Has anyone used TotalView or BookView software which gives ECN Level III book views of bid ask sizes for all prices, allowing support and resistance levels to be identified?
Level I shows the Best Bid and Best offer for each MPID... Level II shows several price levels for each MPID... What's Level III?
The ECN full book (Level III) used by MM's (market makers) which includes size for each price tier buy and sell side - showing large orders or clusters of orders away from the current market indicating support and resistance levels. This can be used to "hunt" stops, triggering them to drive the price lower in order to buy the stock at lower prices.
Oh ok. So it includes the pending Stop orders? Now that'll be nice to have... I've seen many providers that give you a book feed, detailing every Limit order on the book (very useful on the tick credit stocks), but I've never seen a quote feed that includes the pending stop orders and I've worked with the quote specification for many large ones like ORC, ACTIV, IDC, as well as the Market feeds, CQS, CTS, UQDT, UTDF, NYB Ultra, ARCA Fast FIX, CME Fast FIX, NSDQ Total view... Let me know if you find a provider that gives you this... it'll sure be nice to have
That's why individual traders are at a disadvantage and in the majority have a net loss trading history. Good trading!
i can't find any official information about level 3, but it looks like you can only access it if you are a NASD member firm. it seems just like a combination of level 2 data for some other order flow information. if there were specifics on it, it might be possible to create it yourself, but i suppose that's why they nasdaq doesn't openly publish information on it
As far as I can remember back to the dark ages of working on a desk, the key difference between Level III on NASDAQ and Level II is the ability to enter and move your own market. TotalView has everything a MM has without the ability to move your market.
By "move your own market" do you mean like the mass quote (through newOrderList) that's used by MM's?
I am talking about being the HIGH BID or LOW offer with your own name! Right now if you enter an order it has to go through whoever you clear, are you new?