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Tape is my shape (tape reading, time and sales)


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Tape is my shape (tape reading, time and sales)

  #581 (permalink)
bloom
Russia
 
Posts: 473 since Apr 2011
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Trafford View Post
This is nothing personal but I would never trust the T&S on TOS the data is just not reliable. Compare that to a T&S with IQFeed and you will see a noticeable difference.

Yes it is. I change it. You can see in latest screenshots.
This is just example. But you are right about TOC. 40% of tick data is blocked. Maybe more

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  #582 (permalink)
 Init 
Raleigh North Carolina
 
Experience: Advanced
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Trading: ES, levered ETF's
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I have been listening to the last few post and would like to share some light.
If you try to figure out what is likely to happen by looking at how large size is being taken, you will go crazy.
To simplify tremendously and give you a higher probability of direction. Think about this
NOBODY knows which direction price is going. Not even the big sizes your seeing
Its a battle that in a few moments someone will win.
Wait for the climax of the battle to show. It will be the highest vol at price on whatever timeframe your trading. I like to see vol cluster within the bar exceed 50% of the whole bar.
Now is when you can watch the tape when price is on one side or the other of the cluster, and now you have a probability edge on the direction.
That one technique alone should keep you out of alot of losers.
Think of it as a heavyweight fight. Each round you have more of an idea of who is winning (not just looking at one punch) then there comes a tipping point (price leading off one side of the cluster) and you feel like you would have an edge if you could bet on the fight at that point. And in trading you can, and thats when you should.
I like to wait for control to lead off the cluster and then come back and test it. and then pay close attention to the sizes, if price reaches past the cluster (thats where you really pay attention)
This technique is a critical foundation for any and every entry
Sometimes when I really want to get short a range, I will be in and out 3 times before it finally runs.
The main thing to master is how the tape acts on each side of the cluster. Its hard sometimes but at least you have a distinct line in the sand to work from.
Thanks

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  #583 (permalink)
bloom
Russia
 
Posts: 473 since Apr 2011
Thanks Given: 47
Thanks Received: 591



Init View Post
I have been listening to the last few post and would like to share some light.
If you try to figure out what is likely to happen by looking at how large size is being taken, you will go crazy.
To simplify tremendously and give you a higher probability of direction. Think about this
NOBODY knows which direction price is going. Not even the big sizes your seeing
Its a battle that in a few moments someone will win.
Wait for the climax of the battle to show. It will be the highest vol at price on whatever timeframe your trading. I like to see vol cluster within the bar exceed 50% of the whole bar.
Now is when you can watch the tape when price is on one side or the other of the cluster, and now you have a probability edge on the direction.
That one technique alone should keep you out of alot of losers.
Think of it as a heavyweight fight. Each round you have more of an idea of who is winning (not just looking at one punch) then there comes a tipping point (price leading off one side of the cluster) and you feel like you would have an edge if you could bet on the fight at that point. And in trading you can, and thats when you should.
I like to wait for control to lead off the cluster and then come back and test it. and then pay close attention to the sizes, if price reaches past the cluster (thats where you really pay attention)
This technique is a critical foundation for any and every entry
Sometimes when I really want to get short a range, I will be in and out 3 times before it finally runs.
The main thing to master is how the tape acts on each side of the cluster. Its hard sometimes but at least you have a distinct line in the sand to work from.
Thanks

cool
Maybe i do so. I do not figured out to the end what am i actual doing than read a tape. THanks alot

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  #584 (permalink)
rocky9281
Kolkata,India
 
Posts: 100 since Feb 2011
Thanks Given: 52
Thanks Received: 40

Anybody please care to tell me what I asked previously?

If we see a small bid rising up tick by tick, is it true that the bid is actually very large, and is placed by a pro?

For example,

bid qty=158,bid rate=123.11
bid qty=158,bid rate=123.12
bid qty=158,bid rate=123.13
bid qty=158,bid rate=123.14
bid qty=158,bid rate=123.15


See how the bid rose from 123.11 to 123.15, but the size remained constant (158).

1.Should we go long here?

2.Is this a phenomenon that we will search for BOTH in the best bid ,as well as in all the tiers of bid that are below the Best Bid ?

3.Are the reverse things true for ask?

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  #585 (permalink)
 Init 
Raleigh North Carolina
 
Experience: Advanced
Platform: Ninja Trader
Trading: ES, levered ETF's
Posts: 36 since Nov 2011
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rocky9281 View Post
Anybody please care to tell me what I asked previously?

If we see a small bid rising up tick by tick, is it true that the bid is actually very large, and is placed by a pro?

For example,

bid qty=158,bid rate=123.11
bid qty=158,bid rate=123.12
bid qty=158,bid rate=123.13
bid qty=158,bid rate=123.14
bid qty=158,bid rate=123.15


See how the bid rose from 123.11 to 123.15, but the size remained constant (158).

1.Should we go long here?

2.Is this a phenomenon that we will search for BOTH in the best bid ,as well as in all the tiers of bid that are below the Best Bid ?

3.Are the reverse things true for ask?

What I think you are actually seeing in that case is that the limit bids are not being hit (hence, staying about the same)
And all of the orders at those moments are market orders that are lifting the offer slowly. Maybe the sound of an exhausted market on the downside. Once you find true short term exhaustion, thats the best entry.
True exhaustion is not, having sudden big vol stop you in your tracks, or seeing the bids step off and let price go down. Most reversals are not true exhaustion, thats why there is a battle that follows. To witness true exhaustion and the safest entry (which only happens at retests) You should see price test at a fast or faster pace (alot of the time its in a false breakout) and then just steadily drift the other way. That is the most powerful and safest entry there is. BUT every fiber in your body wont let you trade then. I work on this everyday to try to get better.

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  #586 (permalink)
 
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rocky9281 View Post
Anybody please care to tell me what I asked previously?

If we see a small bid rising up tick by tick, is it true that the bid is actually very large, and is placed by a pro?

For example,

bid qty=158,bid rate=123.11
bid qty=158,bid rate=123.12
bid qty=158,bid rate=123.13
bid qty=158,bid rate=123.14
bid qty=158,bid rate=123.15


See how the bid rose from 123.11 to 123.15, but the size remained constant (158).

1.Should we go long here?

2.Is this a phenomenon that we will search for BOTH in the best bid ,as well as in all the tiers of bid that are below the Best Bid ?

3.Are the reverse things true for ask?

I watch the DOM every day and I've never seen this happen in Futures.

Why would you think such a thing would happen? Perhaps on a stock (not an ETF) stuff like this may happen.

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  #587 (permalink)
 
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Init View Post
BUT every fiber in your body wont let you trade then

This sums up most good trades in my opinion.

Good stuff.

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  #588 (permalink)
 
Trafford's Avatar
 Trafford 
London, England
 
Experience: Intermediate
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Init View Post
What I think you are actually seeing in that case is that the limit bids are not being hit (hence, staying about the same)
And all of the orders at those moments are market orders that are lifting the offer slowly. Maybe the sound of an exhausted market on the downside. Once you find true short term exhaustion, thats the best entry.
True exhaustion is not, having sudden big vol stop you in your tracks, or seeing the bids step off and let price go down. Most reversals are not true exhaustion, thats why there is a battle that follows. To witness true exhaustion and the safest entry (which only happens at retests) You should see price test at a fast or faster pace (alot of the time its in a false breakout) and then just steadily drift the other way. That is the most powerful and safest entry there is. BUT every fiber in your body wont let you trade then. I work on this everyday to try to get better.

Init,

Pretty good observation. I see this a lot of times I tend to hesitate and then miss my opportunity but you are correct in you assessment.

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  #589 (permalink)
rocky9281
Kolkata,India
 
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DionysusToast View Post
Why would you think such a thing would happen?

Please see the video attached with post 560

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  #590 (permalink)
 
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rocky9281 View Post
Please see the video attached with post 560

Ok - I see it - this is just someone lifting up their bids to try to attract sellers.

This appears to be a very thinly traded instrument and so things work a little differently.

What I would say there is that you have someone that really wants to buy 154 but doesn't want to pay the considerable spread. As such, he's raising his bid hoping a seller will hit him.

You wont see this type of activity on a thicker market as the spread is so narrow.

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