okay can someone maybe explain how this works, Ive been watching some levels 2s, from what I can gather it tells me that there is 1 MM on the bid of .002 and 1 MM on the ask of .0025, so after his order is taken does it go to the next MM which would be the green row. Does the ask side indicate to me what the high of the day could possibly reach and the bid side indicate the possible low of the day, could use some help in trying to understand what Im watching on the Levels 2s thanks
Posted by BooDog on :
I put this in the reference thread just the other day. Good timing for you eh? The color is just for the old folks (cheers Tex) so they can separate the MM grouping for each price. Has nothing to do with the high or low of the day. Check out the lesson. IMO even watching a delayed level II that is offered as a link from the Allstocks home page you can learn from the lesson and have an advantage in your favor. Check it out and see what you think.
is old, pre-decimal (so you whippersnappers --cheers, Boo -- will have to adjust for fractionals) but is decent re bid strength, etc.
Posted by wdcisco on :
Good stuff! I need to get me some level 2's!
Posted by BooDog on :
quote:Originally posted by T e x: Hey, that is pretty good...
is old, pre-decimal (so you whippersnappers --cheers, Boo -- will have to adjust for fractionals) but is decent re bid strength, etc.
LMAO Tex. I know you gatta few on me.
This link shows a very good example of what to look out for. See the last Example. Notice the spread. Thinly played low volumes can be a very good sign of sideways and sometimes weak movement. The MM tricks you into buying and then the bottom falls out and your down who knows how much. So far I have learned this can burn you more often than not. The best way to avoid jumping in at the wrong time is to review the charts and other fundamentals. Could be several reasons and it could be a good opportunity to hop in on the low side or it could be a major trap of a dying breed. Sometimes you can buy at the low bid and turn right around and sell at the ask many points away. But imo that is a roll of the dice - a gamble.
Posted by Ace of Spades on :
okay can someone maybe explain how this works, Ive been watching some levels 2s, from what I can gather it tells me that there is 1 MM on the bid of .002 and 1 MM on the ask of .0025, so after his order is taken does it go to the next MM which would be the green row. Does the ask side indicate to me what the high of the day could possibly reach and the bid side indicate the possible low of the day, could use some help in trying to understand what Im watching on the Levels 2s thanks
The ASK side doesn't realy indicate what the HOD (high of day) can reach, But it indicates how fast the price will rise. If you ever hear people say something like "ask is very thin" that means some penny stocks the have low floats, might have the whole column of asks that have bigger % increments than other stocks. If that ask is thin that means it can runn faster and harder!
For example if a one .20 stock has the row of asks of .20 ,.21 ,.22 .23 .24 and another .20 stock has a row of asks .20 , .30 , .40, .50 .....the second stock has a thinner ask and bigger jumps between ask levels, and probably will run more if it gets volume!
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-- will have to adjust for fractionals) but is decent re bid strength, etc.