Time and Sale, how to interpret it?

T

tradewiz

Hi, folks

there is few discussion on this subject and I would like to hear your comment on how to read the time and sale pattern.

What is the difference between "Trades", "Bids" and "Asks" that go through the tape?
How do you filter "Trades at or below bid" and "Trades at or above ask"?
What's the difference between NYSE and NASDAQ re T&S pattern?

cheers
 
Quick reply as I need to get some sleep.

It's a lot easier to interpret the time and sales when you set some basic identification colors up.

Trade at Ask - Lt Blue - Someone has paid the higher ask price

Trade at Bid - Red - Price traded at the bid which is usually lower

In Between Bid/Ask - Grey Trade occurred in the spread between the bid and ask

So if you see a big string of blue prints then obviously the price is heading in an upwards direction. Set your colors up like this and just watch the time and sales aka 'tape' roll by for a few days. You'll understand what's going on but it will take you months before your able to refine your entries based on the tape alone.
 
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