Reading the Tape | Level 2, Times & Sales, and Price Action
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- čas přidán 25. 07. 2024
- In this video, I share some tips for "reading the tape".
Topics include:
1. Level 2 changes
2. Times & Sales and realistic expectations in high volume stocks
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0:00 - Intro
2:03 - GRWG Does the stock print higher when offer lifts?
4:27 - DKNG Intro
10:20 - GRWG inspection again
11:28 - DKNG trade entry
16:05 - Directed Trade "bug"
19:20 - back to GRWG, breakdown and playing with the algorithms
28:35 - more GRWG short attempts
32:51 - second trade DKNG
39:57 - ENPH inspection
44:40 - PYPL and its "effective spread"
48:47 - FB and reappearing price levels
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Followed since I found your video on setting up the buttons. I really don't short but it's the same theory as going long. That tape is so important. Thanks
Great video, really helpful to hear you discussing the psychology of what's going on based on the tape. Thank you for putting this out there!
Hi Paul,
I'm glad it was helpful, and I appreciate the support. Good Luck!
learned about effective spread, & a lot of cool pointers on tape reading :) moving the price on GRWG was cool to see I've never seen that before
Thanks Wizard Stein! I'm glad there was something interesting in it for you.
I’ve wanted to put my head over the shoulder of someone who trades this way, thanks for showing. Would love to see more of this if it’s not a huge distraction.
Thanks for the support Casey! More to come.
very helpful thanks..., definitely can relate to some of those directed trade glitches
Thanks S B!
34:23...."yeah, I think I'm doomed...." LOL. Know that feeling!
Hi Larry,
I got a good laugh looking back at that moment. Thanks for supporting the channel!
Great explanation, thanks.
Great vid. Been trying my best to understand Level 2.
Thanks Jin!
Thank you for this video. It's exactly what I was looking for and you seem really honest and detailed, not a lot of fluff or talking yourself up. Much appreciated. You're also one of the only guys talking about fidelity active trader pro so I feel lucky that you're detailed, honest, and to the point like that. Cheers!
Hi G0rd0nHealth,
Thanks for the positive feedback! I'm glad it was helpful. Only the honest truth from me, nothing to sell. Good Luck!
I've had the exact same issue especially if you open fidelity premarket. The quickiest fix go to conditional trades in settings and change a tab and save(not the tab u need). This is very frustrating. I find this works.
Thanks Michael! I am going to a put a message out to the community.
@@ThinkTradeProfit i wish there was a refresh tab upper left corner.
@@ThinkTradeProfit one question. Using ATR as a buy sell indicator how do I interpret the stat data on the right of the graph? Is it in dollars cents? Percent?
@@Mastiffman1 It's price in dollars and/or cents. ATR(14) = 0.09 Is average true range over the last 14 periods of 9 cents.
Hello Kent. Just like you said about the colors on the tape. With the ATP upgrade to .42 the tape colors are back. Much better. Haven’t heard from you for awhile, hope your well.
Hi Dale,
That's good news! I didn't get the update (yet). All is well, I have some family stuff happening and some side-work too. Hoping Fidelity would surprise me with some new features so I could make a video about those, but that hasn't happened. 🙂
So helpful, thank you for taking the time to show us your strategies. What system do you use for your Up Gappers and Down Gappers?
I usually wait till about 9:50am ET for my first trades. I like to use the 5 min chart to buy pullbacks or short moves upward. While keeping an eye on VWAP, I also like to trade off of the 50 EMA if an up or down gapper nears that. Support and Resistance from the previous 5 days or so may show some areas where I will enter if the stock trades near those levels.
a great display of what NOT to do ?
Great video. Do you use an active scanner you pay fir or just the trade idea one that lags by 20mins?
Hi Amy, No, I don't use any other paid scanners. The 'Filters' in Active Trader Pro are fairly decent for spotting the big movers in premarket also. I check Marketwatch in the morning also - www.marketwatch.com/tools/screener/premarket
How did you get the shortcuts on ATP to give you a 1 penny price improvement on the ask and bid inputs?
In Settings > Directed Trade > Stock shortcuts the one I used for the Bid side (to Buy) looks like this - imgur.com/D7a6CUk For the Limit field there is a dropdown, change that to 'Above the bid' by $0.01. My Short sell shortcut looks like this - imgur.com/sCyhnXZ This pic shows the options in that dropdown - imgur.com/AONsqCL
Hi Ken. Just a thought for that bug. You can open up another window of either trading armor or just another ticket entry window and have 2 opened order entry windows and pre-filled with your price levels prior to opening the trade. You can always change in other. One for sale and one for buy to cover and just click when ready. That way you're not screwed in middle of trade when something is not available. Just a thought. Is this bug still there?
Hi
Sebastian,
Thanks for the tips! Yeah, it still occurs, not regularly, but it happens. I think it happens if you have the platform and Directed Trade open pre-market, then transition into regular market hours. Market orders are not permitted in premarket, just Limit. Then somehow, the platform doesn't realize we are in normal hours after the open, and it doesn't allow market orders via the stock shortcuts. Fortunately, it doesn't happen all the time. I cycle through my shortcut keys after the open and check how the Directed Trade ticket gets filled. This has mostly kept me out of trouble.
Good morning Kent. Just discovered your channel, very nice content. Nice to see someone who uses Fidelity too :-) I was wondering if you have any experience running active trader pro on a mac. I cant find much positive about it online. Curious also, if you use a laptop for trading, what do you use? Have a good one, Gary
Hi Gary, Thanks for the support. No, no experience with Mac, have heard that some have trouble with it, but not everyone. Download the demo and try it. rewards.fidelity.com/RFI/signup/active-trader-pro-demo I use a desktop computer Windows with i9 processor and video card, but Active Trader Pro is not that intensive. I used to use it on a refurbished mid-level Dell laptop just fine.
if you have a Mac with M1 processor, try running the Windows app with Parallels in coherence mode. Slower than native Windows, but much faster than the Mac version.
Great content.
Problem with ATP is the technology. They are still using Microsoft Silverlight, instead of more modern tech. And still no VWAP. I been requesting that for years. Sorry for the rant.
I agree Rob. It has issues. I was trying to create some HotKeys with AutoIT and some libraries that would work with ATP. I can tell from some of the identifiers I found that there is some really archaic stuff to work around.
How do you get the chart that shows active prints on the bottom right?
Hi Shane,
Thanks for checking out the channel! I think you are looking for the Directed Trade window. That has the Time & Sales in real-time. Go to Trade & Orders > Directed Trade and Extended Hours imgur.com/aI3nIqE
I’ve noticed a lot of bugs with the Fidelity platform. My screen will freeze sometimes but I am using a Mac so I thought maybe that was why. It’s scary to be in the middle of a trade and have it happen. I use the regular order forms for my orders and they work better.
I have heard the Mac implementation of Active Trader Pro is less than perfect. I'm sorry.
If you have a Mac with M1 processor, try running the Windows app using Parallels in coherence mode. Not as fast as native Windows, but 100x better than the Mac app, which is essentially the Windows app packaged with Wine.
Kent, how safe is it to use Fidelity for scalping ? I have heard stories about Fidelity booting some of those customers saying they “were abusing Fidelity’s price improvement program “. Wondering what your thoughts are on this.
Hi Gary Trader, Interesting, I've never heard about that, but the Fidelity price improvements can be very good. I did a little investigation into that in this video - czcams.com/video/YfM_OW7TSkI/video.html . I have been scalping full-time since March. My trades are 3-7 minutes, but I have had plenty less than 60 seconds with +1700 trades this year. I would think that a rapid fire automated strategy might be abusive, but that is not possible through Active Trader Pro in any way that I know of. Fidelity used to have a relationship with wealth-lab.com which included an automated integration with Fidelity. It was only available to clients with accounts greater than $250,000. They removed all that info from their website this year, and wealth-lab is longer free to download from Fidelity for backtesting. Maybe some used that to take advantage of Fidelity?
Just an FYI. I was interested in what you mentioned and started digging around on reddit and found this - www.reddit.com/r/Daytrading/comments/fw0fr3/do_not_use_fidelity_if_scalping_my_account_was/ A couple people have had their accounts closed or restricted and apparently Fidelity does have a clause somewhere that reads "We reserve the right to limit participation, restrict activity or close accounts for any activity which may be deemed disruptive to the overall price improvement program." Interesting stuff!
what type of keyboard do you have I like the clicking noise
I have a few mechanical keyboards. The one I use right now is - Razer BlackWidow Tournament Edition Stealth - www.amazon.com/gp/product/B00IZXXF92/ref=ppx_yo_dt_b_asin_title_o04_s00?ie=UTF8&psc=1 Thanks for the support!
Not sure of others but the resolution on my view is low and we cant read much detail on any section of your full screen. You were combining a shorting lesson w the L2 subject so I'd prefer if you made a vid just to show a zoomed in view of L2 and a play by play of what each field is doing and why, for 15 mins long on diff volume stocks. Also please say the actual Fidelity field label names instead of industry jargon like "be in the offer" , "action", "printing in the middle". That would help me, when resolution is like this. Thanks for allowing comments and training newbies on Fidelity!
Hi
J r., Sorry about the troubles with the video. There is an 1080p HD version. imgur.com/gYjWLRE Did CZcams auto-play kick it down to low-res? It is probably best viewed on desktop full-screen. You have some good ideas. This video may be a little advanced for people new to the Level 2. I'll try to get them incorporated in future videos. Thanks for the support!
@@ThinkTradeProfit Thank you for considering my ideas.
Do you have a chat? would be interested in bouncing ideas
Hi Alpha_NY,
I've kicked around the idea of a Discord channel, but I'm not sure if it would be too distracting. Thanks for checking out the channel!
Can you do another live trading video?
Hi
Man16 man16,
I definitely plan to do another. Sometimes I think that my videos are not that helpful, because my scalps are so quick/short. Swing trades with good pattern setups are also something I hope to share.
@@ThinkTradeProfit I love your live trades I do recommend you go long more than short sometimes but otherwise your videos are very encouraging to me and the rest of your 2k subscribers. Happy Thanksgiving
1-1-23
Have you ever traded options ?
Hey AcebianPR 007
, I have before, but I do not have options enabled on any of my Fidelity accounts. I think I should change that. A lot of people have been asking about options trading with Fidelity.
Think Trade Profit But do you prefer trading stocks over options? And if yes, why?
@@trendaddict617 Good question. I think it's probably because I have spent so much time in stocks vs options. I got my start at a broker dealer on their Nasdaq market-making desk (stocks), then went on to prop trading stocks during the dot.com boom 1996-2001. Sometimes the I think the liquidity is better in stocks when I look at the volume in the stock options. I should definitely give it a try again in our current crazy markets. There are a ton of people profiting in options. I'll get options enabled on one of my accounts and give it another go.
@@ThinkTradeProfit The option capabilities from Fidelity are really, really good. Besides what you can do on ATP, their research offers daily 1-3 well-reasoned ideas, plus a list of stocks that can be traded by 17 strategies (e.g. selling condors, shows top 50 stocks by R/R for the next month).
@@imparooo Thanks imparooo! I actually applied online today for options to be enabled on one of my accounts. It should only take a couple days I imagine.