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What is tape reading ??

  #27 (permalink)

Portland, United States
 
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Iamdom View Post
I would disagree with your logic. Price action has to do with actual sales so the tape is price action. The bar is just this price action, time and sales, limited to a particular time frame. Price cannot move without orders being executed, it is the execution of an order which signals a price move. I look at it as price action is execution then there is movement or not which is the result of that price action. Price action or executed trades is the effort and movement is the result. It really does not matter how you define things as long as it makes sense to you. But for me time and sales has information in it that candles or the book do not. Although candles and time sales both show price action, in time and sales there is detail which is available no other place. But you still need candles to see the big picture and where and when to look for the detail. Time and sales is a precision instrument for order entry.


KahunaDog View Post
I am going to have to disagree with this.
imo it is the opposite

Price can move without orders being executed, thus price moving does not mean orders were executed.

Also, in many markets (including futures), orders can be executed and not show up in the time and sales or reported volume. So those are two problems I like to exempt myself from. However, if I am watching those things more closely for whatever reason, I just keep in mind that there's no way I will ever completely trust what I see.

Conclusion:
Pice fluctuations = objective data
Volume and T&S = inaccurate/incomplete data (but that doesn't make them useless)

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