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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Rashid Garuba who wrote (12115)	12/10/1999 11:47:00 PM
From: Mike Sawyer	Read Replies (2) \| Respond to of 59879

I've actually found Level 2 to be a very good tool in addition to Charts. Yes, the MM's can and will play games to make you think you are seeing one thing and then go right the opposite but I have become pretty good at understanding their games. I would feel blind without L2. I use esignal Time and Sales in one box, Level 2 in another and on another screen I have Ensign that feeds off of the eSignal data manager at the same time. In Ensign I open a 1 minute chart, 5 minute chart, 10 minute chart and Daily chart. I use Stochastic on 9 bars, Williams %R on 7 bars, On Balance volume, MACD simple lines and histogram on a 5:17:9 average and Bollinger bands set at 20 with a 20 moving average riding the center. Between the L2 screen and the charts I can feel pretty cocky. Seeing the depth of the market in L2 is fantastic...I felt naked when a router went down between me and eSignal for about 15 minutes today. I was on the phone with David Hayes having him give me a play by play description of L2 screen. LOL! He is also addicted to Level 2. One HUGE plus to having Level 2 is the fact that you can figure out who the ax is or which MM's is short and play the game with them. For instance David and I have had some very good profits on stocks where we find FAHN short...we follow that MM close when he's active...when he has been riding the offer down hard and flips to the bid it is time to look at going long. We then check TA to see if the time is right...if the TA says yes and the L2 looks right...others coming up on the bid with FAHN...then it's time to jump in with both feet. If the TA is still weak it could be a head fake...and often we have seen just that...FAHN pull back off the bid and go right back to selling. You just have to learn the tricks but I do think that it is an extremely valuable tool in the arsenal of a trader...day or swing.