Learning tape reading

TAjammy said:
people on these forums MADE me jump from approach to approach in the past. So i'm making it my duty to ignore anything on the lines of ' this sucks, chose another method'- because it has been me listening to this that has made me jump about clueless.

i am sticking to the sugar market- end of
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Most people on this forum aren't trading. Bear that in mind.
 
TheBramble said:
It stuns me that people still think tape reading is what it was when Wyckoff stared writing about it.
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Tony,
Can you expand on this comment a little please. I would have thought that most traders will agree with you that today's market bears little or no resemblance to the market as it was in Wyckoff's day. However, many would argue that the human emotions of hope, fear and greed etc. that drove the market a century ago still drive the market today. In this respect, Wyckoff's market analysis is as relevant today as it ever was and, doubtless, will be for a very long time to come. As it happens, I'm currently half way through 'The Three Skills of Top Trading' by Hank Pruden (Wiley Trading, 2007) who makes this very point and devotes a whole third of his book to the Wyckoff method of pattern recognition.
Tim.
 
James, be careful of the sugar market, a lot of traders in it get diabetes type 2 when they're older.

"people on these forums MADE me jump "

Perhaps you should look at the jumping beans market on CBOT.
JB 09Z is the current contract, but always keep an eye on the roll over date, as they keep changing it.
 
timsk said:
Tony,
Can you expand on this comment a little please. I would have thought that most traders will agree with you that today's market bears little or no resemblance to the market as it was in Wyckoff's day. However, many would argue that the human emotions of hope, fear and greed etc. that drove the market a century ago still drive the market today. In this respect, Wyckoff's market analysis is as relevant today as it ever was and, doubtless, will be for a very long time to come. As it happens, I'm currently half way through 'The Three Skills of Top Trading' by Hank Pruden (Wiley Trading, 2007) who makes this very point and devotes a whole third of his book to the Wyckoff method of pattern recognition.
Tim.
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The point is that "fear and greed" in itself tells you very little. It is self evident.

It is really stretching it to maintain that modern markets with an electronic order book and traders with mSec access are going to be the same as markets one hundred years ago. The order flow MUST be different. If you want to engage in "reading the tape" you have to understand this in detail. Sweeping generalizations just don't cut it.
 
Hi dcraig1,
dcraig1 said:
The point is that "fear and greed" in itself tells you very little. It is self evident.
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Agreed. All I was trying to establish is that there are those aspects of the market that change continually and one or two aspects which remain relatively constant.
dcraig1 said:
It is really stretching it to maintain that modern markets with an electronic order book and traders with mSec access are going to be the same as markets one hundred years ago.
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I'm not - and didn't - maintain that at all!
dcraig1 said:
The order flow MUST be different.
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Again, agreed. But the factors that influence the order flow largely remain the same as human beings are the same emotional animals that they were 100 years ago, hence the comment about fear and greed.
dcraig1 said:
If you want to engage in "reading the tape" you have to understand this in detail. Sweeping generalizations just don't cut it.
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There's little point in examining the detail if the basic principles are fundamentally flawed. If you think that Wyckoff's approach to market analysis is totally irrelevant to today's market, then please explain why. As much as anything, I'm acting as devil's advocate, hence the reference to Pruden's book which, incidentally, is endorsed by Bernstein, Pring and Tharp - among others. They are some pretty heavy weight market practitioners who also believe that Wyckoff is as relevant today as he ever was.
Tim.
 
did a little research about sugar production so that i could find out what commodities were involved in the production of it... coal oil and gas are all used.... i tried gas...no correlation...couldnt find coal :(...tried oil....and this relationship is rather startling
 

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...beautiful! this is exactly what i was looking for from the start, as i can use crude oil as an indicator but not for entries, i would consider it a divergence indicator...

of course that is one of 13 of my questions answered....
 
check the volumes on broco trader, i checked for other futures contracts and they weren't right, so i believe they might be their volumes rather than exchange.
 
yeh i think you're right i checked the euronext website and it says like 1070 contracts today...yet i check MT4 it says like 100... o well
 
I don't quite understand your reasoning for wanting to trade Sugar but why not ;) Just make sure you don't trade the spot; Trade the futures. I don't say this for liquidity reasons.
 
TAjammy said:
wow.wow.wow.

the DHLC and DBLHC works exceptionallly well on corn 15m...
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Someone else posted this link in another thread recently. If you haven't seen it, you might find it useful and relevant to that sort of PA:
Traders Links at The James 16 Group

(Look for the "Rants and Charts" link at the top). All the videos there are good. That's the most recent (of Jim's). I was pretty familiar with his stuff in the guest area there and also in FF, but there were a few wrinkles in that vid that were new to me (or if not new, then forgotten). It's long, so find a comfortable seat and enjoy.
 
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