Explained on Nvidia! <Nasdaq totalview Level 2>4 trading strategies using board information are now free!

At this point, it is Nvidia that is getting the market's attention. Nvidia reigns supreme as a stock with a high trading volume in the US market. Nvidia's active trading shows a tug-of-war (supply and demand) between buyers and sellers, and diverse transaction possibilities have emerged.

You can try high-performance board information free of charge for 3 months! <Nasdaq totalview Level 2>By utilizing it, let's quickly read supply and demand and quickly seize transaction opportunities.

This time, I would like to introduce 4 trading strategies that utilize Nasdaq TotalView Level 2 board information.

On May 17, Nvidia's pre-market price was $946.970. For example, if you want to buy Nvidia shares on the pre-market, a $946 buy orderstraightawayWhether or not to make a deal may be difficult.

However, by looking at the Level 2 board information data, it is possible to observe the current order price and selling price, and the order scale in detail.

In this case, we notice that 298 share orders were placed for $947 on the initial sell board. If you set a price limit of $947 or $946.970 or higher for buy orders, the possibility that orders will be executed quickly at a fair price will increase, and transaction efficiency will improve. The opposite is also true.

A high volume of buy orders in a specific price range may indicate a short-term level of support. If stock prices continue to rise above this level, fine adjustments will occur, and buying opportunities may arise. Conversely, large sell orders may indicate resistance levels.

However, there are other interpretations. If there are many orders on the buy board but the stock price does not rise significantly, this may indicate potential resistance, and vice versa.

This highlights the complexity of stock trading. When making trading decisions, it is important to comprehensively consider various factors, such as market sentiment in a broad sense, trading sentiment for specific stocks, recent momentum shown by candlestick charts, and the occurrence of financial results and statistical announcement events.

From the figure above, even though supply and demand for buy orders and sell orders are relatively antagonistic,The pressure of sell orders is slightly higherThat can be observed. Also, the chart composed of red and green under the notation board information is a “depth chart” showing the distribution of supply and demand, and it can also be confirmed by looking at this.

Let's take a look at the contract analysis after the deal for this day is over.

In order to more visually express the power of buy orders (inflow of funds) and the power of sell orders (outflow of funds), the order/contract analysis pie chart shows a breakdown of order sizes from ultra-large to small orders.

Looking at this, it is shown that each order size has more selling power than buying. It's a “selling advantage.”

Summarizing the above situation simply, despite the fact that stock prices had risen slightly in the pre-market, sell orders were already slightly conspicuous based on board information. I'm not asserting that this is the only factor, but according to contract analysis, it is known that it is a “sales advantage,” and the closing price for this day (5/17) also landed negative.

Supply and demand in the stock market provide insight into new trends, but it is particularly evident when orders that are too large are placed against the buy/sell board, or when abnormally large orders are scattered in a certain price range. While such orders contribute to the overall sentiment driving the trend, they also generate speculation.

An abnormally large buy order or a series of large buy orders in relation to the number of orders appearing on the sales board indicates that interest in buying is growing, and suggests the possibility that stock prices will rise. Conversely, an increase in sell orders falling suddenly indicates an increase in selling pressure and may be a harbinger of stock price declines.

Also, be sensitive to the price divergence between the buy board and the sell board. This is because they sometimes provide signals indicating trend changes or trend continuity to traders.

Board information is definitely a powerful source of information for traders, but it's important to be aware of its points as well.

Orders shown in the board information have not been executed, so there is always a possibility that they will be canceled. Therefore, it is possible to increase effectiveness by comprehensively viewing board information in conjunction with fundamental analysis and other technical indicators.

For example, imagine using technical analysis to draw support and resistance levels on a chart. Board information can then be used to confirm these levels, and the accuracy of whether the buy order has established a support level can be increased. Conversely, if sell orders are increasing, it indicates potential resistance levels and may suggest a rebound in stock prices.

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*The stocks featured as reference examples are for illustrative purposes only, and there is no timeliness in the images. We do not intend to recommend stocks.