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I dont know but from your notes i give this answer .
1) Maybe they expect more down side and they put their exit bid below 912 level and they expect late shorts hit their bids
2) at 2nd retracement from 912 to 916 less transaction happen so shorts think no buyers or buyers are not convinced there is long opportunity . so shorts not cover their orders
But above 916 level more transaction happen at offer side and rollon so this maybe shorts stops and new longs
Frequently notice the following behavior in ES: very large orders hitting the offer, for example, and the price reverses to the opposite direction immediately or quite soon. What happens to this large trades? Is it a "loss" in our terms? I understand reasons behind such action can be different, but just curious of what you think about that.
See the screenshot of price action of one of recent day (these orders were not covering, definitely new orders hitting the day's high according to me).
Hey bloom, just started to read your thread here. Lots of insights. Glad to see you still on track with all that dom stuff as I`m started to learn order flow myself recently. Do you still recommend to watch monochrome time and sales? Greetings from Moscow Russia tho) Удачи!
Hello everyone, long time lurker, first time writer here.
EDIT: this is in the ES
I have a few, maybe not questions but rather points open for discussion. I decided that I wanted to both learn tape reading and make this my approach to the journey of trading in the beginning of July last year. So as you can see I am a novice still.
I did nothing but watch the numbers run down my laptop screen for for multiple hours a day (I was in University still, so what else would I do from 3.30pm - 10pm?!) until about October last year when I first "saw" something. No kidding, it was pretty exciting.
What I noticed was both large #'s of contracts per trade aswell as a large number of actual trades hitting only one side, e.g. the Ask, without the level breaking towards the upside (in this example) aswell as no trades or maybe just a single 1 lot hitting the Bid. After that the price would drop for whatever amount of points, but I saw it and interpreted it correctly. This is exactly what I had learned from various videos I watched, that there was "more sellers than buyers" since an accumulated number of 1k+ contracts couldn't break a level.
Over the course of the following months though, I began not to "see" this anymore. Yes it still happens on the tape, yes price still reverses after such an event sometimes. I just don't spot it anymore.
Much rather what I'm "seeing" now are Levels (areas of a few ticks), sometimes even a single price that I can spot that "nobody is willing to pay" and thus price reverts. More often than not a few seconds after I said to myself "short" but didn't do anything
Did the market conditions just change? Did i subconciously shift my focus towards it?
I'm not really sure what kind of answers I'm expecting, basically I just wanted to throw this out there, maybe someone else is "seeing" the same as I do?
Sorry for the long introduction and possible grammar mistakes, english is not my native language.
make your approach to trading from an understanding of what is happening ... without it, the tape will not work well...
and a very important moment you must determine what you are looking for in the tape, and not just the balance or imbalance of power ..
There is something in the tape that will give you the right entry into the deal ... This is the key to understanding the tape reading
you see trees not the forest
All that is happening constantly trapping other traders. You need to know where than how they are trapping. Within that context you can read a tape propely.
They are doing traps using supply and demand phenomens. Buyers always = to sellers. What is differs is that market orders ammount compare to limit orders. If market buy order exceeds selling limits price will go higher and vice versa.
To read the flow you need to know context.
Than i started this thread i was only begining my journey. Tape is only the part of flow. And it is SMALLEST part of it.
I dont know what to say to you man. Just wish you a luck and enough time and resources to study that in a proper way. If not - you are toasted.