The DOM Order Aggression Strategy is a short-term, high-precision trading approach that uses Depth of Market (DOM) and Time & Sales (tape) to identify moments of aggressive buying or selling. This strategy capitalises on institutional-style order flow—where market orders overwhelm passive liquidity—to catch rapid directional moves before they appear fully on the chart.

It’s most effective in futures, forex ECNs, and indices, on M1 to M15 timeframes, particularly during high-volume trading sessions.

What Is Order Aggression?

Order aggression occurs when market participants aggressively hit the bid or lift the offer, using market orders to force immediate execution. This creates price momentum, often driving price through key levels or initiating a breakout.

Signs of order aggression:

• Rapid burst of market buys or sells
• Price moving quickly with minimal pullbacks
• Tape showing large, repeated prints at market
• DOM thinning rapidly on one side

Strategy Objective

• Detect and follow aggressive order flow before retail traders catch up
• Enter trades aligned with institutional momentum
• Use DOM and tape as real-time tools to validate continuation or breakout strength

Tools and Indicators Required

• DOM (Level 2 order book)
• Time & Sales (to monitor executed market orders)
• Optional: Volume delta, footprint chart
• Candlestick chart for structure reference (M1–M15)

Step-by-Step Strategy Setup

Step 1: Identify a Setup Zone on Chart

• Look for breakout zones, tight consolidation, or retests of structure
• Mark intraday high/lows, VWAP, round numbers—common aggression targets
• Ensure the level has potential for momentum expansion

Step 2: Monitor the DOM and Tape for Aggression

• Key signals:
  • Tape shows a series of large market orders hitting the same side
  • Bid or ask liquidity is rapidly consumed and doesn’t replenish
  • DOM shows stacked orders on one side thinning or flipping
  • Price begins to move in one direction quickly without hesitation

Step 3: Entry Timing

• Go long when:
  • Ask side gets lifted quickly
  • Market buy orders increase in speed and size
  • Price breaks above key level with no resistance left in DOM
• Go short when:
  • Bids are hit aggressively
  • Large market sell orders dominate tape
  • Price slices through support with no bid defence

Enter as soon as the order aggression is confirmed and the price breaks the micro-range.

Step 4: Stop Loss

• Tight stop just below last bid stack for longs, or above last offer wall for shorts
• Or use volatility buffer (e.g. 1x ATR on M1)
• Exit if aggression disappears or tape slows significantly

Step 5: Take Profit

• TP1: Next DOM liquidity wall or visible order cluster
• TP2: Nearest chart structure (previous high/low or VWAP)
• Trail stop with tape speed or market order flow shift

Example: Crude Oil Futures (CL) DOM Long Trade

• Price consolidates at $78.20 during NY session
• DOM shows thin offers, tape prints a rush of market buys
• Offers up to $78.40 get wiped in seconds
• Entry: Long at $78.25
• SL: $78.15
• TP1: $78.50, TP2: $78.80

Best Timeframes and Markets

• M1, M5, M15
• Futures: ES, NQ, CL, 6E
• Forex (with Level 2 access): EUR/USD, GBP/USD
• Indices: NAS100, SPX500
• Ideal during session opens or news-based volatility

Optimisation Tips

• Use volume delta to measure strength of buyer/seller aggression
• Avoid late entries—aggression is fast and usually short-lived
• Look for order flow continuation, not just isolated spikes
• Combine with VWAP or range breakouts for confluence

Advantages

• High reward-to-risk setups with clear flow confirmation
• Fast trade execution based on real-time information
• Trades with institutional momentum, not retail lag
• Excellent for scalpers and short-term momentum traders

Limitations

• Requires strong DOM and tape reading skills
• Fast decision-making needed—missed entries are common
• DOM manipulation (e.g. spoofing) can lead to false signals
• Limited use in low-liquidity or slow markets

Conclusion

The DOM Order Aggression Strategy gives traders an edge by capturing real-time institutional intent. By watching the interaction between aggressive market orders and passive liquidity, traders can position themselves at the front of powerful short-term moves—before traditional chart signals catch up.

To master DOM aggression reading, tape interpretation, and professional momentum strategies, enrol in our Trading Courses and learn how to trade with the timing, confidence, and precision of institutional players.