i wqant to be a master at tape reading
|September 27th, 2015, 03:13 PM||#11 (permalink)|
Futures Experience: Intermediate
Platform: Ninja, Sierra, Jigsaw
Favorite Futures: ES
Posts: 9 since Jun 2014
Thanks: 8 given, 13 received
Answer to original post
Good question, one I asked myself 4 years ago. If you are not commited to putting the time in, then this road is not for you. But after 4 years of developing in this area I would not trade without the order flow! I am a position day trader but use order flow for reasons to enter, find places to add and manage scales. This is 10% of my toolbox.
If you are looking to trade equities, check out SMB capital, your journey starts there.
If you trade futures...I trade ES and watch NQ and TF. then I can share with you one way you could set up and accelerate your learning curve:
Two good doms for Ninjatrader are either 9G or Jigsaw. I use Jigsaw, without going through why...check Petes threads he also has plenty of videos on using the tool. (If you only watch one market then you should also consider GOMI price ladder) I watch 3 instruments together so the dom is more suitable for me.
Set up a screen cam and record from the open until the close. Before rendering, go back over the days action and re-watch only the major turning points, watch as price approaches levels, acts arond turning points and how it looks as it leaves these areas. I could go on and on about different things to look for but just set it up. Rewind turning points, slow it down, pause it. make notes on what you see. You will start to see when things are changing, and recognise patterns quickly but it takes a while before you have the confidence to use the information.
If you already have the skills to identify significant trade locations then this skill can be developed to a basic level that can be of value within a few months. After a year you will be able to time your entries as the scales are tipping. When you get to this level, you know when you have an edge and have confidence to enter with conviction. These entries will get you in the green almost emediately.
I dont post that often but this skill is of such value to me that I felt compelled to give food for thought.