Once the NYSE goes 100% electronic and the specialists are gone, tape reading as we know it will be over. The whole idea about reading the tape has to do with recognizing the patterns of one person, the specialist. Once the market becomes fragmented and electronic, this will simply not be possible. All good things usually come to an end.
TAPE READING (chat room cont.)
- Thread starter shortseller
- Start date
Once the NYSE goes 100% electronic and the specialists are gone, tape reading as we know it will be over. The whole idea about reading the tape has to do with recognizing the patterns of one person, the specialist. Once the market becomes fragmented and electronic, this will simply not be possible. All good things usually come to an end.
I've been following this thread closely and would like to thank everyone for their quality posts. It's really opened my eyes. Below is a description of a tool in cybertrader, and I was wondering if this could provide the type of information Maverick is able to identify on the tapes?
See attachment for graphic.
THE HAMMER
The Hammer was designed to alert you to which Market Makers are most active in a given stock by tracking the number of times they have refreshed their quote at the inside bid and ask. It displays the top five Market Makers on each side. The benefit of the Hammer is that you can see at a glance what Market Makers are possible "major players" in that stock during that trading day.
See attachment for graphic.
THE HAMMER
The Hammer was designed to alert you to which Market Makers are most active in a given stock by tracking the number of times they have refreshed their quote at the inside bid and ask. It displays the top five Market Makers on each side. The benefit of the Hammer is that you can see at a glance what Market Makers are possible "major players" in that stock during that trading day.
I hate to say this, but that tool is meaningless. It is not the same thing as tape reading. Tape reading is very specific. You cannot read ECN's, NYOB, or look at MM's in a special window. There are many software tools out there that attempt to provide transparency as it relates to the tape and they are all equally worthless. Reading the tape is a very tough skill that must be learned. There are no short cuts.
lol. maybe for you. there are still patterns in the limit-order-books, just not so easy to see.
--Stephen
--Stephen
I have already started to learn the "new" tape reading which is testing black box algorithmns. I am finding that, by mesing around with bids and offers in certain situations on NYSE stocks, the black box programs tip their hands and when they do, you can really capitalize.
