Level 215 Sep 2021 11:11
Can anyone recommend a good link on how to read Level 2 properly? It's great to see live prices, however I would like to understand how to read the volumes... ie: as an example
Looking at the data for XYZ company, the market is 9 deep;
On the Bid side, there are 3 at the top, then 2, then 1, 2, 1 respectively (5 prices altogether).
On the Ask side, we have 1 each for the first 4 prices, then 2 each for the last 2. (6 prices altogether).
Supposedly, the larger BID volume shows a trend towards SELL.
But what do the groupings mean?
I've been looking for ages for a site that explains this, but they don't actually answer this point about reading the volumes at each level...
Thanks