Day trading software level ii quotes

I always tell my trading challenge students you want to learn how to trade penny stocks or just learn to be a day trader in general, understanding level II quotes is vital to your success. It looks really complicated at first, since there is a lot of information thrown your way, but this study guide on Level 2 and this post should help you understand it and pick out the pieces that are the most important.

This allows you to watch the trades being executed right in front of you. Also known as Level II. There are two sections in your level II window, as you can see in the above picture.

The one side is the big and the other is the ask. Basically this is what people are willing to pay and willing to sell something for. The bids are on the left and the asks are on the right.

It also shows the total number of shares that the buyers or sellers have in their orders. The bid side is in descending order, with the highest bids on the top.

The ask side shows is arranged in an ascending order with the lowest ask on the top. A trade will only occur when a buyer and seller have identical pricing constraints, so the current pricing above will not generate any trades until someone changes their order or a new person comes in. The level II window will now look like this:. So now that Sam and Bob have matching prices for their buys and sells, the trade will take place.

Now that Steve and Amanda have a mutually agreed upon price, a transaction will occur and the level 2 box will reflect the instance accordingly. This shows the total number of shares investors are willing to buy at the corresponding prices, just like in our shirt example. ECNs are designed to facilitate trading and will automatically match buyers and sellers that have the same price criteria. This area shows us the total number of shares available to sell at given prices.

The structure is identical to the bid side. Whenever a trade occurs, it will be added to this box. This Shows the price, quantity, time, and ECN used in every transaction. So why is this helpful? Since these are real time updates that traders can see, it allows them to better know what price their securities are worth at that time.

It can also help them determine what direction the stock is likely to move in. If there are several orders getting filled on the buy side, this can mean that the stock is heading lower since sellers are rushing to get rid of shares are lower prices. The opposite can mean that the stock is heading higher. Now that you have a basic understanding of how level II works, it should seem far more simple the next time you open up your trading system and the level II window. If you use it correctly, it can make the difference between a profitable trade and an unprofitable one, especially if you get good enough at it to know which direction it shows the market is likely heading.

Posted in Basics , Learn Level 2. Learn Level 2 , Level 2 Quotes Definition , Level 2 Quotes Overview , What Are Level 2 Quotes? As many of you already know I grew up in a middle class family and didn't have many luxuries.

But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results! Which is why I've launched my millionaire challenge. So when you get a chance make sure you check it out.

Don't forget to check out my free Penny Stock Guide , it will teach you everything you need to know about trading. Wouldnt just paying attention to price action i. Sid, why not just use the level 2? Obviously it is superior to just looking at the price action on the candlestick chart. The chart is a reflection of what you can see more exactly using the Level 2 and predict the chart movements before they happen. You can see why the chart is moving the way it is. You are one step ahead, not reacting to the chart only.

Can you briefly comment on the impact of discretionary orders where market makers are hiding their true size? Also, any pointers on determining which mm is behind any given promotion, and should they be given more attention?

For listed stocks nasdaq etc. The problem with using icebergs is that the hidden part of your order will get queued behind all other orders at the same level — only the visible part will get executed on a time-priority basis. The same applies to completely hidden orders of course, and they also bring another problem: I would like to add that the Level 2 data that OTC markets is providing is rather faulty.

It is not actually the full book of orders, but rather an aggregation of top market data from each market maker.

Best Free Real-Time Stock Charts for Day Traders

Only the best bid and offer from each market maker is displayed, which makes their Level 2 data pretty useless in many cases. Another problem is that trading platforms over all provide their customers with Level 2 data from Nasdaq and Arca for example, but only top market data from other ECNs Bats, Byx, DirectEdge, Cbsx, etc.

This is nothing they tell their customers about… they want to keep their own data costs low of course.

Best Day Trading Chart Indicators - Tradingsim

So what do the colors mean on the level 2? The green, red, yellow, and blue colors probably mean something and I have been dying to know.

I became self-made millionaire by the age of 21, trading thousands of Penny Stocks - yep you read that right. You may have heard the story: I was featured on a popular reality TV show called Wall Street Warriors. I was featured in Trader Click here if you want to become a millionaire! Home About Affiliates Chatroom Contact TIM. Explaining Level 2 Quotes Comprehensively I always tell my trading challenge students you want to learn how to trade penny stocks or just learn to be a day trader in general, understanding level II quotes is vital to your success.

Just for a basic intro, level 2 is defined as: See my Level 2 screen extensively in these 2 live trading videos: Here is an example: The level II window will now look like this: And now the time and sales box condensed version.

Level II Quotes - Primary Tool for Active Traders - Tradingsim

Here is what the full version looks like. Now it's your turn. Apply To Work With Me. Leave a Reply Cancel reply Your email address will not be published. Comment Name Email Website. Have What It Takes? Become a Millionaire Let Me Walk You Step-By-Step To Big Time Trading Profits. I will never spam you! About Timothy Sykes I became self-made millionaire by the age of 21, trading thousands of Penny Stocks - yep you read that right.

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