Using Level 2 and T&S in day trading

[Sprout]

When you're looking at level 2 and time & sales before entering and/or during a trade, please tell me some things that you look for and how those things inform your trading decisions.

I'll give a few examples.

Large orders on the bid and ask can act as support and resistance level confirmation.
Something I learned from some traders and have seen myself to a limited extent (I'm new to trading) is that a big order sitting low on the ask can be a bullish sign (apparently the price can shoot up once that order is filled because the resistance level is broken) and a big order sitting low on the bid can be a bearish sign (the price can shoot down when it's filled because that support level is broken). I've seen traders enter a trade just as the large ask is being bought up to get in the trade right before the breakout happens.

Many orders going through T&S with a small bid or ask means someone is hiding a large order, although I'm not sure how that would affect a trading decision.

Please share some of your own insight!

You'll have to calibrate your displays to 'see' the market. If you filter your T&S streams to 1) All 2) >50-100, that'll give additional insight at what levels larger accounts are participating.

You'll also need the DOM as well as an OTR chart for each instrument.

The two nuances that are difficult for a beginner to see are changes in pace, especially at re-supply at limit.

That's one display, the other are your charts with multiple timeframes to generate larger context.

 

[TrailerParkTed]

I find the DOM incredibly valuable in bonds and notes, but its value in ES has been greatly diminished for me. I am not a scalper by day trader standards, and the primary use I make of the DOM is as a means of judging the strength of a breakout or likelihood of a reversal when price is at a prior level of support/resistance. For me, the DOM has been largely, though not entirely reduced to price display and a tool for adjusting and occasionally entering orders.

Regardless of the market, price is king and he does whatever price action, his queen, tells him to do. If you are new your time will be better spent studying price action. Al Brooks's price action trading video course is currently priced at $399 and if I had known as a beginner what I know now I'd have happily paid $10,000 for that course.

As someone up deep six I love your avatar is cool! All I use is LL2 and TS up $56k lask week. 30 years still trading!

 

[TrailerParkTed]

lame avatar but a good reply, thanks...

Why would guys who have been making six or seven figures have any desire to help you? After your reply to Gaslights kind and useful post he should block or avoid you. You have nothing we need, bringing Zero insights about Trading. Gaslight is a successful longtime player who merits respect. The peanut gallery insulting a pro as usual. Mad Az and Timmy Sykes will teach you for $5000 and lean your political ways too.

 

[RubiconTrading]

Why would guys who have been making six or seven figures have any desire to help you? After your reply to Gaslights kind and useful post he should block or avoid you. You have nothing we need, bringing Zero insights about Trading. Gaslight is a successful longtime player who merits respect. The peanut gallery insulting a pro as usual. Mad Az and Timmy Sykes will teach you for $5000 and lean your political ways too.

you are a drama queen who goes to the bathroom sitting down. wear your skinny jeans, tuck your sack, and worry not about how or what I reply too.

your parents probably think they got a daughter...

 

[Gaslight Capital]

he should block or avoid you.

I blocked him as soon as I saw his reply. There is something wrong with this crop of forum participants landing at ET the last couple of years. We all have out moments, myself included, but there is such a level incivility and entitlement among the newer folks. It is near the point where it isn't worth the time to pass things along in the forum.

 

[VinceField]

@Gaslight Capital A more accurate avatar would read "It's fraud time."

 

[TrailerParkTed]

I blocked him as soon as I saw his reply. There is something wrong with this crop of forum participants landing at ET the last couple of years. We all have out moments, myself included, but there is such a level incivility and entitlement among the newer folks. It is near the point where it isn't worth the time to pass things along in the forum.

They offer nothing by asking the most lazy questions that could be learned by a great course like Al Brooks but their “Get Rich Quick” generation places no value on hard work. Old proverb I remember “Don’t caste your perils before swine or show what is holy to dogs”! Will block him too yet their slithering back under another name.

 

[RubiconTrading]

They offer nothing by asking the most lazy questions that could be learned by a great course like Al Brooks but their “Get Rich Quick” generation places no value on hard work. Old proverb I remember “Don’t caste your perils before swine or show what is holy to dogs”! Will block him too yet they slighter back under another name.

ill piss on your face tim...

 

[Gaslight Capital]

learned by a great course like Al Brooks but their “Get Rich Quick” generation places no value on hard work.

I've had people on ET tell me that the Brooks trading course is BS because it is "too long" to be worthwhile. Someone somewhere apparently said something to the effect that a trading plan should be composed of two or three sentences and 25 words or less on the back of an index card.

The problem is that whoever said it left out the depth and breadth of the knowledge and understanding of price action required to distill such a plan into 25 words or less.

 

[TrailerParkTed]

I've had people on ET tell me that the Brooks trading course is BS because it is "too long" to be worthwhile. Someone somewhere apparently said something to the effect that a trading plan should be composed of two or three sentences and 25 words or less on the back of an index card.

The problem is that whoever said it left out the depth and breadth of the knowledge and understanding of price action required to distill such a plan into 25 words or less.

Its like saying “All you need to be a surgeon is a knife, Elmers glue and duct tape”. I was told same about Fabozzis(forgive my spelling if wrong) bond and Larry Macs Options books“were too cumbersome and needed to be succinct”! Best to avoid people like that, they usually blow up quickly.