Tape reading is the art of studying pure and magnified price action real time based on the Level II box. Using the tape you are able to gauge players psychology and imbalances in supply and demand. Reading the tape is a leading indicator, not like charts and indicators where they are based on past data. Tape reading is an important skill to master as an intraday trader because it allows you to see real time where there is buying and selling going on at level. This is also a very important skill because it will improve you efficiency, risk/reward ratio, and it will allow you to catch larger moves all while allowing you to take on the least amount of risk possible.
Tape reading is your edge and will put ahead of many other traders that think technical analysis is the only thing they should know. The advantages of reading the tape are that it brings consistency to your trading, it is a leading indicator, you are able to see buyers/sellers in real time, it minimizes your trading risk and it gets you in more plays that the charts don’t show you. Finally, reading the tape is about analysis the bid, offer, size, volume, and prints. With reading the tape you will be able to determine where the stock is going to move 90% of the time.
What you’ll learn:
- By the end of this course, you will be able to read the tape
- Learn the basic foundation of reading the tape
- Learn what the Level I and II are
- Learn what the prints mean
- Learn how to spot big bids and big offers
- Learn how to spot hidden buyers and sellers
- Learn how to spot buy and sell orders
- Learn the top intraday trading patterns working now
- Learn how to spot and follow a buy program for 4 pts on the tape
- Learn why speed is important to the intraday trader
- Learn our top trading plays
- Learn how to spot probabilities and trade with them via risk/reward
- Learn how to lower your risk
- Learn how to read the tape via the Level I, II, and prints.
- Learn setups that are not on the charts