Learning to Tape Read 101

Discussion in 'Trading' started by cashmoney69, May 27, 2008.

  1. I'm going to record my level 2 for the entire day and try to learn

    to read price action. Whats a good NYSE stock to learn

    from?. Any stock with high volume or big market cap? Thanks

  2. I hope you plan on recording everyday for 1-2 years cause thats how long it will take.
  3. i'm just going to guess your level 2 window also has nyse open book, right?
  4. umm..i dont know but i can find out. I use noble trading shield platform and Im new to it....dont you have to pay extra for open book..or is that something else im thinking of?
  5. ...ok i managed to get up to 600.25 in the

    first hour off XOM from the tape..but why is it that if I see a long

    list of bids at say 85.55, then a long list of red prints at

    85.55?..if those shares were BOUGHT for 85.55, wouldnt the

    prints be green instead?
  6. there is a buyer and seller for everything. it's just whether it is a uptick or downtick
  7. T&S windows usually have pretty dumb logic - a print at the current bid is a sell (red), and a print at the current offer is a buy (green). This is way off the way how modern ECNs/exchanges report trades and quotes. For almost all of them, trades are delays, so you really need to figure out what was going on in the past. The way I read the tape is that my application tries to deduce every print by looking at quotes back and tries to see whether it was a buy or sell (NYSE tape).

    Here is an example: all T&S windows in the world will show you a 200 buy print here, whether in fact it was a sell order (on a minus tick offer).

    10:56:02  49.56 x 49.60  4 x 2   
    10:56:06  49.53 x 49.56  2 x 2   
    10:56:06  2s49.56  @
  8. ..im kinda getting the hang of this.
  9. Has anyone read any of these books and how where they?

    #10     May 27, 2008