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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (7386)	3/13/2000 11:39:00 AM
From: Nazbuster	Read Replies (1) \| Respond to of 18137

Jon, Interesting comments on L2. I've found that L2 is very useful, but cannot be read like a book. It is only a thermometer and takes time to adjust. The moves have to be taken in context to the already existing trend in the movement of T&S. Sometimes L2 reflects "posturing" to test the market. Other times, especially during fast action, L2 is a literal view of the market and can be taken at face value. Sometimes, L2 is used to outright deceive the viewer. I try to watch L2 and T&S in unison. Knowing that the MM's will hide unfavorable trades from T&S for as long as they can, if L2 shows upticking, but I don't see immediate trades showing up on T&S, I suspect this is a fakeout attempt and will not buy into the stock unless I see the corresponding T&S show up and the trading shows clear followthrough for the next few seconds from a variety of players. Lastly, one valuable aspect of L2 is when something major happens, it shows up on L2 immediately in a big way. That tells me the trading action is for real.