Read the Tape Like a Pro: Timing Entries with Level 2 Data

Рет қаралды 12,053

Күн бұрын

Read the Tape Like a Pro: Timing Entries with Level 2 Data
NEW: Tape Reading Level 2. Learning to read the tape is an old-school trading strategy that still works to buy the right stocks. Today we discuss Level two, time and sales, bid ask quotes and how we use tape reading on price carts to identify order flow.
Introduction (0:00 - 1:18)
Pete introduces the concept of "tape reading"
Overview of the topics covered: understanding order flow, timing stock entries, and how stocks move
Explaining Level 1 & 2 Data (1:18 - 4:30)
Definition of Level 1 (bid/ask prices) and Level 2 (depth of market data)
Meaning of colored "prints" (trades) in Level 2
Interpreting Order Flow (4:30 - 8:20)
Active buying (green prints) vs. active selling (red prints)
Yellow prints and indecision
How orders from big players ("deep pockets") move stocks
Reading the Tape on Charts (8:20 - 16:50)
Translating order flow to candlestick charts
Identifying bullish vs bearish order flow
Signs of changing order flow (indecision candles)
Practical Applications (16:50 - 18:11)
Using order flow to find entries
Managing risk by following the "smart money"
Joining Pete's trading community
Section Summaries:
Introduction (0:00 - 1:18)
Learn an old-school "tape reading" technique to understand order flow - the driving force behind stock movements. Discover when to buy stocks by analyzing the actions of large, institutional players.
Explaining Level 1 & 2 Data (1:18 - 4:30)
Dive into Level 1 (best bid/ask) and Level 2 (full order book) stock data. Understand the color coding of trades and what the different "prints" signify for order flow.
Interpreting Order Flow (4:30 - 8:20)
Decipher the market's order flow by reading Level 2 quotes. Green prints reveal eager buying, while red prints show aggressive selling. Yellow prints hint at shifting dynamics.
Reading the Tape on Charts (8:20 - 16:50)
Translate raw Level 2 order flow onto candlestick charts. Identify bullish vs bearish flow through price patterns. Spot potential reversals with indecision candles signaling a tape change.
Practical Applications (16:50 - 18:11)
Apply tape reading to find optimal entry points by piggybacking on institutional order flow. Manage risk by staying aligned with the "smart money" until signs of distribution emerge.
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Пікірлер: 40

@bryantscott7495 6 күн бұрын

Awesome.

@TheDWZemke 3 жыл бұрын

PETE nice job of understanding what people are asking and what comments people are making.

@StockTradingPro 3 жыл бұрын

thank you

@Lorax2024 3 жыл бұрын

Thank you so much. Have a great Friday.

@StockTradingPro 3 жыл бұрын

Thank you, you too!

@MelindaSilverio-jq5si 28 күн бұрын

Great job, thank you.

@frankgallison5189 3 жыл бұрын

Thanks Pete! "Light Bulb" moment for me in understanding how order flow correlates into the candlestick formation! Starting to see the charts with much more clarity thanks to you!!! Best Wishes...

@StockTradingPro 3 жыл бұрын

Excellent!

@jfroobo 3 жыл бұрын

Thank you. Very helpful. I enjoyed this a lot and it helped

@StockTradingPro 3 жыл бұрын

Glad it helped!

@stephannaviavalencia8617 4 ай бұрын

This is awesome, thank you so much!!

@StockTradingPro 4 ай бұрын

You're so welcome!

@Olivia-kz5dp Жыл бұрын

Great video imparted by a great teacher. Thank you very much.

@LucyByrnes-STP 2 ай бұрын

thank you

@mnazari1375 3 жыл бұрын

Most helpful video you have posted!

@StockTradingPro 3 жыл бұрын

Glad to hear that!

@pearlg3055 3 жыл бұрын

thanks Pete...You explain well. Appreciated

@StockTradingPro 3 жыл бұрын

My pleasure Pearl

@yamitf77 3 жыл бұрын

thank you so much!

@StockTradingPro 3 жыл бұрын

You're welcome!

@mn_1378 3 жыл бұрын

Green Prints with price moving up = Active buying Green Prints with no price movement = Distribution Red Prints with price moving down = active selling Red Prints with no price movement = Accumulation. Very simple concept.

@perilousjose6622 2 жыл бұрын

Thanks for this big dawg

@drwatson1234 3 жыл бұрын

I've heard a lot of people say that the level 2 can be deceiving because there are a lot of fake orders that get put in that are meant to confuse traders. The idea that you'll see big blocks of trades and get the sense that the smart money is stepping in but it's not a real offer to buy or sell.

@StockTradingPro 3 жыл бұрын

Hey Akiva! 've seen fake bids and offers, that's called "spoofing" happens a lot less than it used to - block trades are real though - they are actual transactions

@jdchannelviewer 2 жыл бұрын

If you have a foot print chart (showing a trail/heat map of lvl 2 history) then you can see how long that liquidity has been there. Longer term (several minutes) flow tends to actually trade VS algos popping bids in for several seconds to pressure price and disappearing as the price approaches the order.

@DrAL00isin 2 ай бұрын

That’s why I use time and sales data that reflects shares actually bought and sold.

@SuccessOverStress 3 ай бұрын

Awesome vid. SUBBBED!!! I recently programmed some indicators to help with the visualization of this!!!

@StockTradingPro 2 ай бұрын

Awesome! Thank you!

@geraldwellborn5047 3 күн бұрын

What trading platform are you showing this on?"

@annetterandolph8603 3 жыл бұрын

Thanks, Pete -- very informative. I still am not sure what the entry point would be. I normally enter in a buy zone, but if a stock is passed the buy zone, where would the entry be?

@StockTradingPro 3 жыл бұрын

Hi Annette, we provide my entries and exits in the paid memberships

@drwatson1234 3 жыл бұрын

another question if I may. we are always talking about inflow and outflow. if every purchase of a share is accompanied by every sale of a share. then what does outflow and inflow really mean?

@StockTradingPro 3 жыл бұрын

A good question for you to ask on our coaching calls

@YG-wy8fs Жыл бұрын

Past bullish performances of a stock don't guarantee a bull run will continue. Just by looking at where smart money has gone, how do you know if its the right time to enter?

@StockTradingPro Жыл бұрын

timing entries is the last skill after order flow and tape reading. I guess you could add trade management too