[torero]

Excellent post! I thoroughly enjoyed it despite it being short. I recently started to view the Level 2 and T&S together and it made a better understanding of the order flow. I do concur there are lots of mind games, pulling contracts in and out. I usually keep an eye on those that remain, say, if a level is at 50 contracts, then flicker to 100, then pulled back to 50, and so forth. I would take 50 as a real resistance, unless the T&S start showing more contracts traded at that level than 50, then I have to view this a possibly stronger resistance level. If I see momentum going down but there are at least 3-4 levels of large open orders, it doesn't bother me, unless the tape start slowing down or go fast with contracts flying by but not moving down. One piece I look for is watching for the T&S turning red to green (or green to red for upward momentum, it's a TS and personal thing of mine), showing orders being pulled off the flow.

I usually take a more careful look at natural support/resistance areas, such as opening price, day's high and low. Interesting combo of info to get an idea if prices will pierce or reverse. It's probably the most difficult thing to decipher.

My question is how does one incorporate volume at price or Market Profile fit into this order flow/tape reading skills? I know that MP is used alot and makes sense since volume is very important. The biggest contribution is the use of initial balance where locals set the pace, and after IB, it's the papers. Any input on this?