FWIW... Trying to read the tape on the Q's isn't that great because of the volume. Plus you still need the prints to get the whole story. If you want to learn how to read the tape you need something with like 5M shares a day, something that is in play preferably and record your screen (level 2, and prints) and look for catalyst of a move.. And watch this over and over again...
Example of what to look for at the beginning...
If you see something like ARCA on the offer at 15.05 for 1 (100shs) but in the prints you see the offer being printed from ARCA for 20, 40, 5 (2,000, 4,000, 500) ect... then this is considered a held offer. ARCA is showing he only wants to sell 100shs, but the prints tell a different story showing he's selling a lot more then what he's showing.. There are a couple plays to be made off this basic tape reading setup. If you have identified a buyer buying it lower (again by using the tape someone stepping the stock higher and accumulating) and then you get a held offer at 15.05, maybe you wait and overlap and be willing to pay once ARCA lifts 15.05 because you now know whoever was selling 15.05 here is now gone or stepping higher.
Or if he's selling and then he steps down to 15.03 ARCA and continues to show 1 but the prints show offer again considerably more then 1, you could short with him, because he obviously has a lot to sell and is being aggressive by stepping down.
that is a basic example of what trading the tape is like. I have found that these types of plays work best on the open because after the open the algo's kick in and make the tape a little harder. This is the time where you want to look for patterns, like accumulation patterns ect.. but again a little more advanced. On the open I purely use the box to trade and rarely look at the charts. After the open I will look at the charts and then use the tape as my confirmation or a spot to start my position.
The best thing you can do is record your screen. Play it back and just look at the prints first, then add the bids and offers.. then try to find reasons according to the tape something would have a catalyst to move higher.
Reading the tape, in my opinion is a great and invaluable skill to have, it just takes time (think 6months-1year) of fulltime trading plus watch the tapes over and over again.
good luck
Example of what to look for at the beginning...
If you see something like ARCA on the offer at 15.05 for 1 (100shs) but in the prints you see the offer being printed from ARCA for 20, 40, 5 (2,000, 4,000, 500) ect... then this is considered a held offer. ARCA is showing he only wants to sell 100shs, but the prints tell a different story showing he's selling a lot more then what he's showing.. There are a couple plays to be made off this basic tape reading setup. If you have identified a buyer buying it lower (again by using the tape someone stepping the stock higher and accumulating) and then you get a held offer at 15.05, maybe you wait and overlap and be willing to pay once ARCA lifts 15.05 because you now know whoever was selling 15.05 here is now gone or stepping higher.
Or if he's selling and then he steps down to 15.03 ARCA and continues to show 1 but the prints show offer again considerably more then 1, you could short with him, because he obviously has a lot to sell and is being aggressive by stepping down.
that is a basic example of what trading the tape is like. I have found that these types of plays work best on the open because after the open the algo's kick in and make the tape a little harder. This is the time where you want to look for patterns, like accumulation patterns ect.. but again a little more advanced. On the open I purely use the box to trade and rarely look at the charts. After the open I will look at the charts and then use the tape as my confirmation or a spot to start my position.
The best thing you can do is record your screen. Play it back and just look at the prints first, then add the bids and offers.. then try to find reasons according to the tape something would have a catalyst to move higher.
Reading the tape, in my opinion is a great and invaluable skill to have, it just takes time (think 6months-1year) of fulltime trading plus watch the tapes over and over again.
good luck
