Which came first the chart or the tape?

[scalper21]

Quote from agora:

Scalper21,

I guess tape reading is tape reading is tape reading... duh.

In your last example about bids stepping in behind trades that take out offers or prints that happen when large(r) bids step in (and in reverse) is exactly what I trade off of on the NYSE issues. And, as you do I make many small trades a day, never letting any loss go beyond a nickel or a dime most of the time a few pennies.

However, that said, I have a feeling that it's easier to get used to trading the Russel or mini-dows or eminis since you focus in on one thing.

I use charts to help me get to a setup and then trade the tape, though, I've also just read pure tape by watching bid x ask size vs prints and spreads. However, I tend to get too myopic when I just trade the tape ( I lose sense of where I am -LOL).

It's interesting though, and of course it has to be true, that tape reading is tape reading is tape reading, without regard to markets.

Agora

I agree that staring at one market can make trading to microscopic. That is why I look at ER2, ES, NQ. I am mostly looking to see how ER2 is correlating to the ES contract. This gives me an idea of the overall market.

 

[firstchoice]

what is tape reading anyways. People have different definitions for tape reading. Some people think tape reading involves reading the level 2 screen and others say tape reading is reading charts.

 

[phenomena]

Quote from firstchoice:

what is tape reading anyways. People have different definitions for tape reading. Some people think tape reading involves reading the level 2 screen and others say tape reading is reading charts.

nope, tape reading is NOT reading charts....tape reading is L2/DOM

 

[Steve Tvardek]

There are MANY threads on tape reading, just do a search.

Quote from firstchoice:

what is tape reading anyways. People have different definitions for tape reading. Some people think tape reading involves reading the level 2 screen and others say tape reading is reading charts.

 

[Don Bright]

Quote from billp:

A question here. How do you know from the tape that a turn is coming? Thanks

Relatively simple...since we trade primarily big cap stocks, we use the Premium/Discount to fair value of the futures...knowing full well that when they can sell futures at a premium, they will likely hedge themselves by buying stocks...add to this the TICK's, and the NYOB layers, you get a pretty good idea of near term turnarounds. We, of course, use spx "pivot points" and spoo pivot points as added confirmation of the movement.

Don

 

[monti1a]

Quote from scalper21:

I agree that staring at one market can make trading to microscopic. That is why I look at ER2, ES, NQ. I am mostly looking to see how ER2 is correlating to the ES contract. This gives me an idea of the overall market.

Scalper21,

I'm a russell trader as well...

Do you also look at time and sales for the russell?....for instance do you look for block trades (i.e., more than 10 contracts) occurring in the direction of your setup to confirm your entry?

or after you have entered, block trades against your position to tell you when to get out?

 

[FastandFurious]

Quote from agora:

Scalper21,

I guess tape reading is tape reading is tape reading... duh.

In your last example about bids stepping in behind trades that take out offers or prints that happen when large(r) bids step in (and in reverse) is exactly what I trade off of on the NYSE issues. And, as you do I make many small trades a day, never letting any loss go beyond a nickel or a dime most of the time a few pennies.

However, that said, I have a feeling that it's easier to get used to trading the Russel or mini-dows or eminis since you focus in on one thing.

I use charts to help me get to a setup and then trade the tape, though, I've also just read pure tape by watching bid x ask size vs prints and spreads. However, I tend to get too myopic when I just trade the tape ( I lose sense of where I am -LOL).

It's interesting though, and of course it has to be true, that tape reading is tape reading is tape reading, without regard to markets.

Agora

I trade NYSE as well, today I saw on the tape that the bid just kept printing and it did not go away, then the offer prints and the offer becomes bid. ....does that mean there was a buyer and a seller and at the end, the seller was done, but the buyer kept going?

btw, do you look at the openbook? If you do, which one do you place more emphasis on...level 2 or Openbook?

 

[scalper21]

Quote from monti1a:

Scalper21,

I'm a russell trader as well...

Do you also look at time and sales for the russell?....for instance do you look for block trades (i.e., more than 10 contracts) occurring in the direction of your setup to confirm your entry?

or after you have entered, block trades against your position to tell you when to get out?

No. I just look at the order books. I think it would very useful to have volume #'s, but I have been successful with the setup I have and I guess I am AFRAID of changing it.

 

[5Pillars]

Quote from billp:

come on guys. Help a bit.

How do you know when a turn is coming from reading the tape. Thanks

get www.marketdelta.com and learn the basics of this program, then watch the tape as you see where the pressure is entering the market. Over time you will be able to see in the tape the pressure from recognition and you will not need the MD anymore.

You can use the MD as a reference tool to understand the observations from the tape - you will see in the tape what happens when a HOD/LOD is bought or sold, or a s/r level is held or busted. Once you have a visual reference from the MD as to what price is doing in relation to the tape reading, then you have a foundation of understanding to work with.