Could you put in your own description against each video as to what you saw and why you entered?
It would make the flow of the thread a lot better. If you are only putting in your winners & not your losers, then it's pretty important for newbies watching your videos that we can discuss the reasons for entry. Some of your winners may be down to pure chance and some may have a solid Tape Driven entry confirmation.
For example - one of your trades is what I'd consider to be very high risk and I imagine you'd lose 7/10 times. A newbie to this thread may see that and walk away from Tape Reading because they can't see anything there.
No offence intended here - I just want everyone to get the most from this.
The following user says Thank You to DionysusToast for this post:
In general idea of tape reading is in determination of supply and demand. You need some experience to learn to read a tape because it will needed to you to understand where and in which points to watch the tape. First step to understanding is to learn some information about pace of the tape near the important price levels. No rules no generalizations. Just try to see what happens then pace is high and then it is slow. Try to feel this. If you are protected by your discipline you can let your intuition lead your way.
Big orders, pace of the tape, limit orders, quality of how they get filled it is all just hints as Dionysus say. Tape reading is complex method consisted from many parts and each of them needs to be learned careful. There is no logic in market, only emotions and flow of the orders.
Even all support and resistance levels and important prices are nothing for market, but it helps to people to organized somehow they activity. But than crash happening you see true face of the market. THERE IS NO RULES AND LOGIC.
All this TA stuff is only for calm market. All this FA stuff is to understand probably direction.
So admit this and try to do your best to gain profits. Tape does not give you directions it is just shows you best probability of one thing will happened to another. SO it is up to you to do your SL management, entry management, money management and all other things. Do not sit and crying "Ohhhh mommy market didnt tell me which way to go ;("
Do not telling to someone or to you that this is to hard to do. Just do it or not. This is market guys. DO OR DIE TRYING)))
Some things about TR
Pros moving market in most cases to the side of big volumes and pros gives volumes bigger than retail traders.
Price always move in the direction towards crowds emotions in the way of causing most of the pain.
Crowd usual wrong, but you must do not stand versus strong wrong crowd))) NEVER EVER )))
Pros see each other and could to understand what others pro doing. This unite them to one big dream team)))
But retail traders not organized crowd. That is one of the reasons why 80 % of them loose
Pros get in the market than market is dead or calm and get out than crowd is hot, because its easier to fill big orders on the HOT CROWDDOGS.
Try to feel there BIG pain or BIG greed aaaaand watch the tape. See what guys are doing or how tape behave itself.
And one another tip. Do not read supply and demand as impersonal phenomenon. Study them and keep in mind this is people who made supply and demand. Try to feel this peoples and what they do.
The following 3 users say Thank You to bloom for this post:
I've been following this thread as it gets more interesting everyday. Thank you @bloom for starting such an invaluable tool.
I don't do tape reading but I use something close to it : filled orders on a ladder (link) and volume breakdown (Cumulative Volume Delta).
With this combination I can see price having a hard time going through a particular price level, I can see order flow shifts on a pullback (I use CCI's), I can see them taking profits, I can see them dropping contracts to facilitate price going up or down, etc. Like you said @bloom, it's intuition, you feel it. I also call it muscle memory : you've seen it so many times that when you see it again there's a 'click' in your head that makes you pull the trigger.
I've tried to show a bit of what I see on a few videos I've made but it's not easy. It's easier to fall prey of indicators but if you manage to understand the tape as shown here you understand how deceiving they can be. There's no indicator that can give me what I see on my ladder+CVD combination and I look forward to learn from you guys.
The following user says Thank You to Braulio for this post:
I've created a couple of indicators based on time and sales, but since I am not a tape reader, I've not found the information they present useful. One of you guys need to learn how to write code, so you can create a good indicator!
my screen for the flow. my intraday chart, my 50+ tape, my 6 tick reversal footprint with a DOM visually built in (edslevel2). i also watch the 5 second as mentioned before (with vol, delta, and momo delta).
i watch this to stay in the NOW within the context of the bigger picture (a 100k volume chart + 405 min. chart).
TRA (Tape Readers Anonymous) would kick your ass out of the club for this Monpere !
The reason your indicators weren't useful were because they were indicators, not the Tape.
The whole point is to see the trades flowing past. If you don't see the trades, you have lost the information that is needed in tape reading.
You can't shortcut this stuff - you either use the Tape or not. The caveat here is that Cumulative Delta studies like GOMIs stuff give an extremely good high level view - sort of the 'higher timeframe tape'.
As the great Tape Reading master Toda said:
"There is no try, only do"
The following user says Thank You to DionysusToast for this post:
For me - I think it is very useful at spotting reversals AFTER they occur. In a down move, you can keep trying to buy the bottom but that can be painful. On the other hand, you can often see on CD that a move up has a LOT more participation, in that case, you can start to think about the next move down as a retracement and not a continuation.
It also helps to show a certain type of manipulation. I had a lovely pic of this but I managed to lose it. It's on another forum & I keep meaning to dig through my old posts to find it. Anyway the upshot was, a LOT of selling - I believe somewhere in the region of 30k contracts but price wasn't moving down. DOM was stacked on the offer too. Anyway - upshot was we were near the high, people were shorting and the market was barely moving down - so someone is also accumulating. Delta was going down, market wasn't.
In this case - you pick a side. Do you side with all the people throwing short market orders or side with the people buying them? I'm for siding with the guys who are making a play, being discreet, sucking stuff up without making it too obvious.
Again, it's about 'getting a read' and not a setup. Divergences can be handy on CD too but I need another reason to enter on top of that.
Last edited by DionysusToast; August 5th, 2011 at 12:24 AM.