Techniques of Tape Reading - Page 2

10-02-2006, 07:08 AM

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Techniques of Tape Reading

One of the best tape reading books available. For any trader new to tape reading, this is a must read.

Covers the teachings of Wyckoff and Neill. The author shows various setups combining price and tape with the final section dedicated to charts. Alot of good information covered in this book from volume & price analysis, tape, trader pscyhology, etc...

Tape reading and volume analysis are pure information. Master these techniques and you will always be one step...

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#10 (permalink)

By luke24.5 on 10-18-2007, 03:03 PM

Re: Techniques of Tape Reading

I don't think any of those forementioned leaders of tapereading would be doing the same thing they did when all they had to watch was numbers rolling across the tape. However their principles are very consistent with Graifer's definition: "Principles of tapereading ... match price movement to crowd behavior in the form of a rate of volume" (P.92).

Thus the object of the book is not to give a history lesson or teach one to use only technology available decades or centuries ago. Graifer's methods are consistent with his definition and with what he promises on the book cover.

Definition then is a problem but Graifer delivers on what he promised in the title of the book. I prefer the term "market generated data" but the term tapereader has stuck and is used commonly. It's all about understanding Price + volume + time and what it's "telling" you in real time.

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#11 (permalink)

By jperl on 10-18-2007, 03:50 PM

Re: Techniques of Tape Reading

	Quote:	luke24.5
	I don't think any of those forementioned leaders of tapereading would be doing the same thing they did when all they had to watch was numbers rolling across the tape.

I think you are wrong on that one. In fact I know quite a number of traders who trade using only time and sales, no charts.
Also do you think floor traders are looking at charts when they trade?

	Quote:
	Thus the object of the book is not to give a history lesson or teach one to use only technology available decades or centuries ago. Graifer's methods are consistent with his definition and with what he promises on the book cover.

This doesn't change the fact that the book cover and title are misleading.
In fact if you look at the book cover, what do you see? You see a picture of a ticker tape machine with tape pouring out of it.
I was thus expecting that the book would be discussing how to read time and sales data in real time. There is in fact not a single discussion of time and sales.

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#12 (permalink)

By luke24.5 on 10-18-2007, 07:30 PM

Re: Techniques of Tape Reading

The book and cover are not misleading because in the subtitle promises:

How to "read the tape" in any market.
Seprarate market reality from market misperception
Learn what price/volume action reveals.

Note that "read the tape" is in parenthesis. Agree or not, the term is commonly used to describe virtually any method that interpets market sentiment through real-time volume/price interaction.

I found this approach refreshing because I had studied mostly through a MP + filtered T&S and market delta approach. I find I can more easily recognize change in sentiment through candle shapes and VOL Profile. Guess I'm more visually oriented.

If you want to say T&S is the "only" form of "tapereading" have at it. It is closest to what early traders had. But to say it is the only way to interpret the principles taught by Wyckoff, Scabacher, etc. is wrong.

Therefore I continue to recommend this book, especially to traders new to reading market generated data in real time and trading without indicators, or those like myself, to whom a picture is worth a thousand numbers.

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#13 (permalink)

By jperl on 10-18-2007, 09:43 PM

Re: Techniques of Tape Reading

	Quote:	luke24.5
	Note that "read the tape" is in parenthesis. Agree or not, the term is commonly used to describe virtually any method that interpets market sentiment through real-time volume/price interaction.

Well I guess we will have to agree to disagree. But I would think that the old pros (and some new pros) who just use time and sales would laugh if you told them you were "reading the tape" by drawing a chart. Once you introduce a chart into the analysis, you are doing a form of technical analysis.

In my "Trading with Market Statistics" threads, I only show price and volume in the analysis, but I would hardly call this tape reading. There are others discussion in these forums that use price and volume only, such as volume spread analysis, wide range body analysis, candle shape analysis. I don't think I have seen any description of these as "tape reading".

	Quote:	luke24.5
	If you want to say T&S is the "only" form of "tapereading" have at it. It is closest to what early traders had. But to say it is the only way to interpret the principles taught by Wyckoff, Scabacher, etc. is wrong.

Schabacker (that's with an h and a k) as far as I can tell, never mentions the words tape reading in his books. In fact he is probably the father of modern technical analysis using charts.

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#14 (permalink)

By firewalker on 05-23-2008, 04:32 PM

Re: Techniques of Tape Reading

I thoroughly enjoyed the book, there are some absolute gems of information in it. Over time I've found myself reading chapters again, discovering more truths hidden in the chart, but well explained by Graifer. This is a book I would recommend to anyone who's interesting in doing the work themselves, but not to those who are looking for a book about what to do and how to do it. Graifer suggest several approaches, but fundamentally he proposes that you trade based on scenarios. If X happens, then you do A. If Y happens instead, you act by doing B.

As for 'tape reading', the best elements are contained on the least number of pages. Don't expect anything about Time & Sales, because that's not what this book is about. You don't need T&S imo, just plain P/V.

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#15 (permalink)

By Trader333 on 05-24-2008, 05:42 AM

Re: Techniques of Tape Reading

I bought this book around 3 years ago when I was trading US stocks extensively and found it to be one of the best that I had read. The principles in the book have been discussed at length by others such as dbphoenix and were of real use at the time for me in understanding the phases involved in accumulation and distribution. In more recent times there is now a view that analysis of volume for trading of stocks is not as useful as it once was because of the way in which transactions are being conducted. I have not looked into this with any depth but it did come from a colleague who is the best trader of stocks that I have met.

Paul

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