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An Example of Tape Reading

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by Richard Joyson -  Oct 26, 2006
6.1 (from 24 ratings)

This brief video clip is one of a growing library of over-the-shoulder videos I have made to help people learn tape reading by seeing examples for themselves. They are not structured teaching videos as such, more commentary.

As they were created live at the time I was able to point out some of the features as different participants including market makers and ECNs moved in and out of the bid and ask sides and other factors as well, such as the trades printing off on Time and Sales and so on.  Because they are live it simply isn’t possible to mention every single factor influencing the moves in the time frame of the action, so they are worth watching several times to spot all the influences.

In this particular video you will see my trade of 1000 shares flashing through on Time and Sales a second after I call the short. Within 37 seconds the position was already $140 into profit and still running – and without the stock moving a single cent against me at the time of entry.

This is high probability trading for either pure scalps or scalping entries into swing trades.

Click here to view the video (will appear in new window).


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Comment on this Article

Recent Comments:
Thanks Peto - I have been using the Raw Data with QT for some time now - but it is obvious that I never read the manual. Firstly, I must admit that I was wrong in my understanding of how the colour coding for the last traded price is printed. I really don't know why I took it as I described - maybe due to previous trading I had done - but the main thing is that I now fully understand how it works for the software I am using. Never be afraid to admit you are wrong - for you will make a lot...
CYOF   31-10-2006 14:26:28
Quote: Originally Posted by CYOF Richard, I will check this out as best I can in relation to my trading setup - but as I no longer have an e-signal data feed - and currently use QT with data feed from TD Ameritrade - Regards, Hi CYOF QuoteTracker does as you want. Right click a chart and select "Raw Data/Time&Sales" and you get red and green numbers, with block trades (you select the size) highlighted by...
peto   30-10-2006 03:55:04
Richard, I will check this out as best I can in relation to my trading setup - but as I no longer have an e-signal data feed - and currently use QT with data feed from TD Ameritrade - it may be difficult. I will also check my IB datafeed in the evening time after work. This is a very important topic for me to follow up on - as I have always traded T&S as per my previous post. The ability to identify red prints as trades that are always going of at the bid - and green prints always...
CYOF   29-10-2006 20:52:24
Quote: Originally Posted by CYOF That said, Grey1 has a brilliant TT private group setup, where all the details (including the tradestation codes) are freely given - all you have to do is a little investigative work to dig out previous posts on how his system works (and it does work as the proof is posted) - and he also does it for free. Grey1 is, of course, able to earn his living trading US stocks
LevII   29-10-2006 19:06:13
Hello Tim, I haven't decided yet Richard CYOF, "4. The trades printing off on the T&S in green are trades executed at the inside ask and those coloured red are trades printing off at the inside bid" Perhaps for added clarity I should have said. "......at the time of the trade." The answers to your 1 and 2 are both no and your examples are also not correct, although not necessarily always so. I think if you consider the clarification phrase and watch the video clip a few times -...
Mr. Charts   29-10-2006 18:34:33

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