To much deception and mystics here...... Ill rest my case with these links;
http://www.hartleandflow.com/5/techn...ker-in-75.html http://www.videos.traderslaboratory....ading-Tutorial And short text;
[Soultrader] 10:33 am: okay lets talk about the tape.. and feel free to ask any questions
[MrPaul] 10:33 am: k
[TinGull] 10:33 am: awesome
[Bfbusa] 10:33 am:
[Soultrader] 10:34 am: just going to tell you how I see the tape. its one of my serious edges in
trading and i recommend every trader to learn it
[Soultrader] 10:34 am: im going to be talking about the YM tape since this is the only contract I
trade
[TinGull] 10:34 am: and any book recommendations would be awesome too
[Soultrader] 10:34 am: sure
[Bfbusa] 10:34 am: I recommend we write a book
[Soultrader] 10:35 am: theres not many tape reading books available.. but make sure to read
everything u can on Jesse Livermore, Humphrey Neill, and Wyckoff
[Soultrader] 10:35 am: I want to write one one day
[Soultrader] 10:35 am: also that Russian author... Vladmir i think
[Soultrader] 10:36 am: the older books talk alot about the ticker tape
[Soultrader] 10:36 am: which is different from the time of sales.. but the concept is the same
[Soultrader] 10:36 am: all they ever did was look for support and resistance and block prints on
tape
[Soultrader] 10:37 am: okay ... the YM tape is alot easier to trade than the ES
[Soultrader] 10:37 am: 10+ lots I consider big guys.. and the tape moves alot slower in my
opinion
[Soultrader] 10:37 am: so I seperate the tape into two columsn
[jperl] 10:38 am: test
[Soultrader] 10:38 am: the left side represents all transactions.. while the right column
represents 10+ lots or more
[Soultrader] 10:39 am: im assuming all of you guys know how to setup this up on your platform?
[Soultrader] 10:39 am: all you need is price and size
[MrPaul] 10:39 am: yea
[jperl] 10:40 am: no
[Soultrader] 10:40 am: ok lets talk about litte guys vs big guys
[Soultrader] 10:40 am: Jerry.. what platform do you use?
[jperl] 10:40 am: platform?
[Soultrader] 10:40 am: trading software
[jperl] 10:41 am: IB
[Soultrader] 10:41 am: someone told me IB doesnt have a time of sales?
[MrPaul] 10:41 am: they do
[jperl] 10:41 am: it does
[MrPaul] 10:41 am: I thought initially they didn't
[jperl] 10:42 am: or at least my front end does
[MrPaul] 10:42 am: you have to use a third party software to access it
[MrPaul] 10:42 am: they don't offer it in TWS in real time
[Soultrader] 10:42 am: okay... well im not familiar with IB but in TS we can tweak the time of
sales window to show price and size only
[Soultrader] 10:43 am: i seee
[Soultrader] 10:43 am: im not sure I can help you with IB... i never used it
[jperl] 10:43 am: ok
[Soultrader] 10:43 am: okay back to little guys vs big guys
[Soultrader] 10:44 am: the real muscle is the right hand column known as the big guys
[Bfbusa] 10:44 am: ss ym 13
[Soultrader] 10:44 am: however, you can not disrespect the little guys
[Soultrader] 10:44 am: they will create momentum as they are usually late getting into the move
[Soultrader] 10:44 am: for example
[Soultrader] 10:45 am: lets say price ddeclines towards the previous days low.... first you will
see big lots or big guys stepping in
[Soultrader] 10:45 am: then you will see smaller lots like 10, 15 lots
[Soultrader] 10:45 am: then followed by single digit lots.. or little guys
[Soultrader] 10:46 am: this can fuel momentum and even a short covering can turn into a decent
rally
[Soultrader] 10:46 am: the big boys are prepared in advance to buy at certain levels so many
times u might see price drop below S1 a couple ticks and then reverse
[Soultrader] 10:46 am: they may be buying on the way down
[Soultrader] 10:47 am: okay.. with this in mind.. lets talk about timing entries
[Soultrader] 10:48 am: if youre good you can buy with the big boys...... but i try to enter before
the 10-15 lots come in and before the little guys start buying
[Soultrader] 10:48 am: so try to be the second group in
[Soultrader] 10:48 am: by the time the fourth group or little guys start buying.. im already
dumping half
[Soultrader] 10:49 am: sometimes you will see all red... but with no decline
[Soultrader] 10:49 am: this indicates strong support
[Soultrader] 10:49 am: someone is buying on the way down..
[Soultrader] 10:50 am: did i lose anyone?
[TinGull] 10:50 am: nope
[Soultrader] 10:50 am: okay good
[Soultrader] 10:50 am: lets talk about the flow of the tape
[Soultrader] 10:50 am: this is very important
[MrPaul] 10:50 am: k
[Soultrader] 10:51 am: when there is good flow.... there is good price movement.. when tape is
caught in traffic, you want to step aside
[Soultrader] 10:52 am: the flow confirms your position.. if you are long, you want to see tape
running fast and smooth
[Soultrader] 10:52 am: once it starts to stall, you want to be exiting portions
[Soultrader] 10:52 am: vice versa for shorts
[Soultrader] 10:53 am: its a very interesting thing to watch..... u can clearly see the tape hault
[TinGull] 10:53 am: like right now
[MrPaul] 10:53 am: yeah good point
[Soultrader] 10:53 am: yea no point trading right now
[MrPaul] 10:53 am: thats great
[Soultrader] 10:54 am: price will usually hault... spend a little time at a pivot and then you should
seee the right column turning green
[Soultrader] 10:54 am: this can indicate a reversal
[Soultrader] 10:57 am: okay lets talk about price rejection vs price acceptance
[Soultrader] 10:57 am: with the YM... if youre not careful itll fake alot of new traders out every
single time
[Soultrader] 10:58 am: because it likes to take out the lows or pivots by a few ticks and then
reverse
[Soultrader] 10:58 am: this is where I like to watch for price acceptance or price rejection
[Soultrader] 10:58 am: lets say the YM breaks above VAL.... make sure to check if there are big
lots coming in a few ticks above it
[Soultrader] 10:59 am: if you see 10+ lots on the buy side.... there is price acceptance
[Soultrader] 10:59 am: but if you only see the little guys buying and then all of a sudden 10+ lots
on the right column in red all over the place... this is a warning signal
[MrPaul] 11:00 am: ahh
[Soultrader] 11:00 am: takes a little practice but youll be able to judge supply vs demand from
tape
[Soultrader] 11:00 am: u can use this same concept to play breakouts
[Soultrader] 11:00 am: lets say price is hugging the VAL or VAH or any pivot
[Bfbusa] 11:00 am: out -10
[Soultrader] 11:01 am: and there are no sellers on tape but plenty of 10+ lots with no price
advancement
[Soultrader] 11:01 am: you can usually anticipate a breakout
[Soultrader] 11:01 am: its a powerful setup
[Soultrader] 11:02 am: watch price trade at the resistance... as if it was hugging it... watch the
tape and you should see more demand
[Soultrader] 11:02 am: you can usually get in before the breakout and feed it to the breakout
traders
[Bfbusa] 11:02 am: Jemes please save tranascript
[Soultrader] 11:02 am: yes im saving it no worries
[Soultrader] 11:03 am: okay lets talk about false moves
[Soultrader] 11:03 am: this is a hard one.. you need good tape reading skills and memory for this
[Soultrader] 11:04 am: lets say price advanced 20 points
[Soultrader] 11:04 am: but during the entire 20 point move... you hardly see any big lots coming
in
[Soultrader] 11:05 am: one sec... watch tape now.... its running faster
[Soultrader] 11:05 am: its not the greatest looking tape but improvement from before
[Soultrader] 11:06 am: anyways.... getting back to my point, if you seea lot of single lot traders
moving price, expect a reversal
[Soultrader] 11:06 am: dont jump in with longs
[Soultrader] 11:06 am: time your entry for a short setup
[Trading Room]: Gordon G. has entered at 11:06 am
[Gordon G.] 11:07 am: gm
[MrPaul] 11:07 am: gm
[Soultrader] 11:07 am: gm
[Soultrader] 11:07 am: i guess we all missed that r2 piovot trade
[Soultrader] 11:07 am: nice 30pts right there
[MrPaul] 11:08 am: it's continuing the trend from yesterday
[MrPaul] 11:08 am: late yesterday
[Soultrader] 11:08 am: anyone have any questions on tape?
[MrPaul] 11:08 am: do you ever see large lots comming through and then a swift reversal?
[MrPaul] 11:08 am: as in equally larger lots absorbing the move
[Soultrader] 11:09 am: you mean large lots on the ask and then a reversal?
[MrPaul] 11:09 am: or is that rare?
[MrPaul] 11:09 am: yeah
[Soultrader] 11:09 am: its rare
[MrPaul] 11:09 am: ok
[Soultrader] 11:09 am: one thing though
[Soultrader] 11:09 am: now that you mentioned it
[Soultrader] 11:09 am: sometimes you can spot out a 100lot trader
[Soultrader] 11:09 am: or even a 80 lot trader
[Soultrader] 11:10 am: what happens is i like to follow this guy... kina like follow the leader
[Bfbusa] 11:10 am: .
[Soultrader] 11:10 am: but then..... u see 80 lots being sold 2 ticks later
[Soultrader] 11:10 am: what does this tell you? this trader thinks hes wrong
[MrPaul] 11:10 am: ahhh
[Soultrader] 11:10 am: i have seen many reversals take place just from this information
[Soultrader] 11:11 am: its pretty amazing
[Soultrader] 11:11 am: just very hard to catch unless you are starting at tape
[Soultrader] 11:11 am: im pretty glued to the tape for the first 60 minutes
[Soultrader] 11:12 am: oh i forgot.. lets talk about bracketing tape
[Soultrader] 11:12 am: now this is for scalpers
[Soultrader] 11:13 am: some of you are familiar with how i start bracketing tape looking for short
term resistance and short term support
[Soultrader] 11:13 am: test
[TinGull] 11:13 am: .
[TinGull] 11:14 am: 115 lot
[TinGull] 11:14 am: holy cow
[Soultrader] 11:14 am: lets say price trades at $5, $5, $6, $6, $7,$6, $5, $7, $5.......... the short
term bracket is $5-$7
[Soultrader] 11:14 am: i have the 115 lot in white
[Soultrader] 11:14 am: meaining?
[TinGull] 11:14 am: no idea
[TinGull] 11:14 am: mine was in blue
[TinGull] 11:14 am: no idea what the blue means either
[Soultrader] 11:15 am: blue as in ask?
[Soultrader] 11:15 am: hahaha
[TinGull] 11:15 am: I have them come through as red and green
[Soultrader] 11:15 am: TS is playing games with us now
[TinGull] 11:15 am: and every sooften blues come through
[TinGull] 11:16 am: what does the white mean?
[Soultrader] 11:16 am: anyways.. i covered pretty much the basics of tape
[Soultrader] 11:16 am: white means in between, which makes no sense for YM
[MrPaul] 11:16 am: yeah what does white mean i see it as inside 768.90 etc
[TinGull] 11:16 am: thats what I think the blue means too...which always confused me with it
being inside of a dollar spread
[Soultrader] 11:17 am: wrines was asking the same question.. no one had an aswer
[Soultrader] 11:17 am: well perhaps that 115 lot was sold at the bid
[Soultrader] 11:18 am: cause it was at 12258 and now we are at 47
[Soultrader] 11:18 am: and i dont think a 115 lot is stupid enough to buy smack at the weekly
pivot resistance
[Soultrader] 11:18 am: who knows though
[Trading Room]: matdog has entered at 11:19 am
[TinGull] 11:19 am: nice to know
[Soultrader] 11:20 am: anybody have any questions?
[Soultrader] 11:20 am: i think im out of things to say
[matdog] 11:20 am: i am late sorry
[Soultrader] 11:20 am: i might get inspired
[Soultrader] 11:20 am: gm matdog
[MrPaul] 11:20 am: i'm chewin on the info
[Soultrader] 11:20 am: no worries i saved a script
[Soultrader] 11:20 am: ill post it in the forums
[Soultrader] 11:21 am: and you can ask questions if u want anytime
[TinGull] 11:21 am: and as soon as my new computer comes that can handle the data inflow
nicely, I'll be chewin on it more to
[Soultrader] 11:21 am: in intraday trading.. tape reading is an serious edge
[matdog] 11:21 am: nice. thanks Soul.
[Soultrader] 11:21 am: because not many traders are tape readers
[Soultrader] 11:21 am: its the purest form of information
[MrPaul] 11:22 am: certainly an edge
[MrPaul] 11:22 am: thanks Soul
[MrPaul] 11:22 am: im sure i'll have more questions
[jperl] 11:22 am: any good reads on this subject
[Soultrader] 11:22 am: in poker.. you can spot a mans tell
[matdog] 11:22 am: does tape rading works all the time?
[Soultrader] 11:22 am: in trading.. you can judge supply vs demand just from tape
[Soultrader] 11:23 am: serious serious edge
[Soultrader] 11:23 am: tape reading will work everytime and will never cease to work
[Soultrader] 11:23 am: every other tool may stop working sometime
[Soultrader] 11:23 am: but tape you can always rely on
[Soultrader] 11:24 am: jperl..i highyl recommend reading Humprhey Neil's "Tape reading and
market tactics"
[Soultrader] 11:25 am: and also the russian author.. let me look it up
[jperl] 11:25 am: ok thanks
[Trading Room]: Gordon G. has left at 11:25 am
[Soultrader] 11:26 am: its called techniques of tape reading by vadym graifer
[Soultrader] 11:26 am: actually not sure if hes russian
[MrPaul] 11:26 am: cool, everybody go click my ads so i can buy some tape reading books
[Soultrader] 11:26 am: hehe
[MrPaul] 11:26 am: lol
[jperl] 11:26 am: I have the Graifer book....I don't see much discussion of tape reading in that one
[Soultrader] 11:27 am: the only real way to learn tape though is to stare at it
[matdog] 11:27 am: Soul, how do you think Chris Schumacher's CD, Techniques of Tape
Reading
[Soultrader] 11:27 am: yea... its hard to find good tape reading books
[Soultrader] 11:27 am: maybe ill write one
[Soultrader] 11:27 am:
[Soultrader] 11:27 am: im not familiar with it matdog
[MrPaul] 11:27 am: i
[MrPaul] 11:27 am: i'll buy one*
[Soultrader] 11:27 am: hehe
[Soultrader] 11:28 am: tape reading is a very hard topic to talk about.. its alot easier to show
visually
[TinGull] 11:28 am: more videos!
[matdog] 11:28 am: I agree.
[Soultrader] 11:29 am: i think Humphrey Neill's book was the originating book that got me
hooked on tape reading
[Soultrader] 11:29 am: haha yea ill make more tape reading videos... its just that my TS keeps
freezing when recording live lately
[Soultrader] 11:29 am: might need more ram
[MrPaul] 11:29 am: do you find the placement of the tape right next to the chart better than
having somewhere else?
[MrPaul] 11:29 am: just do to the ease of darting over from candle to price?
[Soultrader] 11:29 am: yea i like it close to my chart
[MrPaul] 11:30 am: okay
[Soultrader] 11:30 am: yea.. i rely on tape and TICK heavily so I keep them on the same monitor
[Soultrader] 11:30 am: i dont have to move my head
[Soultrader] 11:31 am: i used to just stare at tape and it made no sense
[Soultrader] 11:31 am: after 1 month it still made no sense
[Soultrader] 11:31 am: 2 months... no sense
[Soultrader] 11:31 am: by my 3rd and 4th month.. i was seeing clues
[Soultrader] 11:32 am: test
[Soultrader] 11:32 am: it took me 6-10 months to really understand tape to use it as aan edge
[Soultrader] 11:32 am: im still learning everyday
Regards