Question on type of trading

[AbuCordelia]

Hello people,

This is my second post on this forum so please go easy on me... I'm about to start working for a prop firm and they will be training me. My soon-to-be trainer has shown me what he finds to be the foundation of my training... If I knew the name for it I wouldn't be here asking.

Basically it is looking at the number of open bids and asks along a vertical representation of a price list (attached is a picture of this from ThinkorSwim). I'm assuming its somehow related to resistance but tell me if I'm wrong.

I want to know if there is a specific name for this type of technical analysis so I can buy a book about it before training starts. Also, would anyone have any good book recommendations for it as well?

Thanks

Abu

 

[wino59]

This is tape reading... you are determining supply and demand based on the tape, price and demand at certain levels...

Not really support and resistance areas as you would find on a chart.

Wyckoff has a good book about it... Studies in tape reading. Published in 1921 I think.

 

[AbuCordelia]

Thanks

 

[wino59]

Thanks

You are welcome.. But here is thing.. It is good you are learning at a prop firm, because you will see what the insiders do. However if you are with fly by night prop trading firm you may get left in the dust...they are looking to make money period, so if you can't make them money you are useless.

My advice is learn as much as you can....Learning to read the tape will make change your life... for the good or bad.. that depends on the person

People have made a 100 million, and puked to 30,000.... anyhow...learn as much as you can because this the true way to trade....

I would rather had a DOM than a chart any day.