One Good Trade mentioned at start of video is amazing reading. Many great insights into the mechanisms of SMB Capital and the way they do things statistically right, taking advantage of lessons learnt from decades of prop trading. So grateful for this channel. Fortunate enough to have enough capital to trade full time on a personal account. Insights received from SMB capital have definitely helped re-think and reengineer approach to trading. Looking for the next good trade and learning to rip better!
Would be good to define upfront what you mean by “reading the tape”. I was expecting some insight into level II or time & sales, which you have dancing on the side of the screen but never reference. To me, this was a video on “reading the chart”. Because you didn’t explain the role of the level II or time & sales in your thought process, I can only conclude that you’re leaving out an important piece of the successful trade.
you may have heared of a tool called bookmap...this tool does integrate L2, tape and price chart into one display...much easier to "read the tape" with this tool imo
I actually thought the same way. I thought tape reading is to find hidden insight or info from level 2/ time and sales numbers. Like big orders and etc.
I love this tape trading, but how hard is it to study it? I'm looking at L2, T&S and chart almost at the same time on ToS and I'm getting dizzy. Any help will do. Thx 4 this lesson
Great video. I traded TGT that morning too - I got involved on the pullback after it probed above the premarket high around 150.15 and got bigger into the pullback at 9.58am off the breakout level. I took the whole position off after 1.5 atr from the breakout area. Matt and Mike both had better entries! Thanks for the review guys
I am almost finished reading One Good Trade, I am planning the set of set-ups for my initial playbook. My plan is to trade FX, initially EUR/USD. I know your firm does not trade FX, but I get great ideas from your videos that translate over to FX. I do not currently have access to level2 info, but I am watching price movements on the 1 min chart to build my concentration and memory. I am journaling contemporaneously during the openings Asia, London, and US as often as I can. Thanks for this and all the other great videos.
awesome video I'm starting to really understand how to identify rebids on the tape I actually was very useful on a trade I made on GOGO on Friday got in at 9.52 stop at 9.45 out at 10.22
Question will that rebid pattern work on the ask side, I was shorting BABA today and waited for a candle pattern on my 1min chart to confirm it popped up at the open and would have given a better risk to reward and got me in the trade sooner, maybe like a re-ask... thanks for the video I will start using this re bid on the open
SMB Capital I’d be interested in a video focused on the trading platform SMB uses. Perhaps delve into the execution speed, liquidity, strategies that are made possible due to software features (ex: bracket trading with Active Trader in TOS), if the platform allows orders to be more “easily” placed during after hours trading, etc; and compare these criteria to typical retail platforms. I don’t think SMB has content about this - specifically the potential edge that trading firms, hedge funds, etc may have with specialized trading platforms - and it would be great if SMB can help fill the gap by shedding light on this topic, if there is any light to be shed that is. Thank you, cheers!
In regards to the tape being implemented onto the candlestick chart in terms of bid ask footprint chart. What is SMB view on this, as it seems it would be much more useful? Thanks in advance
makes sense to watch levels. its very important to develop a plan and not to over use technicals past the basic support resistance and trend. regardless of the setup its all about managing the trade and sticking to your plan. good video
Hmm, the properties of bounce and strength you mention could just as well have been noticed from the volume and the action on the chart. I'm sure there is edge in the level 2, but in this particular example it did not seem to add anything essential that would only be visible on level 2.
When that $149.00 re-bid, it was super quick. Not even 2 seconds later it was at $149.30+. The Tape is the Ultimate Indicator, because unlike “Candle and Volume Bars”, it is not a lagging indicator. So the edge with Tape, is that it is the Leading indicator. Perhaps the hardest part of playing the tape, is your speed of execution. The tape can go so fast, if your eyes are not trained for it, you can easily miss the move. When u get a chance, rewind the part where Mike is discussing how he got in on the pull in to $149 when he saw it re-bid $149. Now when your watching it, notice how fast it re-bids to $149 and how the offer shoots to $149.30 so damn fast. Your opportunity to jump in on that re-bid and say maybe get an entry between $149.00 - $149.15-.20ish, was super small. You would not have been able to get it at that price waiting for the candle to close.
@@rawfit4960 I see, so people usually wait for the candle to close when they talk about action on the chart? I was more referring to the fluctuations of the candle as it is evolving. One can see the re-bid and strength on that the same. And it even has the advantage that you can see the strength directly as a decisive geometric motion, instead of a change in digits that your brain still has to process and interpret.
HamsterHearthstone I see. As someone who reads the tape and chart, my only issue with trying to make a play on a very fast moving tape, using Candle Analysis, is candles don’t form patterns until the candle closes. So if you take a trade on a candle that hasn’t closed, in your case trading it as the candle fluctuates, you really need to wait for the candle to close to confirm what you are seeing. A candle could open very bullish indicating bullishness and you could take the trade. Then in the last 2 seconds of that 1 min candle it can close as an inverted hammer 🔨 now indicating very strong selling. So you would want to wait for the candle to close. But if you could read tape, you would’ve bought as that candle opened because of the tape would’ve shown you strong bids and offers lifting, you also would’ve sold as the candle turned inverted because the tape would’ve shown you selling pressure and bids dropping. That Tape is the Leading indicator my Guy! 👌🏾💯
@@rawfit4960 I agree with that. Unfortunately, the video did not touch these particular advantages of level 2 at all. All they mentioned is that a price got reclaimed fast -- which is level 1 information actually. In the video they don't use the depth information of level 2, which is a bit disappointing.
Hey Mike, in another video I heard you say that first you need to learn how to trade then you have to find your edge. I was wondering if you could do a video explaining the difference between "learning to trade" and finding an edge. I love these videos. Please keep them coming. I feel like they are helping my trading get better and better even if I am losing every day. 🤣
Not sure what the trader was using for this clip. A lot use camtasia. you want something that will use minimal computer resources while you are trading
L2 is like a book of order and Time and Sales is the order that are actually filled! So always look for L2 and T/S side by side Sometimes the market makers put up a false order to manipulate the market
Honestly I don't see a single mention of how reading the tape helped. The real indicators are momentum (weak at/below 147) and volume (the upward moves were very fast and came with large volume bars. The tape is up, but the trader never actually mentions seeing anything on the tape that gave him a signal. To me this is just a dip/rip video and has nothing to do with tape at all :(
I have two questions for anyone out there who may know: 1. How do you go about learning how to read the tape. 2. Is tape reading a skill that is useful only for day trading? Thank you!
i don't get how this is useful? whatever you see on the tape is happening on the chart in real time as well so why not just watch and think what to do next from what is in front of you aka from the chart? like when the bid and ask moves up, so does the candle and if the tape stalls, then so does the candle... so why distract yourself with this tape nonsense
Learn 3 trade setups our traders use bit.ly/2XnZSyS
Sharing tape reading is priceless, please continue. Mike your feedback and suggestions help to accelerate our learning this skill. Thank you !
Will do!
Just want to let you know 2 years later this video is an absolute gem. Keep up the good work guys! Appreciate it!
One Good Trade mentioned at start of video is amazing reading. Many great insights into the mechanisms of SMB Capital and the way they do things statistically right, taking advantage of lessons learnt from decades of prop trading. So grateful for this channel. Fortunate enough to have enough capital to trade full time on a personal account. Insights received from SMB capital have definitely helped re-think and reengineer approach to trading. Looking for the next good trade and learning to rip better!
Would be good to define upfront what you mean by “reading the tape”. I was expecting some insight into level II or time & sales, which you have dancing on the side of the screen but never reference. To me, this was a video on “reading the chart”. Because you didn’t explain the role of the level II or time & sales in your thought process, I can only conclude that you’re leaving out an important piece of the successful trade.
Chelle No, they didn’t define it. They just said they were going to use it.
Chelle Read my comment again.
Chelle read my comment again.
you may have heared of a tool called bookmap...this tool does integrate L2, tape and price chart into one display...much easier to "read the tape" with this tool imo
I actually thought the same way. I thought tape reading is to find hidden insight or info from level 2/ time and sales numbers. Like big orders and etc.
I've booked the webinar. You're one of the best trading teachers I've seen, extremely professional.
Thanks a lot for sharing these educational videos to financial community. This video did help me very much in doing the tape reading.
Follow us for more Tape Reading Content. Checkout our 1-4 Tape Reading Setups
I love those tape reading videos, Thanks guys 🙏🏽
you are welcome Alca
I love this tape trading, but how hard is it to study it? I'm looking at L2, T&S and chart almost at the same time on ToS and I'm getting dizzy. Any help will do. Thx 4 this lesson
Great video. I traded TGT that morning too - I got involved on the pullback after it probed above the premarket high around 150.15 and got bigger into the pullback at 9.58am off the breakout level. I took the whole position off after 1.5 atr from the breakout area. Matt and Mike both had better entries! Thanks for the review guys
Nice trade Stone Monkey
Thank you for all your support SMB team
In love with these tape videos and looking forward to the future!
Superb content! Thanks for all SMB team. Thought process is the best we can get from you in this free YT videos.
Our pleasure!
The chart looks as thinkorswim but the tape does not. Can you share what the level 2 platform is? Thanks
does any know what the white background means on the Times and Sales window?
I’m reading your books at the moment.
I am almost finished reading One Good Trade, I am planning the set of set-ups for my initial playbook. My plan is to trade FX, initially EUR/USD. I know your firm does not trade FX, but I get great ideas from your videos that translate over to FX. I do not currently have access to level2 info, but I am watching price movements on the 1 min chart to build my concentration and memory. I am journaling contemporaneously during the openings Asia, London, and US as often as I can. Thanks for this and all the other great videos.
They do trade FX at the desk , but as far as I know their lessons are Spanish, check them out, in case they have some in English.
Did he trade options on this stock?
Hi, what is a pull in?
Are those sales on the right of the screen available on td ameritrade? I'd so can someone help guide me through
Why the video quality is 360 p
What is the "Tape" in your description? The L2 or the Time&Sale?
we'd consider it's a combination of the two
Great video, Thanks for sharing.
You bet
looks like chart is TOS but who are you using for your level 2 "Tape read" ??
Ya I have same question
Where did you get the time and sales ? From think or swim?
Fantastic video on
Tape Reading...you teach em well Mike. I wish one day I can read the Tape like Matt..very impressed!
practice practice! record your screen and play them back
Thanks Mike!
Analysis on this video was spot on
thx Nathan
What is the tape? Th price action on the black screen? Orr the multicoloured numbered flashing on the side?
CryptoManDan
Mike, why not enter when the 147s were holding at the bottom of the range?
awesome video I'm starting to really understand how to identify rebids on the tape I actually was very useful on a trade I made on GOGO on Friday got in at 9.52 stop at 9.45 out at 10.22
Very good value. I definitely read the tape different from others
Why are pre-market highs/lows key areas to look for a breakout trade
Question will that rebid pattern work on the ask side, I was shorting BABA today and waited for a candle pattern on my 1min chart to confirm it popped up at the open and would have given a better risk to reward and got me in the trade sooner, maybe like a re-ask... thanks for the video I will start using this re bid on the open
what platform is this that shows the time and sales? thanks
it's our in-house program but lots of available platforms for retail out there
what program is the tape/lvl 2 youre reading. i see the chat is from ToS but the tap is from a different program, no?
That's out in-house trading platform Gr8 Trade - Traders also like to use TOS for charts and studies in combination with the execution platform
SMB Capital I’d be interested in a video focused on the trading platform SMB uses. Perhaps delve into the execution speed, liquidity, strategies that are made possible due to software features (ex: bracket trading with Active Trader in TOS), if the platform allows orders to be more “easily” placed during after hours trading, etc; and compare these criteria to typical retail platforms. I don’t think SMB has content about this - specifically the potential edge that trading firms, hedge funds, etc may have with specialized trading platforms - and it would be great if SMB can help fill the gap by shedding light on this topic, if there is any light to be shed that is.
Thank you, cheers!
How do you stay ahead of real time press release news for traded or potential stocks?
I tried find the meaning of "pull-in"...is that the same as a pullback?
sounds about the same to me
This is great content!
Great Video Mike. Thank You
Thanks for this video, very insightful.Please make more videos on reading the tape.
You got it!
In regards to the tape being implemented onto the candlestick chart in terms of bid ask footprint chart. What is SMB view on this, as it seems it would be much more useful? Thanks in advance
makes sense to watch levels. its very important to develop a plan and not to over use technicals past the basic support resistance and trend. regardless of the setup its all about managing the trade and sticking to your plan. good video
I really appreciate this reading the tape video and I hope in the future you will do more,because I agree it is very important.
will do Allen
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Hmm, the properties of bounce and strength you mention could just as well have been noticed from the volume and the action on the chart. I'm sure there is edge in the level 2, but in this particular example it did not seem to add anything essential that would only be visible on level 2.
When that $149.00 re-bid, it was super quick. Not even 2 seconds later it was at $149.30+. The Tape is the Ultimate Indicator, because unlike “Candle and Volume Bars”, it is not a lagging indicator. So the edge with Tape, is that it is the Leading indicator. Perhaps the hardest part of playing the tape, is your speed of execution. The tape can go so fast, if your eyes are not trained for it, you can easily miss the move. When u get a chance, rewind the part where Mike is discussing how he got in on the pull in to $149 when he saw it re-bid $149. Now when your watching it, notice how fast it re-bids to $149 and how the offer shoots to $149.30 so damn fast. Your opportunity to jump in on that re-bid and say maybe get an entry between $149.00 - $149.15-.20ish, was super small. You would not have been able to get it at that price waiting for the candle to close.
@@rawfit4960 I see, so people usually wait for the candle to close when they talk about action on the chart? I was more referring to the fluctuations of the candle as it is evolving. One can see the re-bid and strength on that the same. And it even has the advantage that you can see the strength directly as a decisive geometric motion, instead of a change in digits that your brain still has to process and interpret.
HamsterHearthstone I see. As someone who reads the tape and chart, my only issue with trying to make a play on a very fast moving tape, using Candle Analysis, is candles don’t form patterns until the candle closes. So if you take a trade on a candle that hasn’t closed, in your case trading it as the candle fluctuates, you really need to wait for the candle to close to confirm what you are seeing. A candle could open very bullish indicating bullishness and you could take the trade. Then in the last 2 seconds of that 1 min candle it can close as an inverted hammer 🔨 now indicating very strong selling. So you would want to wait for the candle to close. But if you could read tape, you would’ve bought as that candle opened because of the tape would’ve shown you strong bids and offers lifting, you also would’ve sold as the candle turned inverted because the tape would’ve shown you selling pressure and bids dropping. That Tape is the Leading indicator my Guy! 👌🏾💯
@@rawfit4960 I agree with that. Unfortunately, the video did not touch these particular advantages of level 2 at all. All they mentioned is that a price got reclaimed fast -- which is level 1 information actually. In the video they don't use the depth information of level 2, which is a bit disappointing.
yeah did not really feel like i got anything out of this video
Now we need to find a video that explains all the numbers in the tape.
Where can I purchase The Playbook?
How do I download or get this tape ?
Hey Mike, in another video I heard you say that first you need to learn how to trade then you have to find your edge. I was wondering if you could do a video explaining the difference between "learning to trade" and finding an edge. I love these videos. Please keep them coming. I feel like they are helping my trading get better and better even if I am losing every day. 🤣
great suggestion Allen - thx! being on the demo helps get consistent and from there you can see what plays you are most profitable in
Thanks mike. Love ur books👍
Awesome work
Really helpful vid again ❤️
Great video! thanks for the study material!!
you got it
Great content! thanks!
:)
Thank you so much!!! its very usefull for me!! and i start understand how add pos!
Hey SMB. What recording software are you using for this?
Not sure what the trader was using for this clip. A lot use camtasia. you want something that will use minimal computer resources while you are trading
OBS is great and open source, just switch output to record instead of stream
So is the idea to bid in front of the bigger bids and see if those levels hold? Thanks for the video these are great 👍
That might be a strategy traders make OR some like to wait for the confirmation before anticipating it - depends on their style
What is the name of the platform?
Can you hedge with options as your trade goes positive to lock in your spot position?
definitely a strategy some would use
what program is being used to look back at the level 2 next to thinkorswim? I try using TOS on demand but it is just plain laggy to look back at tape
The trader was using TOS for charts and level 2 is from our in-house trading platform - Matt was recording his screen with both of these up
@@smbcapital i see. thank you for the videos! very helpful
Can you show option trades on AAPL AMZN TSLA and its analysis?
good idea - check Seth's videos he does a lot on option strategies
Why don’t you use superdom to buy and sell?
good work gents, thks
of course kirby!
I don’t understand what “reading the tape means”? Is it level 2?
Yes Evan - that's the Level 2 and Prints
Hard to understand what these guys were saying. You learn it much more easier from Ross Cameron at Warrior trading or from Humble trader.
Beautiful trade.
thx
What about superdom ? Don’t You use it?
Why wouldn't you have had a buy order sitting at 147 or buy when it bounced at 147
I really appreciate the videos you post, however they are distorted and hard to focus on the details of the screen.
We try to keep everything high quality - sometimes traders record in lower resolution so it doesn't slow down their computers while trading.
@@smbcapital No worries at all, thank you.
Thanks for this video guys. One question - is reading the tape the same as reading level II data? Or are they different things? Cheers
Tape and L2 are same
Only Viral thank you
same thing - include the time and sales data in there as well
SMB Capital thank you!
L2 is like a book of order and Time and Sales is the order that are actually filled!
So always look for L2 and T/S side by side
Sometimes the market makers put up a false order to manipulate the market
just read the tape at 13:13
Anybody understand tape reading here ????
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Honestly I don't see a single mention of how reading the tape helped. The real indicators are momentum (weak at/below 147) and volume (the upward moves were very fast and came with large volume bars.
The tape is up, but the trader never actually mentions seeing anything on the tape that gave him a signal. To me this is just a dip/rip video and has nothing to do with tape at all :(
When you see the tape change in your favor as you stalk it. Does your blood boil when u see a kill move? Or are you a stone cold raptor executing?
I'd say most of our traders are stone cold raptors - they just execute
That didn't really explain how to read the tape for me. Maybe this is an advanced video.
nothing that was discussed about tape reading in this video was something that you could've not seen on the chart.
Legend in portuguese pleaseee
❤🎉😊
I have two questions for anyone out there who may know:
1. How do you go about learning how to read the tape.
2. Is tape reading a skill that is useful only for day trading?
Thank you!
Are really asking this question, on Google Search, wake up!
the book, "Secrets" has a key chapter to save you time, understand and learn "level 2"!!
@@TerryLDawson thanks for the info. Who's the author?
Steve Jobs
i don't get how this is useful? whatever you see on the tape is happening on the chart in real time as well so why not just watch and think what to do next from what is in front of you aka from the chart? like when the bid and ask moves up, so does the candle and if the tape stalls, then so does the candle... so why distract yourself with this tape nonsense
Bad trade?? I know a guy who can patch that drywall.. XD
lol eric