Lesson 3 of 6 · 2 min
Reading intent
Pulling, stacking, refilling and absorption — what DOM behaviour may suggest, and what it can't prove.
DOM reading is about changes in the book, not a single snapshot.
Behaviours to watch
- Pulling — size disappears as price approaches. Liquidity is stepping away; the level may not hold.
- Stacking — size is added to a level as price approaches. Someone wants to transact there — or wants it to look that way.
- Refilling — a level gets hit, its displayed size shrinks, and it reappears. Often a sign of iceberg or algorithmic orders.
- Absorption — heavy trading into a level without price moving through it.
Caution
None of these proves intent. Size can be pulled for many reasons, and displayed orders aren't commitments. Treat each as a hypothesis to check against what actually trades.
In-depth role
The DOM answers "what is resting here right now?" The tape and footprint answer "what actually traded here?" Absorption is one of the few DOM reads you can confirm, because the trades are visible.
Trading implication
Only act on DOM behaviour at a level you already planned. Random flickers in the middle of nowhere are noise.
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