Great value! Look for L2 confluence with daily chart technical levels. This helps strength the significant of the price seen on the L2. Also, "How is the price action reacting within the context of the trade." Is a great concept proposed by Lance.
This is a really cool video. Hearing Lance talk about certain details gives me confirmation on some of the things I've paid attention to while tape reading. No one ever teaches tape reading so it's been little nuances I've picked up along the way that I thought were significant but weren't too sure. An example would be spread widening/narrowing during moments in price action and then which side is closing the spread. Something I've picked up but never knew if it was important or not.
Jfc this is gold. More please. This dialogue/inquiry/coaching modality between senior and junior is perfect for my learning edge is there somewhere I can access more of this? Ty 🙏🦋
awesome video! this video along with re watching my own tape has helped me grasp reading the tapes and improved my trading tremendously by not getting siked out on early break outs.
Good clip n thanks Gents. I find that the "market depth" offers more insight to the size of the bids n offers vs just the tape. When I use to stare at that, it was very informative and really summarized supply-demand immediately. If the bids (size) outweighed the offers, it was clear it was moving up as the bids would buy the offers asap. The opposite is also true. Of course, if there are "minimum hidden" orders being traded it is harder to discern but that is where you see your 'held bids' or 'held offers.' Thanks. Kirby
Very interesting to hear this align about right with my theory on it. One other thing to extend on the "big" is to watch and see if the big buy hits again on the other side, this could indicate failure in one side signaling a break the opposite way. I've taken a few trades successfully by using that technique. Big sell came in and few candles later it was back out, so that signaled to me my long was probably right, and it indeed went pretty far in my favor 👌
Great value video guys. Lance has been a great value addition to SMB. Just 1 suggestion. If you guys can focus on video editing as in highlighting on the screen or zooming in when the speaker says any level (733 level) is holding well. As to guide viewers attention to that specific window
I watched it on mute and caught the turn, love going back and watching tape for those "see it" moments, shout-out to Lance for introducing the world to the highlight reel concept.
Thank you all very much. I am now making a nightly volume scan watchlist with levels on each listed to help my tired ass in the morning be fast and reference where I saw levels day before the action is poppin. It’s been showing me how to trust the scanner and what to look for more each day. Thank you SMB
Can you make a video talking about exactly how to watch and read the tape? Are you constantly scanning everything, are you focusing more on colors and movement? I have trouble knowing exactly what to look at or how to scan everything as it moves so fast.
It takes a long time to understand tape reading and very subjective to individual style. Some things you might look for are when price comes into a level does it immediately bounce from there or is a lot of volume done at that level. If price wicks through does it immediately come back? Is there heaviness on the tape, meaning is the price revisited many times? I'd argue that unless 733 is some longer term level, probably not the best to make trade decisions around. Taking out the pre-market range and getting over 740 is a buy though. When Tesla can move $30 in 10 minutes, those couple dollars, which amount to confirmation of the thesis, are a small price to pay. It could have very easily dropped that 733 level and moved to the downside just as fast.
This was helpful -- thank you. I'm almost brand new to tape reading and am still not quite sure where to keep my eyes focused most of the time; the third window from the left...which I'm assuming are consolidated bid/ask orders? Order size? Price action? Both?
12:10 what a great coach! I think Lance expected the answer to the level choice to refer to daily levels, 733 LOD or PDC, and 740 a round number, a High, or where large offers were piling. Right?
This is a great video, but I'm not sure if I totally understand what we were watching on the tape video. Is there a resource where I can learn more about how to read the tape orders?
So what i understand from watching, is that the opening drive trade is basically when you have a big breakout right at the open and acceleration on price action lvl2, just didn't have a name for that type of movement/trade
good one - do you buy at the b/o (at 740) ? do you wait for a 740 pullback once price shots above? where do you have more conviction to add for that b/o? did you start piling in on 733? if so, do you take off some in case the tape slows down?
There was no set up to take a trade. Red to Green still needs a setup. Maybe a 3 bar, 4 bar, ORB, flat top breakout or a pullback. You do not want to buy that huge Green bar. That spread on TSLA would be enormous. Can't size in with that. So I do not see any possible trade there.
All orders are the same. There’s a buyer and a seller. An inbetween print isn’t terribly informative compared to an aggressive buy order @ the offer or an aggressive sell order at the bid. So really not much information to glean from them, more just extra noise.
@lightofmylife1 green means market order buy or/ people hitting the ask. (order hit at ask) red means vice versa. market order sell or people hitting the bid.
@@lightofmylife1616 A market has limit orders and market orders. Limit orders are the ones you see on the level 2. It’s someone saying “I want to buy/sell at X price”. That could be $0.01 below/above the current price, could be $10 above/below the current price. A market order is the person who buys the ask/offer or sells into the bid. They are the *aggressor* as they are less price sensitive and just want to get into a position quickly. When that aggression is one sided, you get solid moves in the direction of the aggression. Green = someone bought the offer/ask, and red = someone sold into the bid.
@@BonkersFutures 😂true! But tbh I kinda developed a filter for that and I can just tell if things are iffy on it, so for me it's actually rather useful!
I have been trying to understand the tape. but all I see is numbers. you all talk about (held bids) and I have no clue. I wish someone would show me how buying pressure and selling pressure look like on the tape. I also hear a lot on a (heavy tape). no clue. what happens when the bids are more than the offers and vice versa? help. and I will put it like Jermey Irons on the movie (Margin Call) . explain it to me as if I were a child or a golden retriever. I've read Bella"s book twice and sorry but I learn better with visuals.
SMB has multiple courses or training programs that will allow you to learn how to read tape. That's honestly what changed it for me, even though i had spent years with the "free" education prior, didn't help much
This is just normal Preston, he works with Lance often to get feedback on his trading and was actually the first one at SMB to get the DRC (daily report card) rolling with Lance.
I break down my time and sales into 4 windows. Small orders. Medium small and medium big. Then biggest orders. It helps show and divide the activity into windows of importance or weight of trader ideas. Obviously when I see the bigger orders combining with all the other smaller size orders it’s confirming the amount of people following the levels I’m watching
Are you kidding me? You can’t just be like ‘Ah ok, lets see bids at 733’ with the fast moving tape, you can’t even cognise the price movement. Either smb is duping retails to believe this is tape reading, or this guy will be unprofitable in days to come if he trades this way. Prove me wrong
He didn’t say that, he said he wanted to see 740 break speed up and have volume come in. He said it for more conviction. seeing 733 hold and quickly buyers start to prop 733 back up and hold. It shows buyers are starting off the day and in control and strong. again, His main focus was 740. 733 was just a confirmation of a potential play. Simple as that
thanks for another nugget of gold SMB - always grateful for you guys sharing your knowledge! 🙏🏼 btw - any retail traders here have experience telling their spouses about their losses as a way to hold themselves accountable to being a better trader…? i did & made a short youtube vid about it 😅. feel free to check it out & let me know if you agree or disagree 🙏🏼
