Reading the DOM
Bids, offers, size, and what order flow really tells you.
The DOM, or depth of market, shows resting bids and offers around the current price. Bids are buyers waiting below or at the market. Offers are sellers waiting above or at the market. The ladder format helps traders see price, size, and recent movement in one place.
Large resting size can show interest, but it is not a guarantee. Orders can be added, canceled, or pulled quickly. The DOM is most useful when combined with actual traded volume, speed, and location on the chart. Size at a key level matters more than size in the middle of nowhere.
Beginners should use the DOM first to understand execution. Watch how market orders hit bids and lift offers, how spreads change, and how price moves when liquidity is thin. Do not assume every large order is a signal.