The Level 2 Quotes is sometimes known as Level II Quotes or L2Q in abbreviated. To the Professionals traders, the L2Q is no stranger to them. All the Fund Traders and Professional Traders use them to determine their trading decisions. They use it extensively to beat the market every time they place a trade.



How does Level 2 Quotes work? In principle they show the supply and demand of a particular stock. When you enter a ticker in the ticker box in the L2Q, you will be shown the number of buyer at a certain price from the lowest queue to the transacted price.

From the Seller side, it will show how many shares and how much these sellers are willing to part at that price. With this information in hand, you can determine which side is stronger. Usually the side with the most queues will eventually overcome the side with fewer queues.

It works the same way like a tug of war game. If the left side has 30 participants and the right side is with 10 participants with the same average participants’ weight, 99% of the time the left side will trump the right side.

When you have the L2Q along side with you while you trade, you will be able to scan through how many buyers on queue are willing to bid at a price say at 45.88. You will also know how many are bidding for 45.87 and the list goes on and on.

Have you ever notice why stock price keeps falling from the price chart? You will be able to see it very clearly from the Level 2 Quotes. 80.9% of the time, the buyer side of the Quotes show that there are very little buyer where as on the seller side is overwhelming.

Those who use the L2Q will have the advantage; they know that the stock price will keep falling until the buying momentum start to swing in. Until that happen what do you think they will do? They will sell even faster. They will not buy until they have a confirmation form the Level II Quotes that tell them the selling pressure has lost its momentum.

They are just following the momentum to get them the profit!

The Level II Quotes prowess is not being commercialized for the reason that most Professional Traders do not want you to know of its existence. ‘The least the trader knows the better.’ This is a fact. Who would want to have greater competition when they are enjoying less competition?

It may sound unfair but in reality it is. This is how market works. I have stumbled upon this tool last year and I managed to increase my profit substantially by ‘listening to the market’ while in the trade.