Tape Reading

Discussion in 'Trading' started by SilverBullet, Jul 20, 2002.

  1. I am wondering how you people read the Time and Sales....I have met people that dont even need to look at a 1 min chart because they can memorize numbers and levels, and also successful traders that periodically glance at it. There are some very interesting references to tape reading in Reminisinces of a Stock Operater.

    Personally, I use it to help identify the Axe along with L2 screen, to determine how many shaves may be necessary, and for volume. I would like to hear how other people use this potentially invaluable tool.
     
  2. i use the tape to identify blocks over 5k-10k shares either stepping up or down. i also use it to see blocks being traded. i use the tape daily on nyse stocks for many different reasons.
     
  3. I find on fast moving stocks like INTC and CSCO its really hard to get my eyes off the Level 2 and onto the TAS....even putting out a bid or offer on INTC can be crazy as the price levels move so fast....
     
  4. BTW,

    Why wouldnt you use L2 for blocks stepping up/down??
     
  5. i only trade nyse. very rarely do i trade nasdaq anymore but when i do i use level 2.
     
  6. bosstin

    bosstin

    I use L2 and T&S to give me an insight into whether the particular chart pattern setup I trade will succeed or fail. For example, when my screener identifies a good 'long' setup, I carefully look at L2 especially to confirm if I should go long as planned or to expect this setup to fail and prepare to go short.

    The thought of taking an ideal chart pattern setup without using L2 and T&S to confirm seems very risky to me 'cos these "ideal chart patterns" are well known to everyone and thats where the traps normally lie ;)