Level 2 Scalping: Using Depth of Market for Better Entries

Most retail scalpers use only price charts for entries. Adding DOM (Depth of Market) / Level 2 data gives you a significant additional edge. **What DOM shows you:** The buy and sell orders queued at various price levels in real-time: - Bid size at each price level - Ask size at each price level - Large "iceberg" orders (big size that keeps refilling) **How to use DOM in scalping:** **1. Support/resistance confirmation:** If your chart shows support at 1.0820 and DOM shows a large bid cluster at 1.0819–1.0820, that's institutional buy order confirmation. Higher probability that the level holds. **2. Iceberg order identification:** A large standing order that keeps refilling despite being hit is an iceberg — institutional block. These are magnets for price. Scalping toward an identified iceberg has elevated probability. **3. Order book imbalance:** If there are 3× more bid orders than ask orders at the market, buying momentum is more likely to sustain. **Limitations:** Not all forex brokers provide genuine DOM data. ECN brokers with true order book access are required for this to work. Do you use DOM in your scalping, and has it improved your entries?