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Figure 11.7
Counter-Clockwise Movement of Level II Screen |
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Once you get used to seeing this rotation in the level II screen, you will be able to instantly assess price direction very easily. Wonderful! Level II can help you spot price momentum and it can clearly give you an instant look at supply and demand. |
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So, how do you use this information to trade? |
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Help "Time" Your Entry and Exit from the Market |
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For the day trader, level II and related trading tools, such as time of sales and ticker, are used quite religiously to take advantage of very small, very short-term price movements. A day trader's timing must be exquisite! But we are not recommending day trading in this book, and we do not intend to dig any deeper into those techniques. |
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For every other trading style, you will be much less concerned about these small, short-term price movements. You will be watching for specific, preidentified price targets. You will use level II to help time your entry and exit actions. |
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To make the best use of these tools, ask yourself these questions: |
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