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Top 4 Tape Reading Mistakes (& How Scalping Can Save You!) — Transcript

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0:00most Traders will never make money
0:02reading the tape without being aware of
0:04four hidden major mistakes that tape
0:07readers make in this video our head of
0:10Trader development helps you evade each
0:12of these mistakes so you can turn tape
0:14reading into your secret weapon I'm Mike
0:17Bella Fury and we're one of the top
0:19proprietary trading firms located in New
0:21York City since 2005 and now Miami as
0:24well and proud to develop numerous seven
0:27and even eighth figure per year Traders
0:29watch take notes and learn from our prop
0:32firm so you can grow your trading
0:34account are you struggling to make sense
0:36of the tape you're not alone you know
0:38most Traders fail to spot key
0:40opportunities because of very common
0:43tape reading mistakes and it's costing
0:44you money in this video I'll break down
0:47the top mistakes Traders make when
0:49reading the tape mistakes that can
0:51really set you back and the crazy part
0:53is many Traders are never even aware
0:56they're making them so getting right
0:58into it here's the first and biggest
1:00mistake Traders make when they're
1:02reading the tape mistake number one
1:04they're
1:05overanalyzing every tick so here we have
1:08a stock that's really not going anywhere
1:10and it potentially could break down
1:12potentially could break up it's really
1:14easy for Traders to overanalyze every
1:17single tick they can look at this little
1:19breakdown at 1250 9250 that just
1:21occurred and say look that's a big
1:23breakdown but when you put the context
1:25in place it's just consolidating in the
1:28middle of a range there's not much to do
1:31honestly at that point so we're just
1:33going to speed up the tape a little bit
1:35and we'll give ourselves the luxury of
1:37still watching the tape and paying
1:39attention to what's happening if you try
1:41and hit that breakdown at 92 and a half
1:43look how quickly it goes against you but
1:46the reality is this tape is not going
1:48anywhere all you have to do is zoom out
1:51allow the price action to set up for you
1:53don't get too focused on every single
1:56tick in this circumstance because so
1:59often the price action just moving
2:01around we'll jump ahead a couple minutes
2:04and look at what it looks like and how
2:06different it looks like when there's a
2:07real break when we actually can read the
2:10tape because we have real Edge not just
2:12get caught in the price Action Moving up
2:14and down and all around now we've
2:16actually got a meaningful tape to read
2:18we have the price action breaking above
2:20a key resistance area let's playay close
2:22attention while all of a sudden there's
2:23sellers right at that 94 you see the
2:26size showing up on the offer we look for
2:29the buyers ability to potentially take
2:31this
2:32higher as we're watching this we see
2:35size coming back
2:37in the sellers are there the question is
2:41are the buyers going to take it higher
2:42or the sellers going to hold look at the
2:44size that's on the offer there this is
2:47so distinctly different because we're
2:49looking at the price action at a key
2:51inflection point we're not just sitting
2:53there and saying wow this is a really
2:56interesting choppy price action we're
2:58actually looking at it as it's trying to
3:00break out and observing what's happening
3:04on the tape we see the sellers there we
3:07see the size holding the offer we see
3:10the biders trying to step it higher this
3:12is a really key inflection point see if
3:15you can see a change look at this and
3:18watch we're starting to take some of
3:20that size
3:21away we took all that size we go through
3:26it now we can watch the bid but the bid
3:29doesn't hold
3:30the bid's trying it's giving everything
3:32it can it's really trying to take this
3:35stock higher but it's making us
3:36uncomfortable it's making me
3:38uncomfortable as I'm watching this
3:40because although the buyers are trying
3:41the sellers are still there if that
3:43spray higher took out that much size on
3:46the offer this should immediately be
3:48going up 2030 cents this should have
3:50been a much better
3:53breakout it's making me very nervous
3:56about this breakout because although the
3:58buyers seem to be there the sellers are
4:00not lifting in the way they should
4:03have we're going to pay close attention
4:05to the tape here this is a moment that's
4:08of absolute importance now we see the
4:10buyers start to drop
4:13out now we see that
4:16change you notice the difference between
4:18watching the tape as it's just chopping
4:20around in range and watching it as it
4:23breaks out of
4:24range now this is the last ditch effort
4:27for the buyers if the buyers are going
4:28to step in they're going to hold right
4:29here and they're going to drive the
4:31price
4:34higher but they
4:36can't and those sellers are firmly
4:39starting to take
4:42control as we watch and our eyes switch
4:45from the bid to the offer because now
4:47the sellers are in total control of the
4:49price action we can clearly identify how
4:52important that moment was we had that
4:55break higher of the range we had that
4:58giant seller that got taken
5:01out and as soon as that seller got
5:05cleared the buyer should have taken it
5:08way up and through and they weren't able
5:10to this is the difference between
5:11reading the tape in just a random moment
5:14and reading the tape in a key moment
5:17understanding the context of when you
5:19should be reading the tape is so
5:22important a bunch of Traders try and
5:24make sense of every single tick every
5:26price movement but tape ratings about
5:29spot patterns and key levels it's not
5:32about obsessing over noise so I'm the
5:37first to admit that 90% maybe even 95%
5:40of all the tape out there is just
5:42Randomness it's noise it's not
5:46statistically significant there are
5:499,58 tradable products listed on a
5:52simple like finviz scanner that's too
5:55many to consider anyway so if we break
5:57it down into a tradable universe things
5:59with with a decent amount of volume say
6:01over 1 million and a decent range say
6:04over $1 average range we still get a
6:08universe of
6:09834 stocks in our potentially tradable
6:14Universe every trading day is 6.5 hours
6:18or 390 minutes so that equates to about
6:22325,000
6:24260 minutes of tape every single day
6:30but for most days about 60 Minutes of
6:32tape is totally
6:34critical that's like
6:370.02% of all the tape that's out there
6:40actually mattering to us as Traders and
6:43I get it there are tons of beautiful
6:45stories about traders who used to just
6:47sit there and they'd read the tape all
6:49day in one symbol and they'd constantly
6:51make money and there might still be some
6:53out there but in what I do and how I've
6:56been passionate and driven about being
6:58the guy that helps Traders get impactful
7:01results
7:02immediately those outliers out there are
7:05not a good example of what works and
7:07even worse they create this trap for
7:10themselves that so many fall into of
7:13doing the right thing at the wrong time
7:17they're making the right effort in
7:19trying to read the
7:21tape but they're doing it at the wrong
7:23time and as a result they're almost
7:25doing more damage than they are good we
7:28were doing a reading the tapes session
7:29in our inside access training the other
7:32day and we started with a stock getting
7:34ready to make a breakout but before it
7:38the stock was just in this range it was
7:39choppy and it was in range honestly the
7:42tape was meaningless at that point and I
7:45could hear the newer Traders saying did
7:47you see that bid stepping up there oh
7:49look look held offer but these were all
7:52on things that didn't matter and these
7:54Traders were just blurred out things
7:56before the real opportunity even
7:58developed
8:00the key is to do the right thing at the
8:04right time so as we talk through the
8:07other three mistakes we'll wind them
8:09together to create a path forward a road
8:11map of Best Practices that can help you
8:14sidestep these big mistakes and do more
8:16of what matters when it matters you can
8:19use this skill in a way that gets real
8:22results for your trading tape rating is
8:24this foundational skill for intraday
8:27trading tape rating gives you a
8:29real-time understanding of Supply demand
8:32and Market sentiment it's like having a
8:34front row seat to the Market's decision
8:37making process now tape rating gets its
8:40name from that Old ticker tape machines
8:43the ones that used to print stock quotes
8:45on this continuous paper ribbon Traders
8:48would literally read those ticker tapes
8:51to analyze Market movements hence the
8:54term tape reading now this practice was
8:57prevalent way before the widespread use
8:59of computers and electronic displays for
9:01Market data Traders would stare at the
9:03tape because that was all the
9:05information they had available to them
9:07it must have been sort of like playing
9:09roulette you buy a stock based on the
9:11action on the ticker tape and just kind
9:13of wait to see what happens as the
9:15ticker tape keeps kicking out time and
9:17sales data fortunately for us things
9:19have evolved slightly and you can now
9:22get the information from anywhere you
9:24don't have to call your broker you don't
9:26have to sit there and read a ticker tape
9:28but think about what information we have
9:31that others never did but traders made
9:34money reading the tape then and Traders
9:37still make money from reading the tape
9:39every single day now tape readings
9:42watching the level two the posted bids
9:45and offers and the time and sales the
9:47posted transactions and then the
9:50interplay in between those three there's
9:53some technologies that visualize reading
9:55the tape and I hear a ton of new traders
9:57that use them they talk about them as if
10:00they're magic This Magic Bullet but I
10:02don't hear many if any experienced
10:04Traders using them on a regular basis if
10:07you read through the great stories in
10:10Jack Swagger's Market Wizards volumes
10:12you'll find a theme running through the
10:1460 odd biographies collected there tape
10:17reading so most of the world's greatest
10:20Traders are also great tape
10:23readers a lot of them supposedly began
10:26their career trading nothing but the
10:28tape
10:29but again starting with only the tape
10:31would put us at this handicap we don't
10:33need to give ourselves starting with
10:36only the tape doesn't get the immediate
10:38results that we're looking for and being
10:40aware of these mistakes in our beliefs
10:42that the tape is everything or that the
10:44tape is nothing allow us to get more
10:47impactful results in our time invested
10:50in developing our skills we have to find
10:53ways to be more effective with our time
10:55which takes us right into mistake number
10:57two so mistake number two is ignoring
11:00the opportunity tape raing doesn't work
11:03in isolation you need to factor in
11:05levels from the chart you need to factor
11:07in broader market trends and you need to
11:09factor in liquidity conditions most
11:12Traders actually misread the tape
11:15because they don't do this they don't
11:17isolate the moments that matter the
11:19spots that should matter from the
11:21volumes of noise out there the way we
11:23quickly Whittle down a tape into
11:26something that matters from our 325,000
11:29th odd minutes into that 60 minutes each
11:32day is actually a really simple process
11:36that so many Traders Overlook so we just
11:39use Market context there's a whole video
11:42about it but understanding the context
11:44is a key place to start you want to
11:47understand how the bigger players have
11:49been acting to create a baseline of how
11:51you might expect them to act before you
11:54begin to read the tape We'll add a bit
11:57more context when we're actually looking
11:58through through some really good
12:00examples as we talk about it the
12:01Catalyst for the stock is the stock in
12:03play what was the Catalyst was it
12:06fundamental like a news story or
12:07technical like a breakout depending on
12:10the type of catalyst we can determine
12:12are the buyers going to be aggressive
12:14should they be passive how's it going to
12:16look and then we go into technical
12:18analysis we're not going to overdo it
12:20but we're simply going to look at what
12:22do higher time frames say about the
12:25price action is the stock in this bigger
12:28range or is it breaking out those two
12:30things alone give us a really good
12:33context to create what we call the
12:36opportunity and the opportunity creates
12:38this framework for us to think about who
12:41might be playing the game and how might
12:43they be playing it we take that into our
12:46consideration because a strong Market
12:48with a strong stock moving higher on a
12:51strong Catalyst while it's breaking
12:53above a key technical area I'd expect
12:56those buyers to be aggressive i' expect
12:59the tape to be aggressive as we're
13:01coming into this really important level
13:03in Nvidia you know right that area where
13:06after the Deep seek news we have not
13:09been able to hold above that
13:11131 pivotal area for this stock so now
13:15we we have an opportunity right from the
13:18open we can watch as the buying pressure
13:21starts to overwhelm that potential
13:23selling pressure that area at 131
13:26becomes so critical for us to observe
13:29the price action as it gets up there we
13:31don't have to predict we don't have to
13:33be at that 130 but that 131 is such an
13:36important area for us on the
13:39chart we can just sit there and wait
13:42allow this price action to bounce around
13:44allow that balance between the buyers
13:46and sellers to occur and we can just sit
13:48there and wait and say if it gets above
13:51that key area which happens to line up
13:53with that pre-market High we can observe
13:55the tape to see if the buyers are still
13:58there driving the price action higher we
14:01don't want to predict that we're going
14:02to have that break we don't want to
14:04predict that the tape is telling us how
14:07strong the buyers are right now we
14:09actually want to allow the price action
14:11to set up for us because price action is
14:14going to drive higher above that level
14:17and as it drives higher then we can
14:19really start to observe what's happening
14:22on the
14:23tape so as we get this drive above 131
14:27and we see some of the size coming in
14:29and get taken out do you see the
14:31immediacy of that response we just
14:34screamed higher it's like that price
14:36didn't matter at all we were 30 cents
14:39higher in a tick but now we don't want
14:42to sit there and say okay I'm just
14:44buying it we actually can observe did it
14:46go high enough for us to chase no it
14:48didn't so we can sit here and wait and
14:51watch our eyes can go between the bid
14:53and the offer we can observe the price
14:56action as it's coming in let's see if if
14:59we get a test of that level let's see if
15:01there's a balance point that gives us
15:03more information let's see if those
15:05buyers are willing to step up and hold
15:07the price above that
15:09131 key inflection
15:12point we can see the buyers trying right
15:15there and then we get a quick Dropout
15:17and that quick Dropout is going to give
15:19us so much information don't be afraid
15:22of the dropouts if you're in it it can
15:24feel really frustrating and really
15:26confusing but if you keep your eyes
15:28glued to the bid in this circumstance
15:31because remember the buyers have just
15:32won so we expect the buyers to remain
15:36there we're going to keenly observe the
15:39bid as price starts to come in as the
15:43potential for this failure occurs but we
15:47can watch and observe if the biders
15:49continue to buy into this 131 area and
15:53above 131 A5 we should have a really
15:56good continuation trade High higher
16:00we're watching as the volume is starting
16:02to taper off you can see the volume down
16:05here on the chart starting to taper
16:09off and we see those buyers really
16:12really stepping in and holding the bid
16:15you can almost feel it like there's more
16:18buying There's real buying stepping in
16:20here these little dropouts become this
16:23tremendous amount of information for us
16:25because as we see a Dropout then we're
16:27seeing the buyer step right back in it's
16:31giving us an opportunity this is putting
16:34us in a position to if we want to buy
16:35Above the high of this little
16:37consolidation where those sellers were
16:39at
16:4013180
16:4213175 we can be a buyer above that level
16:45with our stop just below where we see
16:48the buyers
16:49currently but we're not predicting
16:52remember we're waiting to see that buy
16:54program kick back on those big players
16:57step in and really take the tape High
16:59higher we're looking for a clear and
17:01distinct change in the way the buyers
17:04are participating they're certainly
17:05there you can see them they're not
17:07letting it drop it's now spent a little
17:10bit of time Above This level now let's
17:12look for a change now let's see if they
17:14can step in and clear that
17:1713175 there's the offer let's watch the
17:21bid they're trying there's a little
17:23battle here who's going to win now we
17:26distinctly see the buyer stepping right
17:29back up now we want to see price
17:30accelerate up through the level we had
17:33our entry now we want to see the buyer
17:35sustain we actually want to see the
17:37volume bars increase as we go as well
17:40but our eyes can remain glued on the bid
17:43because we can just sit here and watch
17:45the price action we should see the
17:47buyers step up and step through step up
17:50and step through we can speed the tape
17:52up even more so we can look at a little
17:54bit more of this
17:56move the tape is 5X now so it's going to
17:59look really fast but just put your eyes
18:01on the bid watch the biders stepping up
18:05and stepping through any seller that
18:08shows up on the tape there's a little
18:10bit of a pause and then the buyers
18:11explode higher they just keep taking the
18:14price action more aggressively to the
18:16upside that's the expectation that we
18:19should have for any good breakout
18:21especially one that holds such a key
18:24area like what we saw at that 131
18:28we'll accelerate the tape even faster to
18:31watch as we see the price continue to
18:34step through as buyers continue to press
18:37higher and higher as the as the selling
18:40just dissipates as the buyers continue
18:42to aggressively drive this price higher
18:47we go on and on and on about different
18:50situations but you get it we just framed
18:53the opportunity and we frame that
18:55opportunity with how we expect
18:57participants to act without a frame
18:59you're likely to miss key things on the
19:01tape it's like seeing a single tree and
19:04then trying to navigate around that
19:06instead of looking at the whole Forest
19:08first and then isolating that best path
19:12forward all of this gives us a path
19:15through the forest an idea of what
19:17should be happening what's to come and
19:20where we can put our Focus while we're
19:22reading the tape but we can't avoid
19:24mistake number three mistake number
19:27three is hesitating to act the tape
19:30gives you this fleeting window of
19:32opportunity waiting too long can mean
19:34missing the best entries so we have a
19:38stock driving down into a really key
19:40support area and we can come in and look
19:43at what's going to happen in the tape
19:44but we have to remember there are
19:46moments of really clear opportunity that
19:49get presented very cleanly on the tape
19:53we have to be very open to them and
19:55willing to act as soon as we see that
19:57moment of opportunity
20:02so right now we're seeing the price Bop
20:04right around 90 there's a buyer at
20:0790 we don't see them with size but
20:09they're there you can see every time we
20:11go below 90 there are Wicks or fast
20:14moves back above 90 we're waiting for a
20:16moment of opportunity there isn't a lot
20:19of information here we can kind of maybe
20:21say there's a buyer at 90 but you know
20:23my Stop's a little lower but we don't
20:25have really clear and concise
20:27information on the tape presented yet so
20:30all we have to do is sit there and wait
20:32look for something to happen that gives
20:34us a clear and distinct Edge and then
20:38when that edge occurs we can act and we
20:41can act quickly when we're watching the
20:44tape I'm just seeing the price action go
20:46back to that first point that we made
20:48and it's just kind of bouncing around
20:50here yeah they're trying to buy it
20:52higher but they're selling it every time
20:54it lifts and then they're selling it
20:56back down and then all of a sudden size
20:59starts to show up on the bid you see
21:01that big size right
21:03there let's see if they come back if we
21:06press back into that 90 let's see if
21:08that big size comes there there's that
21:10size again right at
21:1490 well shoot if this breaks lower this
21:16should be a really good trading
21:18opportunity we have that consolidation
21:20if we can break to the downside and take
21:23out that big bid this should be a really
21:25good trading opportunity for us
21:31you can see us as we're getting closer
21:32and closer now we start to take out that
21:35bid you can see us clear that entire bid
21:38with no hesitation we're just selling
21:40right into that level it gets taken out
21:42quick
21:44drop but it didn't go anywhere and
21:47immediately we're back above that is a
21:49moment of opportunity for us we just
21:52took out that really big bid and we're
21:54not going any lower so if we clear above
21:58that
21:599025 where those sellers were previously
22:02that's a tremendous amount of
22:03opportunity for us because the buyers
22:05did everything they could to defend that
22:07level they were there with size the
22:09sellers took it right through you would
22:11think the sellers would have knocked it
22:12a point lower and they weren't able to
22:16so we finally have a moment of potential
22:20opportunity and we can play that move in
22:23either direction either the sellers are
22:25going to take it right back down and we
22:27could short it if we get below that
22:308975 or if we get above that 9025 we can
22:34go long
22:36this when that size gets taken out in
22:39that way the price should just break
22:40aggressively lower and it didn't so we
22:43can just wait and see and it looks like
22:44the buyers are trying to step it up
22:48now the buyers are remaining on the bid
22:50and the sellers haven't
22:55lifted but once they lift we have a
22:58moment of
23:00opportunity we can enter long with about
23:0250 cents of risk looking for us to go
23:06all the way up to at least
23:1392 pay close attention to the bid don't
23:17worry about the offer look for the bid
23:19to step up and through or if the sellers
23:21come back in with aggression then look
23:24for the sellers to come all the way down
23:26and take us back below 90
23:39we see size coming in on the
23:42bid and all of a sudden we're pushing up
23:44and now we see that moment of
23:46opportunity that was our moment right
23:47there this is our moment that we can
23:49enter this
23:51trade we saw an indication that that
23:55moment might occur and that allowed us
23:57to get prepared to enter that trade when
24:00we saw that tape lift above that
24:039025 let's speed it up and let's look at
24:06how this move plays
24:09out you see that quick acceleration as
24:13we tried to press below that 90 we took
24:15out all that size and then we finally
24:19cleared that mini consolidation right
24:21there this is where the buyers can step
24:24in and they've started to win this
24:26battle think about it in this way the
24:28sellers did everything they could to
24:30drive the price action lower the buyers
24:32did everything they could to defend it
24:34and for a minute it looks like the
24:36sellers won but then the buyers never
24:38dropped this created that opportunity
24:41for us to wait for that distinct and
24:43noticeable change as we got that change
24:47it gave us a trading opportunity to act
24:50the tape told us this entire story
24:52before the chart could this mistake
24:54happened so often early on and I'll say
24:57this to you having seen Traders get
24:59immediate Improvement in their trading
25:01through our scalp radar course and
25:03through the tape reading we teach it in
25:06many many many Traders know way more
25:09than they give themselves credit for
25:13they learn quickly when to execute what
25:16they're looking for on the tape but then
25:18they get into those key moments those
25:20pivotal moments and they put themselves
25:22in the right position but then they
25:24hesitate to
25:25act it almost always comes down to one
25:29simple thing are they in a predicting
25:31mindset or they in a reacting mindset
25:34you can ask this yourself this question
25:36during the trading day and especially
25:38when you're reading the tape am I
25:40predicting or am I just sitting back and
25:43reacting predicting is dangerous it's
25:46allowing many of the what ifs to creep
25:49into your mind and it creates this
25:51paralysis by
25:52analysis reacting actually slows time
25:56down you're open to the information
25:58presented and you give yourself a
26:00freedom and a playfulness to all of
26:03this now that we're avoiding noise we're
26:05looking for the right opportunities and
26:07we're keeping ourselves in a reactive
26:11State now we can talk about the most
26:13important mistake people make when
26:15they're reading the tapable I think the
26:16number one mistake people make and the
26:19most important one is when Traders
26:21misinterpret large prints or they
26:23misinterpret sweeps large prints are
26:26just larger than normal size occurring
26:29either on the bid the ask or in the time
26:33in sales people so often associate that
26:36with needing to be a big player that has
26:39far more in their order book that
26:41they're looking to
26:42execute that's not always the case
26:45sweeps are when you see a quick move in
26:48One Direction price sweeps higher price
26:50sweeps
26:52lower a lot of times when those are
26:54occurring you're actually looking for
26:56clues that aren't there
26:59not all large prints signal a move
27:02sometimes they're just liquidity fills
27:04or they're spoofing tactics you need to
27:07understand the context and that context
27:10is built from what happens after those
27:12large prints what happens after those
27:15sweeps where a bidder comes in
27:17immediately and clears the book or an
27:19offer comes in and sweeps lower what
27:21happens after that sets the context so
27:25clearly all right so we've got a really
27:28aggressive selloff that's occurred right
27:30from the open we're watching The Price
27:33action here and we're in that moment of
27:35a little bit of pause we don't really
27:37know what's going to happen so we can
27:39sit here and wait for the tape to give
27:41us a clear indication I'm not saying we
27:43have something in either direction at
27:44this point but we're waiting for the
27:46tape to give us a clear indication of an
27:49opportunity that could be presented to
27:52us a lot of people will say oh you can
27:54just read the chart and you can fully
27:57respect that effect but I always think
27:59the tape gives you a little bit more
28:01nuance and a little bit more detail
28:05about what's to come who's actually
28:07driving things right now is it the
28:10buyers or the
28:13sellers If the sellers are coming
28:15through we should expect really
28:18sustained selling pressure the same
28:20selling pressure that's been there for a
28:22while we should expect the up moves to
28:24be gradually sold we should expect the
28:26sellers to just be be
28:29there if the buyers are going to step in
28:32we need to see some sort of distinct
28:34change occur so our eyes are going
28:37between the bid and the offer we're
28:39watching The Price action as it's just
28:41kind of chopping around right in here
28:44then we see the sellers step in but with
28:46a lot of
28:47aggression you see us get taken
28:50lower and then even lower so our eyes
28:53can go to the offer and do we see the
28:55sellers are they there
29:00it feels like they might be there for a
29:02second we saw sweep
29:08lower sellers pressed down once
29:13again but then immediately we see a
29:16sweep back to the upside now we get to
29:19switch our eyes from the offer to the
29:22bid and if the biders take us above that
29:25275 just like that we can see that clear
29:29change on the
29:30tape we can see that moment where the
29:33sellers swept price lower were not
29:36rewarded and then the buyers immediately
29:38stepped in and took us all the way back
29:41up and through that prior
29:44area these are all very different but
29:47very important things to notice on the
29:50tape we'll go back and watch that one
29:52more time just to really get a good
29:55sense of what was happening and how it
29:57occurred occurred watch again as the
30:00buyers are right there and there's a
30:02little battle occurring and then watch
30:04the offer watch the bid watch as price
30:07and the sellers step in and sweep
30:09everything
30:15lower it's almost like that cell program
30:17just gets aggressive and then more
30:19aggressive and then more
30:23aggressive the sellers aren't letting it
30:25lift at all you see that sweep lower
30:26it's like they don't care what price
30:28they're getting filled at they just want
30:29to get those shares
30:31out but then what do the buyers
30:37say sellers are standing on that offer
30:41at 274 they're not letting it lift at
30:43all and then the buyer say okay I'm
30:46going to flip on a buy program and it's
30:48time for us to get
30:49started we don't have to do anything
30:51quite yet the conservative thing to do
30:53is wait until we break above that
30:56275 almost 276
31:00area but we can watch and see what would
31:03we expect to see to the upside we would
31:05expect a sweep those sellers that tried
31:08to press it lower couldn't now we have
31:10the price action on our side now we can
31:13look for a distinct and clear long we
31:16can watch the bid as the buyer should
31:18step up and step
31:20higher we noticed that change we saw
31:23that moment where we swept lower the
31:25sellers were not rewarded anymore and
31:27and then the buyers took us back up and
31:29through and we can watch as the price
31:32action unfolds you can see the buyers
31:34stepping in and you can see the sellers
31:36trying but the buyers are just there
31:38they're
31:40persistent every time we drop out 10 or
31:4320 or 30 or 50 cents the buyer steep
31:45right back up and through this is the
31:48sort of tape you want to see if you're
31:49looking for a bounce here this is
31:51absolutely not the tape you want to see
31:53if you're looking for a continuation
31:55short as you look at a sweep lower well
31:59you could say look at that sweep lower
32:01but then immediately it's bought up and
32:03the bids step higher the context there
32:05tells us this is an opportunity not a
32:08threat we can react to the opportunity
32:11because we're reacting we're seeing it
32:14being presented to us we're not
32:17overvaluing the context of what's
32:20occurring scalping trains you to read
32:23the tape on micro time frames it allows
32:27you to refine entries and exits
32:30efficiently so these skills are
32:32transferable to much larger trades but
32:36if you're watching the tape at a
32:38critical resistance level scalping
32:40teaches you how to spot those hidden
32:42buyers or sellers that are actually
32:44there those context shifts that will
32:46dictate what's going to happen and take
32:49advantage of those before others are
32:51able to scalping builds discipline it
32:54helps you sharpen your focus we start
32:58all of the Traders on our desk with
33:01scalping and then we help them read the
33:03tape so that they can take advantage of
33:05those opportunities and they train
33:07themselves to take advantage of those
33:09key opportunities when they're presented
33:12but if you're serious about leveling up
33:14your scalping game let me introduce you
33:16to a tool we use at SMB it's the scalp
33:19radar so the scalp radar identifies high
33:22probability scalping opportunities based
33:24on those key tape patterns based on
33:27what's Happening under the surface it
33:29allows you to focus on the most
33:31actionable trades in real time it kind
33:33of removes a lot of the guesswork and it
33:35helps build your confidence in your tape
33:37reading and your ability to execute
33:39scalping strategies so if you're ready
33:42to take your trading to the next level
33:44check out the link and learn more about
33:46the SMB scalp radar and you can actually
33:48see it in action tape reading is a game
33:51changer for intraday Traders but
33:54avoiding these mistakes and practicing
33:56scalping can help you make all the
33:59difference in your trading start by
34:01identifying which of these mistakes
34:03you're making and focus on improving one
34:06area at a time if you found this helpful
34:09hit the like button subscribe for more
34:11trading tips and drop a comment below
34:14with your biggest challenge in reading
34:16the tape

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