How Markets REALLY Work - Depth of Market (DOM)

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  • Опубликовано: 11 ноя 2024

Комментарии • 369

  • @CriticalTrading
    @CriticalTrading  2 года назад +8

    📢 BRAND NEW FREE WEBINAR
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    • @chartneverlies2269
      @chartneverlies2269 11 месяцев назад

      Can u make a vedioto connect depth of the market and open interest

  • @ZhenlongYang
    @ZhenlongYang 8 лет назад +180

    The greatest video of market description I've ever see!

  • @justinbair236
    @justinbair236 2 года назад +2

    No bull crap and promoting his only fans. Just knowledge. I salute you sir

  • @leer.watson4673
    @leer.watson4673 6 лет назад +30

    I’ve watched dozens of trading videos prior to this one and could never understand what’s making the price move. However, something in my brain just clicked while watching your video and now it ALL makes sense. I’ve been under the impression that ALL market and limit orders had to be filled before the price moved. Thank you for making this video and simplifying how a price changes in the market.

    • @hjelbey
      @hjelbey Год назад +2

      DITTO.... I was thinking the EXACT same way! This video is a God sent!

  • @pampagrimaldi8584
    @pampagrimaldi8584 7 лет назад +107

    Man, no one has ever explain this better!! Great work!!!

  • @AndioDAndia
    @AndioDAndia 2 года назад +2

    GLORIOUS, man, GLORIOUS!!! Pity it's unlikely for you to read this comment, but let me tell you: I didn't understand how the price moves until now. GLORIOUS!!! Thank you!!! Greetings from Mendoza, Argentina!!!

  • @giricharan7379
    @giricharan7379 2 года назад +1

    I have spent many months on searching a content like this ..finally youtube algo recommended it to me..

  • @importsfixmedicals.a.s.803
    @importsfixmedicals.a.s.803 3 года назад +31

    for that reason saying " more sellers than buyers" or viceversa, is wrong... this is why this confusion comes from... it's better to say "sellers are more INTERESTED than buyers"

    • @Mr.Ricky0
      @Mr.Ricky0 29 дней назад

      So wait sellers are interested in what actually?

    • @VuongTrantrade
      @VuongTrantrade 22 дня назад

      @@Mr.Ricky0 seller more then buy at key level usually mean price going down

  • @Bobbaker007
    @Bobbaker007 6 месяцев назад +4

    This video is absolutely the perfect video on Depth of Market

  • @sanjeevsaju1099
    @sanjeevsaju1099 7 лет назад +81

    I was searching for this explanation my whole life! At last I got it! Thanks man!

    • @CriticalTrading
      @CriticalTrading  7 лет назад +8

      Glad my videos helped, good luck in your trading

  • @thesaltedbeagles9525
    @thesaltedbeagles9525 3 года назад +3

    Finally, I understand. Been learning bookmap and couldn't quite figure it out. This is simply explained, tyvm! Now to figure out how price moves during after-hours, premarket.

  • @jeramykennedy6813
    @jeramykennedy6813 4 года назад +3

    bought this guys course, I figured if his free content was this good his paid stuff would be impressive, im halfway through it, already applying some of the techniques. I scalp options so its a little different from what he teaches, but the way he uses volume profile is so far better than any indicator weve been lead to believe is good,
    go buy the course.

    • @CriticalTrading
      @CriticalTrading  4 года назад +1

      Hey Jeramy - very delighted to hear that! I will be in touch soon with you to see how you're progressing!

  • @teboholenela4268
    @teboholenela4268 2 года назад +2

    Forex is a very serious business thank you so much! i always thought "i only just need a strategy" not knowing that there's more to it than strategy, the fundamental aspects behind the scenes of the movement has just became the most progressive realization. Thank you so much for the clarity

  • @GGgaming24190
    @GGgaming24190 6 месяцев назад +2

    Beautiful explanation not gonna lie. Now understand the market better than looking at plain charts and higher highs

  • @MihaiMezel
    @MihaiMezel 2 месяца назад +1

    I was wandering about this for some time now and I didn't know how to search for "what actually moves the market" and by chance i stumbled upon this, thank you sir

  • @otm777
    @otm777 4 года назад +3

    Can't get any better than this....THANK YOU! Really explained the risk of using market orders, and how the "Last Price" is just that...the last traded price.

  • @Name-dw5vk
    @Name-dw5vk 6 лет назад +16

    Really great video! Although pricing mechanism is such a foundational topic but many people can’t provide insights of it in detail. Your video went through every single aspects of how price moves in different situations and it was like I stumped into a goldmine. Simple yet detailed. Thank you!

  • @jesusbvasquezq6597
    @jesusbvasquezq6597 5 месяцев назад +1

    Best explanation of DOM I have seen here, simple and direct to the point. Thanks for sharing!

  • @skm2809
    @skm2809 Год назад +3

    The Most Under rated video on YT.

  • @marcelogbonna5098
    @marcelogbonna5098 8 месяцев назад +1

    Bro explain it like a pro definitely recommend it for beginners who wants to learn how the market works👍👍

  • @jay1232000
    @jay1232000 3 года назад +1

    I spent 4 hours on youtube to understand this fundamental. Your video was the one I got all my answers. I wish I saw this earlier and could save 4 hours. Thank you. Liked and subscribed.

    • @CriticalTrading
      @CriticalTrading  3 года назад

      Thank you, always glad to hear that my videos helped people!

  • @jb6278
    @jb6278 3 года назад +2

    OMG!! I've been looking for an explanation and video like this for years and finally!! your channel found me, it must have been the universe rewarding me for my perseverance. Thank you for posting this vital video. It is a must watch for everyone that is trading any market.

  • @Heart4KidsNonProfit
    @Heart4KidsNonProfit 4 года назад +6

    Everyone must start their trading.career with this video . Brilliant!!! Thank you so much.

  • @DjRuchirOfficial
    @DjRuchirOfficial 4 года назад +3

    I was always confused that if for every buyer there is a seller and vice versa then what decides the direction of the price. This made it very clear. Great video! 💯💯💯

  • @aaronnicholson8154
    @aaronnicholson8154 Год назад +4

    I’ve been trading for three years and never seen this explained so clearly. Thank you.

  • @yakkyuu12
    @yakkyuu12 3 года назад +6

    I understand that his video is for a BASIC understanding of how the DOP is --- SUPPOSED TO WORK--- ( key WORDS -- SUPPOSED TO WORK!)
    But the ONLY TRUTH-- ONLY! -- is that market makers ARE WORKING BOTH SIDES of the TRADE--- the BID and ASK!!
    1) E.G.--- the MARKET MAKER -- is on the ASK SIDE-- it IS ALWAYS IMPOSSIBLE to to tell if this is an individual trader or MM -- who is working FOR --- HIMSELF!
    NOW the NEXT thing that ALWAYS happens -- ALWAYS--- the MM SEES the 5 bid contracts you have on the video and NEVER takes these bids ----- IF HE (the MM) WANTS t
    the price to go higher!
    NEXT -- THE MM--- comes ONTO the ---- BID SIDE( yes NOW he is on BOTH SIDE (BID AND ASK!!!) the MM--- LIFTS his ASK --AND AT THE SAME TIME --- LIFTS HIS BID-- these get executed and
    the REAL TRADERS ( yes HUNDREDS of the them -- if not thousands !!!) are LEFT to ---- CHASE-- they have NO CHOICE -- as the MM -- WILL come to the BID side and KEEP supplying bids to LIFT the PRICE and KEEP TAKING the ASKS--- NOW the REAL traders MUST CHASE --- MORE if they want the stock!
    This happens ALL DAY ----EVERY DAY!!
    This problem can ONLY be SOLVED by using a market order( not really solve because you end up paying at the top of the ASK!
    But WHY-- WHY would I say a "market order" -- why pay up????
    Because what is NEVER, EVER TOLD in NY VIDEOS about -- DOP is the this follwing IMPORTANT CONCEPT;
    EVERY SINGLE TIME--- you put in a LIMIT ORDER --- OF ANY KIND --- you ARE TELEGRAPHING to the MM--- the following; 1) if there are BIDS outweighing the ASK--- the MM is SEEING ( EVERY SINGLE TIME !!!) -- BIG INTEREST --- SO the MM JUMPS IN at the 1st position --- at a HIGHER BID and CONTINUES THIS!!!!!
    So, there is NO REAL way around this EXCEPT to buy one the DOWN SQUEEZE--- BUT --- your probabilities of the stock price GOING FURTHER DOWN--- are STILL there!!
    I CAN'T emphasize ENOUGH --- that the MM--- SEES EVERY single LIMIT ORDER and NOW -- he CONTROLS the PRICE, HE JUMPS in to do this --- ON BOTH SIDES!!!
    NOTE--- DO NOT let people who say they have DIRECT ACCESS or or types of WAYS to --- HIDE orders tell you this --- it IS A TOTAL LIE!
    Direct access and OTHER types of trading platforms ---- JUST TELL you what you WANT to HEAR!! the ONLY REAL hidden types of orders---- are those of BIG -- MM's and BIG MONEY--- close to the
    exchange SERVERS(high speed) ------ NO NOT the high the HIGH speed YOU are TOLD or some some convinces you it is "high speed" --- this is SOLE ownership of the LIKES of CITADEL and more!!

    • @Nino21370
      @Nino21370 2 месяца назад

      Thank you for stating this 🔥

  • @samtradder7590
    @samtradder7590 5 лет назад +6

    Wow! This is such valuable knowledge. Finally understood why price moves, at times quite rapidly and at other times just sits there. Understood slippage as well as price gaps, at last. Great job, David. Thank you kindly.

  • @rgoudie
    @rgoudie Год назад +6

    This was an awesome explanation. Nowhere else had I seen such an explanation.

  • @dramaworlds6024
    @dramaworlds6024 8 месяцев назад

    I have watched so many videos...but this one was the perfect one for understanding how the candles stik move up or move down ..
    Thank you for this great explanation.❤❤

  • @seanb1081
    @seanb1081 4 года назад +3

    As a very "green" trader, I found your video VERY easy to understand. Thank you for this great explanation, on how DoM actually works !

  • @orangemonkeyy1
    @orangemonkeyy1 Год назад +2

    This is phenomenal I've looked all over and this detail is what I was looking for

  • @treetoplake
    @treetoplake Месяц назад

    Totally brilliant explanation .. ive watched it 3 times now and its slowly sinking in. Thank you

  • @arunkumaran2155
    @arunkumaran2155 7 лет назад +5

    The best video on instantaneous price change in exchange due to market depth I have ever seen...
    Nicely Explained... Keep up the good work

  • @velvethamster9809
    @velvethamster9809 3 года назад +3

    One of the most amazing, coherently explained, and crucial information of how market price move videos I’ve seen!

  • @Jakob_923
    @Jakob_923 3 года назад +1

    Best Video on how price action is working i've ever seen!!!🔥💪🏼

  • @neillaquian6068
    @neillaquian6068 2 года назад +2

    The clarification brought by this video is beyond impressive!

  • @bardacha100
    @bardacha100 9 месяцев назад

    By far the clearest explanation I've seen on RUclips! Great video

  • @peptalkbox6550
    @peptalkbox6550 4 года назад +2

    finally someone explain this in real words to clarify this point, thanks

  • @gamiensrule
    @gamiensrule 3 года назад +8

    I've been looking for a simple, accurate description of how the price moves for weeks. Thank you!!
    So if you want to move the price up and break the sell walls you need lots of market orders.

    • @rundown666
      @rundown666 2 года назад +2

      Sweet. Thanks for the confirmation. I was rattling me brain over this, but you just helped me clear it up.
      I always looked at the DOM in completely the opposite way - watching the sell barriers and expecting the price to move down when they were gobbled up.

  • @RudeBwoii
    @RudeBwoii 8 месяцев назад

    Thank you so much! 💯💯💯
    Bear markets have always confused me. The reason for my confusion is "buy low, sell high." The assumption I've had is that if everyone has the same mentality, how does Bear market have the space to exist?
    This order fill and passive buyer/seller demo has finally cleared my confusion. From this my understanding is, the passive buyers and sellers quote their prices, then aggressive buyers/sellers use volume to move the market. This might come easy to some or most people, but as a complete newbie with only about 2-3 weeks of information binging, Bear's market just made absolutely zero sense to me.
    Again, thank you! 🙏🙏🙏

  • @btradingwarehouse3861
    @btradingwarehouse3861 7 лет назад +2

    ...this one is a pure perfection of explaining price action...bravo again...

  • @johnnyegha6665
    @johnnyegha6665 2 года назад +6

    The irony: Someone whose first language isn't english, explains the auction theory perfectly to english speakers. Thanks for this very very clear explanation. i understand the auction theory perfectly now!!

  • @mohamedbilal5634
    @mohamedbilal5634 2 года назад

    The best explanation on Market depth in all of Internet

  • @75hilmar
    @75hilmar 3 года назад +2

    Circling this subject from like a ten foot pole far just this morning I wondered what exactly slippage was. And here it is.

  • @atihanif2272
    @atihanif2272 10 месяцев назад

    After too many searches i got my point from this video thanks........

  • @hjelbey
    @hjelbey Год назад +1

    This video is what I needed... the missing piece to the puzzle of trading at a high level

  • @royregis9712
    @royregis9712 6 месяцев назад

    It is indeed a very good video on how and why price moves - I knew bits already but had very poor explanations from someone who can 'read the tape'. Just goes to show not anyone can be an educator and get their point across with the necessary clarity.

  • @andrewdeakins9945
    @andrewdeakins9945 5 лет назад +1

    didnt understand the matching of passive and agressive traders. great explanation. brilliant.

  • @isfocreative1544
    @isfocreative1544 3 года назад +1

    sir for amost half year I was searching for a video to understand bid ask and excution of contracts .you explain soooooo easily .i thanku by heart .i would like req make all ur videos for indians too . you may dub in such english pronounciation which could easily be understood by indians.

  • @Sheblah1
    @Sheblah1 Год назад

    This is the best, the clearest explanation I've seen. I now have an actual, proper understanding of the order book! Thank you for this

    • @maulajatt5655
      @maulajatt5655 Год назад

      Now that you know how the order book works the main question is how will you make money from it? The order book moves so fast

  • @kipedire1
    @kipedire1 Год назад

    Best explanation on Depth of Market - true educational video on DOM.THANKS SIR.

  • @olliehopnoodle4628
    @olliehopnoodle4628 4 года назад +1

    Thank you. Looking at Level 2 I knew what the bid and ask 'was' but didn't know how they got created. I thought it was limit orders. Your video confirms. Very much appreciated.

  • @Hari-tc5dc
    @Hari-tc5dc Год назад

    Amazing !!!! I've never seen a video explaining market depth in such a simple manner I never really understood market depth up until now since i am a newbie and i am trying to learn, thank you for posting such a great video.

  • @hamedabdullahi5476
    @hamedabdullahi5476 3 года назад +1

    I really appreciate your video helped me to feel the mechanism of the DOM in a better way. Well done!

  • @KingzleyATM
    @KingzleyATM 3 года назад +2

    Bro, This guy just used One Image to Breakdown the WHOLE Forex Market without even pulling up a single chart!! And the video is only 11 minutes long, not hours. I have watched this video 3 times and pausing to take notes, no one has ever broken down forex to me like this in my 4 years of trading. This is crazy. I should've watched this a looong time ago.

  • @ramshinde6738
    @ramshinde6738 9 месяцев назад

    Awesome video man.....This is must watch video before anyone starting stock market journey. Thank you once again for great explanation.😊

  • @joeybloggs6357
    @joeybloggs6357 5 лет назад +8

    To the point and crystal clear, excellent explanation.

  • @hardik.satasiya
    @hardik.satasiya 3 месяца назад

    Thanks for the explaination, its very old video but its GOLD 😊, accurately tells how market price moves, Thanks 👍🏻

  • @andressuarezp
    @andressuarezp Год назад

    Best explanation on RUclips

  • @whyamiandy
    @whyamiandy 7 лет назад +13

    Simply amazing! This video was the missing puzzle for me! Thank you so much!!!

    • @CriticalTrading
      @CriticalTrading  7 лет назад

      Thanks for the feedback, glad that my video helped you!

  • @mrdickguy
    @mrdickguy 4 года назад +1

    One of the best videos explaining this. One question I still have is if I use market order to buy and there’s a 1 unit limit at higher and lower price. Which price would it go to then? Up or down?

    • @CriticalTrading
      @CriticalTrading  4 года назад

      Hi Dee, in that case it would simply go to higher price as that's where it would find the limit to be paired with

  • @testaccount5248
    @testaccount5248 3 года назад +1

    Great video with in-depth explanation.
    I just have one question, let's say someone puts a stop order, what stops the exchange from executing that order.
    Let's say at 3:58 someone puts a sell stop order @97 for 2 units, why doesn't the exchange executes that order since thats a much better price for buyers to buy at and there is a seller willing to sell at that price too or a buy stop order @100 for 3 units, you still get your matching bid and ask in this case too.

  • @deejay4837
    @deejay4837 5 месяцев назад

    This is one of the better explanations of the fundamentals of Depth of Market. Not some guru wannabe trying to impress...
    Anytime there's stick figures you know it's gonna be good!

  • @Mr1987atul
    @Mr1987atul 4 года назад +1

    It means.. buying or selling at market price is risky.. the buy or sale price limit has to be determined whenever placing order.. or it might go for available price.

  • @wizzard211
    @wizzard211 3 года назад +1

    Great video thanks! Could you please describe from programming point of view what exactly happens. I mean, if people are trading they should all be sure that the soft (the algorithm) will not malfunction. Who ensures that? Who writes the algorithm? Who owns it and why?

  • @ale9507
    @ale9507 4 года назад +2

    Absolutely phenomenal video; a bit mind-blowing if I must be honest. Had always wondered what exactly prompted price to move and why liquidity didn't necessarily mean volatility. Thank you very much.

  • @DS-gn5vu
    @DS-gn5vu Год назад

    Been looking for this video for ages glad I finally found it again

  • @AimeOrtega-t9p
    @AimeOrtega-t9p День назад

    You're doing a fantastic job! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?

  • @edsbloggingcom
    @edsbloggingcom 3 года назад

    Absolutely great video! Explains it very well. Best video I have seen on RUclips for any novice or little experienced trader. Thanks 🙏

  • @pikiwiki
    @pikiwiki 4 года назад +4

    10:55 "the price moves in relation to market orders and available limit orders"

  • @westvalley8605
    @westvalley8605 3 года назад +2

    Do you have any recommended web/software/service for watch Depth of Market? Thank you.

  • @devkartik
    @devkartik 10 месяцев назад

    Finally got the answer to my question! I can't believe no one ever taught me that!

  • @BrockPlaysFortnite
    @BrockPlaysFortnite 3 года назад

    Cool way to visualize gaps

  • @rundown666
    @rundown666 2 года назад +1

    So when I was trading BTC/USDT yesterday, and the were like 3 million SELL orders at 43,500; this would have moved the price UP, were there enough market orders triggerimg enough of these limit orders, to wipe them out?
    It seems counter intuitive to me. I would have expected it to fall - viewing in the light of supply and demand. If 3 million people just sold, then the supply just went up.... 🤔 but I suppose it's the inverse of that isn't it, because in order for them to sell, someone else had to be buying it - therefore lessening the supply.
    Think I might have to watch this a few more times. Nice video explanation, though, thanks!

  • @solomonlalani
    @solomonlalani 4 года назад +1

    good explanation. Please advise; 1. is the data provided by the broker for DOM relates only to limit orders with the broker or is it market data? 2. Is the data provided on MT4 for the entire market or just the broker? 3. Is the data provided by TradingView for the market?

    • @Permanent-Cure
      @Permanent-Cure Год назад +1

      If you got the answers then plz let me also know

  • @kanthavalloo626
    @kanthavalloo626 Год назад +1

    Excellent information .... World Class at its finest . Thanks and God bless you with all the wealth and opportunities !

  • @gary5799
    @gary5799 Год назад +1

    O ly thing missing is hidden orders or iceberg orders, these are limit orders that aren't shown in the order book, also be aware people will pull orders before they get filled to give the appearance of a buy/sell wall in the depth chart

  • @hjelbey
    @hjelbey Год назад +1

    Question? It may sound dumb but... what if there are 2 passive traders with identical bid/ask price, will those orders be paired... or are passive bid/ask orders ONLY paired with aggressive bid/ask orders?

  • @sagacitystudies
    @sagacitystudies 2 года назад

    What a terrific explanation of the DOM... thank you for clearing the whole concept up!

  • @everasea
    @everasea 2 месяца назад

    EXTREMELY helpful! Thank you!

  • @julianwalker688
    @julianwalker688 Год назад

    This video provided great clarity for me. Thank you

  • @mistletoe91
    @mistletoe91 3 года назад

    I was looking for this video for years. More videos like this please

  • @q.b.3828
    @q.b.3828 3 года назад

    best explanation on youtube

  • @traderzzz123
    @traderzzz123 3 года назад +1

    Question: so if price is going up, and aggressive buy order is matched with sell limit orders, what will aggressive sell orders be matched with? As buy limit orders will be all the way down.

  • @hardwaybets
    @hardwaybets 2 года назад

    Fantastically explained! Thank you for sharing your knowledge about the DOM. I appreciate you.

  • @CHAVO163
    @CHAVO163 7 лет назад +7

    Outstanding job ! Really helpfull thanks !!!!

  • @elac1256
    @elac1256 6 лет назад +1

    Very thorough explanation. Thanks.

  • @philipmurray4065
    @philipmurray4065 4 года назад +2

    Let's say I'm that big buyer and I want the price to jump from 99 to 103 immediately and I don't put market order but limit order. How to do that? I should buy all those three "asks" at the top? Or in a different way? Or is it enough if a buy even one of those 3 "asks" at the top?

  • @garymassey6973
    @garymassey6973 7 лет назад +5

    Outstanding explanation - well done!

  • @michaelcheung6290
    @michaelcheung6290 6 лет назад +1

    Best explanation I have ever seen! this deserves more views! Keep it up thank you Sir

    • @CriticalTrading
      @CriticalTrading  6 лет назад

      +Ka Wai Michael Cheung thanks for your support, appreciate it.

  • @djohnson4465
    @djohnson4465 Год назад

    which one is more important to predict a mover.
    watching the bid activity or watching the asking activity
    because i thought watching the bid mean i can add to the bid with the most volume causing more movement that may over take the market BUT i notice that based on you after that volume for that bid price is all bought out the price might drop instead of moving up

  • @8r3ak3R
    @8r3ak3R Год назад

    beautiful explanation..thank you so much!

  • @atakperruki5184
    @atakperruki5184 2 года назад

    thank you, you put it to the point. simple as that. best video for any aspiring trader.

  • @SboNdwandwe
    @SboNdwandwe 5 лет назад +3

    Amazing video, I think I finally understand. Thank you.

  • @TheWiseHustler
    @TheWiseHustler Год назад

    what an interesting video, perfectly explained, thank you soo much!

  • @TalkToMeGoose550
    @TalkToMeGoose550 Год назад

    this is a great breakdown. Very well explained. Thank you.

  • @JmusicxK
    @JmusicxK 2 года назад +1

    so when the market gaps up or down and buyers/sellers get slippage - this creates inefficiency in the market? within the area that has gapped?

  • @vedavyas8496
    @vedavyas8496 5 лет назад +2

    extraordinarily simple
    and important and basic and awesome and rare. please make more videos

  • @ak57401
    @ak57401 4 года назад

    Awesome bro..was banging my head to understand the price movement... crystal clear now.

  • @radihadzhiev6630
    @radihadzhiev6630 3 года назад +1

    Hello, would it be possible to create a video on volume profile?