Green Prints with price moving up = Active buying Green Prints with no price movement = Distribution Red Prints with price moving down = active selling Red Prints with no price movement = Accumulation. Very simple concept.
distribution and accumulation can not be subjected to the candle's color. it is mainly a range of candles with sideways movements. may contain different color candles.
How are you seeing who exactly is doing the buying and selling (like when you said you “see Goldman Saks buying…and then GSCO”)? I never see personal information on who the seller/buyer is on my level 2 data.
I've heard a lot of people say that the level 2 can be deceiving because there are a lot of fake orders that get put in that are meant to confuse traders. The idea that you'll see big blocks of trades and get the sense that the smart money is stepping in but it's not a real offer to buy or sell.
Hey Akiva! 've seen fake bids and offers, that's called "spoofing" happens a lot less than it used to - block trades are real though - they are actual transactions
If you have a foot print chart (showing a trail/heat map of lvl 2 history) then you can see how long that liquidity has been there. Longer term (several minutes) flow tends to actually trade VS algos popping bids in for several seconds to pressure price and disappearing as the price approaches the order.
Thanks Pete! "Light Bulb" moment for me in understanding how order flow correlates into the candlestick formation! Starting to see the charts with much more clarity thanks to you!!! Best Wishes...
This is the opposite for me- I use the Level 2 and Time & Sales for execution and see order flow, but the chart gives good context for potential areas of buy/sell pressure through daily/premarket support and resistance and gap fills etc. These levels you wouldn't be able to just see on the Level 2 if it's far back
Past bullish performances of a stock don't guarantee a bull run will continue. Just by looking at where smart money has gone, how do you know if its the right time to enter?
another question if I may. we are always talking about inflow and outflow. if every purchase of a share is accompanied by every sale of a share. then what does outflow and inflow really mean?
Thanks, Pete -- very informative. I still am not sure what the entry point would be. I normally enter in a buy zone, but if a stock is passed the buy zone, where would the entry be?
Wow so many wannabe traders don’t even know how to use or even know what level 2 is and time and sales smh actually level 2 is outdated level 4 is way better
A lot of videos I've seen though are just labeled as Day Trading, but specifically for stock trading, this is more relevant. I don't pay attention or know anything about Futures, Options or Crypto but I don't think they have Level 2 or a Time & Sales no?
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i thought trading view has live CME DATA for £7 pounds per month same as sierra charts is that correct?
Finally I understand the Level 2’s!!! Thank you!!!
Green Prints with price moving up = Active buying
Green Prints with no price movement = Distribution
Red Prints with price moving down = active selling
Red Prints with no price movement = Accumulation.
Very simple concept.
Thanks for this big dawg
what do you mean by distribution and accumulation?
distribution and accumulation can not be subjected to the candle's color. it is mainly a range of candles with sideways movements. may contain different color candles.
Thanks for that .
Jackson Patricia Young Susan Garcia Jennifer
How are you seeing who exactly is doing the buying and selling (like when you said you “see Goldman Saks buying…and then GSCO”)? I never see personal information on who the seller/buyer is on my level 2 data.
PETE nice job of understanding what people are asking and what comments people are making.
thank you
I've heard a lot of people say that the level 2 can be deceiving because there are a lot of fake orders that get put in that are meant to confuse traders. The idea that you'll see big blocks of trades and get the sense that the smart money is stepping in but it's not a real offer to buy or sell.
Hey Akiva! 've seen fake bids and offers, that's called "spoofing" happens a lot less than it used to - block trades are real though - they are actual transactions
If you have a foot print chart (showing a trail/heat map of lvl 2 history) then you can see how long that liquidity has been there. Longer term (several minutes) flow tends to actually trade VS algos popping bids in for several seconds to pressure price and disappearing as the price approaches the order.
That’s why I use time and sales data that reflects shares actually bought and sold.
Thanks Pete! "Light Bulb" moment for me in understanding how order flow correlates into the candlestick formation! Starting to see the charts with much more clarity thanks to you!!! Best Wishes...
Excellent!
What trading platform are you showing this on?"
Why has this question not been answered?
Tradestation and tradingview
Awesome vid. SUBBBED!!! I recently programmed some indicators to help with the visualization of this!!!
Awesome! Thank you!
Do you use level 2 for swing trading or day trading?
thanks for watching. Level 2 most commonly used for day trading
Thanks , I am learning to trade penny stocks with Warrior Trading .
Great video imparted by a great teacher. Thank you very much.
thank you
Thank you. Very helpful. I enjoyed this a lot and it helped
Glad it helped!
Thank you for such an informative leasson! Would love to discuss stocks with you more
Thank you so much. Have a great Friday.
Thank you, you too!
This is awesome, thank you so much!!
You're so welcome!
Most helpful video you have posted!
Glad to hear that!
thank you so much!
You're welcome!
To check my work i read the tape and try to visualize the chart
This is the opposite for me- I use the Level 2 and Time & Sales for execution and see order flow, but the chart gives good context for potential areas of buy/sell pressure through daily/premarket support and resistance and gap fills etc. These levels you wouldn't be able to just see on the Level 2 if it's far back
Great job, thank you.
thanks Pete...You explain well. Appreciated
My pleasure Pearl
Past bullish performances of a stock don't guarantee a bull run will continue. Just by looking at where smart money has gone, how do you know if its the right time to enter?
timing entries is the last skill after order flow and tape reading. I guess you could add trade management too
another question if I may. we are always talking about inflow and outflow. if every purchase of a share is accompanied by every sale of a share. then what does outflow and inflow really mean?
A good question for you to ask on our coaching calls
Awesome.
What time frame are you in when reading this 2 min, 5min etc
For Level 2 and Time & Sales it would just be in real time
Thanks, Pete -- very informative. I still am not sure what the entry point would be. I normally enter in a buy zone, but if a stock is passed the buy zone, where would the entry be?
Hi Annette, we provide my entries and exits in the paid memberships
Buy at support, sell into resistence
Wow so many wannabe traders don’t even know how to use or even know what level 2 is and time and sales smh actually level 2 is outdated level 4 is way better
A lot of videos I've seen though are just labeled as Day Trading, but specifically for stock trading, this is more relevant. I don't pay attention or know anything about Futures, Options or Crypto but I don't think they have Level 2 or a Time & Sales no?