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What is tape reading ??

  #32 (permalink)

Omaha, NE/USA
Trading Experience: Beginner
Platform: S5 Trader; Jigsaw; TOS
Broker/Data: Stage 5
Favorite Futures: ZN
johny1971's Avatar
Posts: 107 since Sep 2016
Thanks: 220 given, 98 received

Portland View Post
In my experience, reading Price Action is more reliable then T&S. Watching the T&S can be very deceiving, but Price never lies. It's objective data. However, it can also depend on the particular market. For example, it's much easier for me to trade off the CL T&S then the ES T&S (which I mostly ignore).

If you day trade equities like your profile suggests, unfortunately I wouldn't have any idea what to look for because I don't have experience with those.

I have just begun as well. And reading the ES DOM during market hours seems impossible, there are just so many numbers moving so fast and it is hard to see what numbers are moving where, i.e. flow. But, price action seems pretty subjective too and it seems the market eats up subjectivity. So, for some reason, I put my faith, for now, in learning both and getting to a point where I can get to understand the ES. For what it is worth, I am also interested in Market Profile (thinking of using Sierra Chart for this) and moving average crossovers on the minute, three or five minute charts.

So, I have four areas to look into. PA and TS first, then Market Profile. These all seem to be a more efficient way to read the market as they are closer to to primary source then, say, most TA.

Any feed back would be great! Thanks.

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