Tape reading

[arabianights]

Here's a tip: often when you identify someone building up a huge position they're doing it a bit offside fair value to get filled. So trade against them as a scalper. However, bare in mind these guys are probably better traders than you and have identified a long term trend. So assume the market will move in that direction over the coming days and weeks. Remember what they've been up to.

 

[firewalker99]

Maybe more like selling activity........ selling takes place on the way up.
erie

Agreed, and note how this time what came after the selling was nothing but sideways drift... buyers clearly weren't interested in participating further along the road.

 

[firewalker99]

Here's a tip: often when you identify someone building up a huge position they're doing it a bit offside fair value to get filled. So trade against them as a scalper. However, bare in mind these guys are probably better traders than you and have identified a long term trend. So assume the market will move in that direction over the coming days and weeks. Remember what they've been up to.

I'm not sure what you are hinting at. Why would anybody want to trade "against" somebody let alone "scalp" against what is usually denoted as "the smart money". As for "better traders", if "these guys" (whoever that may be) are better indeed, than I'd rather position myself along them then against them.

 

[arabianights]

I'm not sure what you are hinting at. Why would anybody want to trade "against" somebody let alone "scalp" against what is usually denoted as "the smart money". As for "better traders", if "these guys" (whoever that may be) are better indeed, than I'd rather position myself along them then against them.

Basically they're selling too low or buying too high "for the day" (hour?) so as to ensure that they get filled (as you know it's not that easy to build up a massive position at a favourable price) while they pick up the long term trend.

So the smart thing to do is to figure they've identified the long term trend and to "trade with them" over the next few days/weeks. But usually they're counter the short term trend and you can get some cash by taking advantage of them not caring about a few ticks to get filled.

Is that clearer?

 

[TickJob]

see this chart long enough will train up your tape reading skill.

http://www.tickjob.com/charts/corn-day.gif

 

[firewalker99]

see this chart long enough will train up your tape reading skill.

http://www.tickjob.com/charts/corn-day.gif

pretty neat TickJob... but would be helpful if we had some sort of prices on the left or right next to it...