You can get a free TD Ameritrade account and sign up for the "ThinkorSwim" software, it gives free level 2 quotes.
1) Level 2 when dealing with promoters
⁃ Watch the MARKET MAKER ID. Watch them selling a lot.. This could mean they are dumping shares of their pump. The stock could now crash when this market maker stops selling because they have sold all the pumpers shares. GET OUT, or short now.
⁃ Watch specific market makers
2) Don't look at the size of the level 2 look at the action. Watch for one or two market makers doing a lot of action.
• Watch for a market maker who has like 100 shares, and is at the price of the stock. And his shares aren't being bought (you see this on T&S {time & sales} charts)
• He could have MILLIONS of shares.. But because you keep seeing that 100 share order at HIS price keep getting filled in the TS (time & sales) charts.
• The longer his trade (same market maker) stays at his same bid. THAT could be a wall of buyers. Especially in penny stocks. He is hiding how much he's selling by just putting 100.
• Don't buy a penny stock at a key level that it can't break, Because there may be a big wall.
• Instead, if it's hitting a key level and its not breaking it.. then - IT DOES BREAK IT .. By a penny or 2- then that could be the castle crumbling. that could be the one piece of the wall of the Berlin Wall falling. IT'S SyMBoLiC. It could mean that the stock is about to skyrocket - or the stock is about to tank HARD.
• Watch for the key levels, resistance & support for the week, month and year.
• When you buy and it can't get thru a wall.. You may want to get out, same goes for shorting.