This is classical breakout-retest thing (look at the picture)
Also notice how bids hold the actual level. The bottom indicator - volumes show increased bid volume (red bars below zero) towards the end of the pullback, and after that we see two bars with no volume whatsoever. This is a setup by itself, but we learn DOM/tape action here so let's se what happened there on microlevel.
00:00 - 1:10 look at 90.25 how its held on the bid, and each time it gets broken how quickly 90.25 offer is bought.
At around 1:15 interesting thing happens - 90.00 bid holds, I don't see price tick down but at the same time buying goes against 90.00 offer. Weird, could this be an initiative limit buy order placed there as DT described it with icebergs?
1:15 - 2:00 a lot of trading against 90.00 and 89.75. closer to 2:20 89.75 offer gets bought. also notice how big are inside bids - the're around 1300 and 1400 which is wway above the usual BBO we see. It appears there instantly with an uptic, usually this kind of volume builds up gradually on BBO.
2:20 - 2:50 buying comes in, look at the tape, big prints and a lot of buying. This is a spot to go long Also notice how little sells go of at 89.75 and 90.00 past the 2:20 mark compared to A LOT of selling there first time.
This is cool - first time i see something like this on ES (I believe this is how you trade stocks), someone (I have no idea why, this is irrelevant) had a huge sell limit at 1494.00 of ~8000 contracts.
At first i thought this was fake, but when price touched it couple of times and I saw that it stayed i believed it was real. When you see this you either go short off this (ofcourse not in such an uptrend, usually after a pulback is a good spot to do so), or go long when it gets taken out. In this case it got taken out and price went up on stops of those who tried to frontrun it and shorted the uptrend - look how small tape was mostly red all the time - dumb money selling.
I don't know how to enter here - placing buy stop at 94.25 seems late, you could get filled 2-3 ticks worth. So the bet here is to hit 94s when you see them taken out.
Hi snusnufreak, I checked some videos of yours and screenshots.
I also tried to put tapes such way to easy read for me...
But could you explain why do you use aggregated tape without time? I think it is go slower and its important to see at which time we had huge blocks of contracts traded.. Perhaps you have different point of view...
Also which indi do you use at your screens which show numbers above and below highs and lows at the chart?
Here are my two trades. All of them are at simulated account... One of them is profitable and another one - looser..
Of cause, for me important my looser. So, I found a huge block which was traded at bid 92.25. The block appeared after the price dropped from higher block (93-75-92.75).
So, from the video you can see, that 92.25 is holding and 92.00 has limit bid for 2600 contracts, so I took a decision to take a long..but
I've disabled the time option per DT's suggestion in order to pay attention more to the flow than the actual time itself, I agree with you - time when big print appeared is a valuable information, and I will definately use it in the fututure when i'm better off with the overall tape reading .
The indicator is called PriceActionSwing (it an be downloaded here on futures.io (formerly BMT) forum in download section).
Regarding your loosing trade, I think the entry is somewhat scary in terms of that you buy in the downtrend. Also notice that tape doesn't hint any reversals here - its mostly red and suggests futrther sell-side pressure. If you made this entry this could only be a scalp and you should've bailed at around 2:24 when you saw 1492.00 break for a 2 tick loss. Also please notice that you buy into the high volume area AFTER we've seen exits and reversal earlier during the session around 1497-1498 area
Awesome thread. I'm new Reading the tape and i find this threat tremendous usefull. i will contribute following the rules that Bloom post for help me and help other to advance. Thank's and great trading to all today.
I'm still having some problems about reading the dom
How to recognize iceberg orders in the dom ? I mean how are their prints ?
93.25 won't to go offer 18000 contracts traded there if they keep selling in the bids and the bid stays bid... 400 contracts traded @ 93.25 didnt go offer.
93.25 --> 93.50 immediately goes bid and stays bid did't go offer the same at 75
Great video !!!! 7000 offer @ 94 even
Last edited by Tom B; January 27th, 2013 at 10:11 AM.