SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: High Plains Drifter who wrote (301)1/18/1998 1:05:00 AM
From: Street Walker  Read Replies (2) of 2120
 
Joe...good question

Alot of the answer depends upon if you looking at
the info from a Level 2 view or a Level 1 view.

If you are not using Level 2, the bid/ask size can be deceiving.

For example:
Level 1 may show Bid size: 20 Ask size: 10
However, Level 2 may show several market makers at the bid, each
with varying amounts of sizes. As well as several MM's at the
ask with varying sizes. The real question is: How many MM's are at the BID and how many are at the ASK.

Take a look at this web page and look at the Level 2.
vlcn.com
MM's at the bid are on the left. MM's at the ask are on the right.
The MM's abreviated names with their bid/ask sizes are very visible.

More sellers vs more buyers? I use a tick chart that tracks
all trades so I can see ONE OF MY FAVORITE INDICATORS: buy to
sell ratio with corresponding volume. I also use Level 2. When the stock is going to drop, you visually see the MM's start dropping to the next bid level. If the stock is going to go up, you see MM's rise to the higher ask price. With a fast execution system, you can trade in and out....just in time.

With level 1 quotes, you are blind.

Hope this answered your question. Let me know.

Street Walker
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News