Successful technical traders tune their execution triggers through study of the tape action on the Level II screen. The Level II screen provides the important interface between general knowledge of stock charts and execution of specific trading strategies. Consistent market profits require insight and skill into both disciplines. Many excellent technical analysts lose money due to tape reading incompetence. On the other hand, expert screen readers often disregard input from their technical labors and succeed by trading the tale of the tape.
Numbers are the fuel of the markets.
In fact, stock action is nothing more than numbers and their rate of change over time. Emotions of fear and greed reveal themselves quickly through these rapid bursts of trading activity. For the short-term trader, correctly reading the message of the Level II screen is critical to the success of each of these decisions. While initial stock picking results from effective market scanning and detailed technical analysis, no two markets trade alike. After you choose your stocks, periods of passive LII observation before trading them is highly recommended and well worth the effort.