U can find a lot of info in web about tape reading of TAS. Tried to find the same info about the reading of Level II but havent find anything. So dicided to start a new thread here. Any patterns, links, strategies?
as i saw for example we sometimes should trust to specialist book only cause often the specialist adds his own lots to manipulate the price...
Don't waste your time. Hybrid has made tape reading far less useful, and the L2 window is full of lies.
ok, but what is hybrid? I'm an emini trader and I haven't heard of hybrid. Is that for stock trading?
It is not just the specialist. All the Nasdaq marketmakers engage in extensive tape painting. All those shares and trades that you see going off in T&S is a crapshoot. The same bastards buying and selling their own stock. Also ECNs are not as anonymous as people think they are. These pricks can identify retail orders vs institutional and squeeze the s--t out of a gullible retail trader. The SEC does nothing and is probably ingesting some serious moolah from these well-heeled a$$holes aka goldman, morgan stanley etc
TAS still shows all the deals on the stock even if they were made on the floor of exchange still EVERY deal has to be printed out in TAS. so we cant see the orders of big players but we see their execution in tape. Agree that L2 is pretty tricky but still we can get lot of info from it...
before started trading i've signed the papers in which i claimed myself not to buy and sell 1 stock on 1 price in the same time. its called wash trading and strictly prohibited. also manipulation of the stock price is strictly prohibited so how can all those "a$$holes" do that? its SEC's main purpose to struggle that...
i've found level 2 to be more honest (in naz stocks) on stocks which aren't popular. that doesn't mean there aren't hidden orders, buf if there's size displayed, it's more often honest. by the same token - there's a bunch of naz stocks where someone has an auto-sell / auto-buy through ARCA like 10c/15c outside of NBBO. so, the only way to hit/lift them is to direct-route it to ARCA, and pay the extra price to get in/out.