Tape reading

I've put a trade I did y'day up on the Trading the US the Naz/Mr. Charts Way thread in which reading the tape was crucial to both entry and exit.
HTH anyone interested in the importance of tape reading.
 
This was a trade that I actively considered taking yesterday but in the event did not.

The chart pattern confirmed it for me as a possible trade but the main indicator that I use in my own personalised way ( rightly or wrongly ) suggested that I should not take the trade.

I guess the moral of this for me is that when there are plenty of juicy trades around then the declining of a trade like this is not a problem for me.

But when I am scratching around for trades - like I was yesterday - then if my chart says yes and my indicator says no, then I should pass it over to the 3rd umpire for an opinion . ie time and sales and/or Level II.

If I had done this yesterday and seen some momentum building up in the form of good volume trades / orders coming in, then I may well have persuaded myself to go with it.

Dunno if this makes sense to anyone but it does to me.

BTW when do the Yanks put their clocks forward ? The 3.30pm start is too late for me as I just feel like having siesta by then if I have nothing else to do.
 
IMHO, very good thinking, Salty. If a methodology works, stick with it, a few are bound to lose, there will be some missed opportunities, but in the long run you achieve the dream.
The US is normally one week behind us in shifting to ST
Richard
 
United States on the left European Union on the right for the clocks....

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2004 April 4 October 31 /March 28 October 31
2005 April 3 October 30 /March 27 October 30
2006 April 2 October 29 /March 26 October 29
2007 April 1 October 28 /March 25 October 28
2008 April 6 October 26/ March 30 October 26


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Note: US calculator valid 1976-2099; EU 1996-2099.

Edit the calc..is from here...
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If a methodology works, stick with it, a few are bound to lose, there will be some missed opportunities, but in the long run you achieve the dream.
Click to expand...

I think you're spot on Richard. It has taken me a long time to come up with a methodology that works well and it has taken me even longer to apply it fairly rigidly. But yes, I will achieve the dream and when I do a lot of credit will go to T2W and people like yourself who post interesting and educational material that makes me think hard about the way that I am trading and the way that maybe I should be trading.
 
stoploss

you said above that.....you're watching the 1 min bar (yes?) The thing about watching the short timeframes is that the volume readings may not be accurate! I only mean that on some exchanges, volume data can be delayed or held back and may appear in bars much later in the session (or days later). Others may have experience of this (technical) and can advise. I find volume readings on longer (day) timeframes more reliable.

This happens less with electronic echanges (I think)

I have no specialist knowledge here but have heard it from experts (experienced traders - those that have survived :)) I have also observed strange (unexplained) volume figures.

xs
 
900xs

I agree that watching short time frames can be dangerous but I am also watching longer time frames aswell. My trigger is not soley based on the 1 minute chart.

Also, I am looking for the bigger pattern. The volume on the 1's I find gives me a heads up when I am waiting for my pattern to mature and for the trigger to be pulled.
 
The best book I read on Volume was by: Tom Williams. (He had a volume analysis program.) It may have been called something like "....secrets of the stockmarket..." It explained what a narrow spread meant (difference in timebar high and low).....explained testing of supply etc. He is mostly retired now and software has been launced as a commercial venture (rather than hobby) under another name. The old site was called: tradetowin.com :))) The book may too have been re-named (and reworked) but as a enthusiastic (ignorant) market student.........I learnt a lot from him.

xs
 
Tom Williams Volume Analysis

I had a look around and found this. Tom used to write regular commentaries on markets.........and here he explains: Volume analysis logic. (they are from quite a few years ago but the principles are still relevant.)

I have not looked at these for quite a few years and enjoyed reading them again.

Hope you enjoy them

xs
 

Attachments

  • tom williams volume analysis.doc
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I see that you guys very nearly got into the same argument that we did on ET about what tape reading is, but you managed to nip it in the bud (Americans are an argumentative lot).

Given that there have been only a handful of books written on the subject in the last hundred years and that only three of them are still available, it should come as no surprise that the majority of traders think tape reading has something to do with T&S and/or Level II. Perhaps threads like this will clarify.
 
dbphoenix

Nice to see you here........word "gets out" about good people with experience and insight. :)

Welcome
 
so what is tape reading if it is not time & sales

the tape refers to the output of a ticker machine. this printed out the mnemonic of the stock, the price and lot size of each trade as they were reported. the same info is given on T&S isnt it?
 
XS

I am a very very Newbie and have enjoyed reading this thread, particularly your Tom Williams VA attachment, which is fascinating reading for a beginner.

I appreciate all the book recommendations and reviews. I have a lot to learn but am very grateful to you guys for the useful stuff - I take Mr Chart's point about the abusive replies, I have read some pretty negative stuff on this site about other people's 'wares' and marketing practices.

It is useful to be warned about the 'profiteers' and the 'sharlatans', but some of the stuff is pretty damning. Warn people by all means but don't damn them to hell and back - they are just trying to make a living like the rest of us and given a fair and balanced argument, Traders should be able to sort the good from bad - we are after all supposed to be intelligent analysts aren't we?

LWB
 
Thirteen said:
so what is tape reading if it is not time & sales

the tape refers to the output of a ticker machine. this printed out the mnemonic of the stock, the price and lot size of each trade as they were reported. the same info is given on T&S isnt it?
Click to expand...

Read the links....Price and Volume....the relationship of same.
Read the thread and the links.
 
price & volume on a 10 min chart isnt tape reading

p&v as it happens - trade by trade is.

i did read the thread. just seems to mention a load of books
 
LWB

sounds like you've got "your head screwed on".........a "strong" interest in markets (the need to know) can be an adventure leading to unexpected outcomes. Yes there are "sharp" operators but with a little experience (!)..........you can swerve around them. "There are still some good people in the (Trading) world"

Hope you have a good trip :)

xs
 
I've been trying to " read the tape" for ages now.

Makes absolutely no sense to me and I cannot deduce anything from it.
 
Thanks XS

I'm looking forward to it all, each day gets more interesting.

Next is a day's training with Naz in May, after much research I think he come's the most highly recommended. I only hope I can keep up with him on the day!

Read the Tom Williams Attachment 3 times now and have started looking for similar patterns in other charts - interesting.

LWB
 
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