What's the point of tape reading?

schizo said:
I don't mean to sound negative, but it's these kinds of amateurish remarks that obviously make you stand out as a noob. :rolleyes: 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.
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Resting orders can be spoofs so they aren't reliable...charts are a visual of the actual price action. As my screenshots show this was clearly just a triangle.
 
wxytrader said:
Resting orders can be spoofs so they aren't reliable...charts are a visual of the actual price action. As my screenshots show this was clearly just a triangle.
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If you're a good scalper, you would know if they're spoof or not.
 
schizo said:
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.
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A footprint is something that's already happened, I dont see how that will help you predict what's going to happen next. Also dont you worry about Spoofing? I know it's suppose to be illegal but I'm sure quite a bit of it still goes on.
 
tomkat22 said:
A footprint is something that's already happened, I dont see how that will help you predict what's going to happen next. Also dont you worry about Spoofing? I know it's suppose to be illegal but I'm sure quite a bit of it still goes on.
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Footprint show you when things start to happened. Footprint show you the aggressive and the commitment of the buyers or sellers. Footprint show you the change in the commitment during the session.Footprint chart show you everything you need to know during the session.
 
Staring at level 2 quotes might help you on an extremely short term basis(maybe) but otherwise I dont put much stock in it(no pun intended). I myself enter limit orders several times a week but cancel them before they get filled simply because I changed my mind based on the way price acted.
 
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wxytrader said:
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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To understand how the market moves by prices and the order size with caveat since there are other special circumstances such as delayed reporting of certain orders and hidden orders and other special cases that affect the benefits of tape reading
 
tomkat22 said:
Staring at level 2 quotes might help you on an extremely short term basis(maybe) but otherwise I dont put much stock in it(no pun intended). I myself enter limit orders several times a week but cancel them before they get filled simply because I changed my mind based on the way price acted.
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What makes you change your mind?
 
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