Time and Sales - Tape Reading..

Discussion in 'Trading' started by Riesgo2002, May 29, 2002.

  1. I would be interested in any books that are detailed on tape reading tecniques.. Or if someone would like to point out a method, that would be usefull as well.

    I would also like to hear about the best software for this purpose, I know there are several different formats etc.

  2. Threei


    I don't believe true tape reading is done by staring at T&S. There is much more to this method than simple buy/sell ratio. I don't also believe you can trade off that ratio in such small time frame T&S provides, or you would be buying and selling every few seconds on active stock. Real tape reading is described in books written is 1930s.

  3. toby400


    Try www.tradetowin.com in the UK.

    Site has software for volume analysis etc and a book based on Wykoff, an old timer from the 1930's I believe.
  4. lyl797


    Tape reading is an old technique, necessary for the time without computers. Whatelse could you do without a compuetr and paper writing or charting is too slow comparing to stock price movement ? .... The only way - observation - tape reading.

    Nowaday, compters are everywhere, stream live stock data flow on the internet to you in realtime, if you really want to do tape reading, why not just let the computer do the job, get or write a tape reading software and do the analysis for you.

    I didn't see any tape reading software outthere, I think the reason is not that tape reading is so hard that can not be computerized, it's just because it's not valid to do that nowaday since realtime intraday chart and realtime intraday indicators pretty much tell much of the story than a single tape reading and you will spend too much energy staring at the tiny, sensitive movement to really concentrate on the big picture.

    Therefore, instead of readint the tape, wearing my eyes, I would rather concentrate on intrady charts and volume to help my decision making process .....

    Leon Lien
  5. lundy


    tape reading means watching the price action and MEMORIZING THE S/R. You don't need a book to do it... u just have to figure out what's going on in the tape. Look for certain price action when price hits these S/R levels... then u can figure out whether it will hold or break.
  6. Threei



    hard to judge from very brief "black box-like" description, but on a first glance looks interesting.

    About two years ago we made an attempt to design real time scanner that would read the tape in certain sense of the word. It catches events like capitulation and euphoria pretty well, categorizing them by three stages of intensity of selling/buying. As for trend continuation setups, attempts to formalize calculation of chances for succesful break still leave plenty room for personal interpretation... which is not necessary bad IMO :) After all, trading is a mix of art and science...

  7. toby400



    I fully agree with that.
  8. lundy


    trading is a mix of statistics and luck.
  9. Threei


    Sure if you have no edge, no experience resulting in intuition...
  10. lundy


    experience and intuition are based on statistics... how many times in have you experienced this... or that... then u develop intuition. didn't say statistics don't give u an edge.
    #10     May 29, 2002