JSA, if you would be so kind, a question re: Level 2 >
The shares you see on the bid represent buyers and those on the ask would be sellers. True?
So, a stock that has a lot more shares on the Ask, would be looking like it could fall back because the shares on the ask are available to be bought and shares on the bid are availble to be sold. So a lot more shares on the Ask looking at Level 2 indicates a downward bias, so you should not buy at this point, and wait until the Bid gets stronger with more Market Makers at each level. Right?
Let's say the trend reversed, and there were many more MM's sitting on the Bid than the Ask. This would indicate a much stronger Bid side and that the stock will move up a lot faster on buying than it will down on selling in the short term. Seeing this, I would be more apt to BUY a stock if I was taking a long position. Right?
Many Thanks,
