Trading exchange based products

[JTrader]

Hi

when daytrading exchange based products including/such emini dow, SP500, nasdaq, FTSE and CME Globex forex futures - I believe it is possible to view a market depth/level 2 order book.

I am just wondering what traders who daytrade the above market types, think of the corresponding market depth/level 2 order book, in terms of it's value as a trading tool. Do you utilise it in your trading strategy in terms of defining entry or exit points, or just to make sure that the price isn't about to collapse in the opposite direction to your trade?

If so, when daytrading which instrument/s?

Or, do you think that it isn't really necessary to use the market depth/level 2 order book, and believe that technical analysis alone, is all that is necessary to daytrade the market/s in question?

Many thanks

jtrader.

 

[nazzdack]

I get the most value from real-time charts. I can literally see where potential support & resistance are developing. Regarding market depth & volume, I believe most of the posted orders are bogus and change too frequently to be of any value. Much of those orders are spread, option & arbitrage-oriented so it doesn't represent something that will give follow-thru to a market movement. If you can actually create or derive something relevant from the Level-2 info, please enlighten the rest of us with it.