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What is tape reading ??

  #25 (permalink)

Toronto canada
Posts: 9 since Jul 2015
Thanks: 4 given, 14 received

Heph333 View Post
The only issue I have with T&S ("the tape") is that you are only viewing market orders with no heed to the accompanying depth of limit orders at that price. Since every market order buy was into a limit offer, and vice versa for shorts, what market orders "mean" is difficult to determine without regard to the behavior of the depth. IMO.

This makes sense but even with market depth or a count of the pulling and stacking of bids and offers, it's difficult to determine what it all means. Can you use market depth to your advantage? I have not been able to. depth could be real or a feint. And even if it is real how do you know beforehand it's going to be enough? If you stick to price action there is less predicting and more following.

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