In face to face, real games I would agree with you. Online games I don't believe you are accurate. Why don't hedge funds have TA departments with TA savants working around the clock? Because it doesn't work. It's only adherents are aliases on Internet forums with claims of success. Why don't prop firms teach TA as a main method? Why do FX dealers who win when you lose push TA heavily? Come on-- open your eyes.
Stop Working More than 40 Hours a Week
- Thread starter cornix
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In face to face, real games I would agree with you. Online games I don't believe you are accurate. Why don't hedge funds have TA departments with TA savants working around the clock? Because it doesn't work. It's only adherents are aliases on Internet forums with claims of success. Why don't prop firms teach TA as a main method? Why do FX dealers who win when you lose push TA heavily? Come on-- open your eyes.
Quote from cornixforex:
Denise Shull in the video posted in the other thread started by me under this Category says they do. Did you watch the video after all?
Funny! After years of starring at charts, I realize you have alot vested in TA being a real edge--- I didn't hear her say this, but maybe I missed it-- quote her, please. thank you,. surf
PS-- tape reading use to work, pre HFT, as does reading the book now can work. This is not trading from charts as you want it to be, infact, its very different.
She said "tape reading", which in my view (and sort of "official definition" I believe) means reading the order flow. Chart is just one of the ways to read it. So...
From her newsletter with the link to that video:
"Do you ever guage the viability of the trade in relationship to a recent high or low? Do you see a price level that the stock or future just can't seem to move through? This is tape reading - or at least a part of it.
Doing it exceptionally well - being able to very accurately predict what happens next - is a true skill. It's gotten harder since the days of only three exchanges - NYSE, AMEX and NASDAQ - but that doesn't eviscerate the underlying art of it.
How do you learn? For one, you watch the tape. You walk away and see if you can predict what the price is when you come back.
Two, you work on visualizing who or what kind of people are buying and selling at the levels you are looking at.
Then you learn to think in terms of what kind of meaning does this speed and rhythm of price movement imply? This is where ferreting out the algo's from the humans comes in - you learn over time what is an algo and what is more traditional market participants.
Even algos though are programmed by humans and therefore looking for certain patterns. They can find correlations faster and they can pick up 10'ths of a penny between exchanges but are you really looking for that kind of profit margin?
Humans are left to take the bigger moves - just because we have dark pools, doesn't mean certain assets like corn or AAPL have stopped moving.
Basically tape reading is a lot like surfing... you are reading waves. "
Tape reading IS NOT CHART TA. seriously, if you think its the same thing, you are mistaken. Tape and book reading are now computerized rather than done by humans-- its not subjective like human based chart reading.
This is the work smarter, not work harder thinking. This is absolutely correct. Life is so short. I can see working hard as you get your own business up and running but slaving away for an ingrate employer, client is worse. Then again, I was once an entrepreneur and had to deal with bad employees, so I got a taste of that from the other direction as well. 
Quote from cornixforex:
You probably replied before I inserted the quote into the post.
Do you think the quoted text is wrong?
Also tell me, how is chart different from T&S other than being graphical presentation of it?
First read winner take all by gallacher-- he talks about the deception of charts. Then read practical speculation by niederhoffer-- again the chart deception-- I can't keep saying the same thing over and over again.
Yes, Tape Reading was a viable method for years. I think Denise has old information and I disagree with her if she doesn't think tape reading is a dead art now with the advent of HFT and dark pools.
Like i said earlier, there may be a few savants who can still eek out a living tape reading with money management applied--- BUT the funny thing is THEY ALL SEEM TO POST ON ELITE! LOL!!
surf
Quote from cornixforex:
So you claim her to be wrong that tape reading skill is still important among some of the largest HF's/large traders?
How do you know it's dead? What exactly makes you think so?
Yes, i know the same folks. I know its dead for the most part-- obviously I can't speak for certain in all cases--- just as an overall tactic, its barely used any longer because it doesn;t work.. ...
NOW if you have "SPECIAL, SECRET POWERS" I can't argue with you.
I have introduced hedge funds to wealthy individuals who have invested large amounts of capital. This requires me to know the market and to know what is working now. Never once have I seen a 'tape reading" or TA based fund-- no one would invest. surf