Day Trading Level 2 YOU NEED TO READ IT! - YouTube

so you want to learn more about level 2 people keep asking me how do I read

level 2 what is the secret to level 2 well I'm going to try to explain it in

this video so stay tuned so you want to learn more about day trading you want to

learn more about level 2 in this video well I need you to subscribe the channel

like this video and leave a comment help me help you so I'm going to talk to

you about level 2 in this video we're gonna take a look at a e zs you can see

right now I got my screen a little different than normal I got to pull it

up here's my montage here's my time and sales here's the 1-minute chart I'm

going to give you an idea of what I'm looking at how I'm reading level 2 in

what is going on here and how you can benefit from learning more about level 2

in learning about price action candles and all that fun stuff we're talking

about it I'm gonna just break it down very simple here they get an idea this

area right here this is my montage right here on this side montage is where i buy

and sell down here but up here this is level 2 level 2 is basically showing me

what orders are out there people have orders to buy here at 297 people have

orders to sell at 298 i can see how many sellers are i can see how many buyers

there are one thing you need to remember is it's possible for people to hide

their size we'll talk about that later what hidden buyer is what hidden sellers

are so over here on the left side of this montage is the bid over here on the

right side is the ask looking at the time and sales it's a time and sales

here on this little thing it's showing me the exact price that everything is

being sold each transaction show me the price if it's showing green

that means that its buying higher than the bid if it's showing red it means

that it's selling into the bid if it's showing white it means it's selling in

between the bids up the bids 297 and the ask is 298 and somebody buys a 290 750

there you see so right there 290 789 right now it's selling higher than the

ass now selling it in the bid so 296 popping up there and you can see the

buyers there at 296 so what I'm watching here looking at the chart I'm looking at

time and sales I'm looking at level two I want to see if I was going to enter

right here if I'm going to enter here 294 support area I'm going to see it at

294 area is going to be supported right now I see there's a lot of buyers they

are 295 so you can see over here on the bid

it's showing buyers these are all different exchanges basically over here

on the Left showing me the Nasdaq so many different exchanges edge X is a

large exchange usually used a lot and it's also showing on the right side here

who's selling what exchanges have a lot of sell orders etc so right now it's

showing that there's support there at 295 we're gonna see if it's 295 area is

going to hold we had a little drop earlier here to 294 294 is trying to

hold right there back up to 25 it's balancing right there so zooming in here

getting a better idea looking at the chart

we're holding that to any four area got buyer stepping up there we've got a lot

of sellers here at 297 trying to hold it down so we'll see if they can hold it

down here if the buyers can beat the sellers and right now looks like we're

getting more buying going on we're going higher watching the chart here with

Washington level two got a couple 298 sprinting there 297 sprinting between

the bid big seller look at this right here big seller stepping up there at 298

now got a big seller at 298 that's not a good sign not a lot of buyers so

expecting this to be a little bit of a drop here see if we get to drop back

down to 294 area watching the time and sales 298 is printing that's a good sign

well there we go so now we're selling there's a big by they're 298 and there

there's the drop off talking about had that big seller the seller scared away

the buyers the buyers drop down the buyers like I'm going to wait and see if

it's going to pull back some more and that's what's happening here so remember

this is all about supply and demand it depends on what country were selling

hungry bar binds is you know every transaction there's somebody buying or

somebody selling it's not just somebody's selling so there has to be a

seller for a buyer to buy and that's what we're looking at right now this big

seller here at 298 is it a real seller is it someone just trying to crash the

stock is it a big short sitting there trying to hold it down a lot of pressure

there at 298 and it's holding it down right now you can see 298 kind of double

top there on the one-minute chart how this trend is moving down now or holding

the 294 you're going to see putting a hold at 294 area I've got to get through

that 298 area so we're watching the 298 area to see if that seller can get eaten

out there getting some selling we're in between the bid there and there we get

some more selling there see all those sell orders selling into the bid there

at 296 but then we got buyer stepping out there

or to 95 so it's holding support to 95 to 96 area it's holding their got a

couple sellers sitting there but more buyers right now than sellers it really

depends on what's going to have here at 298 area 298 can get eaten our

going to get that move back about $3 here it looks like 298 is getting eaten

out see a lot of 298 sprint in there 298 printing 275 so our right there we're

sitting on the cusp it does get more volume here to get through the 298 area

if it gets through that 298 Erie and I SPECT that move back up to that $3.00

area we got more 298 sprinting there 298 printing there we go so above 298 like I

said got eaten out there it went higher and there it goes up to 303 so beautiful

move like I said through that tuna eater once that 298 seller got eaten out he

backed out and I was moving higher up to that 303 area nice little squeeze there

so a balance of a 294 support nice support bounce there off 294 might get a

move higher here looking at the five-minute chart to get a better idea

you can see that 294 area holding strong there we're getting back up to that

moving average area needs to get back up above that 308 area to really prove that

it's moving higher and then got this double top there at the 314 area one of

the things that you always need to keep in mind is when you're watching level 2

say there's a lot of sellers over here a lot of sellers are sitting there

nothing's really happening that's not getting sold until you've got a lot of

buyers here at 303 and it's nothing happened it's not printing you want to

see time and sale it's printing time and sales is important you want to go to

keep an eye on time and sales and level 2 at the same time because what people

can do is they can actually flash sell orders there they can flash a big order

there that they don't really want to sell they just wanna try to scare the

stock down and they'll flash a big order they're trying to scare people down and

that's what happened if you don't actually see it's getting sold into you

don't see it could just be a short trying to scare people away you always

got to be thinking about that people it's a chess game really with levels big

short sellers are trying to crash the stock are trying to scare people away

they're flashing big orders but really they don't want to sell or they're just

trying to scare people away trying to scare the buyers away but just gives you

an understanding of level 2 how to read it what you're looking at here looking

at the buyers the sellers and trying to figure out which way the stock is going

to go give you an idea of where the support is where the resistance is if

you see a big seller jumping up they're on level 2 it's usually a bad sign

obviously like a stock if this gets up to that 314 area and then you see a huge

seller they're at 314 again it's a bad sign you might want to sell take profit

if it can't get eaten out there keep an eye on level 2 learn more every single

day about level 2 times sales you'll see patterns you'll see things that are

going on with these talks that happens over and over again so remember it's a

chess game sometimes you have to keep playing you stick to your plan cut your

loss to take your profit when you on it and be ready to play the next day