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Not right now, but yeah can 100% indicate when is a good time to sell or buy based on what is in the order book.
Not massive swings for this stock like 370 to 390, but 370 to 375, very much so.
some traders trade solely off the ladders, thats it
'Reading the Tape' is often used by professionals, prop traders etc to time entries, that and time and sales, especially off of support / resistance levels, can show absorption etc, takes alot of practise but it can be done, if you really want to learn to use it properly id suggest Jigsaw through CQG,
Again Steve (and thanks for replying by the way), I don't argue with any of that "You are trying to gauge the strategies of 10's too 100's of big investors, that is not easy and is not a science."
All I originally said and I think you have kind of accepted, but maybe I am wrong, is that it is of little or no benefit in judging when to buy or sell.
As an analogy it looks like a snap shot of a ball in motion, you can see its moving but not at what speed or where it will land.
They can and they are being pulled in and out constantly, with new blocks being added in large groups.
Yeah, can't swing trade on this in the minutes or hours. But what I am trying to do is gauge whether where we are, is investor driven or is part of a trading strategy. At the moment who knows, which yeah, could drive me to put a longer than a day position in.
You are trying to gauge the strategies of 10's too 100's of big investors, that is not easy and is not a science.
Steve, I do not obviously deny that L2 exists but my point was, what help is it to anyone to profit from that quickly shifting info? These orders can get pulled at any time can't they?
The point is if you just looked at the chart you would think we are now in consolidation. If you look at L2, you would see that we are back in the same state we were between 3pm and close yesterday, with tranches of orders locking us in place, all put in around the same time, with very few surrounding orders from other times in the blocks.
Yeah, not so interesting to trade on. But potentially interesting as to what might be going on in the background. But also may just be trying to see a pattern in chaos.
372.1 1,081 10:50
372.1 860 10:50
372.2 366 10:50
372.3 540 10:50
372.5 1,250 10:34
372.5 467 10:50
372.5 415 10:50
372.6 438 10:50
372.6 750 10:50
372.7 1,250 10:50
372.7 464 10:50
372.7 541 10:50
372.8 2,000 10:31
372.8 750 10:34
372.9 750 10:31
372.9 1,700 10:5
Well Max, you prove my point with your prediction of 380p. The sp moved from low 370's to 378, lasted about 1 minute before falling back now to pretty much exaxctly where it was when you made the prediction.
Now given the spread and trading costs. What was the point of the prediction in the first place. If it was to "prove" L2 worked, what benefit was derived from it (and remember it did not get to 380p). Did you profit from it?
Not complaining, just saying that a broken clock is right twice a day.
Steveknowsnothing is now complaining.that I called the sp yesterday correctly. Wow. You really couldn’t make it up. Says About me look at me guys I called it right. Well I did Steve. I did. Game over. No more to be said. I will now stick to replying to investors with knowledge and wisdom.
Not just once though Steve. And I don’t throw endless predictions out there.
Guys, Guys, I was right once, look at me, look at me!
Wyndrum. I posted on the 24th September that the results day could disappoint as they have on many occasions with boo. I was loudly decried as ye of little faith etc. A balanced viewpoint Is frowned upon on here unfortunately. I am on here to sometimes and very infrequently try and gather some usefull information. Your posts though are logical and well structured.
People seem to forget that in this game it's not about being right all the time, it's about being right more than you are wrong.
BuBuBut maxage, some times it's been wrong.....
Honestly, I am not an L2 salesman.
Use it or don't, if it's not useful to you then ignore it.
steveknowsnothin: "Ian Patrick Lauder, a capital markets business development manager with London Stock Exchange (LSE), argues that Level 2 access provides investors and traders with a richer, more in-depth picture of how prices are formed in a given security. While this is undoubtedly useful to frequent and day traders, he maintains that even retail investors who don’t trade with such frequency will find that the granular detail on price formation offered by Level 2 access can only enhance their understanding of how the security in question is being traded and how price access is being determined."
Of course Ian Lauder says that. He is employed by LSE to sell their services - including L2 data..! He's not offering a dispassionate assessment of the utility of L2 data, he's SELLING it...
Nick,
really? this from Steve regarding the helpfulness of L2 data: "Yes, it is guesswork and yes it is probably right as much as it is wrong."
Anybody who does not post positive or even balanced view on Boo are either ignore or asked to leave. One poster, I forget who it was, said on the day before results that the SP might disappoint and a gap was their to be filled.
2 things from that One, he was ridiculed and no one asked about "gaps" and what did it mean to be "filled" and basically what was he talking about..
Then he is proved more or less right and still no one enquired as to why he was the only one who called it the nearest to what actually happened.
Most BB's are rubbish but this imo is a particularly bad one.
So if i leave, its another different viewpoint being excluded from Club Boo
@wyndrum gosh, which side of the bed did you wake up on today.
its open to abuse and spoofing/layering which is rife. as i say with DMA and regular size of course it helps, otherwise its a sell you don't need. and retail needs to keep costs down as odds are stacked against them as it is.
to be fair wyndrum, you generally make valid points and add value.
steveknowsnothing and gggg are probably the two most credible posters on this board. they are knowledgeable and also add value. this includes
l2 data which can help. they don’t ramp and are pretty fair.
Knightrider, anything positive you have got from this board that has helped you in your investment? Do you enjoy the never ending forecast of what the SP will be at any given minute, do you enjoy reading the most blatant ramper PP1 and others constantly posting the same tripe? Do you enjoy reading that posts get rec'd here for reporting a "buy" from a broker but rubbished when another broker says "sell"?
Is it helpful that you are told this share will be 380p soon? or that it will be a blue day?
@wyndrum of course, because you don't know what else is going to come into the order book. However if there is relatively little in the order book at one time between two prices, you can generally guess the direction it is going.
Yes, it is guesswork and yes it is probably right as much as it is wrong.
Yes, there have been plenty right, but also plenty wrong. I don't pretend to be right all the time, unlike someone I know.....
hi Steve,
So L2 is not particularly helpful for looking further than 10 minutes into the future?
Anyway if it works for you great but I don't recall any predictions off the top of my head that you have made that have worked out here? But if they have for you because you are trading Boo several times a day then perhaps mention that with your forecasts? ie this is a short term trade of a few minutes etc.
It very much allows you to know where the big boys are placing.
That is very important for bottom feeders to know entry, exit and directional pressure.