[carltonp]

Hello Traders,

I wonder if you can help. I've spent the last few days trying to track down information on tape reading (time and sales) strategies. I searched the four corners of the internet and trying to find suitable information buth nothing.

Just to prove to you how little information there is out there I found one site, http://www.priceactionroom.com, charging $1995 for a DVD called 'The Magic of Tape Reading'. This blew me away. I thought how can they justify that price tag? Then I thought, 'of course they can, they know there isn't anything out there on Tape Reading'. Don't get me wrong, the DVD might be the Holy Grail of Tape Reading, but I'm not ready to pay that kind of money until someone has reviewed it and gives it the thumbs up.

I watched all of soultraders videos (there are good and they give you a taste, but no real meat on the bones).

So if there is anyone here that can point me in the right direction, I'd appreciate it.

Cheers guys/gals

Carlton

[wrbtrader]

Hi,

There really isn't any in-depth info out there on tape reading involving making trade decisions from bid / ask / time & sales screens (e.g. DOM, market depth and so on). Yet, you do have easily available tools to learn it on your own such as finding a screen video recorder to record your the live streaming real-time data on your screens with your charts to help you quickly learn about the flow from one price level to another.

Also, have you visited Youtube to check the videos on "Tape Reading" even though many have horrible visuals (difficult to see by those not using a good video recorder). They can at least give you an idea of what type of info your should be doing in your own live recordings at the minimum.

You can then post your own videos on Youtube for linking to whenever you have questions at any forum about tape reading. My point, you'll get a much better response (replies) when you share your own recorded videos with your questions because tape reading is one of those odd topics that requires videos for communication while learning in my opinion.

Simply, your own videos will contain the "real meat on the bones" and someone can then use that info to help you concentrate on specific info within your videos.

P.S. I'm not a tape reader. I'm just trying to inform you that you need to start doing video recordings of the tape and charts that's occurring on your own monitors if you want to be serious about tape reading.

Originally Posted by carltonp »

Hello Traders,

I wonder if you can help. I've spent the last few days trying to track down information on tape reading (time and sales) strategies. I searched the four corners of the internet and trying to find suitable information buth nothing.

Just to prove to you how little information there is out there I found one site, Welcome to the Price Action Room, charging $1995 for a DVD called 'The Magic of Tape Reading'. This blew me away. I thought how can they justify that price tag? Then I thought, 'of course they can, they know there isn't anything out there on Tape Reading'. Don't get me wrong, the DVD might be the Holy Grail of Tape Reading, but I'm not ready to pay that kind of money until someone has reviewed it and gives it the thumbs up.

I watched all of soultraders videos (there are good and they give you a taste, but no real meat on the bones).

So if there is anyone here that can point me in the right direction, I'd appreciate it.

Cheers guys/gals

Carlton

[carltonp]

Originally Posted by wrbtrader »

Hi,

There really isn't any in-depth info out there on tape reading involving making trade decisions from bid / ask / time & sales screens (e.g. DOM, market depth and so on). Yet, you do have easily available tools to learn it on your own such as finding a screen video recorder to record your the live streaming real-time data on your screens with your charts to help you quickly learn about the flow from one price level to another.

Also, have you visited Youtube to check the videos on "Tape Reading" even though many have horrible visuals (difficult to see by those not using a good video recorder). They can at least give you an idea of what type of info your should be doing in your own live recordings at the minimum.

You can then post your own videos on Youtube for linking to whenever you have questions at any forum about tape reading. My point, you'll get a much better response (replies) when you share your own recorded videos with your questions because tape reading is one of those odd topics that requires videos for communication while learning in my opinion.

Simply, your own videos will contain the "real meat on the bones" and someone can then use that info to help you concentrate on specific info within your videos.

P.S. I'm not a tape reader. I'm just trying to inform you that you need to start doing video recordings of the tape and charts that's occurring on your own monitors if you want to be serious about tape reading.

Yes I've watched a number of videos, but none really have strategies with any depth. I'm putting together a video as you suggested...

Cheers

[Xiao si]

My developing intra-day strategy is also based around confirmation by the tape. Its very difficult to find good information on this topic. I have spent the money and I'm taking an online course developed by a NY prop desk for its traders on tape reading. I've also read the book by one of the partners, an excellent read and unlike anything I've read to date. The course is based around intra-day equity trading however its still applicable to index futures, or any liquid issue. In fact i would almost argue that index futs may be easier for a trained tape reader.

By the way, for index futures generally the tape is only the time and sales. For equities you need to also use the depth of market. The DOM is pretty much useless on its own for the index futures.

PM me and I'll give you details.

Read the old stuff for sure, Edwin Lefèvre, Wyckoff, and anyone else that is known for reading tape.

Indicators will come and go, but the tape doesn't lie. The markets might have changed in how the handle the orders but they still need to 'print' the them. Whether you are buying a breakout or selling a failure, the tape can tell you if the market has the momentum to do what you need it to do to be profitable in your plan.

If you want to learn how to read the tape, open up the time and sales window on a front month futures contract, put on your favorite music, turn it up really loud, or even better use headphones and watch. Don't use a chart. Write down numbers where you think the market stalls, slows down, reverses, speeds up...whatever. Calculate the pivot points and watch what happens around those numbers. Write down the prior close, the current open. Get zoned in so all you can do is focus on the numbers. Keep a daily diary of your thoughts and observations. Do this for two months and if you can't see the order flow you never will.


Cheers,



XS

[makhan]

Check this site for tape reading;
SidewaysMarkets.com│Profi table Day Trading Strategies Blog: Tape Reading Lesson: Bracket the Tape

[carltonp]

Originally Posted by Xiao si »

My developing intra-day strategy is also based around confirmation by the tape. Its very difficult to find good information on this topic. I have spent the money and I'm taking an online course developed by a NY prop desk for its traders on tape reading. I've also read the book by one of the partners, an excellent read and unlike anything I've read to date. The course is based around intra-day equity trading however its still applicable to index futures, or any liquid issue. In fact i would almost argue that index futs may be easier for a trained tape reader.

By the way, for index futures generally the tape is only the time and sales. For equities you need to also use the depth of market. The DOM is pretty much useless on its own for the index futures.

PM me and I'll give you details.

Read the old stuff for sure, Edwin Lefèvre, Wyckoff, and anyone else that is known for reading tape.

Indicators will come and go, but the tape doesn't lie. The markets might have changed in how the handle the orders but they still need to 'print' the them. Whether you are buying a breakout or selling a failure, the tape can tell you if the market has the momentum to do what you need it to do to be profitable in your plan.

If you want to learn how to read the tape, open up the time and sales window on a front month futures contract, put on your favorite music, turn it up really loud, or even better use headphones and watch. Don't use a chart. Write down numbers where you think the market stalls, slows down, reverses, speeds up...whatever. Calculate the pivot points and watch what happens around those numbers. Write down the prior close, the current open. Get zoned in so all you can do is focus on the numbers. Keep a daily diary of your thoughts and observations. Do this for two months and if you can't see the order flow you never will.


Cheers,



XS

I working on your suggestions as I write this..... thanks dude

[Xiao si]

Looking forward to hearing your thoughts Carlton. We can keep a discussion going on this topic for a while.

Next week I would be happy to record some SCREEN video and then try to upload something useful to see around some big numbers on the Asian market opens.


XS

[Xiao si]

Originally Posted by makhan »

Check this site for tape reading;
SidewaysMarkets.com│Profi table Day Trading Strategies Blog: Tape Reading Lesson: Bracket the Tape

That's a great exercise and something I should have been specific about. Whe you observe the market on the tape be sure to take note of the low and high realized. They will change as the market swings. Also take note how sometimes the price will "pop" up or "drop" down as the bid and ask are swept at various levels.

Other things to watch that I learned from Wyckoff, watch the big numbers and the effect they have on the supply, do they change the price or it's business as usual for the order flow? As well, where are the small orders? Are they on the bid or offer and when?

Cheers,


XS