Traders and market makers DO signal each other via Level 2. Putting a trade in with certain prices or amounts are a nice way of sending a message without leaving incriminating emails, etc. A former market maker (junior level) I knew said to watch out for 911 or 666 in a bid or ask -- that (at that time) it was a common signal of a direction change. I watched the stock he mentioned and indeed, especially at 666, there was often a direction change very soon thereafter.

So, looking at the inaccurate Level 2, when I see big bids coming in at the .98-99ish level as they are now, it might be a signal where they want to pull it to. Yesterday there were huge bids coming in at .95, as they pulled it down. Also seeing big asks from more than one market maker at a certain level, right now being 1.05, that's where they want to put the lid on. We've already seen monster "asks" to the tune of 77k shares being pulled when a real buyer came in.

For us non-insiders, Level 2 is for entertainment only. Occasionally we can glean ideas about what "they" are doing or trying to do.