I meant about the Elliot wave pattern (Double top , Head and Shoulders and Double bottom, Trend waves and Corrective waves.)
Bollinger bands are more useful to define or detect the above mentioned waves and patterns. I am using Bollinger bands 20 periods and 2 Standard deviation.
And MA 20 periods and EMA 10 periods.
Eventhough DOM now a days not working as expected. But it was worked perfectly in the previous months before RBI tortures. The single bid ask volume available in market watch is not useful. We can't decide price directions by using that single bid ask quantities in market watch. If one using the single bid ask qty available in market watch he will definitely end up in big confusion.
But DOM is very much useful in booking profits. If I gone long in USDINR. Then after 5 paise raise If I decide to book profits. Then I will watch DOM.........
If the first two bid quanties(total) is higher(or double) than compared to first two ask quantities there is 90% chance to price raise for at least 1 or 2 points.
So there is no point in exiting in this situation since there is higher posibilities of price going higher.
And If the first two bid quantities are lesser (or very low) when compared to first two ask quantities I will book profits immediately.
Don't refer the total buy quantity (TBQ) and total sell qty(TSQ) available in DOM window in NOW/Nest. It won't useful for scalping. And don't consider the number of buyers and number of sellers in DOM.
If you need to learn using DOM use it whenever you are not trading and free.
After watching DOM for at least 1-2 weeks you can able to understand DOM.
And it is very much useful. Before using DOM I was also felt the same like you(how can it be useful in trading decisions)......But I never used DOM for entering trades. I only use it for exits only.But it is useful in entries also.
