The market’s been a bit rocky over the last week.
That’s not quite a surprise given all the events going on in the Middle East.
First, Israel attacks Iran, then the U.S. attacks Iran, and then Iran attacks a U.S. base in Qatar…
That causes a ton of uncertainty, and markets do not like uncertainty.
However, all of that is a day trader’s best friend.
Why? Because volatility brings volume, and volume fuels momentum. That’s what we trade.
The high-quality setups just keep rolling in…
And for day traders, this market is a goldmine of opportunity.
In fact, Monday has become a goldmine all by itself.
My Monday Setup is a pattern that mysteriously shows up only on that day, and it can move fast!
We’re talking about moves that could deliver more in one morning than most people see in a month!
And for a limited time, we’re offering the Monday setup for just $7!
That’s an 85% discount off the regular price.
This was originally a sale just for Memorial Day, but the Setup became so popular that we kept the deal going.
It’ll only be here for about another week, though…
So, check out the Monday Setup ASAP in my video tutorial below.
Yesterday, I talked about a great day trade pattern, the Morning Panic Dip Buy. It’s perfect for times like this.
And it’s great for traders with small accounts. If you’re one of those people, I hope you’re on the lookout for it…
That being said, if you don’t have everything you need to find these fast runners, you might as well not trade them.
Level 2 data is a must for every trader, new and seasoned.
Honestly, if you don’t have this type of information at your fingertips, you’re trading blindly.
It’s one of the most underrated tools for reading real-time price action, spotting momentum, and making confident decisions in the moment.
Table of Contents
Level 1: The Tape
First, let’s talk about Level 1 data. It shows you every trade as it happens. It’s what we call “reading the tape.”
You’ll see:
- Green prints = upticks (trades above the last price)
- Red prints = downticks (below the last price)
- White prints = flat (same as the last trade)
Here’s an example of some major tech stocks’ Level 1 quotes from yesterday.
Watching the color flow of a stock gives you early clues about strength or weakness. It’s simple, but powerful.
Level 2: The Auction
This is where things get interesting…
Level 2 shows you the market beneath the market, i.e., the live auction between buyers and sellers.
It’s the digital version of the old-school trading pit. It tells you:
- Who’s bidding, or buying?
- Who’s asking, or selling?
- At what prices?
- And in what size position?
You’ll see:
- Highest bids: buy orders lined up
- Lowest asks: sell orders waiting
- Market maker IDs (MMIDs): who’s showing interest
- Size at each level: showing strength or weakness
In contrast to Level 1, the colors don’t really matter here, at least for us. They’re used to group market makers making the same bid or ask.
Below is an example of Level 2 quotes for MSFT.
Want to know if a stock’s about to break out or fake out?
Level 2 is where you find out, before the candle confirms it.
How to Read Level 2 Like a Pro
Here’s what to watch for:
- Huge bid support: That’s bullish — big buyers are stepping in.
- A lot of shares on the ask side: That’s bearish — sellers are ready to unload.
- Both bid & ask rising: Momentum is building — stock likely moving up.
- Both sides dropping: Weakness incoming — possible trend reversal.
It’s a real-time tug-of-war, and Level 2 gives you a front-row seat.
Real-Time Only — No Delays Allowed
Level 2 only works if you’re using real-time data.
If you’re using delayed data, you’re reacting to old news. In that case, the information is useless…
In trading, even seconds matter.
That’s why I rely on the StocksToTrade platform for real-time Level 2.
STT also includes charting, technical indicators, tons of pre-built scanners, alerts, and more…
It has everything you need to stay ahead of the game, all in one place.
Get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17.
My Final Thoughts…
Want to trade all those hot setups I teach?
You’re going to war without a weapon if you don’t have Level 2 data.
Level 2 isn’t about seeing what just happened…
It’s about watching the move develop in real time, before it hits your chart.
While charts show history, Level 2 shows intention.
You see the battle between buyers and sellers as it unfolds.
Use it to:
- Time breakouts with precision
- Confirm momentum
- Spot potential reversals
- Protect your entries (and exits)
That split-second advantage is real, and it adds up.
The market doesn’t reward impulsive guesses…
It rewards real-time awareness and tactical precision.
Start reading the action before the chart prints it. That’s how the pros trade.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
- Chasers get wrecked, but patience always wins in trading.
- Are you prepared if the stock you’re trading does this?
- In trading, trying to predict the future is a huge mistake.