Secrets of Daytrading - How Market Makers work

This is one of many secrets "learned by me over the years in the daytrading school of hard knocks". This secret deals with the level 2 and how market makers move stocks through different levels. It happens on both the upside and the downside. Even though I focus and mainly trade stocks between $1 to $10 per share this happens to every stock - let me explain.
First on the downside because stocks fall faster then they go up. Too bad all stocks are not shortable but you can buy every stock long - go figure.

Lets use ROSG as example - this chart is a 2 day 60 minute chart - it dispalys my point exactly. On the way up 2 days ago it went from 5.75 to 5.80 - once above the 5.80 with volume a stock will climb to towards the 6.00 mark. At 5.90 volume starts kicking in and at 5.93 I do my entry buy and want to buy more after breaks 5.95 which confirms he break for me, then at 5.98 and 5.99- I will bet the house it will go thru 6.00 and when approaches the 5.98 and 5.99 - you can seel the HUGE size on the offer and no fear it always takes that 6.00 out. It goes to 6.01 and touches 6.02 for a sec and then reverses right back under 6.00 to low 5.97 and - it gets quickly sucked up by the smart traders who buy on the way down and sell on the way up. So now I am long at 5.93 and 5.96 and 5.98 even - as long as volume flowing the stock will go back tru 6.00 and creep thru the 6.02 and move past 6.05 - at that point I watch raising my stop to 6.01 - 6.02
The stock at 6.08 and 6.09 I bet the house it goes thru 6.10 (that ..10 cent mark) and flies to 6.13 - ticks down one cent and moves to 6.15, 6.16, 6.17 - back tick to 6.15 -shorters caught buying continues and we see 6.17, 6.18, 6.19 - at 6.19 I bet the house it goes thru 6.20 - After it takes out 6.20 it whipsaws around until it moves to 6.26 then the buyer put in the limits to buy up to 6.30 and it goes againat 6.28 and 6.29 I bet house it takes out the 6.30 - at every even mark 6.10, 6.20, 6.30 there is huge size on the offer with a whole row of them there and they get taken every time.
You see that from the green left side of the ROSG chart.
Now look at the other side - yesterday - the downside same thing - started at 6.60 then dropeed to 6.50 (huge short there) and went to 6.44 - when it at 6.43 and 6.42 - I bet half house and when at 6.41 I bet the whole house it will take it the 6.40's and go right to 6.37 - pop back - retest 6.37 and hello below 6.35. At 6.32 and 6.31 - Bet house it takes out 6.30 and you can see them all there lined up with huge size on the bid (same the other way)
It will continue to do this at every ten cent interval. At 6.14 I love the short as it goes fast under 6.10 - 6.09 6.08 entry shorts and 6.03 and 6.02 - I AM ALL IN!!! ake out 6.00 and go right ot 5.967 - .97 - tick back to 6.00 and retest and take out 5.97 - headed in the 5.80' and then 5.70's and 5.60's and 5.50's - see the chart
This happens with AAPL ex - going up - its up 1 point so far to 595 at 597 I entry and 599 I bet house it takes out 600 and goes right to 603 - back s back to 599 -600 and flies back up to take out the 603 and go to 608 and at 609 I bet house it takes out 610 its the same thing on boith sides just bigger intervals.
When I trade the market (DIA stock symbol) or emini S&P's as the dow jones moves higher from up 30 to up 40 to up 45 to up 46 I entry buy and up 48 and 49 I bet house market continues to up 50+ to 53 - backs off real quick and retests the 53 and goes up 60 then 70 then 80 then 90 at 96 I entry buy and bet house at 98 and 99 market going thur the magic 100 points for the day - Its the same on the downside.
That is my secret for the day hope you all learned something and use it to make yourself huge profits and limit your losses (if you buy at 8.83 and it goes to 8.82 then 8.81 - I guarnatee you got terrible print and going to test you know as it goes under 8.80 - your trapped now)
Averaging down you only do to trade out of a stock - it rarely goes back to where you biugh tit - Averaging up you know your a hero and have a winner - just don tbe greedy and sell on those spikes) Just need a few hits a day - no homers - Good night!