Before we dive into DOM trading Skills we should examine the Basics of the framework – the median Line.
The median line is the slope in slope analysis the center of the channel and the centre point in the application of Action and Reaction.
Babson stated that if a trader understood this theory he would be a millionaire. He also cited several different Action and Reaction Types. Rather than try to memorise these lets just look at a few examples of price action.
Above we see some uses of the median line. The entire concept of the methodology is to time a touch of a Volume profile point using the theory and to look at the DOM and Volume/Tick index during that touch.
Below we see the channel touch coincides with the vol POC. This is all we are after.
Several touches below on VPOC’s
