Reading the Tape

[Metatron]

There seems to be a school of thought that this cannot be done on the futures contracts, can anyone explain if it is possible or not and why?

 

[pttrader]

There seems to be a school of thought that this cannot be done on the futures contracts, can anyone explain if it is possible or not and why?

First I would need to know "what" you say that tape reading is. How do you define tape reading?

 

[charliechan]

i take it you mean time & sales.

it can be done on futures easy. in fact, its probably easier on futures than most stocks. this is due to the different market structures within different stock markets - eg nasdaq and its multiple markets/ecn's, the nyse specialist system, lse quote driven etc.

forex is the only market it would be difficult in as there is no volume print.

 

[pttrader]

One can read the tape on futures. Price movement and volume are the same it doesn't matter if it is futures..stock ..etc. Tape reading is basically correlating price with volume to get a view on near future price movement and that can be done on futures also.

 

[jiggly]

i take it you mean time & sales.

it can be done on futures easy. in fact, its probably easier on futures than most stocks. this is due to the different market structures within different stock markets - eg nasdaq and its multiple markets/ecn's, the nyse specialist system, lse quote driven etc.

forex is the only market it would be difficult in as there is no volume print.

charlie chan

i agree with your comments on the difficulty of applying tape reading principles to FX, but do you think that as long as the volume print and price are consistently reletive with each other as such that it is a good enough study to develop an implement within this market.

regards