1. How to use LVL2/T&S. 💨
2. How to use Supply/Demand with LVL2/T&S. 📈
3. How to better your trading. 🤑
I've made over 6 figures trading Supply and Demand.
Here is the best kept SECRET to trading super accurate zones...🧵
1. How to use LVL2/T&S. 💨
2. How to use Supply/Demand with LVL2/T&S. 📈
3. How to better your trading. 🤑
People use indicators like VWAP, EMAs, etc. The reality is that most indicators are LAGGING indicators. There is only 1 leading indicator and that is LVL2/T&S. This is what is creating the candles in front of you. This gives us an EDGE.
https://t.co/RAyj1HQvRs
I turned $10k into $230k in under 2 months.
— Shinobi Signals (@ShinobiSignals) August 16, 2022
I've tested many strategies, but this is the one that helped me yield the BEST results.
This is how I trade Supply and Demand...\U0001f9f5 pic.twitter.com/sMLL7xCBwO
LVL2 data provides us with real time supply and demand info of a stock through the amount of open buy and sell LIMIT orders.
Limit orders are orders that have NOT been filled yet.
LVL 2 is split into 2 sections, left side is the BID, right side is the ASK.
Each section has 3 columns.
1. Ex = Exchange of the orders
2. Bid/Ask = Price order is placed at
3. BS/AS = Size of the order
Image below for reference.
For example..
3 on the bid = 300 shares @ 429.42
8 on the ask = 800 shares @ 429.45
T&S also known as the "tape" shows all orders that are FILLED. LVL2 shows unfilled orders, the tape shows filled orders.
So the limit orders you see on LVL2, will potentially be filled and shown on the tape.
The tape is also divided into 3 columns.
1- Time: The time the transaction took place.
2- Price: The price the transaction took place.
3- Size: How many shares were bought/sold.
You want to pay attention to the price and size of each order.
Below Bid: Aggressive selling pressure.
Bid: Strong selling pressure.
Between B/A: Neutral.
Ask: Strong buying pressure.
Above Ask: Aggressive buying pressure.
Using LVL2 and the tape with the supply and demand strategy allows us to have confluence in our S&D zones.
When we see ASK stack up at our supply zone with little to no buyers on the BID side, this allows to be confident sellers are present.
Let's go over two important LVL2/T&S tips..
A flashing order is when there is a big buyer/seller on the LVL2 and before their price gets tested, they remove their order.
They do this because they want to scare traders like you, if someone sees a big order on the opposing side they will panic and sell.
Ever wonder why a stock can't get past a certain level but there's no sign of sellers on the LVL2/T&S? This is because there's a hidden seller accumulating orders before the move.
Same thing for the opposing side.
Let's see this in action. I will be showing an example of $TSLA from last week bouncing off demand and buyers showing up on the LVL2 and filling on the T&S.
In this case we have a TSLA zone from $837.3-$844.85. We also had a previous demand, now supply because it broke, from $856.63-$864.69.
If you take a look at the LVL2, buyers are present on the BID, 2000 orders at 838.06, 1400 orders at 838, & 2200 orders at 836.
The ask has nothing.
Orders fill, we bounce exactly from our demand zone and move back to test our supply zone.
Now the scenario flips....
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