Webull Level 2 Market data provides an intuitive view of the battle between buyers and sellers.
In this tutorial, you will learn how to leverage Level 2 data from Webull to take your trading to the next level.
Table of Contents
What Is Level 2 Data On Webull ?
Level 2 market data in trading is a view of buyers and sellers intend through their respective orders.
It provides the depth of how many shares traders are buying and selling as well as their corresponding prices.
This means that if you are able to correctly read Level data, then you can infer the direction of the trade on any stock, commodity or instrument you are trading.
Therefore, you can turn this Webull Level 2 market data into an edge since it provides you an advice view of price levels.
How To Get Webull Level 2 Market Data
Webull Level2 market data features Level2 Advance, a premium data feed from Nasdaq Total View.
The easiest way to get the Webull Level 2 Subscription is to go to “Help Center”.
- Then you click on “Subscribe to Level” as shown on the Screen below.
2. The following screen shows up and you can Choose Level 2 Subscription at the bottom of the page
Level 2 market data from Webull provides further in-depth view of orders.
Up to 30 bid and ask prices are used to generate orders distribution chart we will be dissecting in the next section.
How Much Does Webull Level 2 Cost ?
If you are a new trader on Webull, there is a 3-month free access to Level 2 Advanced market data.
After which, your monthly cost will be $2.95.
I really think this extra cost is worth the price for traders who want to get an edge in their trading.
What To Look For In Webull Level 2 Data
Webull representation of Level data is meant to further help traders compared to other providers.
Let’s break down the different insights you need to look for when studying Webull Level 2 market data.
Buyers vs Sellers Orders Volume on Webull Level 2
The originality of Webull Level 2 Advance market data is from the Top chart of the orders Level.
It looks as shown in the image below.
On the right hand side in red, the sellers orders (30 orders are used to summaries this view) volume is what is represented on the vertical axis.
The horizontal axis describes the price of the stock, in this case, QQQ was trading at $352.06.
The left hand side column captures the volume of all buying orders.
In the above view, the red shaded area (volume of selling orders) is much higher than the left green area.
This means that there is more selling volume that buying volume.
Therefore, the current momentum in bearish.
Price for QQQ is then expected to slide lower to the left should the bearish momentum continues.
This graphical representation of Level 2 Market data on Webull is dynamic as buyers and sellers orders come in.
As an example, later on, I capture this similar view when buyers took control and the price moved up from $352 to $353.6.
Dynamic of Level 2 Market Data on Webull
Unlike Level 1 where you can only see the best Bid and Ask prices and the corresponding shares, Level 2 Advance on Webull provides a deeper view of the market.
What I like to pay attention is the dynamic movement of the orders.
Typically, when there is a strong momentum on either side (buying pressure or selling pressure),
the chart updates very quickly.
This is a sign for traders to know that the stock or instrument they are trading is attracting a great deal of traders.
Thus, we can expect bigger moves compared to a stock where the movement of the orders is not as rapid.
Here is short video depicting this phenomenon on QQQ towards the closing.
How Many Orders Can You See on Webull Level 2 Market Data
We know that Webull Level 2 Advance orders are ranked 1 through 30.
How many a trader need to display is a matter of personal preference.
I personally prefer to to show only the first 10 orders on the view below as you saw in the video.
Webull Level 2 gives you the choice to decide how much depth of the order book to display.
Here is how you can modify how many orders on both sides as depicted on the above image.
- Click on the blue number to the right of shares – current numbers of orders
- A Small window popup that offers multiple choices menu: 1, 3, 5, 10, 20 and 30
- Select one of the 6 choices above – I Always Use 10
How To Spot a Bullish Momentum on Webull Level 2
Whenever I am analyzing Webull Level 2 Advance market data on a stock I would Like to trade on the bullish side, my focus is on the bottom right hand side.
So a bullish momentum with great strength is confirmed when order number 9 and 10 start flashing higher and higher prices.
This means that the Ask prices are getting accepted and the stock is likely to sustain a great buying pressure.
In this scenario, the left hand slope (green line volume) needs to be higher than the red line slope as depicted on the second image above for QQQ.
How to Recognize Bearish Momentum On Webull Level 2
For the bearish momentum or selling pressure, the slope of the red line must be above the slope of the green line.
Such is the case on the first image.
Now, using the same technique as above, I am looking at orders 9 and 10 and need to see lower prices flashing in there.
Then we can anticipate that the price is likely to reach those lower prices should the selling pressure continue.
It also must be noted that the higher the size of the shares at this lower prices the more conviction is in the bearish momentum.
Last but not least, in both the bullish and bearish momentum, the range difference between Order # 1 and the bottom orders 9 and 10 is also forthtelling of the amplitude of the move.
How To Use Webull Level 2 Market Data In Options Trading
Since I mostly trade options through our proven 10-Baggers Trading System, I usually find myself scrutinizing Level 2 to help determine of I need to scale into a position further.
Let’s say I am trading Calls/Puts on QQQ or SPY in the middle of the Expiration day , Level 2 market data on Webull can quickly help me confirm whether I should buy more contracts in that winning direction.
Alternatives to Webull Level 2 Data
I have seen other level 2 market data with as few as five market orders depth view.
Such most prominent example is Power Etrade.
As a trader, you are basically left to guess what may be coming price wise.
I do not know about you but that makes me feel very vulnerable if I can not see the full depth of the market I am trading.
========> Related Video: Webull vs ETrade Review
Webull calls its Level 2 market Data Level 2 Advanced and deserves this appellation.
You will be able to get great insights in tot he depth of the orders for any instrument you are trading.
This feature is of a great help in opening a position or providing a confirmation to further scale into an already existing position.