Tape Reading Techniques??

Discussion in 'Strategy Building' started by jsmooth, Sep 9, 2005.

  1. jsmooth


    I'm trying to learn some new trading techniques via tape reading, but it seems like there isnt that much commercal material/information on this topic (books, tutorials, online material...). Does anyone know of any good books they would recommend, or some links worth visiting? Any advice or recommendations is much apperciated...thanks!
  2. FredBloggs

    FredBloggs Guest

    read rollo tape (aka wyckoff)

    basically, you buy when you see substantial size hitting the offer, and sell when.....(im sure you know the rest)

    also keep an eye on correlated markets for confirmation, and also significant price levels.

    tape reading is a real art and takes some time to master - like what is substantial size in the market you are trading?

    read up on futurestrader71 posts - he is a scalper and i think trades off the tape - may be useful.
  3. Hi there,

    Can you provide some background on your experience, style, whether retail/prop and account size? You can PM the account size part.

    Tape reading requires an awful lot of time in front of the computer fully focused and an excellent data feed among other things. Let me know what your setup is and we can go from there. If you use tape reading for longer term trades (swings, etc), then this can be approached differently.

    Best wishes.
  4. Imagine


    very interested in this thread and hope it doesn't end up in PM land

  5. Yes, would love to learn alot more on tape reading.
  6. about 3/4 years ago, i did an exercise whereby I ran a scan looking for 5k+ bids, hitting the inside bid in not too thick issues and i would print out the tape for the day, and I would sit and review the prints along with the bid x ask at each print level. it was good for me at the time because I started to see how size just does not dissapear, (a serious buyer) but as the market fluctuates he is in there at certain levels - buying until his order is finished.
    Yes, you can read about this and it is simple, but to see it and spend time at the coffee shop when the market closed reviewing this really was good because it was no longer a cerebral understanding but a gut understanding, as i did this for a couple months.

    i did other stuff as well for learning about the tape, but this was a super good start for me.

  7. This statement is very true and is the reason why it takes so much to become a tape reader and be able to bet money on it. The tape eventually gives you a "feel" for what will likely happen before it happens. Some ET'ers think this is an illusion, but you can go wrong studying what is actually printing and developing a sense of what the print means.

    This skill is useful for confirming bias and getting more precise entries/exits in any kind of style of trading. That's just my opinion.
  8. ============

    1] In other words even when you learn some basic things;
    2[you have to apply [hard part of these 2] that in market,
    real time with money.

    3.3]Actually one of the best reads is on elitetrader.com;
    top of this page, search ''deeman''
    Could have written a book:cool:

    Wisdom is profitable to direct
  9. I agree, I printed up that Deeman article and have made countless trainees at my firm read it. Its invaluable information.

  10. I mis-stated this. I meant to say "you can't go wrong..."
    #10     Sep 9, 2005