|
Quote: |
|
 |
|
|
on the Emini ladders there is no way to tell how much wil; trade at a "level" esp during a new event. Stops are needed...!! |
|
|
|
|
Indeed, however trading need not be about predicting. Monitoring what is happening now and taking appropriate actions based on that will get you a long way.
You can see a price being supported as it happens in real time for example by volume passing across the tape but the inventory being 'restocked' (i.e the bid or ask does not lift). Also the tape is great for judging changes in pace right as they happen.
All sorts of interesting stuff goes on in the order book too though I must be honest I don't watch it currently. Of course there are shenanigans all the time as it is simply people 'advertising' and unless hit they can close shop and walk away. Mind you that might tell some people something in and of itself.
One thing I have noticed that a huge amount of time price tends to move towards size i.e. the thicker side of the book. Many find this counter intuitive. There are plenty of other patterns and characteristics that people talk about every now and then too.
Currently I look at a small interval tick chart (constant volume would do or even perhaps a small interval time bar) to see what is happening in 'real time'. That is not to say that I have not given up on learning to read the 'pure' tape.
Good quotes as always btw DB