How to effectively combine Tape Reading AND technical analysis to make a quality trade
ฝัง
- เผยแพร่เมื่อ 24 ม.ค. 2025
- Register for our free intensive trading webinar smbu.com/TH-cam
Get the Daily Video! www.smbtraining...
www.smbtraining... is a Proprietary Trading firm located in NYC that specializes in trading equities. Our training programs were designed to help you develop the trading skills to become a consistently profitable trader. Written, video and classroom lectures are offered through SMB U, our education company. SMB offers training and trading products for new and semi-experienced traders.
Learn more about SMB by checking us out at www.smbtraining....
SMB Blog www.smbtraining...
Facebook / smbcap
Twitter: / smbcapital
#smbcapital #stockmarket #daytrading
SMB Disclosures www.smbtrainin...
2 of my top 5 trading subjects: Tape reading & technical analysis! You guys never miss. Great video y'all!
appreciate that. we try
I'm the chump buying his entry. Great rundown of the tape and price action here -- appreciate the great content.
I had to comment twice cause this video so damn good keeping this in a folder gonna watch it like 20 times
well good to hear
Mike and SMB, Thank you for these videos. What a great resource for the trading community. Personally I can’t express enough how grateful I am for being able to access this type of information so readily, having come across them at a time when I had hit a wall in my trading.
Studying these, and doing the webinar, have helped me analyse what was going on, identify a personality obstacle behind it and make an important mental shift resulting in my best trading week ever, right off the back of a string of frustrating losing trades. Now to sustain it!
Thank you again.
Terrific to hear!
You killed that trade, Sam! Awesome example.
👊
I just discovered this channel, but I think these videos with commentary are invaluable. The feedback and critique are helpful.
Loved this lesson! Please continue doing these technical and tape reading breakdowns
will do
Awesome video, appreciate the added detail to the tape relative to price levels and trend recently - please keep producing these!
noted
you guys are one of my virtual teachers :)
very nice of you to acknowledge our work
I was looking to go long at 54, but I completely ignore that it had failed to go above 54 a few times, and it was not a tight consolidation; at least I'm trading stocks in play. Fortunately, I'm trading small size while learning to trade. But thank you for your great videos, since I started watching them, my trading has improved.
great to hear. keep working on your trading game!
great insight on level 2 usage. thank you again SMB
Glad it was helpful!
One of my favorites. Really fun seeing how all that info comes together. 👍SMB👍
Great video. Thank you for sharing. Sam was also very good at explaining his decision making process.
Great video, probably 3rd time watching and reviewing, this is a great trade. Even if you don't catch it right at the open, there are usually good entries on the way down based on the variables you pointed out.
Wow, once again great content. Great comments from bella on shorting an earnings gap up in a raging bull market is a peculiar trade idea but the triple top resistance at PM hod proved to be a great R:R level to go off of. To me its such a strange trade to stalk but the tape reading skills showed the shift of when buyers and sellers were in control and the trader was able to scalp a point and unload size on the way. That's great trading I think. It'll atleast put a little bread on the table
The video's keep getting better and better guys.
Great stuff Mike and Sam, thanks for sharing! Mike, I’m really liking how you’re elaborating on your feedback, it’s been super helpful the last few vids. Keep crushing it! 💪👊👍😁
appreciate the support here Bobby
awesome video I was having a hard time understanding level 2 but this video helped a lot thank you more videos like this would be awesome btw I played this video in slow motion hahaha
Same here!
and this L2 moves relatively slow! Some names are so so difficult to read.
good idea
Thanks for the tape action. Always helpful to get reps in from stuff you weren't trading/recording on the day!
yes indeed
This was GREAT Mike and SAM.......was watching GMAN from the old days last night......understanding more how u hold the short when the bids drop. THANK YOU.
you are welcome
SMB always clutching, thanks guys 🙏
Always!
excellent video thanks. More of this type would be great, showing level 2 action combining with support/resistanceas it is excellent learning material
Man SMB coming up clutch! I just started using DOM, but yeah...nowhere near enough info. Thanks for this 👌
you are welcome
Surprising that any breakout can fail in this market, great video either way. Will definitely look out for this.
thxs
Thank you for the great content. Very Enlightening... It would be of great help if you could talk in future videos about how your traders trade in play low float stocks
Noted
SMB Capital Thank you. I am trying to develop a strategy to trade penny stocks, especially to the short side. My procedure is like this: I check the fundamentals of the company: cash flow, income, dilution, splits. Then I check the technical aspect: Historical levels, mainly levels where volume is done. Then I wait for the stock to look like it’s trying to form a backside then I jump in. On Thursday I tried to short $PED at around 9.25 I thought I saw weakness on the tape, especially given that 1.55 looks like historical resistance and the price pulled back intraday from it. I saw sellers at 1.45. I shorted there but more volume came in and I stopped out immediately when I saw 1.56 on Sales so I covered at 1.59. Got slippage of .04 cents... Then, The stock ran almost to 2.5. My question is would you short at the frontside bcz you saw confirmation on the tape as I did or wait till the trend is broken (but which means you will miss almost 50% of the move down from the top). Thank you SMBU traders!
Great video. Took a lot of notes. thank you.
Glad it was helpful!
@@smbcapital Came back today took even more notes. This is great content. Ty.
Absolutely loved this video ..loved how you brought all of the variables together to make
one good trade..The reading of the tape was beautifully explained by Sam ..good job.Starting to see what a good trade looks like when all lined up!! Have to watch this video a few more times
To take my notes. Could you also do a video on
Dip buying using the Tape also! Thanks Mike!
Although Sam mentions how new shorts will look to enter he seemed to neglect the fact that existing shorts are stuck -- nearly all 15 million shares of them or 25% of the float. Once some of those participants blow out the trade the stock likely falls but only to be supported by the more patient bears looking for a better price to close out the trade. Hence why stock traded back up and made for a great second day play as remaining shorts had to close and pushed the stock higher on 2nd day only to fall back down by the end of the day. Only 17 millions shares traded on 1st day with 15 million shares short. Great short and long set up.
Appreciate your contribution
Thank you for the video. I do like this trade because it shows very nicely, how a chart formation entices to buy the breakout, where tape reading skills help to identify the big selling activity. Coincidentally, I was about to ask you to consider showing some good midday or afternoon trading. This is it. Please consider shoving some good trading examples for slow trading days. There are surely plays for slow midday stock movements. In any case, you are helping people.
Awesome stuff yet again! I feel like a real trader cause I go through a similar process on every trade. I'm still stuck on paper though but getting better!
👊
Thank you, Mike Bellafiore! Dream job.
well get so good we have to hire you
@@mbellafiore19 I am trying! I've heard that trading firms only look at your first submission, so I need to make sure first impression is the lasting one. It took me a while just to sign up for DNA, knowing that SMB is the best.
Trading next to world class talent is the dream. I have liked everyone of your presenters. Very cool!
Need to work on my tape reading skills and overshoot the "1000 hour screen time". Your screen recording tip has accelerated my learning 2-3 times.
Thank you so much!
Sorry - - and of course your Playbook tip ;))). Thank you Mr. Bellafiore!
Amazing... range+Level+lv2
chop!
thxs
Level II tape reading is very important at SMB Capital!
I'm beginning to appreciate tape reading. definitely see the importance. Do you have a more basic video so I can start at the beginning?
do a search on our channel for "tape reading" or "level 2"
Beautiful video Mike!
thank you
Very nice and good trading. Well done Gents and thanks again.
you are welcome Kirby
Solid video... thank you.
You bet
cool to see how it looks in real time on the level 2
agreed
Great trade recap once again! I understand this trader came in with a short bias for many reasons, but if he saw that 54.00 holding, would he have gone long? Or just let it run and move on to the next trade? I guess what I am asking is do most playbook trades take into account a short and long possibility? Or do you stick with your bias and if it doesn't happen, you move on?
you trade with an open mind. if the price action is clearly showing your thesis is incorrect then you follow the price action for active trading.
Great info on earnings trades, I would like to see some of your daily routine stock pick analysis info. Thank you
What kind of charts is he using 15:30
Excellent trade Mike.How long has he been with SMB?...More tape reading videos please ...
great video, wish video is hd quality
thx! sorry about the quality on the tape portion - limited to the traders recordings unfortunately
Wow, this is spooky! Their last video I was criticizing in the comments that no depth information of level 2 was used, and in this video they show an awesome level 2 depth analysis. If I didn't know better, I might think that they are making videos for me personally, hahaha. xD
let us know if we can do anything else for you Hamster. maybe we can come over this weekend and help with some yard work.
@@mbellafiore19 LOLOLOL, epic comment!!! XD
Sam did good. That 11:30 time frame though? You gotta keep 8 eyes on a stock at that time. I always tell myself. Lunchtime low volume. Get some duct tape to keep your eyes open.
most of our traders aren't trading during that time period - a good time to get a workout in
@@smbcapital get a nice cardio burn at lunch. But not too much to where you are about out of it. After that, listen for any type of news going on. Then get ready for Power Hour. You remember thoughs old Peace Corps commercials "This is the toughest job you'll ever love" I think trading is the toughest job you'll ever love. Keep crushin it SMB.
great tape reading, you should make this part of DNA
appreciate the feedback.
What do the square brackets mean surrounding the size on the bid and ask?
superb trade
Thank you!
you are welcome
Damn I would've taken a momentum scalp to the upside, earnings beat, bullflag pattern, tested 54 multiple times haha (showed signs of weakness as more times tested = weaker resistance )! Would the upside bias be too strong to be shorting this?
Failed near 54 three times prior. A consolidation below and with time and maybe if not up so much might have set up a Breakout Scalp.
Much appreciated!
Good day mike. I just got introduced to your channel by another trader.I"d like to ask. How does one accquire the tape reader itself? Thanks.
Intraday charts are the 1 min,5min and 10 min right?
Is tape reading also available on penny stocks
how about taking the same trade but if it sets up at the support of the consolidation, aka buying the support if the tape confirms
How can I know whether to short the first "fail to breakout" or the "retest" at a major resistance level?
I'm wondering why he choose to short this particular test of 54-ish and not the prior test of 54-ish where it then dropped to around 53.91 and found support and then tested again where he decided to go short. I probably would have tried shortening the time prior and got stomped out when he peaked/wicked just above 54.08 or maybe see if it holds at 54 before I stomp out...?
Hey beginner tape reader here, I was wondering where you focus your eyes mostly when reading the tape?
Are you primarily looking at the inside market (high bid/low ask) or primarily looking at the scrolling prints?
I guess my problem is if I'm focusing on the market box, I find that i'll miss big prints going by, and if I'm watching the prints for too long I'm not looking at the incoming orders. I'm still really new so maybe I just need more practice, but would love some feedback. Thanks again for all the high level content, this is really great stuff!
Solid trade using tape reading
Thxs
How can you tell between a failure to breakout vs just consolidation?
🔥🔥🔥🔥💪💪💪💪💪 thanks Mike👊
you are welcome
fantastic
sir, can you make any videos on how to read earning reports, which factors should be consider, how can say strong earning or weak earning...... Thank-you
Nice trading
thank you
So, the million dollar question is, "What side of the tape are people supposed to watch for bullish or bearish." It seems to be a topic EVERYONE never talks about.
Why are you referring to size in level 2? Level 2 size doesn’t mean anything till it hits the tape. And why are you watching unfiltered tape and not analyzing accumulation at price levels? If your read tape properly you don’t need charts. Pro tip: use a volume profile. Cheers
Huge asks or bids have repelling properties, like walls -- facing a 100000 share ask vs 100 or 200 bid you better be very confident in the markets plan to take out all of the ask and go higher if you want to buy. Most individual market participants don't wield that sort of buying power, so they let the huge ask bully them down instead of sinking their capital into it and hope.
I like beer too
Of course much more size at a price can be meaningful. We did highlight the extra volume done at and around 54. The added volume around this price and the inability to hold above was an important signal of weakness for us. The chart would not have picked up how significant the R was at 54 until after the fact. As we noted, we are using multiple indicators to make a quality trade. Reading the Tape is one of those variables. Further, we are sharing what has been important for the traders we developed from new to 7-figure and now 8-figure traders.
It's actually ridiculous how important L2 is. Trading without it would be like driving blind folded... Sure you could technically do it but it's going to end very quickly lol
!
thxs
Without showing a volume- or tick-based chart at the same time, you can't show that there is any added value of MUCH harder-to-follow Level 2 and time-and-sales reading over the immediately-visual price/volume action. Indeed, in this video you never oriented your viewers to what Sam was talking about (what bid size? what offer size? what are the two windows with round share lots that should be time and sales but aren't?). Did not make me want to join up, I hate ambiguity and vague trading talk.