Scalping Aussie stocks

[MS+Tradesim]

Just a general tip: learning to read DOM/COS has its own rewards and is useful beyond scalping. It becomes easier to pick good entry/exit points for other styles of trading rather than jumping in or dumping out. It also becomes easier to create or unwind large position sizes without overly influencing price.

As an example, my mechanical systems are designed and tested on entering at the close of the day. By watching the action in the last half hour I can often get better entries than the close turns out to be. That adds to the bottom line.

For traders, it is a skill worth cultivating.

 

[MS+Tradesim]

Since the sell number is going down and there is not enough buys to fill the excess supply prices will go back down to .20 right.

I couldn't possibly say without having watched that DOM/COS. If it's a pause in a run and the buying lines are thin and sellers have been active then it is more likely to go down. Unfortunately, a tiny glimpse of the picture isn't enough to go on. It's the overall flow that reveals the highest probability.

Just to note I used the DOM to buy into IPL yesterday after a 7% plunge. I could see the buyers stacking up and the price just hovering 1-2c up and down and it finished off its lows. Today it went down to 2.05 to finish at 2.11 which suggests to me that there was absorption volume in play. Will see how it pans out.

That's possibly more in the territory of VSA. But yes, the skill of DOM reading is very useful outside of scalping. Your post just beat my previous one mentioning this.

 

[MS+Tradesim]

As a low-price stock scalper, this is the Holy Grail of R:R. If you buy at 0.10, 1 tick down is worth 0.001, but 1 tick up is worth 0.005. That's a risk/reward of 5:1 for 1 tick in either direction. Unfortunately, being the Grail it is elusive and rarely much use in real-time.

 

[Daveee]

Great Thread, many thanks for your knowledge & experience

May i ask what would be the best place to view & learn how to read charts as indicated below in your threads

For example how to read a trend, or how to spot a trend including when a trend breaks

Any assitance would be greatly appreciated

 

[jinprince]

MS what program are you using?

Thanks.