Tape Reading

Discussion in 'Technical Analysis' started by trader28, Nov 9, 2005.

  1. If you only give because you expect something in return you will find life disappointing you at every turn, but having said that,
    I've thanked quite a few people and if i missed you it was only an oversight but you aren't getting one from me by mouthing off and then holding me to ransom over it
    And dont kid yourself that you were trying to be civil, you were pissed and went toe to toe with me, dont pussy out with the civil crap
     
    #111     Nov 11, 2005
  2. pinabetal

    pinabetal

    Trader28 I do not think he is EXPECTING something in return. He simply is referring to good manners. It can't hurt to say thank you can it when someone does something or gives something? That is just common courtesy.
     
    #112     Nov 11, 2005
  3. I tried to thank everyone and obviously missed him, but he only bitched for it now to score points and he is not getting it under those circumstances because it wont be honest from either of us
     
    #113     Nov 11, 2005
  4. This is a pretty entertaining thread so far, lots of wisecracks and idiocy.

    Trader28, Hydro and Steve actually know what they are talking about, I've been through their posts enough to recommend their ideas as useful. But, like you may have already heard, tape reading is borderline art, a kind of "feel" into volume flow. It essentially comes down to how you interpret the frequency of hit bids and offers. Kind of like card counting when at the blackjack table - look for the number of high cards and make a guess given the history of dealt cards. By high cards I mean lifted bids/offers with size. This may be a silly analogy but I am a gambler at heart. Regardless, tape reading works best on thin stocks IMO, the volume is more significant and manipulation is more difficult to hide.

    As someone already mentioned, the NYSE is still a specialist system. This means that you are trading via an order flow specialist - she/he dictates the B/A spread and can sometimes be a leading directional indicator - if you know what to look for. The NAS is electronic and the order is like a big cluster-fuck, still readable, but it is different.

    Mike

    P.S. Arrogance in this business is a death sentence.
     
    #114     Nov 11, 2005
  5. Yeah there has been moments of comedy gold Mike, leave your money on the fridge

    And you are right, there is a fine line between arrogance and knowing just how damn good i am
     
    #115     Nov 11, 2005
  6. Now someone explain to me why looking 5 deep on the bid and ask and seeing the one or the other double in total and price follow it isn't tape reading? Because i love to know the name of it if it isn't
     
    #116     Nov 11, 2005
  7. pinabetal

    pinabetal

    Tape reading using the bid/ask spread and size is one way to intra day tape read. But it is certainly not the only way. One can also use intraday simple bar charts and correlate that with volume to determine next probable price move.

    Now, if one is using bid/ask then obviousley one has to understand the difference in the specialist and the MM's on the Nasdaq and their bag of tricks to manipulate prices to their advantage. Of course, IMO it is easier to trade with the specialist than with the MM's if using bid/ask however, one can tape read intraday WITHOUT the Bid/ask senario. Just do it with charts and volume exactly as one trades by tape reading on a daily basis with just daily charts and volume. Except you will be using intraday charts instead of daily.
     
    #117     Nov 11, 2005
  8. I don't understand this.
     
    #118     Nov 11, 2005
  9. pinabetal

    pinabetal

    It is tape reading! You can absolutely do it. I have on many occasions. However, it is not the only ONE way to tape read intraday. You can also tape read just by looking at intraday 5 minute..15 minute...30 minute charts and correlating that info with the volume bars to come to an interpretation as to what the next probable price move will be.
     
    #119     Nov 11, 2005
  10. You know, pulling up market depth and seeing the bids waiting down at the 5 nearest levels and the asks waiting up at the 5 nearest levels... I have a very accurate set of proprietary indicators that i use but never felt any real connection to the other players until i started watching this last night, it's like god damned clockwork if you can add numbers in the thousands quickly on the fly

    And to me it looks like because the majority of the numbers are not being hit yet then it is leading the price everytime
     
    #120     Nov 11, 2005