Getting closer to price and volume

[Placebo]

IMO, even if some transactions are suppressed (or if false figures are used) during the market hours,they will be updated (or corrected) and added to the existing records and will be visible if we view the same T&S data after the market closes/ or the next day.

Am I correct?

Definitely that is another option. But that seems more like a self defeating purpose. Tape Readers are essentially day traders who use T&S data to see which side of the market is stacked. So it makes very little sense if they are doing a hindsight analysis of T&S figures rather than using them in real time.

Even if one is to make this kind of adjustment it still is very tricky. EOD T&S data at any point of time is going to show either demand swamping supply or supply swamping demand.

So if prices are sliding down and EOD T&S shows demand swamping supply on a down bar/candle we still would not know if the demand is an outcome of good quality (genuine buying ) or because of short covering (not so good quality). If it is a function of the latter then the trader is buying a dead cat bounce which by definition itself is a roadkill. If the rally takes place due to genuine buying then its a good trade to be in.

This is a very generic view that i've written but charts help in determining accumulation and distribution. So if one is able to confidently determine either accumulation or distribution based on chart analysis then the timing can be done using EOD T&S figures.

Sorry if i'm making everything sound too easy and over simplifying things but things are a bit different in real time and a lot of practice has to be done prior to attempting something like this.

Cheers

 

[rocky9281]

Rocky9281, I am not sure how will you read accumlation/distribution thru T&S. .....

1.It helps in what is happening in right now and maybe anticipate the action of next few ticks.

2.I use T&S to time my entry /exits and to judge false breakouts v/s real one.

3.I look for some fast confirmations thru T&S before clicking the confirm button on my order.

Hello AW10, Once again I have broken down your answer into 3 different points, hoping to concentrate one at a time into more depth.

Speaking of the first point only, can you please explain how to use T&S to anticipate the action of next few ticks ?

What to look in for into the T&S to anticipate direction of next few ticks? If possible, please attach screenshots .

Lastly, please let us know what is your trading success rate using the T&S.(how many times have you been successful in performing the above 3 activities as mentioned by you - using T&S, say for out of 10 times.)

 

[AW10]

I wanted to ask earlier but kinda slipped out of my mind. How would you trade financial markets without the use of a L2 screen ? Only based on Time and Sales like a basic L1 terminal ?

Cheers

Placebo, I don't use Level 2 but just use T&S (i.e level 1) in my trading. In my another post, I have given the points that I try to read on T&S, mainly to finetune my entry.
For me Level 2 is just the orders, and level 1 is executed trades. IMO, level 2 is no committment from market makers. It is pure their intelligence to fool the other players. The orders are submitted by computers and as a human being, I can't beat that. So I have decided not to spend my time in learning level 2 (just my views).

IMO, T&S is real trade, real committment from traders. Even if they reverse their position in next few ticks, it is still real trade and real profit or loss for traders. I can configure the T&S to see what I want to see. It has price, volume and time info - all 3 are the core data generated by market. No noise of order flow manipulation.

Generallly I have 2 T&S window with different filter size (almost like reading charts of 2 timeframes) and look for the convergence or divergence of trade flow on them. Atleast that is helping me to some extent. I am still learning it (about 7 months of experience in this so far).

Happy Trading

 

[rocky9281]

As far as determining Accumulation or Distribution is concerned i use bar charts.

Cheers

Placebo, will you please share with us how do you do this, with a chart...

 

[DanPickUp]

Placebo, will you please share with us how do you do this, with a chart...

Sorry, there was maybe a mistake with the other post and so I deleted it for safety. I was told, that some platforms have a tool for virtual bars ( Got some infos for the Ninja Platform ) and I posted some of that infos here. As I checked it, I was not able to locate it the way it was mentioned.

AW10, I know you are a user of that platform. Could you check it on your platform as I may made a mistake ?

DanPickUp

 

[Placebo]

Placebo, will you please share with us how do you do this, with a chart...

Rocky

Don't get me wrong mate but i don't feel comfortable putting up a chart on a public forum and explaining Accumulation/Distribution . But if you are really keen on learning how to read accumulation/distribution on charts then pick up a copy of Master The Markets By Tom Williams.

Sorry to disappoint you.

Cheers

 

[rocky9281]

Thanks AW10, Placebo and DanpickUp. You just pointed out to me that discussing these things in the public forum is not a good idea.

For other members-I am an Wyckoff student . I have undergone training from the stock market institute. and here is a snapshot of how brilliant results can be achieved from the study of price and volume. Here I provide the link where I used to post previously, all together I made 3 predictions, out of which, all came out as positive.

http://www.traderji.com/trading-dia...n-my-trading-diary-post504593.html#post504593

From now on, I will start to post my tape reading (Time and sales) journey here. I have got involved with the tape for past 6 months. I have many resources and know vendors who can be useful in this regard.

Anybody wishing to participate actively in the ongoing discussion, please leave a reply here, so that I can proceed. In this way, I will also be able to clear my doubts that are persisting for last 6 months.

Thanks again

 

[Placebo]

I have undergone training from the stock market institute

LOL

Should have known. You did use the term shakeout earlier.

Cheers

 

[rocky9281]

I am still confused on how to understand whether a particular trade occurred at the bid or the ask. I have attached a new screenshot . Here, there are 8 entries of "trade". I have marked them 1 through 8.

Please tell - how do I classify these trades as "at bid" or "at ask".
Please tell me the logic used to differentiate them.

 

[AW10]

Best source of help for this will be Amibroker persons. I don't use it but can give my interpretation here..

Trade 1 - At 09:15:37, bid was 33.2, ask was 34. Trade done at 34 i.e. it hit the ask. 200 qty was traded at 34.

Trade 2 - At 09:15:38, bid was 32.5, ask was 33.9 Trade done at 32.5 i.e. it hit the bid. 950 qty was traded at 32.5. I think, after executing 900 qty, there are still 550 qty is waiting at 32.5 bid.

I will reflect this info in this format.. and that's how it looks in good t&S platform.

09:15:45 5835.00 1850
09:15:43 5834.00 100 ??? no ask price info? is it data error ?
09:15:42 5834.10 50 ??? trade done between bid and ask
09:15:41 5834.00 1450
09:15:40 5833.90 1100
09:15:39 5834.00 700
09:15:38 5832.50 900
09:15:37 5834.00 200

i.e. using colour to indicate if trade was done at bid (red) or ask (green).

This T&S display is certainly hard to read - lots of info that is just crap. (why do I need to know that I am trading on NFO).

all the best.