Do I Really Need Level 2 Data if I'm Daytrading!? 🚄

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Do I really need Level II data if I'm daytrading? PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Do you really need Level 2 data as a day trader or scalper. If I were asked this question 10 years ago, I would definitely have said 'Yes' you need Level II. At the time you would have needed to see tick-by-tick data while staring at the screen all the time. And to be honest there is still an edge there...Level 2 is really the market depth or price ladder (futures). But I don't think you need it as much as in the past these days There are opportunities on the order book as it is a different way to trade with different strategies but my recommendation is that its such a big learning curve to go thru that. You can take your actions based on price patterns and intraday patterns without going granular. Instead of market depth you can also utilise tick charts to see very much the picture you would see otherwise. OK.

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[PauloSousa-wfmg]

Level 2 gives us information about lit liquidity and spread, T&S shows us speed of transactions (which traduces the general interest in the instrument), percentage of transactions that are made on lit exchanges compared to dark pools (which shows us the possibility of a big hidden liquidity, specially on high 'scalped' instruments) and it allows us to see some big transactions that correspond to institutional accumulation. In my opinion, Level 2 + T&S complete the trading puzzle, but they're worthless without short and long term technical analysis, because the follow through of our trading idea will only be possible if the different market participants, that work with different time frames, are all aligned in the same direction.

Thanks for the video!
Cheers

[teikyewleemd]

No, you do not need it to be profitable (but not maximum profit), but you will add extra edge and confirmation by using Level 2.
It can give you more confidence to enter a trade and able to put tighter stop loss for maximum profit.
Level 2 is not that difficult to read just keep on practicing every day and it's worth the work.

[youngrell]

Price action. Volume. Supply & demand. Works fine for me. Don’t trade illiquidity you’ll be fine. Thanks for the video!

[lincolnmicrophonellc]

Who else feels like Neo in the Matrix watching level 2 data?

[jonathanlee]

👍Thanks, by contrast to many of our fellow Brit fin-pros you have a balanced personal style on these uploads: neither dumbing down nor snooty -- but 'ordinary smart'.👍

[jpsabbey]

What a great channel. I've been watching for about two years now and you're all fantastic. Your advice and consistency is great, and the other interviewers are Excellent too.

[jayrakmoola]

i like using time/sale ticks because it actually shows confirmation of how the price is moving / what people are buying / selling at. level 2 can be clutter at times, i like time/sales tick + ladder.

[Maxr]

I found no benefit to watching level 2 or the tape. I'd rather spend months focusing on things that have already demonstrated usefulness than try to spend years cracking the level2/tape codes. Really not interested in trying to be like those guys who scalp 20 cents on NFLX.

[JackIsNotInTheBox]

lvl 2 data costs 700% more than lvl 1 data.
Let that sink in for a second.

[ldandco]

I have always had the same question in the back of my head
Due to algos, HFT and similar, level 2 is not the same as it used to be a while ago.
This confirms my thoughts... thank you

[sirviypa]

Level 2 is a MUST without it you are trading blind as a bat. Candlesticks patterns show you very little what's really going on in the market. Seeing the order books wipes out all uncertainty, because you can see exactly where the buy/sell order imbalances what really moves price. The big banks and large institution are not looking at chart patterns, fibonacci, moving average etc.. the way retail traders are doing. They are looking at the order flow of the market and manipulating price in their favor, this is the reason why they are so, profitable.

[amkmafia]

thanks for keeping it concise and straight to the point!

[Triniboi]

To be honest, level 2 is useless for me. Everything that I see on level 2, combined with time and sales is also displayed on the chart. The price action tells me the exact same thing. I don't even use volume. Maybe that's cuz I came to day trading from being a swing trader and adapter my trend following strategy to intra day charts, so I never relied on day trading (exclusive) indicators anyway. I find no value in Vwap either.

[adnaanjinwala]

Thanks mate! That was very well explained and cleared up all my confusions. God bless!

[zoyten]

but it can be used in correlation with volume to understand the market and make more certain decisions! it could work beautifully as a technical confirmation for your analysis!

[muhammadasim]

Ur covers almost every topics and ur made a videos on good import topics

[lombardo]

It’s way too fast anyways now. Impossible to keep up.

[MohammedLouah]

keep up the good work, love your explanations

[geniusben]

My RSI and moving averages just work fine and make me money😊