Alternative Energy Partners Inc (AEGY)

[Tiresias]

Here is a seldom used way of using Level II to help determine direcdtion.

1- Look below the inside bid price. If you see orders stacking up in fairly significant numbers (each price is colour banded then just look at the thickness of each colour) below the best bid, indications are the price is going lower. What these orders are, at least in my 20 some odd years of trading the Nasdaq for example, is where short interest players have decided to cover. So the more levels you see building below the bid can give a clue as to where the price is headed.

2- Look above the inside ask. If you see orders stacking upin fairly significant numbers, same way of looking as above, then you have sellers who are unwilling to see at the inside ask and have determined they will sell as the price creeps higher.