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As an individual day trader, using QuoteView (old Level II) is a given. I am trying to decide whether using Nasdaq's Powerview (PV) or TotalView (TV) is better.
As I understand it, the big advantage of PV and TV is that if an MM has more than one quote within the top five price levels, that quote is now visible. As well, any anonymous quotes within the top 5 price levels are also visible (as MMID: SIZE). So this gives a trader a better picture of the current buying or selling interest (potential support or resistance). That is valuable information.
But sometimes the best inside quotes do not appear in the top five level display in PV and TV, I've noticed. I think that if market
participants are not Supermontage 'members', they will not appear in those top five price levels?. Which means a trader has to look at both the top five level window (by itself called DepthView) and also the level II window below it. Personally, it took me a while to get a feel for the market in Level II, I'm not sure if watching two windows will be easy to do - anyone have experience?
Market participants I've noticed that do not appear in the top five window are CINN, INCA, AMEX and MWSE(?). Are there others?
Another advantage of seeing the increased market depth is that a big player (not me) wanting to enter or exit a large position can
see if the liquidity is there, or if his order would move the market. But I'm wondering, would this increased view of liquidity allow
MM's to better play their games? Such as taking out stops before reversing the market, or showing false buying or selling interest at levels away from the inside market, or helping to create false breakouts? Can all the same games they could play in Level II be played more effectively in these new views?
I admit that sometimes I even question the value of Level II. If an MM wants to make a major buy or sell, it seems that the
appropriate bids or offers are just hit non-stop, with no hint of this intention visible in Level II, until it has happened. Will use of
TV and PV change this?
With respect to PV vs TV, in TV one can see the MM breakdown of those top five levels, which could be useful if one knew who
the hammer was, and wanted to better follow their actions, although it seems SIZE allows MM's to hide. But in TV, without the level II view, a trader doesn't know if he's seeing the inside market.
For that reason, I think the TV view is not for me. But is PV worth it?
I'd appreciate hearing if those that have used these views have found them beneficial or otherwise. Or maybe I've missed
identifying some of the pros and cons of these new views? Thanks
As I understand it, the big advantage of PV and TV is that if an MM has more than one quote within the top five price levels, that quote is now visible. As well, any anonymous quotes within the top 5 price levels are also visible (as MMID: SIZE). So this gives a trader a better picture of the current buying or selling interest (potential support or resistance). That is valuable information.
But sometimes the best inside quotes do not appear in the top five level display in PV and TV, I've noticed. I think that if market
participants are not Supermontage 'members', they will not appear in those top five price levels?. Which means a trader has to look at both the top five level window (by itself called DepthView) and also the level II window below it. Personally, it took me a while to get a feel for the market in Level II, I'm not sure if watching two windows will be easy to do - anyone have experience?
Market participants I've noticed that do not appear in the top five window are CINN, INCA, AMEX and MWSE(?). Are there others?
Another advantage of seeing the increased market depth is that a big player (not me) wanting to enter or exit a large position can
see if the liquidity is there, or if his order would move the market. But I'm wondering, would this increased view of liquidity allow
MM's to better play their games? Such as taking out stops before reversing the market, or showing false buying or selling interest at levels away from the inside market, or helping to create false breakouts? Can all the same games they could play in Level II be played more effectively in these new views?
I admit that sometimes I even question the value of Level II. If an MM wants to make a major buy or sell, it seems that the
appropriate bids or offers are just hit non-stop, with no hint of this intention visible in Level II, until it has happened. Will use of
TV and PV change this?
With respect to PV vs TV, in TV one can see the MM breakdown of those top five levels, which could be useful if one knew who
the hammer was, and wanted to better follow their actions, although it seems SIZE allows MM's to hide. But in TV, without the level II view, a trader doesn't know if he's seeing the inside market.
For that reason, I think the TV view is not for me. But is PV worth it?
I'd appreciate hearing if those that have used these views have found them beneficial or otherwise. Or maybe I've missed
identifying some of the pros and cons of these new views? Thanks
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