DOM Pressure provides a summary of changes in Liquidity & the DOM. If you are considering a long position, it would be good to know that sellers are reducing (“pulling”) their offers, i.e. liquidity is reducing so price has potential to move upwards further and faster, and that buyers are increasing (“stacking”) their bids. Likewise, if you are considering a short position, buyers pulling bids and sellers stacking offers provides confirmation or a trigger for the trade.
This indicator presents a summary of the order book’s pulling and stacking. This allows you to assess how well your trading intentions are aligned with traders that are providing liquidity to the market.
Indicator Settings & Outputs Reference
Select how many levels of order book liquidity are evaluated by the indicator.
Select how many bars after the latest chart price bar the Supply/Demand symbol appears.
This indicator provides:
• Output Signals