time & sales/reading the tape

I know this is a little of topic, but who is this Wyckoff you guys are mentioning?

In response to some of the replies beeing posted here, I have to say that even with my limited experience watching T&S (about 3 months) I do sometimes during a day, pick up a hint or two. This escpecially happens when price is about to BO of patterns, TL's, or attempting to break through R/S.

But T&S has allso really confused me a lot, I wish it was just to watch if big players were buying selling and think price would go in that direction - it is not. It is important to understand some of the basic concepts of how big hands like to play their hands. Things like how they like price to travell towards size in the order book. I would recomend you watching the DOM as well as T&S, this way to get a better feel of where they want price to go (pulling of orders for example).

I would allso recommend reading up on this thread, escpecially the posts by FuturesTrader71. It is not very long: http://www.elitetrader.com/vb/showthread.php?s=&threadid=42947
 
Quote from FredBloggs:

speculatus - how is that app going? are you still using it? i imagine that could be useful in over coning the iceberg problem.

do you see that t&s is still of value? iron fist would seem to think not with his results.

from past experience sitting next to old voice broker buddies, they still lift the bid/ask in size now and then, and if a prop can get his size done straight away and easily id imagine he would do so taking what he can in 1 clip or 2.

as for the prop black box's, i see them as being more of an aid as i have already seen loads of times price scuttle off for 3-4 points as bids/asks get pulled and there is nothing there to absorb the order flow. this is real la wyckoff! the problem (for me) is getting in on it before it's half way through...
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The previous tape example was from backtest :)

My ATS is up 24/6, and yes, it show me reserve orders as well - it's very easy to spot them. Here is a few good examples from yesterday's tape:

Code: 
08:31:33  907.50 x 907.75  115 x 36   
08:31:33  907.50 x 907.75  115 x 31   
08:31:33  1000s907.75   B=/BLK rfrO(1110)
08:31:33  907.50 x 907.75  115 x 30   

09:41:16  900.25 x 900.50  644 x 901   
09:41:16  900.25 x 900.50  645 x 902   
09:41:16  900.25 x 900.50  645 x 402   
09:41:16  1000s900.50   B=/BLK rfrO(1072) 
09:41:16  900.25 x 900.50  646 x 402   

10:09:32  893.25 x 893.50  32 x 384   
10:09:32  893.25 x 893.50  32 x 4   
10:09:32  500s893.50   B=/BLK rfrO(500) 
10:09:32  893.25 x 893.50  32 x 7   
10:09:32  893.25 x 893.50  32 x 9

As for T&S - IMHO it has some value for those who want to read the tape, but it's better to have more sophisticated tools if one wants to master this art.
 
I usually work a fade the gap or fill the gap strategy and I watch for increased volume at market open.

As the stock is continuing its gap up or down the volume will slow down and the spreads will get back to <=.2% Then if I see the T&S are hitting more bids(for a fade the gap) I will short the stock with an immediate 1.5% stop loss.

Is this make sense for you more experienced traders, I am dabbling a bit with real $ and also paper trading a lot.

I have done well so far.

Thanks for any suggestions.
 
How do you monitor the off record trading? As you probably know, investment professionals have two accounts, one for trading and another for investment. Large blocks of securities are privately exchanged away from any market and not reported on the tape.
 
Quote from bighog:

You guys are all blowing in the wind. Get a real life guys.
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Hey bighog, nice of you to stop by and making this another positive thread here on ET.

I am so glad you would take a minute of your time to enlighten us here, because we all thaught we HAD to know how to read the tape to be able make money.

Please, if you can not contribute (does not sound like you have any tape reading skills), just leave this thread alone.
 
Quote from FuturesTrader71:

It is much like handing a spoon to someone who has never seen one. They might think it is a gimmick (they are doing fine without it), but once they use it and understand it.... they realize how much easier life is with it..

Think of this BigHog.

Tape reading is the ONLY "indicator" that does not lag..
 
....anyway....

some progress has been made, but I've noticed something i wondered if anyone else can explain....

quite often i see the bid being taken, and the next quote is for a higer price.


eg, say the market is: 500x 871.25 (bid) 871.50 x152 (offered)

someone hits the 500 on the bid, and the next quote will then be something like:

400x 871.50 - 871.75 x300

surely if someone hits the bid in full, the quote should move down to the next available bid and someone/algo will replace the choice price (gap) with an offer or another bid at 871.25?

this seems to happen for several consequtive quotes.

any explanations?...
 
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