Techniques of Tape Reading

Discussion in 'Educational Resources' started by dbphoenix, Jan 8, 2004.

  1. dbphoenix


    I finally got around to reading this book and am happy to say that I can recommend it (not that what I think matters all that much, but there is so little I can find to recommend, I just thought I'd mention it). There's been little of value written on tape reading since Neill's book in the 40s, and before that, Wyckoff's work in the 20s and 30s. Possibly the popularity of "indicators" stole some of tape reading's thunder, since indicators are purportedly "simpler" to use.

    I had hoped that the book would be a bit more thorough, but after finishing it and giving it a second read, I understood that what Vad and Chris are trying to do is reduce TR to a set of basic principles, easy to explain, easy to understand. The buts and unlesses and on the other hands are left to many specific examples which illustrate just what it is they're trying to get across. In this way, one can come up with his own examples to illustrate the concepts rather than rely on some sort of "blueprint", in the event that he is trading a different market, a different bar interval, a different timeframe, or even using indicators to supplement his judgement.

    Unfortunately, the book begins with what has become the obligatory "once I was a loser and then I became a winner" section. Not that it's boring or that there's anything wrong with this sort of autobiographical touch. After all, one would most likely be put off by someone who puts out a trading book beginning with only his successes and giving no hint of the often rocky road one must travel in order to achieve those successes. But those who have read more than a few trading books are likely to find that they could have skipped this and gone right to the meat of the book, i.e., the principles of tape reading, and there's plenty of meat here. No, the book is not encyclopedic, but, contrary to what you may have heard, tape-reading does not require the encyclopedic approach. Keep It Simple.

    If all you have, then, are Wyckoff and Neill, this should pull everything together for you in a way that will enable you to gain some traction on this tape-reading stuff. The advice on how to create a setup and how to evaluate what you've created should be of particular benefit to beginners who continue to struggle with this and with the misleading notion that the riches lie in finding that one perfect golden setup.
  2. gms


    It was a fairly decent book on a subject most overlooked.

    Another good book that compliments the Graifer/Schumaker book is "Trading on Volume" by Donald Cassidy.

    Made a URL too (pretty cool site you found to do that)!
  3. dbphoenix


    Yes, it is. There's an alternate site called "".

    Thx for the Cassidy reco. I'll look into it.
  4. My favorite quote(s) from "Tape Reading and Market Tactics" by Humphrey B. Neill:

    Page 23

    "If you cannot lose cheerfully, do not trade in the market! It is no business for the person who is easily discouraged. Countless losses must be accepted: the problem is to limit the losses. No one may ever hope to become so expert that he never takes a loss."

    Page 25

    "And the uniformed, unintelligent public will buy when security prices are high and sell when they are low. New traders will be seen in brokers' offices generously buying stocks at the wrong time from the "older heads" in Wall Street."

  5. Another book:
    Jesse Livermore:
    How To Trade In Stocks". With The Livermore Key in tape reading.
  6. This wasn't what i had expected to be.
    Nothing on Level II and T&S windows.

    Even nothing on how to read possible
    trend reversals.

    I didn't learn much from this book:(
    and don't recommand it unless beginer
  7. dbphoenix


    The reasons why there's little on Level II and T&S are explained, and I agree with the reasons presented. As for reversals, these are covered as well. Perhaps another reading is in order.