posted
I searched on the forum but couldnt find level II help.
Basically with the level II where can I tell what is a buy and what order is a sell?
Also I see that all the MM have a bid and ask, is there usually a better one to follow like NITE? How can I measure resistance using this tool? What else can level II quotes tell me when trying to get into a stock lets say at .0011 and sell at .0012, I just want to get a quick 8-10% intraday and sell, can level II help me accomplish this?
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posted
lets say stock is at .024 and all the MM have bids at like .021 and asks at .035 will the stock move down and then up? If the bids from MM are a lot lower than the current bid price but the MM ask is above the current ask price what should happen?
-------------------- Disclaimer: Not accountable for anything I say
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posted
you wanna look to see if they are stacked on the bid or on the ask for instance....if the ask looks like this >>>>there is selling pressure bulding, the mm's are backing up which can signal a downtrend and it's the other way around if they are stacked up on the bid it can signal and uptrend.........hope this helps ya
posted
so what you are saying is if the bids are in a very close range it most likely will go up, if the asks are in a tight range it most likely will go down?
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posted
what im saying is that if there are like 4 MM's on the ask at the same price selling pressure is bulding which signal's a downtrend, but if the ask is thin with one MM at .0022 and the next at .0025 and the next at .0030 that is good cause once the MM's are taken out the ask will keep rising and the bid should follow signaling a uptrend............good luck
-------------------- "IT'S NOT LUCK IT'S DAYTRADIN'"
"HERE'S MY 2 CENT'S, SEE IF YA CAN TURN IT INTO A BUCK"
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If you have colors on your level 2 it's much easier....
Lets say yellow is at the top..... There are 2mm's on the bid in yellow 3 next in green 3 next in blue 4 in red
now you have on the ask
1 in the yellow 1 int he green 2in the blue 2 in the red.
This has the bid thicker than the ask...only one mm left till we move to the next ask price (GREEN) Now on the bid we have support.....at each level.. I hope that helps
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run...
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So, would this mean that there's a lot more wanting to sell than to buy, but the sellers are not ready to go down yet? Also, should the buyers (bid) go up, chances are there will be a sell off at .67 (assuming the ask doesn't change)?
Naturally, such a situation could go many ways, but I'm just wondering if what I said makes any sense.
Tx!
-------------------- May your trading build your character as well as your portfolio.
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posted
L2 = Level 2. You normally see level 1; that's where you see the bid/ask and last sell price. L2 is where you can see the bid/ask for each market maker and number of shares for trade. Typically, you need to pay for it or else have it offered by your broker.
Here's a link to a stock terms site: en.mimi.hu/stockmarket/index_stockmarket.html
-------------------- May your trading build your character as well as your portfolio.
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posted
I have been using Alphatrade on a trial period.
What does the size mean? A lot of the stocks I'm trading have a size of 50 consistent through all the MMs. What can your read for the size and what is the size?
posted
You are seeing the minimum size bid or ask.
In your case, you are looking at a stock priced under $.50 and the size for the bid is 5000 shares. If you buy, the MM must sell at least 5K. Level II charts will alway shorten 5000/100 = 50
see rule 6750 a. Minimum Quotation Size Requirements
posted
d6, If they do put up say... ask size of 300. That may say... somebody wants to sell a large block of stock.. or the MM is trying to make traders believe a larger block is for sale. In addition, I think they must sell you that 30K when you place an order for that amount.
If the bid is say... 200.... Then the opposite from above, MM wants to buy a 20K block of stock.
I follow stock that is a .02-.03 stock. Always 50 on both the ask and bid. Not widely traded but during a run-up last Nov. a MM put 400 bid. Trading hesitated on the level II for about 10 minutes. Then wham… a MM put together a 450,000-share trade. Which is huge for this stock. Even though the MM level II said they only are bidding on 40,000…..
As Keith says... The MM can basically do what they want...
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