{"id":8804,"date":"2010-12-10T11:34:11","date_gmt":"2010-12-10T16:34:11","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=8804"},"modified":"2010-12-10T11:34:11","modified_gmt":"2010-12-10T16:34:11","slug":"a-signal-from-the-level-ii","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/a-signal-from-the-level-ii","title":{"rendered":"A Signal from the Level II"},"content":{"rendered":"<p>On the Open GMCR and BEC gave us a signal from the Level II, we say Reading the Tape, that they both were going down. \u00a0After this signal there was opportunity to add or take a position with the side of this signal. \u00a0Some time passed and then it happened. \u00a0Both stocks headed in that direction of the signal.<\/p>\n<p>33.50 was a support level on the open in GMCR. \u00a0It finally touched below and then GMCR spread out, the bids were very far away from 33.50. \u00a0In this stock where there were bids and offers every 5c minimum this was a sign. \u00a0There were many prices skipped below 50c. \u00a0This was a signal from the tape that GMRC was about to get weak (you could see the same signal just from the selling side above 33 when GMCR was ready to go back up and test 33.50 again).<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/signal-gmcr.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-8810\" title=\"signal gmcr\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/signal-gmcr-300x193.png\" alt=\"\" width=\"300\" height=\"193\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/signal-gmcr-300x193.png 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/signal-gmcr.png 834w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>74.50 was a level on the open in BEC. \u00a0We traded above this price strongly and then hit some selling. \u00a0Then BEC touched below 74.50 and something very strange happened. \u00a0The bids were no where to be found till 74. \u00a0There was an offer at 74.50 but in this stock that had bids and offers every 10c now there was no bids for 50c. \u00a0This was a signal from BEC that it was about to reverse and get weak.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/bec-signal.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-8811\" title=\"bec signal\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/bec-signal-300x186.png\" alt=\"\" width=\"300\" height=\"186\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/bec-signal-300x186.png 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/12\/bec-signal.png 839w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Orders are almost exclusively handled by\u00a0algorithms, coded auto trading,\u00a0in this modern market. \u00a0The spread widening, no bids suddenly for 50c below important levels, prices being skipped is a signal that the buy computer programs are not present or now not as aggressive. \u00a0Thus the stock is ready to trade lower.<\/p>\n<p>Remember we do not make trading decisions just from Reading the Tape. \u00a0But we are interested when the tape offers such interesting information.<\/p>\n<p>Mike Bellafiore<\/p>\n<p>Author, <a href=\"http:\/\/www.amazon.com\/gp\/product\/0470529407\/ref=s9_simh_gw_p14_d0_i1?pf_rd_m=ATVPDKIKX0DER&amp;pf_rd_s=center-2&amp;pf_rd_r=1ACWSNRW0M5WPRX6X3S3&amp;pf_rd_t=101&amp;pf_rd_p=470938631&amp;pf_rd_i=507846\">One Good Trade <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On the Open GMCR and BEC gave us a signal from the Level II, we say Reading the Tape, that they both were going down. \u00a0After this signal there was opportunity to add or take a position with the side of this signal. \u00a0Some time passed and then it happened. \u00a0Both stocks headed in that direction of the signal. 33.50 &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/a-signal-from-the-level-ii\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[1517,1516,4674,338,1193,653,1354,1349],"class_list":["post-8804","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-bec","tag-gmcr","tag-one-good-trade","tag-reading-the-tape","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Signal from the Level II  | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/a-signal-from-the-level-ii\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Signal from the Level II  | SMB Training\" \/>\n<meta property=\"og:description\" content=\"On the Open GMCR and BEC gave us a signal from the Level II, we say Reading the Tape, that they both were going down. \u00a0After this signal there was opportunity to add or take a position with the side of this signal. \u00a0Some time passed and then it happened. \u00a0Both stocks headed in that direction of the signal. 33.50 ... 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He has traded professionally for more than a decade.\",\"sameAs\":[\"https:\/\/www.smbtraining.com\/blog\/bellas-blog\"],\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/bella\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Signal from the Level II  | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/a-signal-from-the-level-ii","og_locale":"en_US","og_type":"article","og_title":"A Signal from the Level II  | SMB Training","og_description":"On the Open GMCR and BEC gave us a signal from the Level II, we say Reading the Tape, that they both were going down. \u00a0After this signal there was opportunity to add or take a position with the side of this signal. \u00a0Some time passed and then it happened. \u00a0Both stocks headed in that direction of the signal. 33.50 ... 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