I use the tape (T&S) in combination with the DOM. I think the two are inseperable... it's like poker; the tape represents the hands that people actually have, the DOM is just the betting.
For example, a very common thing to see in an orderbook is during an uptrend, there is an offer that does not really get lifted. Then, someone goes and bids in size. Then people start to lift the offer and trade the breakout, upon which the sizeable bid dissappears. The guy on the offer was the same guy who posted the size on the bid; he wanted out, he wanted people to buy is offer, so he made a bluff. An elementary bluff.
I am not going to answer your questions in detail, because I am still only a beginner in Tape Reading, and still not a consistent winner in trading. I don't want to mislead others.
What I want to tell you is only my experience that I think may be useful to help you save some time & money, and this is only my good intention, which may not be true.... because I am still on the road to become consistent winner, I still don't know the answer yet, so no guarantee.
My advice for you is don't think Trading can be learn in hurry!
If you want to learn it quick, it may turn out wasting you even more time (& sure more money). It is my experience.
Just follow what Bloom said for a beginner:
Just watch the Tape only when price reaching previous HLOC, nothing more, for at least 3 months.
Only using simulation account, don't trade real, just watching and find out what the different and common every time.
Then I think you will have some of the answers yourself.
(Also, what is your data feed? Have a good internet? If it is not good data feed, not stable and fast internet, then don't waste your time try to learn anything reading Tape, because you need the data coming "real-time" to have a feeling)
(Also, if you have time, try to re-read this thread from the beginning, Bloom and DionysusToast have guided us to think what is the "important things" we need to consider, you are no need to create your own questions about the market, just follow their mentioned "things" for faster learning)
Last edited by AntonyHo; October 10th, 2011 at 07:15 AM.
Reaction- What is happenening after the prints. If there more prints on bid hit in to the big bid limits.,or big bid limits still there but there is no more big prints at the bid.
If there accelerating or slow down of the small tape which shows you amount of trades are growing or fading out.
Support resistance levels OHLC days weeks months and todays. There more and it is up to you which of them to use. What is important if there market reaction on this levels or not. OHLC i talk about always have good reactions.
Quality of how orders get filled. Man it easyer than you think. 3000 ask limit oredr at the ES.
1) it get filled quickly for 5 seconds
2) it get filled only 1500 cars so there is 1500 left
3) it get filled fo 5 minutes.
Which situation provides you information that quality of filling was good?
I think №1.
Simply supply were satisfied-You mean the trader was ONLY able to establish shorts, and UNABLE to move prices down?
I do not know what this trader able for. I know supply he provides were lower than deamand was that is why market went up.
Remember what price were this seller. It would be support level than he ll begin to go out of short –google translator did a bad job.
and yes there is no need to thank me))) I do not use google translator. And you? Do you could to say one good sentence in Russian? I bet you could not)))
I do not have any wish to talk with people who constantly show me on my bad english.
Go and learn russian and we will talk than
Start from Nabokov or Pushkin
The following user says Thank You to bloom for this post:
Yes. It is so. DOM and T&S together gives more understanding. But T&S could be used without DOM.About bluff))
Hmm i see so many bluffs and your example thery common and simple.
There is much bluffers, but you know?
than market filling really big ask and in this moment BID looks weak. hey this is very strong buy signal. And opposite.
I am trading RTSI may be you know and there are medium size of contracts 250-300 on the limit side. So there are few variants of how this type of orders remains.
1)Solo which represent one order.
3)And huge group
thery often apperas guys with 1000-1500 solo cars to scare or another reasons. So if i am know market is prepare to upward movement and there is 1500 cars appears on the ask. I am strongly want to hit exactly this guy, because i know after he get filled there will be reaction that provides me minimal risk and the good fast momentum.
I think than the other traders are too doing such things, because i see how quick this 1500 solo big orders filled in particular situations.
Last edited by bloom; October 10th, 2011 at 07:28 AM.
It is a real pleasure to me to see how thread accumulate such intellegance peoples
I am tired little today so i ll may be write later about your view of my aproach))
You almost correct but only a low volume market. I am not only watsh big but also small prints. I try my best to explain what actually am i doing)))
Thanks man. You did it best than i could. See you in the DOM ))))