Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

dougr

Tape Reading Questions

Recommended Posts

has anyone considered reviewing tick data relative to the bid/ask and their quantites at the partucular point in time ?

 

I notie there are other threads on tape reading and some new fancy tools tlaked about, such as CQG's products.

 

My own interstis to analyze their relationships in historical and then can easily set up a real time monitor forthese situations, so it is not so much trying to watch the tape, as it does move quite fast

any thoughts?

Share this post


Link to post
Share on other sites

One problem with having order book (or just bid ask) changes as part of your historical analysis is that I know of no one that provides an historical database of that data. Of course that doesn't mean such a thing doesn't exists.

Share this post


Link to post
Share on other sites
Guest MRC & Co

 

I think the pulled limits are quite fascinating to watch... sometimes they are bots trying to manipulate the markets. Happens often premarket when the markets are still thin. However, I think both information are equally important if you are a tape reader.

 

Actually, I would say what hits market is more important. All you are trying to work out is WHO is buying and WHEN, this is my opinion.

 

It is often you see a spoof of a spoof. Someone who wants you to believe the ask is weak for example and spoofs a big order at the ask. Traders then run the price in that direction and give the guy who was 'spoofing' a better fill.

 

You can see order movements in the ladder, it is often you see bids or asks retreat. Just watch the volumes change or even vanish and create a wider spread. As said in the video though, to trade this, YOU HAVE TO BE FAST!!!!!

Share this post


Link to post
Share on other sites
This tool is great, thanks for posting this video SoulTrader.

 

Looking forward to the next one.

 

cheers

 

I hope you make another vid, i find that cqg ticker tool to put me into a trance, im thinking of trying a demo with cqg, so anything else you can offer that makes cqg unique, i would love to hear, thanks again

Share this post


Link to post
Share on other sites
Guest MRC & Co

You don't need it.

 

Just use the normal order book with lvl 2 data, IB provides this.

Share this post


Link to post
Share on other sites
You don't need it.

 

Just use the normal order book with lvl 2 data, IB provides this.

 

I've been writing some programs using their API and it doesn't seem that they have a true Time and Sales. They seem to aggregate the data (I've compared against my DTN IQ feed). I'd love to duplicate what this tool does but I think I'd need to use IQ for it. Good idea using Level II.

 

~telengard

Share this post


Link to post
Share on other sites

Hi.

well you people talk here about t+s but you forget about momentum.

 

momentum plays is one of the best and maybe the best thing in a scalpers toolbox and is used both for reversals and in following the trend.

its like a rubber band you stretch it a bit and it goes back slowly, but if you stretch it fast to one side it can go to the other side even faster and with greater momentum.

anyone knows what i am talking about here ?

Share this post


Link to post
Share on other sites
I've been writing some programs using their API and it doesn't seem that they have a true Time and Sales. They seem to aggregate the data (I've compared against my DTN IQ feed). I'd love to duplicate what this tool does but I think I'd need to use IQ for it. Good idea using Level II.

 

~telengard

 

hi telenguard,

 

just saw your post about datafeed and i use Iqfeed and was told recently that even IQfeed aggregrates trades and to look at Esignal. I did and they were right, Esignal is much better, they have every trade where IQfeed clumps them together, not as much as IB but enough to matter to me. u may want to check it out, i am switching to esignal.

Share this post


Link to post
Share on other sites
Can someone please let me know where I can access more information on the tecniques of tape reading. I have looked around and can't find much information. Thank you!

 

i only trade on time and sales and have no indicators, i have a blog which shows my trades, how I trade and P/L everyday. I am new to this so I do not claim to be an expert but you are welcome to read it but I do not think I can post it here so you will have to send me a private message and I will share bmy blogsite. I show and talk about the basics of tape reading.

Share this post


Link to post
Share on other sites
Dougr, I am glad you brought this up because I have been thinking the exact same thing. I watch the T&S on my sierra charting s/w with a data feed from Interactive Brokers.

 

But, let me back up a second here. I have been a member of the lab forum for while now, but have kept my mouth shut because I am wannabe trader. However, having seen you mention this, I realize that this phenomena is not just a mis-interpretation because I am inexperienced.

 

I trade the premarket ES and the EUR between 7-9 Eastern everyday before I start my office job. And I noticed this pattern too. Where you would see big block trades on the ask, and the price would go down (and the other way to when big hits on bid).

 

So, after losing money a few times trying to follow what I believed were the big boys, I just simply started ignoring the big trades.

 

However, that hasn't stopped me from trying to learn to read tape to support my entries/exits.

 

My main style is looking for confluence of MP, Pivot points, Fibs, and Dynamic Trendlines, but I'm trying to use the Tape as a means of supporting my decission to avoid the fake-outs.

 

- Steve

 

hey steve, u r exactly right, use tape reading to support your decisions, however, most of my decisions are based on the tape. if u ever want to see how i trade, send me a note and i will share my blog which documents exactly how i traade everyday.

Share this post


Link to post
Share on other sites
hi telenguard,

 

just saw your post about datafeed and i use Iqfeed and was told recently that even IQfeed aggregrates trades and to look at Esignal. I did and they were right, Esignal is much better, they have every trade where IQfeed clumps them together, not as much as IB but enough to matter to me. u may want to check it out, i am switching to esignal.

 

You really should check your software first. What did you use to test this as it is a concern for me too?

I just figured out though that ninjatraders tape with DTN was "clumping" things togather because ninja has an option in the time and sales window to take 250ms snapshots or not. When you turn this off you see way more trades than with it on, even though 250ms seems insanely fast.

Share this post


Link to post
Share on other sites
You really should check your software first. What did you use to test this as it is a concern for me too?

I just figured out though that ninjatraders tape with DTN was "clumping" things togather because ninja has an option in the time and sales window to take 250ms snapshots or not. When you turn this off you see way more trades than with it on, even though 250ms seems insanely fast.

 

all i did was watch time and sales, it is very evident, i can show you pictures if you like, but i would think you want to prove it to yourself. there is no question that esignal is the more accurate feed when looking at ALL trades. it has been proven in the past and is still the same. i ran time and sales on two computers at the same time and just watched the trades. check it out and you will see the same thing. No need to get fancy just watch the trades. It is especially evident if you watch the ES. Don't take my word for it just get the feeds and check it out.

 

iqfeed is still good and i could still read the tape by watching the time and sales with iqfeed but i want the best.

Share this post


Link to post
Share on other sites

I don't scalp, but I've always been interested in it and have read about it in a number of forums. I can't remember which ET thread, but there were a few that went into detail trying to explain the seemingly counter-intuitiveness of the large lot trades right before reversing.

 

I remember one of the more interesting theories was based on the fact that the big players need to sell or cover large amounts of contracts without moving the market against them. This relates to another related phenomenon where price moves to size (moves to large bid/asks on the DOM). The big players want to see if they are real which gives them an opportunity to dump their lots. So they move the price up to the large bids or asks to test them. If they are real they take them resulting in the large lot prints. They are done now, and the pressure is done so the market reverses.

 

That's what I got out of it. Dougr, I'd be interested in your blog if you could send me the url. Thanks!

Share this post


Link to post
Share on other sites
I don't scalp, but I've always been interested in it and have read about it in a number of forums. I can't remember which ET thread, but there were a few that went into detail trying to explain the seemingly counter-intuitiveness of the large lot trades right before reversing.

 

I remember one of the more interesting theories was based on the fact that the big players need to sell or cover large amounts of contracts without moving the market against them. This relates to another related phenomenon where price moves to size (moves to large bid/asks on the DOM). The big players want to see if they are real which gives them an opportunity to dump their lots. So they move the price up to the large bids or asks to test them. If they are real they take them resulting in the large lot prints. They are done now, and the pressure is done so the market reverses.

 

That's what I got out of it. Dougr, I'd be interested in your blog if you could send me the url. Thanks!

 

 

Here it is, nothing fancy but up to date and the way I trade.

ymtapetraader.blogspot.com

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • HLF Herbalife stock, watch for a bull flag breakout above 9.02 at https://stockconsultant.com/?HLF
    • Date: 1st April 2025.   Will Gold’s Rally Hold Strong as New Trade Tariffs Take Effect Tomorrow?   Gold continues to increase in value for a sixth consecutive day and is trading more than 17% higher in 2025. Amid fear of higher inflation, a recession and the tariffs war escalating investors continue to invest into Gold pushing demand higher. The trade policy from April 2nd onwards continues to be a key factor for the whole market. Can Gold maintain its upward trend? Trade Policy From Tomorrow Onwards Starting as soon as tomorrow, a 25% tariff will be imposed on all passenger cars imported into the United States. While this White House policy is anticipated to negatively affect European industrial performance, it will also lead to higher transportation and maintenance costs for everyday American taxpayers. The negative impact expected on both the EU and US is one of the reasons investors continue to buy Gold. Additionally, last month, President Donald Trump announced reciprocal sanctions against any trade partners that impose import restrictions on US goods. Furthermore, tariffs on products from Canada and the EU could increase even more if they attempt to coordinate a response. Overall, investors continue to worry that new trade barriers will prompt retaliatory measures, particularly from China, the Eurozone, and Japan. Any retaliation is likely to escalate the trade conflict and prompt another reaction from the US. Experts at Goldman Sachs and other investment banks warn that this will lead to rising inflation and unemployment. They also caution that it could effectively halt economic growth in the US.   XAUUSD 1-Hour Chart   The Weakness In The US Dollar Another factor which is allowing the price of XAUUSD to increase in value is the US Dollar which has been unable to maintain any bullish momentum. Despite last week’s Core PCE Price Index rising to its highest level since February 2024, the US Dollar has been unable to see any significant rise in value. Due to the US Dollar and Gold's inverse correlation, the price of Gold is benefiting from the Dollar weakness. Investors worry that new trade barriers will prompt retaliatory measures from China, the Eurozone, and Japan, potentially escalating the conflict. Experts at The Goldman Sachs Group Inc. believe that such actions by the US administration will drive rising inflation and unemployment while effectively halting economic growth in the country. Can Gold Maintain Momentum? When it comes to technical analysis, the price of Gold is not trading at a price where oscillators are indicating the instrument is overbought. The Relative Strength Index currently trades at 68.88, outside of the overbought area, since Gold’s price fell 0.65% during this morning’s session. However, even with this decline, the price still remains 0.40% higher than the day’s open price. In terms of fundamental analysis, there continues to be plenty of factors indicating the price could continue to rise. However, the price movement of the week will also partially depend on the employment data from the US. The US is due to release the JOLTS Job Vacancies for February this afternoon, the ADP Non-Farm Employment Change tomorrow, and the NFP Change and Unemployment Rate on Friday. If all data reads higher than expectations, investors may look to sell to lock in profits at the high price. Key Takeaway Points: Gold’s Rally Continues – Up 17% in 2025 as investors seek safety from inflation, recession fears, and trade tensions. Trade War Impact – New US tariffs and potential retaliation from China, the EU, and Japan drive uncertainty, boosting Gold demand. Weak US Dollar – The Dollar’s struggle supports Gold’s rise due to their inverse correlation. Gold’s Outlook – Uptrend may continue, but US jobs data could trigger profit-taking. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 31st March 2025.   Trump Confirms Tariffs on All Countries, Sending Stocks Lower.   The NASDAQ continues to trade lower due to the US confirming the latest tariffs will be on all countries. In addition to this, bearish volatility also is largely due to the higher inflation data from Friday. The NASDAQ declines to its lowest price since September 11th 2024. Core PCE Price Index - Inflation Increases Again! The PCE Price Index read 2.5% aligning with expert forecasts not triggering any alarm bells. However, the Core PCE Price Index rose from 0.3% to 0.4% MoM and from 2.7% to 2.8% YoY, signalling growing inflationary pressure. This increases the likelihood that the Federal Reserve will maintain elevated interest rates for an extended period. The NASDAQ fell 2.60% due to the higher inflation reading which is known to pressure the stock market due to pressure on consumer demand and a more hawkish Federal Reserve. Boston Fed President Susan Collins recently commented that tariffs could drive up inflation, though the long-term impact remains uncertain. She told journalists that a short-term spike is the most probable outcome but believes the current pause in monetary policy adjustments is appropriate given the prevailing uncertainties. Although, certain investment banks such as JP Morgan actually believe the Federal Reserve will be forced into cutting rates. This is due to expectations that the economy will struggle under the new trade policy. For example, JP Morgan expects the Federal Reserve to delay rate cuts but will quickly cut towards the end of 2025. Market Risk Appetite Takes a Hit! A big factor for the day is the drop in the risk appetite of investors. This can be seen from the VIX which is up almost 6%, Gold which is trading 1.30% higher and the Japanese Yen which is the day’s best performing currency. Most safe haven assets, bar the US Dollar, increase in value. It is also worth noting that all indices are decreasing in value during this morning's Asian session with the Nikkei225 and NASDAQ witnessing the strongest decline. Previously the stock market rose in value as investors heard rumours that tariffs would only be on certain countries. This bullish swing occurred between March 14th and 25th. Over the weekend, President Donald Trump indicated that the upcoming tariffs would apply to all countries, not just those with the largest trade imbalances with the US. NASDAQ - Technical Analysis In terms of technical analysis, the NASDAQ continues to obtain indications that sellers control the price action. The price opens on a bearish price gap measuring 0.30% and trades below all Moving Averages on all timeframes. The NASDAQ also trades below the VWAP and almost 100% of the most influential components (stocks) are declining in value.     The next significant support level is at $18,313, and the resistance level stands at $20,367.95. Key Takeaway Points: NASDAQ falls to its lowest since September 2024 as the US confirms tariffs on all countries, adding to inflation concerns. Core PCE inflation rises to 0.4% MoM and 2.8% YoY, increasing the likelihood of prolonged high interest rates. Investor risk appetite drops as VIX jumps 6%, gold gains 1.3%, and safe-haven assets outperform. NASDAQ shows strong bearish momentum, trading below key technical levels with support at $18,313 and resistance at $20,367.95. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • PM Philip Morris stock, top of range breakout at https://stockconsultant.com/?PM
    • EXC Exelon stock, nice range breakout at https://stockconsultant.com/?EXC
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.