tape reading...

The thing I've never fully understood about that is how do you see buying pressure or selling pressure?
Each buyer is matched with a seller so it's always 1:1 (effectively) in terms of contracts.
I get how you can see volume come in at a high or low but how do you see if it's buying pressure for example?

Answered my own question. Check this guy's explanation
 
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SanMiguel said:
The thing I've never fully understood about that is how do you see buying pressure or selling pressure?
Each buyer is matched with a seller so it's always 1:1 (effectively) in terms of contracts.
More...

Market orders take liquidity and cross with limit orders which offers liquidity.

Let's say you want to sell 1000 contracts at market.

If there was unlimited liquidity at a given price level - the market would absorb all those market orders without any price impact.

As that's generally not the case - market orders will clear each level lower until filled.

You may for example get filled for 100 @ 3350, 100 @ 3349,75, 100 @ 3349,50 and all the way until you're filled.

In both examples the quantify of sellers and buyers are always equal as it obviously have to be.

The market can also move when liquidity simply disappears.
 
When you see an offer getting lifted, that price now goes bid, and the next offer starts to trade out: that's buying pressure.

When you see a bid getting hit, that price now goes sellers, and the next bid starts to trade out: that's selling pressure.

The importance of volume is usually overstated. Price changes that hold up over time are way way way way way more important than volume changing hands.

You're welcome.

YMMV, just my 2 cents, and I wish everyone good fortune !
 
Gaslight Capital said:
Scanz.com formerly known as Equityfeed. I use their breakout scanner and set it just for new HOD new LOD, and I have a watchlist I point it to that has the FAANNG+MT plus about 100 other actives from IBD 50 and low float specs.
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Thank you for introducing me to this new resource to learn from, appreciate it!
 
bone said:
When you see an offer getting lifted, that price now goes bid, and the next offer starts to trade out: that's buying pressure.

When you see a bid getting hit, that price now goes sellers, and the next bid starts to trade out: that's selling pressure.

The importance of volume is usually overstated...
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I do not understand this at all, in the context of CL futures for example. I wish I could host the video somewhere of a CL report. The video is 2 GB. I REALLY want commentary on it. I have no where to host a two GB file though. :-(
 
Overnight said:
I do not understand this at all, in the context of CL futures for example. I wish I could host the video somewhere of a CL report. The video is 2 GB. I REALLY want commentary on it. I have no where to host a two GB file though. :-(
More...
YouTube
 
I have always viewed tape reading as so much more than than time and sales. Heck, using candlestick charts can be considered a form of tape reading.
 
Tape Reading is a very specific activity and uses a specific tool set and a specific skill set. It is not whatever the heck you want it to be anymore than quantum theory can be anything anyone who is ignorant of quantum theory wants it to be.

Studies in Tape Reading, by Rollo Tape (Richard Demille Wyckoff) is perhaps the only surviving foundational text we have remaining from those who were tape reading when tape reading was done on the tape.

It is not time and sales. It is not spoofing. It is not candlesticks. It is not chart patterns.

It is judging the action of the market by its own actions based upon the current position and immediate trend of the market's primary leading stocks and secondary issues.

Anyone who wants to know what Tape Reading is merely has to read that book. It is short. It is a quick read. But some of you had better bring your dictionary along for the read.
 
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