Day Trading: Momentum, Level 2 and Reading the Tape

Level 2 is the most predominant source of information in day trading. Neither charts or any indicators can provide such valuable data as Level 2 does. When I started learning day trading, Level 2 was a mystery, a noise where numbers would make no sense and when I tried to learn more about it - there was no literature about it. It was really hard to write about it because Level 2 is in constant movement and displaying it on the paper took a lot of effort. You can have a perfect strategy, you can back test it, but it will never provide correct information just because it does not take Level 2 information into an account. That's why understanding how Level 2 is so important to trading.

In the book you will find following topics covered:

• How to trade during the momentum;
• How to look at the volume and its impact to trading;
• How to read the tape;
• How to read Time and Sales;
• Where to find support and resistance;
• False breakouts;
• Trading Halts;
• What Level 2 is telling you;
• What Level 2 is trying to tell you;
• What Level 2 is hiding from you;
• Volatility;
• Hotkeys;
• What tools you need for day trading;
• What indicators to use and not to use;
• Little bit of mental preparation, but not too much