posted
Anyone have any information that can break down how they use level 2 info to their advantage while trading? Example Like if 5 MM's are on ask it might mean this or only 1 left might mean this. Or the bid is higher than the ask it might mean this.
posted
If the ask is thin like only one MM at each first three prices that is a good sign because if the buy's come in then each MM will be taken out and the price will rise until it hit's a wall of MM built up at one price. UPTREND
Now the bid you want the bid to be stacked up with MM's which mean's so if you wanna sell you can get out and you like it when MM are stacked to buy that mean's there is a DEMAND for the stock. And signal's a UPTREND
Now if you reverse the ask and bid like I just told you that would signal a DOWNTREND!!
IT'S ALL ABOUT SUPPLY AND DEMAND!!
Hope this help's........GOOD LUCK !!
-------------------- "IT'S NOT LUCK IT'S DAYTRADIN'"
"HERE'S MY 2 CENT'S, SEE IF YA CAN TURN IT INTO A BUCK"
IP: Logged |
posted
ARGH.......Just typed out this whole thing and lost it but....I'll do it again..
I'm going to give you an example of a level 2 screen.... Using CTLE as my example. Gonna' keep it very simple.
First you will have the MM's ID then time, size and bid, ask.....the levels underneath will be in color.....Making it easier to see each level....You'll understand by the time I'm finished......I HOPE......LOL
Now notice how thick the bid is compared to the ask...There are 7 MM's willing to buy at .04 from you......and only one MM at .07 left at the best ask before it goes to .09....This indicates to me (along with intraday charting and volume) a buy signal.... There is a wall of MM's at the bid before it drops to .03 gonna' be there a while... But the ask is thin......Only one at .07 then we go to .09 and only one there.....the wall at the ask is .12.........3 mm's there...that's gonna be the hardest to get through......with great volume this can go quickly along with a low float..
The colors are to more easily see the next level of pricing....
Alpha trade . com I beleive will allow you to try their service for a few days free if you call them..... Check it out..... Don't know how to trade without it....LOL Kinda' allows you to see what's coming.....Now Level 2 changes constantly so......Don't always count on having someone post it and it not change by the time it actually get posted..
Hope that helped and I didn't confuse you any more than you were.....LOL
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Smile]](smile.gif)
