In this video I’m breaking down order flow by walking you through what “Level 1” and “Level 2” actually mean, and how I think about them when I’m day trading. Most people hear Level 2 and assume it’s some magic edge, but I want you to understand what you’re really looking at: the quotes, the spread, and the liquidity sitting on the book. Level 1 is the simple stuff—bid/ask and last price—while Level 2 adds the depth and the players behind those prices.
The whole point is to connect the dots between what you see on the screen and what’s actually happening with supply and demand in real time. I’m focused on how order flow can help you read pressure, spot areas where price might stall, and avoid getting baited by fake size. If you’re trying to build a repeatable process, this is the foundation: know what Level 1 tells you, know what Level 2 can and can’t tell you, and then use it as a tool—not a crutch—alongside your setups and rules.