Tape Reading

Quote from SWScapital:

It`s a lost cause talking to you. I`m trying to be civil and you still cant eke out a simple "thanks". You win...no more responses from me. Goodbye.
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If you only give because you expect something in return you will find life disappointing you at every turn, but having said that,
I've thanked quite a few people and if i missed you it was only an oversight but you aren't getting one from me by mouthing off and then holding me to ransom over it
And dont kid yourself that you were trying to be civil, you were pissed and went toe to toe with me, dont pussy out with the civil crap
 
Quote from trader28:

If you only give because you expect something in return you will find life disappointing you at every turn
I've thanked quite a few people and if i missed you it was only an oversight but you aren't getting one from me by mouthing off and then holding me to ransom over it
And dont kid yourself that you were trying to be civil, you were pissed and went toe to toe with me, dont pussy out with the civil crap
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Trader28 I do not think he is EXPECTING something in return. He simply is referring to good manners. It can't hurt to say thank you can it when someone does something or gives something? That is just common courtesy.
 
I tried to thank everyone and obviously missed him, but he only bitched for it now to score points and he is not getting it under those circumstances because it wont be honest from either of us
 
This is a pretty entertaining thread so far, lots of wisecracks and idiocy.

Trader28, Hydro and Steve actually know what they are talking about, I've been through their posts enough to recommend their ideas as useful. But, like you may have already heard, tape reading is borderline art, a kind of "feel" into volume flow. It essentially comes down to how you interpret the frequency of hit bids and offers. Kind of like card counting when at the blackjack table - look for the number of high cards and make a guess given the history of dealt cards. By high cards I mean lifted bids/offers with size. This may be a silly analogy but I am a gambler at heart. Regardless, tape reading works best on thin stocks IMO, the volume is more significant and manipulation is more difficult to hide.

As someone already mentioned, the NYSE is still a specialist system. This means that you are trading via an order flow specialist - she/he dictates the B/A spread and can sometimes be a leading directional indicator - if you know what to look for. The NAS is electronic and the order is like a big cluster-fuck, still readable, but it is different.

Mike

P.S. Arrogance in this business is a death sentence.
 
Yeah there has been moments of comedy gold Mike, leave your money on the fridge

And you are right, there is a fine line between arrogance and knowing just how damn good i am
 
Now someone explain to me why looking 5 deep on the bid and ask and seeing the one or the other double in total and price follow it isn't tape reading? Because i love to know the name of it if it isn't
 
Quote from Mike805:

But, like you may have already heard, tape reading is borderline art, a kind of "feel" into volume flow. It essentially comes down to how you interpret the frequency of hit bids and offers. Kind of like card counting when at the blackjack table - look for the number of high cards and make a guess given the history of dealt cards. By high cards I mean lifted bids/offers with size.

As someone already mentioned, the NYSE is still a specialist system. This means that you are trading via an order flow specialist - she/he dictates the B/A spread and can sometimes be a leading directional indicator - if you know what to look for. The NAS is electronic , still readable, but it is different.

Mike

P.S. Arrogance in this business is a death sentence.
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Tape reading using the bid/ask spread and size is one way to intra day tape read. But it is certainly not the only way. One can also use intraday simple bar charts and correlate that with volume to determine next probable price move.

Now, if one is using bid/ask then obviousley one has to understand the difference in the specialist and the MM's on the Nasdaq and their bag of tricks to manipulate prices to their advantage. Of course, IMO it is easier to trade with the specialist than with the MM's if using bid/ask however, one can tape read intraday WITHOUT the Bid/ask senario. Just do it with charts and volume exactly as one trades by tape reading on a daily basis with just daily charts and volume. Except you will be using intraday charts instead of daily.
 
Quote from trader28:

Now someone explain to me why looking 5 deep on the bid and ask and seeing the one or the other double in total and price follow it isn't tape reading? Because i love to know the name of it if it isn't
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It is tape reading! You can absolutely do it. I have on many occasions. However, it is not the only ONE way to tape read intraday. You can also tape read just by looking at intraday 5 minute..15 minute...30 minute charts and correlating that info with the volume bars to come to an interpretation as to what the next probable price move will be.
 
Quote from Mike805:

I don't understand this.
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You know, pulling up market depth and seeing the bids waiting down at the 5 nearest levels and the asks waiting up at the 5 nearest levels... I have a very accurate set of proprietary indicators that i use but never felt any real connection to the other players until i started watching this last night, it's like god damned clockwork if you can add numbers in the thousands quickly on the fly

And to me it looks like because the majority of the numbers are not being hit yet then it is leading the price everytime
 
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