Topic: Tape Reading Works !! Quite well! (Read 124 times)
Initially I thought volume studies would not work in this decentralized market. But to my surprise they work very well. I think even better than the stock market, futures and commodities, and the reason is because by being decentralized players do not need to bluff in their orders, leaving everything clean.
Tape reading works and brings interesting results.
Here is the analysis of Times & Sales and the book of offers:
Big purchases with recomposition of sales offers or big sales with recomposition of purchase offers, are absorptions, probably a turning point in the market.
Big orders are protections for entrances, your stop should be beyond them.
Speed of orders and recompositions mean urgencies. Here the difference between the common analysis of the other markets and the analysis of this market. As there are several markets with the same product, urgency should be measured by the speed of ticks and not by volume.
But the volume is still a big piece of the puzzle.
Volumes of identical and sequential orders are probably from the same player.
Large volumes that do not carry the price are likely to close positions.
Do not let the movements of the tape fascinate you. Be technical and align with the chart for the best performance points.
Good luck
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