGE\textsf{HOW THE DOM WORKS PT2} $$
Now that we know everything sitting above price (right side on the Ask) are passive sellers
and everything sitting below price (left side on the Bid) are passive buyers, we can begin to understand the tool at hand.
