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What is tape reading ??

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Springfield, MO/USA
Trading Experience: Advanced
Platform: Jigsaw
Broker/Data: AMP CQG
Favorite Futures: ZN, ZB
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Posts: 43 since Oct 2009
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Iamdom View Post
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.

And that is perfectly OK. Everyone has to find what works for them. I believe some of the most successful traders use price action as their primary tool. I was a price action trader for years, until I got frustrated with being late to the party on every move.
For a very long time, I believed entry points didn't matter & that only exits and money management were important. Then I realized that my entries were crucial to my exits. My goal now is to enter trades as close to the stop loss as possible. But that often gave me the price edge at the sacrifice of trade probability (i highly recommend the webinar from FT71 on risk and probabilities).
Enter Order Flow. It allows you to increase the odds some by often, but not always, seeing where and when a pullback is going to stop. This allows me to turn 1:2 risk:reward trades into 1:3 or 1:4.

Order flow is very abstract. It is not a rules based system. It is simply a window into the behavior of the market participants who control the market. You must still interpret what their behavior means.

Order flow is a refinement for an already functional trading approach. If it is for you, you will know when the time comes. I purchased and watched John Gradys basic course years ago. It sat unused in my library until recently. I simply wasn't ready.

Last edited by Heph333; October 2nd, 2016 at 10:00 PM. Reason: Spelling
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