The list of stock market maker signals below is used by professional traders using level 2 trading data to make stock trading decisions.
It tells them how much volume has traded in shares and what orders have been placed (buying vs. selling).
When used in conjunction with real-time stock prices and technical analysis, traders can figure out who is driving a change in the price of a particular stock and react to the market quickly.
This information helps understand what kinds of stock signals the market makers send to other market makers.
Market Maker Signals (Download Below)14 Market Maker Signals Causing Stock Price Changes
|#||Market Maker Trading Signal||Level 2 Market Maker Direction Description|
|1.||100||I need Shares|
|2.||200||I need Shares badly but do not take the stock down|
|3.||300||Take (or I am taking) the stock down at least 30% so I can load shares|
|4.||400||Keep trading it sideways|
|5.||500||Gap the stock. Gap can be up or down, depending on direction of 500 signal|
|6.||505||I am short on shares|
|7.||600||Apply resistance at the ASK to keep the price from increasing|
|8.||700||Move the price up|
|9.||777||Also recognized as a signal to move the price up|
|10.||800||Prepare for an increase in trading volume|
|11.||900||Allow the stock to float and trade freely|
|12.||911||Pending News/Press Release On The Way|
|13.||1000||Don't let it run|
|14.||2100||Let it run|
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What Are Market Maker Signals (Example Pictures Bottom Page)
What are market maker signals? Market maker signals are the signs broker-dealers or market makers send each other to move stock prices.
You can see all of the buys and sell share amount orders in real-time during trading hours when the markets are open, making it easier to figure out what’s going on with the direction of a company’s share price.
Reading market maker signals on Level 2 can act as a critical indicator and provide a lot of information in the marketplace regarding the supply and demand of a share price.
As a day trader looking for new opportunities to have an edge in the market, level 2 can show you a detailed supply and demand.
It further illustrates when individuals purchase and sell a stock in real-time trading as volume transactions.
Most people who trade stocks start by watching Level 1 because all information about current transactions occurs here.
It provides an overview of what is happening in the market at any given moment. Level 1 is typically showing you the price of the stock only.
However, level 2 is also an important place because it can provide a lot of information behind the scene about the sentiment.
How To Read Trading Signals From Market Maker Brokers
Buying stocks or shares is when you buy them from another person selling them. On the other hand, a selling signal happens when your buy order is higher than the next person’s “sell” order.
As you read trading signals from market makers and learn to “read the tape” or “time and sales” window as they call it, you will notice that this window displays all the share lot sizes traded in real-time.
In this specific window, you may find one market maker showing shares traded as 100 or 2100, such as the explanation of the list below – which is how one market maker communicates with another market maker to move share prices.
Continue reading to learn about the signal meanings below.
Market Maker Signals 100
What does the Market Maker Code 100 Mean? A market maker needs shares when you see the 100 number on the time and sales level 2 order book.
If you’re an individual investor and observe this number, the stock is in heavy demand. Because other investors are also vying for the same shares, acquiring more might be a good time.
You may not think of stocks as finite resources, but they are.
When there aren’t enough available traders trying to sell their shares, we call that a lack of supply, meaning it’s much harder for people who want to buy some right now.
When 100 appears on the time and sales level two order book, it indicates high demand, which is when buyers will have trouble finding sellers – so buying pressure increases.
If you start seeing 100s coming up all over your screen while watching Level II, that may be a perfect time to start looking for stocks to buy.
Market Maker Signals 200
What does the Market Maker Code 200 Mean? The market maker code 200 means I need Shares badly but do not take the stock down.
While the volume of shares swapped in their favor is no longer adequate to cover all orders, brokers get this crucial notification when trading stocks on an exchange.
You might have seen this code flash across your screen as you’re looking to buy shares on the stock market.
The Market Maker Code 200 tells other market makers they are attempting to fill their order by any means necessary.
They need shares but are not willing to take down the stock price if they can’t get enough volume in their favor.
Slippage occurs when a broker takes the price down too far to fill an order. It can cause a stock to sell off at a worse price than when you first entered your order.
That is why, before removing any orders off from the market, brokers would typically utilize Market Maker Code 200 and inform others that they require more volume in their favor.
Market Maker Signals 300
What does the Market Maker Code 300 Mean? Slippage occurs when a broker takes the price down too far to fill an order.
It can cause a stock to be traded at a worse price than when you first entered your order.
That’s why, in most cases, brokers would utilize Market Maker Code 300 to inform other market makers that they want greater volume in their favor to secure more shares before potentially boosting the stock price back to prior levels.
Market Maker Signals 400
400 – Keep Trading It Sideways
What does the Market Maker Code 400 Mean? The market maker signal 400 is a significant indicator for traders.
When the market maker signal 400 appears, there is no trend in the stock and to keep trading sideways.
Since the up or down directional movement of the share price is flat and not moving substantially, this can be observed as a chance to buy or sell at any moment without risking significant losses as you would if trading with a trend.
Generally speaking, it means there is no indication of an imminent change in direction for the stock price at this time.
Market Maker Signals 500
500 – Gap The Stock. The Gap Can Be Up Or Down, Depending On The Direction Of 500 Signal
What does the Market Maker Code 500 Mean? The market maker code 500 signals “gap the stock” either upwards or downwards from the current trading price.
This typically applies especially when the stock is trading in a sideways market, not trending up or down.
It’s especially true when the stock is trading in a sideways market, with no clear-up or downtrend direction.
For example, if the gap were upwards, this may be caused due to a lack of available shares and rising demand which means the stock price rapidly increases with a Gap upwards.
Market Maker Signals 505
What does the Market Maker Code 505 Mean? The market maker code 505 signals that I am short on shares.
The broker uses this code when there is no more volume in their favor, meaning they can’t take the price down any further to get rid of stock and pass all incoming orders onto another market maker who has more available shares to fill the order.
This code will only be sent to other market makers if the broker is short on shares and needs them badly.
Market Maker Signals 600
600 – Apply Resistance At The ASK To Keep The Price From Increasing
What does the Market Maker Code 600 Mean? For traders, it is crucial to understand what market signals mean to make better trades.
When the Level 2 data shows a stock has a 600 signal, the market makers wish to apply resistance at the ASK to increase the price.
The resistance can take many forms, such as placing a large order above the current trading prices.
Another term you may hear is “blocking” or “fake walls,” attempting to keep the stock’s price from proceeding any higher.
Market Maker Signals 700
700 – Move The Price Up
What does the Market Maker Code 700 Mean? The market maker code 700 tells all other market makers that there is a change in the price of a stock and the future direction should move it up.
When used as a standalone signal, the reading levels typically only make sense for stocks with no trend.
If you are trading an upward trending stock, then a market maker signals 700, by itself, makes no sense because it will just move the price back to where it was before.
For traders who use technical indicators in their daily stock analysis, this Level 2 signal may be complementary when combined with other technical, volume, and price indicators to view the complete picture.
We have included an example picture of a market maker code signal 700 at the bottom of this page. Please scroll to the bottom or click here.
Market Maker Signals 777
777 – Also Recognized As A Signal To Move The Price Up
What does the Market Maker Code 777 Mean? The market maker code 777 is a signal used by other market makers to move the stock price upwards.
The above operates in tandem with another market maker, who may have also seen an indicator 700 from another market maker, which signals an immediate change in price for this one time only.
The signal should only be seen on Level 2 stocks and is typically communicated by other market makers.
Market Maker Signals 800
800 – Prepare For An Increase In Trading Volume
What does the Market Maker Code 800 Mean? The market maker code 800 tells other market makers to prepare for an increase in trading volume.
The 800 signal shows when the stock price is beginning to increase, and there may be a lot of activity coming soon from investors.
Additionally, this particular indicator also means that any future purchase orders should be filled at a markup above what you usually charge.
The market maker code 800 typically only applies for stocks that are trending either upwards or downwards, not sideways markets.
Market Maker Signals 900
900 – Allow The Stock To Float And Trade Freely
What does the Market Maker Code 900 Mean? Code 900 signals other market makers to allow the stock to float and trade freely.
There’s no need to push up or drive down the stock price with selling pressure. The price is free to trade as the natural supply and demand dictates.
The market maker is telling the other market makers not to interfere with the natural changes in a stock price.
Market Maker Signals 911
911 – Pending News/Press Release On The Way
What does the Market Maker Code 911 Mean? The market maker code 911 is an indicator to look out for because it tells investors that a pending news release or press release may be on the way.
When used on its own, this signal has no bearing on the stock price but can help you decide if you want to hold or sell your current position.
If you are looking to profit from the stock, you may want to sell out before the news comes out if you anticipate bad news.
However, if you anticipate good news from the company, this may indicate you are willing to take the risk and hold your shares, awaiting the potential upcoming news release.
We have included an example picture of a market maker code signal 911 at the bottom of this page. Please scroll to the bottom or click here.
Market Maker Signals 1000
1000 – Don’t Let It Run
What does the Market Maker Code 1000 Mean? The market maker code 1000 signals other market makers not to let the stock price run away from them.
When used as a standalone order, this typically means that it will stop the stock from moving up too much.
Market makers can use this in conjunction with the signals mentioned earlier, such as 700 and 777.
Investors should be on the lookout for this code because it also means that a market maker controls the price.
You may have heard of the expression market makers putting up “walls” in the past.
Typically, when market makers attempt to stop a stock price from moving, they will put up a big “wall” (a large number of shares) on the ASK to prevent the stock price from running any higher.
Market Maker Signals 2100
2100 – Let It Run
What does the Market Maker Code 2100 Mean? Code 2100 signals other market makers to let the stock price rise and underlying increase.
As with the previous codes, market makers can use this in conjunction with other signals, such as 700 and 777.
This market maker code tells investors they want to control the stock price and remove any big walls on the ASK or selling pressure to allow the stock share price to increase and run higher to new highs.
We have included an example picture of a market maker code signal 2100 at the bottom of this page. Please scroll to the bottom or click here.
Tips To Consider Understanding Stock Prices Change On Level 2 Quotes
- If the market maker is trading with a large volume of shares and prices are moving in the same direction, it indicates that they have an interest in seeing prices move higher
- Watch for a large number of buy or sell orders
- Look at the bid/ask spread – is it widening or narrowing, and by how much
- If you’re looking at stocks with heavy short interest, watch out for “bear raids” where institutional investors try to push down the share price by flooding the market with sell orders
- Markets with low volatility, meaning that it moves less often and by less amount
- If there are no bids or offers at all, then this is an indication that prices are too high or too low
- A spike in volume may indicate some momentum behind either side of the trade
- If an order has been cancelled and then another one filled at a higher price shortly after
- If the bid-ask spread widens significantly, indicating increased volatility in trading prices
- When there are sudden swings in trading volumes from high to low and vice versa without any obvious reason for the change (elevated volume) or when market makers have suddenly started aggressively buying up stocks on offer (low volume).
- When there is a sudden change in volume (increase or decrease) on a given security
- Watch for a stock to move higher in price and volume on Level 2
- The number of shares traded over some time
- Volume or the total dollar amount of shares traded in a given period
- Time and sales – this is how many trades are executed during a specified period, measured by both the number and value
- Any change in volume, bid/ask spread, or inside market from one minute to the next
- If the price is trading in a tight range and then suddenly jumps up or down, it could be a signal that large orders are being filled
- When the price moves back and forth between two levels with no significant change in volume, this can indicate that traders are trying to push prices higher or lower
- A sudden increase in volume without an accompanying rise in price may mean someone is buying shares to drive the stock’s value up (a bullish signal)
- A sudden decrease in volume without an accompanying drop in price may mean someone is selling shares to drive the stock’s value down (a bearish signal)
- If you see stocks from different sectors moving together at around the same time, this could indicate market sentiment
- The number of stocks on Level 2 displaying new highs will give you an idea of how much risk appetite investors have for those particular companies
Are Stock Market Maker Signals Real
One of the most commonly asked questions in the financial world is whether stock market maker signals are accurate.
There are many theories on this topic, but none are confirmed.
Some people believe that these signals manipulate stocks and profit off unsuspecting investors when they buy or sell based on their tips.
Others claim that the market maker signals may be accurate predictions of future events, such as market direction trends. The truth is still out there, and we don’t know for sure.
One of the biggest problems with relying on these signals is that there’s a lack of confirmation of who sent the market maker signal, which means that you have no guarantee about their accuracy.
For example, anyone can place a trade for 2100 shares (2100 – Let it run).
Ultimately, the best way for investors to take advantage of these signals is by watching what happens after each signal appears. If it does not lead to any price change, you should ignore it.
However, if it does, you know the direction the market maker broker wants the stock price to go.
Finally, it is well-known that traders make decisions based on Level 2 time and sales stock data.
If you want to understand what direction market makers are moving your stocks, it’s essential to read this information.
Market Maker Code Signal Example Pictures (700, 911, 2100)
Level 2 stock market data is a little complicated and challenging to understand.
To help you, we have prepared pictures of the signal codes that market makers use when broadcasting their trades.
Take a look at these pictures and see if this helps with your understanding now.
Example 1 – Includes Pictures Of Both Level 2 Time And Sales + Charts Price Action
The below example shows the 2100 market maker signal code (Let the price run).
The VGLS stock price is at $0.0065, and shortly after price increases to $0.007 and higher.
Example 2 – Includes Pictures Of Level 2 Time And Sales
The second example below shows two codes for market maker signals 700 and 911.
700 – Market Maker Signal Code
- This is a buy signal where the market makers are calling out to “Move The Price Up” and you should anticipate a possible increase in stock price.
911 – Market Maker Signal Code
- This is also a buy signal and the market makers are calling out anticipation of possible upcoming “Pending News/Press Release On The Way” from the company.
How Do I View Level 2 Market Maker Signal Codes?
After reading this article on market maker signal codes, if you are interested in viewing Level 2 Market Maker Signal Codes, you will require a stocks software subscription that can provide this type of data to you in real-time.
We recommend you read our article on Scanz Trading Software Review which may help you to read market maker signal codes.
Final Thoughts Understanding Level 2 Time And Sales Trading
In this blog post, we’ve discussed how Level 2 time and sales data can help you understand how market makers move a stock price.
Now that you know what to look for, it should be easier to spot market patterns.
Understanding Level 2 time and sales stock data can help you identify how market makers move a stock’s price.
You will better understand how to read the trading price action (buy vs. sell) when you know that.
By utilizing this knowledge, traders who want to execute trades at the correct prices may get an edge on their competition for those lucrative trades.
If your goal is to improve your trading skills or become a more successful trader, then learning about Level 2 time and sales stock information might be what you need.
This information will help you make better market decisions because it can give you insight into how traders at different levels or positions on the buy-sell spectrum view an asset’s value.
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