Learning to Tape Read 101

C

cashmoney69

I'm going to record my level 2 for the entire day and try to learn

to read price action. Whats a good NYSE stock to learn

from?. Any stock with high volume or big market cap? Thanks

cm69
 
Quote from robbie380:

i'm just going to guess your level 2 window also has nyse open book, right?
More...

umm..i dont know but i can find out. I use noble trading shield platform and Im new to it....dont you have to pay extra for open book..or is that something else im thinking of?
 
...ok i managed to get up to 600.25 in the

first hour off XOM from the tape..but why is it that if I see a long

list of bids at say 85.55, then a long list of red prints at

85.55?..if those shares were BOUGHT for 85.55, wouldnt the

prints be green instead?
 
Quote from cashmoney69:

...ok i managed to get up to 600.25 in the

first hour off XOM from the tape..but why is it that if I see a long

list of bids at say 85.55, then a long list of red prints at

85.55?..if those shares were BOUGHT for 85.55, wouldnt the

prints be green instead?
More...

there is a buyer and seller for everything. it's just whether it is a uptick or downtick
 
T&S windows usually have pretty dumb logic - a print at the current bid is a sell (red), and a print at the current offer is a buy (green). This is way off the way how modern ECNs/exchanges report trades and quotes. For almost all of them, trades are delays, so you really need to figure out what was going on in the past. The way I read the tape is that my application tries to deduce every print by looking at quotes back and tries to see whether it was a buy or sell (NYSE tape).

Here is an example: all T&S windows in the world will show you a 200 buy print here, whether in fact it was a sell order (on a minus tick offer).

Code: 
10:56:02  49.56 x 49.60  4 x 2   
10:56:06  49.53 x 49.56  2 x 2   
10:56:06  2s49.56  @
 
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