WOM best formula

[JoZo]

What is the best formula for WOM?

Thanks

[Euler]

Its a personal thing, there is no 'best' formula. I leave mine on the default settings but I know some pull their settings one way or another.

[Iron]

Do you think it's necessary to use a charts, or can you use the ladder alone to get a feel for what's happening with the wom?

Jeff

Its a personal thing, there is no 'best' formula. I leave mine on the default settings but I know some pull their settings one way or another.

[RegLaing]

Weight of Money is of limited and mostly misleading use if you are just scalping.
Best indicator is Ladder (last matched price) plus Graph.
How often do you see prices moving in the opposite direction to the weight of money - most of the time.

[aligammack]

WOM is a very important indicator imho

I completely agree that the price can move against the WOM but the obvious way might not be the only way to use WOM.

1 example might be..if the WOM is heavy on 1 side of the book but the price isn't moving that way then this could be a sign that there is more support for the other direction. Once that money is taken there may be a big move.

Through the years I have learnt that trading is much more complicated than WOM favors one side the price will move that way.