[7:18:00 PM]: Well, a lot of spoofing goes on and generally that involves stacking the order book on one side to fool people into trading in the other direction. At the same time they will be putting in an icebergs on the opposite side to scoop up the trades of the fooled traders. Then the size will flip to the other side, those fooled traders will be trapped and price will move through that large size as they exit.
Then again, there are times when the order book will just naturally be stacked higher on one side. At the high of the day it is normal for the offer to be much larger than the bid and vice-versa. This does not however mean that price is going to break higher.
Sometimes it's real, sometimes it isn't. Sometimes there's a big fish gaming other players and sometimes a bigger fish comes along and eats him.
Basically, it's a game. A game that requires particularly large 'spheres'.
So - you are on the right track, there's just a lot of games being played. There's also some attempts to make algo's jump. You will occasionally see (on the ES) the order book flash up 6000 or so on a level and then it'll disappear again. That's not there to make you & me react, it's there to fool the algos.
As well as the order book, the time and sales is needed too. The DOM is a statement of intent, the Time & Sales represent actual trades (against that intent). So - combine the two and you have a good toolset to assess the gameplay.
[8:00:26 PM] : http://www.youtube.com/watch?v=xEMAsrGbFqQ
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