Level 2

[indotek68]

I've heard that looking at the time and sales is the first thing you should look at when looking at the level 2. Why is that? And what are you looking for?

[Raptorsrule]

You are looking to see if they are buys or sells and how big the fill was. You have to assume a fill at the ask is a buy and a fill at the bid is a sell. L2 can be very useful to understand the current bid vs ask MM structure....watching time and sales along with it and in comparison to it is invaluble when trading.

just my 2 cents