see that commercial on CNBC with a trader operating a Level III, that doesn't even get to drink his coffee, has a sandwich delivered, and that doesn't even get eaten, sits there banging away with hotkeys, and trades through to the 4pm bell? that's what its like on the other end, if they've got time to "hide", then perhaps they need to. Afterall, its guys like that that keep staring at the screen, and finally see: "The Matrix"
Not just another gimmick but it appears to be a well thought out plan to favor the MM's and the industry at our expense. And to possibly take out the smaller ECNs. To reduce transparency-- price levels will only be shown five deep from the inside price. The rest won't be shown. How often does a daytrader or scalper depends on looking deep into the Level 2 prices as another tool to determine potential support and resistance? This depth won't be available with super montage. "Increased pretrade anonymity" quote from the Nasdaq video clip. Just another way to hide who is buying and who is selling, and what MM's are taking a strong position.
With a whole 5 level display, we at Supermontage are committed to enhancing transparency!!! Bullcrap... Supermontage is gonna make scalping difficult... hopefully the better brokers will integrate the non-participating ECNs with Supermontage into one display, to give us all a bit more of an idea as to where support and resistance lies... yet again, the non-participating ECNs are gonna have to bail us out of being thrown back to the dark old days of market maker thiefdom (we hope)... the moment the ECNs start participating in this scam, we are screwed...
Support and Resistance comes from a chart and- for the most shortest of time frames-the Tape. To me, the bids and offers beyond say 10-15 cents away from the inside represent irrelevant useless information. If a stock is bid at $50 and I see thousands of shares bid way down the Level 2 screen at $49.75, I hardly consider this-let alone count on it-as support for the stock. I know that if the stock starts getting pounded and bids are getting whacked those guys bidding at $49.75 are going to start hitting "cancel" when the $49.78 bids are printing. Generally speaking, based on how stocks are trading today, I think 5 price levels is adequate for gauging short term direction from L2. Just my opinion.
Correct for highly liquid stocks, but I disagree with you on that assertion if you apply it to the thinner stocks...
Good point Candle I was definitely referring to the highly liquid ones. On that note I need to expand my horizons and start to trade some more of those. I am getting sick and tired of the whippy BS action of the big cap semis and bios. ARRGGHH.
100% Crap - Somebody had to say it. Okay DATT, 5 levels is enough, right? But why limit it at all? Is the system crashing because we see all of them now?? Don't you see, if we give them this, then what's next? Maybe I'm paranoid, but if there's money involved i know they wouldn't do anything to hurt their pockets. Are the non-participating ECN's (ILSD INCA) going to show up against the MM? If not, why can't they have 5 bids and 5 offers at 100 shares each on 5 levels? What size is there, 500? Like i said,maybe i'm paranoid but this is my living, and i don't like the idea of someone taking food out of my mouth and telling me it's for my benefit. Cheers