How To Read Level 2 Market Data Chart. (1) bid/ask window, (2) size of orders, and (3) depth. A line graph also appears in the center of the chart.
Also called depth of book, level 2 includes the price book and order book, listing all price levels of quotes submitted to an exchange and each individual quote. As a trader, when you see lots of orders filled on the buy side, the stock may be on the verge of moving lower because sellers are attempting to offload their positions, which is likely to drive share prices lower.
9 Reading A Stock Market Report Worksheet
Candlestick charts provides a view into the stocks movement and price. Check for penny stocks, for day traders look for penny stocks that are trading up and are below $5 dollars with volume coming in moving the stock market price higher.