Thursday, May 25, 2017

05/19/17 Reading the Tape $NFLX

Reading the Tape
Traders read the tape - ticker tape in the old days to determine the recent buying and selling pressure. Here lies the importance of volume. It's easy to spot a large buyer or seller when the volume is light. Big buyers usually enter before big moves.

Jesse Livermore read the tape and never fought it.

Of course there is always a reason for fluctuations, but the tape does not concern itself with the why or wherefore. It doesn’t go into explanations. I didn’t ask the tape why when I was fourteen, and I don’t ask it today at forty…, Reminiscences of a Stock Operator.


While the tape, often triggered by price in reaction or anticipation of the new flow, is triggered by price, it's fueled by force. Volume is the domain of force. Traders/investors must learn to read the force behind the trend.

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