The Advantage Of Tape Reading

The sock is up, opened 1139.80, crossed 1147 resistance and made a high 1164. It moved quite fast and approached near resistance area so I should plan for a short. Waited for the signal candles A + B and placed a sell order below B (1156). I got in but the Stock took a turn and head higher in candle C.

Looked at the Tape, huge selling bids @ 1162 which the buyers were unable to absorb. It tested seller once in candle C; second time in candle D -- the small wick at the top was some fellow's stop loss which I think got hit, it was just one trade above 1162; third time in E and I sell short more @ 1161.50 quite confidently. I was in a losing position and I averaged..oops..broke the rule, but had a strong reason to do that. Target was at 1149 -- the green line (just above the 1147 level) and stop above 1162. The whole idea behind the trade was the anticipation of a retest and the supply gave fire to the idea. The 1155 level gave some pain but finally the target was hit.

So before making any decision its good to have a look at the tape, better watch best five bids. Many a times it helps a lot.

# As it was a counter trend trade, I did not trail.
# I never place stop loss orders in stocks like Colpal , remember the fellow sitting @ 1163 got hit..He must be disturbed coz thereafter the stock moved in his anticipated direction. Instead of placing stops I keep a hawk eye such stocks.

I hope you find this information hit like/comment.
Trade safe, be healthy.

Hi, where can i find the tape data?
+1 Reply
I think this Combination of Two Alphabet "SL" introduced to Stop from Life (Life means=> "Life in security Market")
@DSKF16, :D ur r right. Many times stops r taken by big fishes in low volume stocks.
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