Some people use fancy indicators when day trading, I as a momentum trader only care about the volume and support and resistance levels when day trading. I trade quickly and usually never hold a trade for more than an hour. Because of this, I have left hundreds on the table, but have also made hundreds by selling at the top.
Today I made a quick 3%, 10 minute in duration trade on $OMG, OmiseGO. I bought the exact dip and sold at the exact top and some under because it fell so fast.
I bought them based solely off watching the level 2 price action on Bittrex. What is the level 2 you may ask? It's the Bids and Asks flowing in realtime.
You can see all orders of people wanting to buy or sell, and the number of units they are buying and selling.
Using this you are able to determine good entry points as you can tell when buyers pickup and when sellers are starting to gain strength. You can even click on multiple pages of buyers and sellers further down the order line to determine where huge buyers or huge sellers may be at.
For this quick trade, I got in as I felt the support was holding, and buyers were starting to accumulate, and sold in the .0021 area as I looked beforehand and saw there was a big seller wall there. Also .0021 is a whole number which adds power to resistance as people like selling into whole and half unit marks, me included.
Obviously the level 2 data can be manipulated by buyers or sellers posting huge orders and taking them away at the last minute. It's important to watch the level 2 closely in order to spot manipulation and to react.
Now this coin can go further up, and it probably will as it looks quite bullish at the moment, but I like to make money, I like sure things. So when I see that I made a decent profit, I will take it, unless I feel there is still massive steam on the buyers side as I did with my past trade of $ MCO which I posted yesterday.
If you have any questions or comments do not hesitate in posting them, I will answer as soon as I can. I am also new on Steemit, so if you have any advice on how to grow my channel I would appreciate it immensely.
I also have a twitter account where I post some entries and trades and thoughts about coins I am watching.