How Do You Use Level II Stock Quotes For Day Trading?
NASDAQ’s Level II stock quotes gives you an advantage for decision making 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. 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. 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 volu
