I agree that staring at one market can make trading to microscopic. That is why I look at ER2, ES, NQ. I am mostly looking to see how ER2 is correlating to the ES contract. This gives me an idea of the overall market.
what is tape reading anyways. People have different definitions for tape reading. Some people think tape reading involves reading the level 2 screen and others say tape reading is reading charts.
Relatively simple...since we trade primarily big cap stocks, we use the Premium/Discount to fair value of the futures...knowing full well that when they can sell futures at a premium, they will likely hedge themselves by buying stocks...add to this the TICK's, and the NYOB layers, you get a pretty good idea of near term turnarounds. We, of course, use spx "pivot points" and spoo pivot points as added confirmation of the movement. Don
Scalper21, I'm a russell trader as well... Do you also look at time and sales for the russell?....for instance do you look for block trades (i.e., more than 10 contracts) occurring in the direction of your setup to confirm your entry? or after you have entered, block trades against your position to tell you when to get out?
I trade NYSE as well, today I saw on the tape that the bid just kept printing and it did not go away, then the offer prints and the offer becomes bid. ....does that mean there was a buyer and a seller and at the end, the seller was done, but the buyer kept going? btw, do you look at the openbook? If you do, which one do you place more emphasis on...level 2 or Openbook?
No. I just look at the order books. I think it would very useful to have volume #'s, but I have been successful with the setup I have and I guess I am AFRAID of changing it.
get www.marketdelta.com and learn the basics of this program, then watch the tape as you see where the pressure is entering the market. Over time you will be able to see in the tape the pressure from recognition and you will not need the MD anymore. You can use the MD as a reference tool to understand the observations from the tape - you will see in the tape what happens when a HOD/LOD is bought or sold, or a s/r level is held or busted. Once you have a visual reference from the MD as to what price is doing in relation to the tape reading, then you have a foundation of understanding to work with.