What is tape reading ?? | Traders Hideout

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What is tape reading ??

  #19 (permalink)

Portland, United States
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xplorer View Post
Ok thanks so vocabulary is the same.

Then why do you say that T&S can be deceiving? As you say price never lies.

Price can move without orders being executed. And since order execution is the only thing the T&S shows, that's one way it can be deceiving. Another way it can be deceiving is when we focus more on order execution then price, for example, when huge buy orders are bashing the long side, and price doesn't move for awhile and a ton of volume is traded in a small range, we may think "Ah hah! Absorption! This is a logical time and place to short!" so we put our short position on, but those large buy orders do not let up and Price eventually breaks our level and stops us out.

Bottom line, it's not possible to experience any of these problems when focusing strictly on Price Action (the bars printing on our chart). These are just a few ways traders can be easily tricked by the T&S, and there's many more. These are the kinds of things I'm referring to when I say Price doesn't lie, and why I wouldn't personally think of Price Action and Time and Sales being the same.

Last edited by Portland; September 27th, 2016 at 10:05 PM.
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