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Oliver

Question on L2

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Oliver

So I understand the basics of a large bid = bearish signal and a large ask = bullish signal. But I was reading "One Good Trade" and it talks about a held bid and how that is a bullish sign. So my question is what is the difference between a big bid that is a bearish indicator and a held bid that is bullish and how do you tell the difference. Both are big bids but seem to give different indicators. Thanks everyone.

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Oliver

So if you see a large order on the bid side of the L2 right at the bid that is filling but the price doesn't drop then that is the held bid and a bullish sign, but if a large bid is on the L2 some distance from the bids then it is the bearish sign?

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corylee4870

My understanding after watching Carlos' video on level 2 is that orders stacking up on the Bid side is Bearish and orders stacking up on the Ask side is Bullish. 

Also, it is my understanding that a large Ask size may act as a Resistance due to not enough buyers and a large Bid size may act as a Support due to not enough sellers.

 

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