TAPE READING (chat room cont.)

[pbylina]

Quote from shortseller:

This is a continuation of a discussion held live in the chat text today where someone thought it good to go short into a large size bid.. some traders (myself ) considered that a bad move considering the size of the bid is suggesting a large amount of buyers entering or wanting to enter the market. Others suggested (Only after bragging about there tape reading skills) that they want to go into size, Which I fully disagree with. What are your thoughts comments or suggestions. Thank you all in advance.

Some times the big bid holds sometimes it doesnt. Its not that simple.

 

[jack hershey]

Quote from Eleanor:

Just skimmed through this thread, am just curious because wouldn't context override all when it comes to tape reading? Meaning that, price action "x" in say crude oil after a bullish inventory report would portend the exact opposite of price action "x" after a bearish inventory report? So if one doesn't have the relevant information ie proper context then price action is basically useless or misleading?

Futhermore, if a simple thing such as a large bid size normally inferred future weakness, then can't you project such a principle of deception further out over time/price to say that large declines are usually preceded by short-term show false strength and vice versa?

The thread content is a demo of CW.

You, on the otherhand, are in a better place than CW.

Tape reading has never changed.

And today, we have additional degrees of freedom in information available.

One of the great things about DOM and its "walls" is that you can use the info as a leading indicator of price.

To do so, you have to be focussed more on the "adds" and "deletes" than the "T&S" part of the DOM that maverick got trapped into emphasizing.

DOM's proper signals are leading indicators of price.

So from a design strategyviewpoint, a person just needs to look at how the CW is operating as a "context" and then "frontrun" this context.

The comments in this thread give you the coding for context. Use the DOM as a leading indicator of "smart money".

Study very carefully just how so many people get left holding the bag (As in Snipe hunts).

Also review very very carefully the context of price vis a vis the Premium (it is set once a day before Open).

Then put the pieces together.

 

[Paddler]

This supposed to be a dead thread, hehe.

Seriously, don't trade without some good knowledge of the activities in DOM. Probably hard to believe, I am sure that one can trade using DOM only, on a notebook PC.

 

[MadeMan]

@maverick

Great posts pure gold !

But where i disagree is , that u state tape reading (dom) on futures is worthless
Its not! I prove u otherwise btw. Is that offer still valid a dinner in in chicago?

As the undrlying market mechanics are valid for all markets
Yes they are fragmentet but u dont have to spot a single buyer ir seller
I couldnt care less why someone is buying or selling

As big prints And refills may only be temporary on a specific level
But they add to a story ...

In the end its all about supply and demand aswell as cause and effect
And u can read the cause whter it be absirbing of supply or demand swamping the markets
Etc. There are many ways how a market moves from balance to imbalance
And u can read all that within the dom nomather what market

Just focus on specific levels. How the market moves there (path of least resistnce)
And how the market acts there . ..

U dont need to know the institutional or big playes intentions as they will unfold nevertzeless in form of the markets action. , just judge the markets by its own action and stay flexible and be ready to adapt quickly ....