Tape reading is a technique of reading the price action of the stocks, and infer something about the market activity in that name. In earlier days, expert traders used this to track strong buy or sell orders in a particular stock.
These days, the technique has become a little complicated, with millions of people having access to the trading terminals, and different software programs generating automated responses to certain events. However, as always, any astute trader can still devise his ways and means of reading the tape - which now may include in addition to price information on volume, open interest, put-call ratio and futures' basis.
I like this concept, and will try to get my hands on some literature on the subject.
These days, the technique has become a little complicated, with millions of people having access to the trading terminals, and different software programs generating automated responses to certain events. However, as always, any astute trader can still devise his ways and means of reading the tape - which now may include in addition to price information on volume, open interest, put-call ratio and futures' basis.
I like this concept, and will try to get my hands on some literature on the subject.
No comments:
Post a Comment