In order to begin to understand and read print tapes, a trader must understand the basic principles of the functioning of the exchange, regardless of its type. In ordinary language, an exchange is a kind of auction where there is a sufficient number of confident buyers, for this reason the price of goods is rapidly increasing, if for a certain time the mood for sale has been created, then the goods are offered at a significantly low cost.
A print represents a completed trade operation or order at any time period. The print strip itself indicates the basic data of operations: the sign of the asset put up for sale, its price at the time of the operation, the volume of the operation, fluctuations occurring in the value of the asset, bid and ask, minimum and maximum indicators.
Those traders who were able to learn how to work with this information will be able to further distinguish patterns that form in the market. They, in turn, can tell the speculator the number of contracts that will subsequently be put up for sale at a high cost or purchased at the lowest possible price.
Forex market participants working with prints can learn to read how the price will act at this moment of decision-making by the seller or buyer. Moreover, a very important point is that the speculator will now be able to observe the operations of the most influential market participants, who are gaining positions due to the insignificant lot sizes.
It is the prints that allow the speculator to see what cannot be seen on the cost chart. Therefore, a novice player must learn to read prints, as this will help to significantly increase income and stabilize profits in general. And this is understandable, since executed orders include necessary and important information for trading.
Example of work on prints
To make it clear what the use of prints in trading is, let’s look at an example. The stock or futures indicates 1,700 shares on the ASC, the cost of which is $25.25.
- One of the trends occurs at exactly 1,700 shares at the previously stated price, after which the price becomes 25.29 US dollars. As a result, there are 2,100 shares on ASK.
- Second print priced at $25.29 for 2,100 shares. The price jumps to $33. As a result, there are already 1,300 shares left.
- Third print, ends with 1,300 shares.
Previously, three prints were painted; the ongoing purchase of assets in the quantity indicated and offered shows the speculator that at this time the players of the active group are working on the acquisition. That is, a set of volumes occurs for the next increase.
The same speculator watches the chart and observes that there are fluctuations in price by a small amount. Therefore, working with prints for financial market participants is an indispensable tool that cannot be replaced by any other. Moreover, prints will be used in trading until there are powerful players on the market, who have the goal of gaining an impressive amount of profit.
Trading with prints
The feed in front of the trader will reflect all the used vehicles, methods, graphic figures, various tools, especially indicators.
Print ribbons are used by traders with extensive experience in the market, so they were able to gain trust among professionals and proved that this is indeed an opportunity to stabilize their earnings.
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29.10.2014
Greetings, friends.
Alexander Shevelev is in touch.
I have repeatedly received letters from readers asking me to tell them in more detail what a feed is and show how it can be configured in the Kwik trading terminal. Let's get started.
Most likely, you have heard about the phrase “deal feed” many times. But what is it?
In simple terms, the feed is detailed information on transactions, where you can see how many contracts were bought/sold (volume), at what price, when they were bought/sold (time), which order was the initiating one, i.e. who sent the order from the market, buyer or seller (direction).
Various types of volume (vertical volume, horizontal, clusters), which I constantly analyze in my reviews, are built precisely on the basis of the tape. Using special software, the data is processed, and all digital values acquire a visual appearance (bars, graphs, clusters).
In fact, in Wolfix we see the same transactions as in the feed, but these transactions are presented to us in different sections, we begin to see not just numbers, but already structured information. Those. Nowadays, the standard feed has been replaced by new ways of visualization, and now different types of volume allow us to look at the market from a completely different angle.
Despite the fact that the tape is considered one of the main tools of “old school” traders, in my opinion, understanding how transactions occur, where large transactions appear, what market reaction can be traced after these large transactions, how breakouts occur, etc. , allows you to better feel the market and react faster to changes that occur during the day.
Let's figure out how to set up a feed in the QUIK trading terminal.
First, we create a table of all transactions. To do this, select “Create window” in the menu, then “Table of impersonal transactions”.
In the window that appears, select the required class of instruments (for example, “FORTS: Futures”), turn on the filter and add the instrument that we want to analyze (for example, futures on the RTS Index), add parameters of transactions that we want to track during trading (usually , I use 4 parameters: time, price, quantity, operation).
By the way, this is what is displayed in my securities filter (the nearest RTS Index futures contract).
After we have done all this, click “Yes”. The following table appears.
Now you can sort trades by time, i.e. make the latest trades appear at the top or bottom of the table. Do what is most convenient for you. Personally, I set up my feed so that the latest deals are at the bottom.
To do this, right-click on any part of the “time” column and select “Sort by [Time]”. If the arrow is pointing down, then the latest transactions will be displayed at the bottom of the table.
Now comes the fun part. We can configure filtering of transactions by volume, i.e. make sure that only large transactions are displayed in the feed, because It is large transactions that have the greatest impact on price changes.
To do this, move the mouse to the header of the “Quantity” column and click on the funnel icon that appears.
In the window that appears, indicate the condition “greater than or equal to” and enter, for example, 100.
Now in our deal feed only those deals whose volume exceeds 100 contracts are displayed.
This is already better, but in order to make it easier to navigate the operations, you can make color settings for purchases and sales, i.e. make sure that all buy transactions (when a buyer submits a market order to buy, agreeing to the price indicated by the seller) are tinted green, and all sell transactions (when the seller submits a market order to sell, agreeing to the price indicated buyer) were tinted red.
To do this, move the mouse to the column header “Operation” and select the icon with the letters.
In the window that appears, enter 2 conditions.
In condition No. 1, indicate “equals”, write “Purchase” and, by clicking on the “Format” button, select green.
In condition No. 2, indicate “equals”, write “Sale” and, by clicking on the “Format” button, select the red color.
Also, in two conditions, you can check the “apply to the entire row” checkboxes, thereby not just one cell of the “Operation” column, but the entire row will be colored with the appropriate color.
This is what happens as a result.
It’s clearer, isn’t it?
This is how you can customize your feed.
Tape analysis is one of the most accessible ways to analyze supply and demand. Of course, the trade feed is more useful for scalpers who make many trades within a day, but, in my opinion, understanding the logic of how orders work is also important for medium-term or swing traders who make trades that hold positions for several days.
Personally, I very often wait for large trades to appear in my direction before opening a position near an important support/resistance level. This is a good sign, symbolizing that I have chosen the right level to open a position. If I see that no trades are being opened in my direction, I prefer to stay on the sidelines and wait for the situation to clear up.
Those. you can learn to work with order flow near important support/resistance levels. Very often, the movement begins after the big players enter the game. Of course, ideally, you need to monitor not only the deal feed, but also the order book itself and the orders that are placed there.
That's all for now. I hope that the material was useful.
Good luck with your trading and good mood.
Sincerely, Alexander Shevelev.
9.2. Ribbon
| 9. Principles of working with stock exchange information |
| 9.1. Orders |
| 9.2. Ribbon |
| 9.3. Cup |
| 9.4. Volumes (horizontal and vertical) |
| 9.5. Principle of interpretation of volume and ROI |
| 9.6. Market Profile |
| 9.7. Deltas and cumulative deltas |
| 9.8. Cluster analysis |
| 9.9. Analysis of CME stock reports |
| 9.10. Analysis of COT reports |
| 9.11. Market Sentiment Analysis |
Short. What is tape? A tape is essentially a log (log, protocol) of all transactions carried out on the exchange for a specified instrument. What used to be called Tape is now called Time & Sales (T&S).
Tape readers have a major advantage over technical analysts when other indicators diverge in their signals. For example, the failure of a breakout to attract a flood of buyers will be visible on the tape much earlier than it will be visible on the intraday or daily charts. As a result, you will be able to make a decision before the charts show a sell signal.
Externally, the tape is a vertical window in the terminal, in which the time, price and volume of the transaction are displayed from top to bottom; you can also use color to understand how the transaction was made.
Reading the tape means studying the fluctuations of an asset as soon as they appear on the market, being able to assess their strengths and weaknesses, and also being able to choose the psychologically correct moment to buy or sell. You also need to learn how to identify inactive, fading markets. Reading a tape is related to psychology because it involves thinking, which is influenced by what we see, hear, smell, taste, touch, etc. When reading a tape, we are influenced not only by what we see, but also by what we feel or sense. The latter cannot always be given an exhaustive explanation, since it affects the area of intuition.
The tape captures the prevailing trends. It reflects the collective opinion and is a kind of pendulum of fears and hopes of stock speculators, businessmen, and the public. The tape serves as a real barometer if you know how to read it correctly. But that's the rub. The tape tells the truth if interpreted correctly.
Reading the tape requires a lot of willpower and the ability to adhere to a certain point of view: having learned from the tape about trends in the market, you form an opinion that should not change until the information on the tape changes. False news, rumors, gossip should not have any influence on you.
Trying to improve the efficiency of their trading, traders experiment with dozens of indicators, but neglect such an important and free tool as the tape. The Time and Sales window displays real-time order flow data - price, execution time and size of each trade executed on a trading instrument. Depending on the trading platform, the feed may contain other data - order type, execution route, etc.
For a day trader, the tape shows how a stock is trading at a specific point in time, in a certain market situation, or near significant price levels. Using the tape is especially useful when trading breakouts and when working in the first hour after the market opens, when there are no established levels of the current trading session.
Tape reading is a special skill that can only be developed through practice. The trader needs to constantly watch the tape until he develops a “sixth sense” that allows him to instantly understand what is happening in the stock at the current moment.
How to use the Time and Sales window
The peculiarity of trading on the stock market is that there are only two objective parameters - price and volume. And both of them are reflected in the feed. Correct interpretation of this information significantly increases the chances of success. The main principle that should be followed is to monitor the flow of money and follow it.This activity requires patience. You cannot buy or sell a stock just because order flow has accelerated. You must first identify support and resistance levels, make sure they are relevant, and compare the Time and Sales window data with the chart formation. If a support or resistance level is being actively tested, it is best to wait for it to break, as this can often just be a trap that lures inexperienced traders into before moving the stock in the opposite direction.
Each stock has its own behavior and requires a special approach when trading. Therefore, before entering a trade, it is recommended to watch the tape for a while to understand what is happening.
What to look for
Order size
It speaks of the confidence of buyers and sellers. In order to confidently enter a position, it is desirable that there are transactions of 300-400 shares in the feed, but there is no single criterion here, since the liquidity in different shares differs significantly.Order processing speed
This is another important piece of information that can be obtained by reading the tape. Typically, when a significant level of support and resistance is broken, not only the size of executed orders increases, but also the frequency of their execution. This indicates increased interest in this stock at a specific level.Nature of orders
Execution at the bid or ask price is important. If a stock is a buy candidate, the majority of trades in the feed should occur at the ask price. For sale it’s the other way around.For which stocks does the tape work best?
A day trader needs volatile stocks where he can enter into a trade with an acceptable risk-to-reward ratio, counting on fast and strong price movement. Therefore you need to look for high speed tape stocks. It is important to differentiate between high trading volume and very high trading volume. It is best for a day trader not to trade stocks that have an average daily volume of 10 million or more. A novice trader will not be able to read such a tape.Conclusion
The ability to read tape will help a day trader reduce the number of bad trades, since it will allow him to more accurately choose the moment of entry and exit. You can master the skill of reading tape only through constant practice.Ribbon prints— the best tool for a trader after the chart. Not indicators, not oscillators, not news and quarterly reports, not tips from the Internet - Time&Sale print ribbon, a trader's best friend and advisor. She rarely lies. When the institutional ones actually gain a position and this is visible on the tape and there is confirmation on the chart in the form clear and clear signal, then, as a rule, the stock in most cases goes in our direction and does not hit our stop.
But most of the time the tape is N I C H E G O! Doesn't print anything interesting. There are several reasons:
- Just noise and order execution on quiet days.
- Insignificant places on the chart, that is, there was not a large traded volume during previous movements.
- Institutionalists are not “fools”; they have no desire to show off their orders, so they confuse their “traces”
- There are quiet days due to the lack of market news.
- know bullish or short signals as you approach your entry point.
- see a set of positions by large buyers or sellers during the formation of a graphical signal at 5m.
- have confirmation upon entry that the “diverse” public and institutions support this movement.
And this is an excerpt from part of a video lesson from a print ribbon lesson with my comments. Below is the download link.
And one of them, execution of transactions of large traders within the spread, and it is desirable that they take place in blocks, in the DAS terminal, they are visible in white. If we take a long position, then we must see reluctance hit the “big ones” at bid. That is, they do not want the limit buyer to be parsed at the bids. If they are short, then on the contrary, they do not want to parse the limit seller on the offer. If at the same time, we see in the glass bid update, if long, and updating offers if short, then this is good.
Here you can download graphs of other examples. And a video on the prints feed and parts about the lesson.
When we say something out loud, it is put aside for us. If we write something down with our own hands, it is invested in us. When we work through and apply the knowledge of reading the Time&Sale print tape and get the result, this cannot be taken away from us. We understand that this works and will use it in the stock market. And when this is transferred to , it brings confidence in correct and successful online trading.
Sincerely, DimDimych, patience and good luck to you.
Patience is when an open can of your favorite condensed milk is on the table for several days, and you don’t have the right to take it until you deserve it. Trifle? I don't think. This is how T T D is brought up. Labor, Patience and Discipline.
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