Stock Trade level II is NASDAQ’s Level II, the stock quotes gives you an advantage formaking decision in the stock market. It gives day traders split second changes in the marketplace while tracking brokerage firms and electronic communication networks’ buying and selling activity.
Familiarize Yourself With the Level II Screen
See the three separate boxes within the one Level II screen. These vary according to your service provider and are distinguished by color. The details are the same.
Notice the current bid/ask price with total daily volume.
Watch the time/price/number of transacted shares for each trade. This is the time stamp box.
Look at the list containing number of shares, bid prices from highest to lowest with corresponding ask prices from lowest to highest. This box contains the market makers, brokerage companies and ECN’s lined up for trades.
Observe the Upper Box With General Information
Track the big picture in this box. Each stock has an average daily trading volume so compare that number with the current amount in this box to determine any increase or decrease in the volume. A lot of volume might mean news is out. Better check for news
Observe the total shares traded and current bid/ask prices that lets you know real time status of the equity.
Use your favorite website to see the average trading volume. This information is found on many sites, such as yahoo.com. Compare average with current total amounts.
Keep an Eye on the Time Stamp Box
Watch each trade noting time, price and number of shares for each transaction. Every trade for an individual stock is published in Level II stock quotes.
Apply this information to see which way the price is moving and the share size of each trade. If the trades are large in size and the price is moving up then there is greater demand than supply.
Notice closely this momentum of