Level 2 is always hard to figure out, unless you have context.. So in this example, there is a big seller, and he keeps flipping back and forth from bid to ask.. Is he trying to manipulate the price buy scaring sellers or buyers by flashing big orders? Does he actually have a ton to sell and he only adds to the bid now and again to try to get the price to turn back up so that he can sell into it? Its very hard to figure out off level 2..
So I only use level 2 in a context situation. ... An example of a context situation is: there is a quick sell off, the price drops big and then some huge bids appear, then i am ready to start buying in with them.. the context is the huge drop and then buyers are starting to support the price..

Another example of context is where again the price drops huge and then there is still a big seller sitting on the ask, only he is alone and then buys start gobbling him up.. the context is that the one seller dropped the market, he had a huge order to sell and hes almost out of coins, so I eat what he has left and once hes gone, there is no longer a motivated seller present so the coin should rally.. In these type of instances, where you have clear context, then level 2 is useful.. Otherwise its a guessing game trying to make sense of people motives on level 2