Interpreting level 2 data on OTC BB stocks

0 thoughts on “Interpreting level 2 data on OTC BB stocks”

1. What are some of the fastest routes to get out if necessary? Obviously NITE should be avoided. I’m assuming you can get filled on ARCA very quickly if there’s a bid sitting there. What about the other MM’s?

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   1. Just whomever has the best bid/offer. 90% of the time I route NITEL but if I need to get out I’ll hit whomever is on the best bid. ArcaEdge is rarely useful because it is not often used (except in premarket).

      For MCGI I used LABS. I’ve used UBSS and ETMM and AUTO too. ThinkorSwim routes all orders to AUTO by the way.

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2. great video.

   Reaper, you made a comment in your May 6 blog post that I was hoping you could elaborate on. Your comment was: “My identification of where it would bounce using level 2 was correct, however.” It was in relation to your trade on PDGO.

   So my question is, what were the specifics in level II that helped you form an accurate assessment of where it would bounce. I’m new to this so if you could break it down, that would be great.

   Thanks,
   Chris Quinn

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   1. You really just need to closely watch level 2 on an OTC stock falling like a rock to see. ANTS today would’ve been great. The basic gist is that when an OTC stock is in freefall you will see many more MMs on the offer than on the bid. This will reverse right as it reaches a bottom. It doesn’t always work, though … it is just one more indicator to use.

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3. Hey Reaper,
   Looking for video ideas? How about a follow up video on level 2 showing a stock really tanking/rocketing up and what the reversal looks like on level 2. Understood that these are not full proof but would be nice to see how you watch and play these reversals in real time.

   Thanks,
   Chris

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