Tricks about reading DOM

first one, easy to understand, balanced DOM, often you see this around major S/R or consolidation area. It is a fight for control However a lot of folks read the second DOM in a wrong way. You see more sellers matching on the DOM, but that actually suggest possible more upside. YOu also notice this if you listen to PIT frequently. It is called: " they are selling to rally the market" those papers do this every day. 这个叫bid-ask-spread this ratio is significant when it is over 1.5 or lower than 0.65 for ES. 简单的说就是这些DOM上的sell orders are for liquidity purpose. When there is no selling order, no buyer will come in. if so, buying will end. \ So those papers have to sell to provide liquidty to let market up. same case for the downside.