What's the point of tape reading?

[wxytrader]

I just watched a video of two traders watching the tape when they could have just drawn a triangle and gone to make a sandwich.

Like seriously what did they learn from sitting there with their eyes glued it? People had to read the tape to visualize price action before there were charts...or they would chart the tape. You don't go from charts to tape reading...its backwards. What's next...ticker tape?

 

[traider]

People are going to start showing up and say TA is all you need to make billions in the market

 

[SunTrader]

Well for that matter why even draw triangles lol?

 

[wxytrader]

Well for that matter why even draw triangles lol?

exactly...you can just see the price action unfolding. I suppose you could use spoof bids to forsee a possible rug pull but beyond that its useless.

 

[M.W.]

In an earlier thread you were all gung-ho about tape reading. Funny...

I just watched a video of two traders watching the tape when they could have just drawn a triangle and gone to make a sandwich.

Like seriously what did they learn from sitting there with their eyes glued it? People had to read the tape to visualize price action before there were charts...or they would chart the tape. You don't go from charts to tape reading...its backwards. What's next...ticker tape?

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[tomkat22]

Question for veteran traders who are proponents of level 2 watching. Have you really found any predictive value in doing that,as far as telling you which direction a stock's price is about to move next? I've mostly been a swing trader so I've never paid much attention to level 2.

 

[moskvich]

There's info on tape that is not on the chart, but imo its not nearly as usefull
as it used to be in the days of manual large order trading - technology and algos
have eliminated tape readers' edge. Having said that, once a while there's an
out of the ordinary/illiquid situation where having that skill might come in handy

 

[wxytrader]

In an earlier thread you were all gung-ho about tape reading. Funny...

I don't think so..I may have looked at it but it never made sense to me.

 

[schizo]

I just watched a video of two traders watching the tape when they could have just drawn a triangle and gone to make a sandwich.

Like seriously what did they learn from sitting there with their eyes glued it? People had to read the tape to visualize price action before there were charts...or they would chart the tape. You don't go from charts to tape reading...its backwards. What's next...ticker tape?

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I don't mean to sound negative, but it's these kinds of amateurish remarks that obviously make you stand out as a noob. Tape is the most valuable source, especially for scalpers, when it comes to gauging the pent-up momentum. You can also see all the resting orders, which aren't visible on the chart.

Next time, don't disparage just becacuse you don't understand.

 

[schizo]

Question for veteran traders who are proponents of level 2 watching. Have you really found any predictive value in doing that,as far as telling you which direction a stock's price is about to move next? I've mostly been a swing trader so I've never paid much attention to level 2.

Level 2 for stocks and DOM for futures are invaluable for a scalper. It's like reading a foot print. Once the momentum builds, you quickly jump in for 1 point scalp.