Module 4 · Scalping, Limits & Exam
Classic DOM/Tape Setups
Trading absorption, pulling and stacking — with structural stops.
In this lesson you'll
- Apply absorption and pulling/stacking setups
- Place entries after tape confirmation
- Put stops beyond the level / wall
Jigsaw-style tape reading centers on the interaction of passive and active flow. Core setups:
- Absorption: a level soaks up sustained aggression (big resting size keeps reloading and the tape can't push price through). Fade the exhausted aggressor — trade toward the absorbing side, after the tape confirms the level holds.
- Pulling vs stacking: offers pull while bids stack → bias up (and vice versa). Trade with the side that's committing.
- Triangulate: footprint (executed aggression) + DOM (resting liquidity) + tape (who's initiating now). No single tool alone.
Key takeaways
- Absorption setup: trade toward the absorbing side after the tape confirms the level holds.
- Pulling + stacking: trade with the committing side.
- Triangulate footprint + DOM + tape; never one tool alone.
- Enter on tape confirmation; stop beyond the wall; don't fade blindly.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: Resting size alone can be a spoof; wait for tape confirmation.
Why that's off: Entering after a big run gives poor risk/reward.
Why that's off: A structural stop beyond the wall is essential.
Resting size can be spoofed, so you wait for the tape to confirm the level is genuinely absorbing (traded into and holding) before entering — with a stop beyond the wall.
Why that's off: Walls absolutely break; that's why you have a stop.
Why that's off: Arbitrary stops ignore where the idea fails.
Why that's off: Absorption can fail; every trade needs invalidation.
The trade's premise is that the wall holds. If it's consumed/broken, the idea is wrong, so the stop sits just beyond it — structural invalidation, not an arbitrary number.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.