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Soultrader

[Tape Reading Video] by Traders Laboratory

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One of the better tape reading videos I have made. Its a little long so I divided it up in 3 parts. Please give it a few minutes to load. Also the charts are wide so make sure you maximize your browser.

 

Part 1

 

Part 2

 

Part 3

 

 

Charts created by Tradestation

Prestend by Traders Laboratory

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I think the reason we have this kind of buying is due to the dude who was forced to liquidate his posisiton on globex, which traded up to 1399 on sunday night. In hindsight, he cant cover all his shorts on sunday, the liquididity just isnt there. He covers the minimum, and covers the rest at the day session

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Hard to say... I cant imagine a big shot trader being caught on the wrong side under these market conditions lately. One must be crazy to short on a large scale right now. Also, not much liquidity in the overnight sessions. I cant quite picture anyone fund/top tener trying to cover during this period. He'll end up losing alot more money than if he just waited till the opening on Monday.

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Great videos on tape reading. I use to tape read stocks back in the internet boom & bust but stopped once market turned to decimals & volatility died up. I'd really like to get back into it again w/ the futures mkt & like very much how you're utilizing the tape in @ym. I'm new to this forum & am beginning to learn some on market profile. I'd really like to learn mp to assist me w/ confirmation on tape reading the mkt.

 

When watching your 3 videos I noticed you had various horizontal lines on the @ym chart. If you don't mind me asking what do these lines represent? I'm assuming the main ones were the value area levels but how about the others? Do you follow R, PH, Pvt, PL, & Support levels (floor pivot levels) as well?

 

Thank you for your time & consideration.

 

Sincerely,

traderboy

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Hi Traderboy,

 

The lines I use are VAL, VAH, and floor trader pivots. The green lines are R1, R2, R3, S1, S2, S3... the pink/purple lines are the monthly pivots and the cyan lines are the weekly pivots. The red dotted lines are VAH and VAL. They are the same for all my videos. Hope this helps.

 

Soultrader

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Hi, soultrader.

it's very helpful by watching your tape reading video. would you mind do more video on tape reading. and one question, can you use first 10-30 mins of tape reading to tell which direction is the market likely to go in that day.

thank you.

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Hi Matdog,

 

I'll try to make more tape reading videos. I'm just having difficulties recording live and trading at the same time... may need to upgrade my computer.

 

Some tape readers may be able to tell the market direction within the first 10 minutes of tape reading. I can not... what I like to do though is at the open, I will focus on a closest line of pivot price opens at and read tape. If I see enough sellers or buyers at the pivot, I can determine the short term direction. This is usually my opening setup... but its a quick trade and I dont intend to stay in it for long.

 

It usually takes me the first 60-90 minutes of trading to really figure out what the market might do in the afternoon. Of course the moment sentiment changes, my bias will change also. Its very hard to explain in words what I see... I'll try to make a video on it.

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Thank you SoulTrader for the videos. Very educational. I agree with you that it takes time to pratice with tape reading. Can you recommend any books on tape reading?

 

Thank you!

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Several books I recommend. "Tape Reading and Market Tactics" and "Techniques of Tape Reading". The only problem is... tape reading cant be really taught through books. It has to be taught visually. The best way to learn is to just stare at it and observe.

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Robert,

 

Are you referring to the pivots? If so, I use an indicator developed by Ant from our forums. The indicator can be found in the custom indicator forum.

Will do. I'll go look it up now. I really appreciate you making these videos. It's an invaluable learning tool. I'm working my way through them. Keep up the good job.

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Thank you for the links. I use E-Signal for my charting, so I will have to dig a little. I also just wanted to thank you for this web site. I have been looking for info on tape reading and your videos are just excellent. I hope to be a long term member of your forum. Take Care!!

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I think these are a good series of tape reading tutorials. I could'nt really see the top of the chart because of the taping(recording). My only questions would be, 1. What is the significance of a 233 tick? and What volume levels is key to watch for on the tape? I use MarketDelta and TS aswell

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I think these are a good series of tape reading tutorials. I could'nt really see the top of the chart because of the taping(recording). My only questions would be, 1. What is the significance of a 233 tick? and What volume levels is key to watch for on the tape? I use MarketDelta and TS aswell

 

For a far better explanation of this than I can give, check out John Carter's "Mastering the Trade." It's a great book, and even has a section on Market Profile.

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I think these are a good series of tape reading tutorials. I could'nt really see the top of the chart because of the taping(recording). My only questions would be, 1. What is the significance of a 233 tick? and What volume levels is key to watch for on the tape? I use MarketDelta and TS aswell

 

 

The 233 tick is just a personal preference. Regarding key levels.... this is entirely up to you to judge. What determines a key price level is based upon what you consider a significant level of support and resistance. I use alot of pivots, previous day high/low, and market profile levels.

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The 233 tick is just a personal preference. Regarding key levels.... this is entirely up to you to judge. What determines a key price level is based upon what you consider a significant level of support and resistance. I use alot of pivots, previous day high/low, and market profile levels.

 

I think he meant to ask: How many contracts are you looking for on the tape to determine whether a level is important or not?

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I think he meant to ask: How many contracts are you looking for on the tape to determine whether a level is important or not?

 

ahh okay. It really depends on the contract you trade... I would place any lot great than 25 on the YM to be signficant enough to grab my attention. 100 lots or more on the ES and 20-30 on the ER2. With thick contracts like the bonds... anything over 1000.

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Thanks for posting this up. I've been intrested in tape reading for a long time if nothing else, as a way to manage trades i'm already in. I do have a couple questions.

 

Is there anyway you can describe the purpose of brackets and are there any specific rule sets you look for in reading tape for entries?

 

Also, with the recent huge volatility in markets like the ES, most of the lots being cleared are 10+... Hell I saw a 910 lot clear today. Do you modify your T&S in markets like this to filter out the "noise"?

 

I guess, I kind of see where your going with your videos, and they are the best i've seen to date on this material. I'm just still a little confused on what the key things to look for are, and if there are specific setups you "see" in the tapes that I could look for?

 

Thanks in advance for all of your help.

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