basically you are following the support/resistance on level 2 with taking volume traded at each level into consideration and the available quantity of shares changing at those levels while they are being traded there. It's more useful with day trading. Are you looking to day trade? If not, then don't bother. Do you find starting at Level 2 all day fascinating? If not then don't bother. Also, it is not a high quality practice any more because most orders are computerized and the quanity of stock available at the bid/ask being displayed is not real. An ECN might be showing the order of 2 million shares available at the bid, but in reality it's actually 10,000, thus the illusion of strength in the stock is being facilitated, drawing suckers to buy the stock, where actually the same company is on the asking, tricking you into filling their sell order on the ask, where the entire intention is for them to exit the stock, not enter. Which leads me to point out that taking the ask is a sucker's game, also known as chasing a stock; professionals enter on bids, letting the stock come down to the price they wish to purchase at, thus they are in control of what they are doing. This technique you are asking about takes many many hours of experience and having someone sit next to you in real time is preferable, not asking someone on the net to teach you. Perhaps you are thinking that this reply is of no help, but me discouraging you is a favor, the same as telling someone to stay away from drugs or the like.
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