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Strategies & Market Trends : Level II Trading -- Ignore unavailable to you. Want to Upgrade?

To: ExCane who wrote (113)	2/8/1998 2:38:00 PM
From: Nazbuster	Read Replies (1) \| Respond to of 1086

I'm not at all a day trader, but let me ask you who are to step back a little and take a broader view... Wouldn't L2 be useful if what one sees is a sudden surge of MM orders above the ask in large volumes? How would you interpret this? Would it indicate they see a "top" coming and want to cash out? Or would it mean a client issued a sell order and they think the price will rise to allow them to get a better price? Do most MM orders come in AT the bid or ask exactly or are they often above the ask or below the bid? Do they "fake" by placing a small sale order above the ask (to imply they expect prices to rise) only to DUMP a large block as soon as they do because everyone jumps on the clue with buy orders? Can someone fill in the interpretation of what appears on L2?