AI
Thursday, July 16, 2020 8:56:54 PM
Decided to take the day off and go fishing. Just logged on to review the board and review the trading tape. Nice job to whoever fought the manipulators today! Imagineer66, looks like you led the charge...good job, brotha!
But clearly there needs to be a Level 2 lesson here.
I see several posts about "x" number of shares showing to "get us to a penny" or "get us to .0156". Let me remind you that on Level 2, each Market Maker is only required to show their lowest offer on the ask side. So far any given Market Maker, you will only see 1 quote on the ask: the lowest one...which is the biggest limitation of Level 2 quotes. So none of us knows how many other orders are sitting at each price level on the ask for each MM.
Below is a screenshot example of Level 2 to show what I'm talking about. You see how ETRF is showing 40k on the ask at .0056? ETRF might also have sell orders sitting there at .0057, .0058, .0059, .006, .0061, .0062, etc. But we won't find out the next lot for sale by ETRF until the order at .0056 (ETRF's lowest offering) is cleared out. And that's just for that ONE Market Maker. This same holds true for each Market Maker.
So how do we find out how much is really for sale between the current price and, say, a penny? By putting together enough buying power, start taking down one price level at a time by continuing to chip away at it, and seeing what else is for sale at each price level. This likely could never take place in one day because the manipulators are masters at throwing 100k to 300k more shares on the ask, just enough to slow down the price. It could only happen with a very coordinated effort over the course of several days, maybe even over the course of a week or 2. It would takes 10's of thousands of dollars to make it happen, maybe even a hundred thousand dollars.
But clearly there needs to be a Level 2 lesson here.
I see several posts about "x" number of shares showing to "get us to a penny" or "get us to .0156". Let me remind you that on Level 2, each Market Maker is only required to show their lowest offer on the ask side. So far any given Market Maker, you will only see 1 quote on the ask: the lowest one...which is the biggest limitation of Level 2 quotes. So none of us knows how many other orders are sitting at each price level on the ask for each MM.
Below is a screenshot example of Level 2 to show what I'm talking about. You see how ETRF is showing 40k on the ask at .0056? ETRF might also have sell orders sitting there at .0057, .0058, .0059, .006, .0061, .0062, etc. But we won't find out the next lot for sale by ETRF until the order at .0056 (ETRF's lowest offering) is cleared out. And that's just for that ONE Market Maker. This same holds true for each Market Maker.
So how do we find out how much is really for sale between the current price and, say, a penny? By putting together enough buying power, start taking down one price level at a time by continuing to chip away at it, and seeing what else is for sale at each price level. This likely could never take place in one day because the manipulators are masters at throwing 100k to 300k more shares on the ask, just enough to slow down the price. It could only happen with a very coordinated effort over the course of several days, maybe even over the course of a week or 2. It would takes 10's of thousands of dollars to make it happen, maybe even a hundred thousand dollars.
