RE: LVL IIYou can get a lot of info from L2....but you need market by order data as well to see which houses are where. By utilizing L2 info for very near term directions, as well as a combination of fundamental and technical analysis (chart reading does work) it can dramatically increase your winning trades. Can't solely rely on any one method with these pennies in my opinion.
I sold some at .37 and .36 today and just waiting for lower prices to rebuy that chunk again. L2 this morning showed me bid support was weak and she was a comin' down! I would've loved to see .50s today, but it didn't happen, and so I adapted.
If you're penny scalping, L2 is the golden ticket. If you're a long term trader then L2 isn't that useful to you. I find it funny how there are many people on the boards claiming to be long term holders through thick and thin.....yet if that was truly the case why are they the ones who are always posting L2 bids/asks? Obviously they are focused on those minor fluctuations all the time....and why would they be unless they were also scalping? Hypocrisy is hilarious, and I look forward to this post receiving a "1" rating as well. LOL. I guess a certain someone really didn't put me on ignore (_)_)