[Soultrader]

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

[nasdaq5048]

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

[Soultrader]

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.

[traderbong]

James,

Really enjoyed the video. I usually dont look at the tapes but I am thinking to learn and incorporate it into my trading. Thank much.

[traderboy]

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

[Soultrader]

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

[matdog]

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.

[Soultrader]

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.