An Introduction to How We Use Reading the Tape to Make Profitable Trades ($TWTR)

In this video we learn how reading the tape and can be used as an effective trading indicator. Register for our free intensive trading webinar smbu.com/mike
#ReadingTheTape #TradingInidcator #daytrading
SMB Disclosures www.smbtraining.com/blog/smb-...

[@Robert-wb8ok]

This is real teachings here, not those Lamborghini dudes trying to get you to buy their course and no real detail all hype. This is so educational. Thank you guys

[@CubanCigars]

Steve Jobs as a trader

[@kylebroussard5952]

Dude every time I see him and bear him talk that's all I can think

[@JordiRuns]

Steve Jobs teaching Mark Zuckerberg to trade.

[@toulasantha]

Looks like him too aye…

[@user-nq8tr1hw3w]

😂😭

[@dontecrawford4341]

🤣🤣🤣

[@RobHavemeyer]

Such a great recap! Amazing example of diligence, effort and work ethic that it takes to make a difference as a trader. There are no shortcuts! Put in the time do the work and make good decisions. Thanks for posting!

[@mbellafiore19]

Thxs Rob!

[@smacpost3]

Thank you for this video. I am going to spend extra time watching the tape until it becomes instinctive. Also, i will consult my master check list against the conditions of each ticker, identifying high probability scenarios, and I will plan entries at areas with low-risk with clearly defined stops and pt, and I will use L2 as advanced confirmation for shifts in momentum.

[@mbellafiore19]

almost all the top traders on our desk use Reading the Tape to make better trade decisions. so this in an excellent goal for you.

[@off-basepodcast9665]

Bella - Thank you very much for sharing your content with us. I (like Eugene) continue to be in awe of the work you guys put in before making trades. This video was particularly valuable because of the specificity of the Level II descriptions. I'm going through DNA right now and hope to connect with you individually at some point in the future as every SMB video that you all post continues to provide me with confidence that becoming a CPT (Consistently Profitable Trader) is attainable versus all the "wonderful" guess-work I had been previously putting in. :) P.S.: i just scrolled through some of the comments (after posting the above) and noticed how many times you replied to individual posts, Bella. And here I thought you were impressive before. Well, NOW....

[@mbellafiore19]

you are welcome Dr. MTV

[@jerryjohns6619]

Hi Bella, I just bought the audio version of "One Good Trade". I totally missed out by not buying it sooner. The book speaks to all traders whether you trade stocks or not. It's witty, entertaining, funny, and knowledgable. Thanks for writing it.

[@johnmoney7626]

How has your trading been as of recent ?

[@chihaij]

Such a pleasure to watch your videos and learn everyday from you guys. Great job SMB.

[@smbcapital]

Thanks George

[@mbellafiore19]

gr8 they are helping George

[@joewimer]

Wow, what a great breakdown on what to look for on the tape. Well done

[@smbcapital]

Thanks Joe!

[@tln8424]

Just found this vid on level 2 and just read your book "One Good Trade" outstanding insights for a new trader like myself. I am continuing to absorb level 2. Thanks

[@smbcapital]

Welcome aboard!

[@nikolayivasyuk2280]

Thanks to Evgene I started my trader's path. Waiting for your next level. Thanks for SMB videos.

[@eugenesmb5741]

Коля, то-то думаю лицо знакомое )

[@doom014]

Watching a lot of SMB content in the last 2 months, always good stuff. Currently in the middle of Adam Grimes' epic technical analysis bible, was super cool to see both Mike and Dr.Steenbarger mentioned in the preface. Cheers from Vancouver!!

[@niccc8951]

this video is gold i will keep watching it over and over again. Thanks SMB capital

[@luisrivera-os1fe]

Thank you for creating this video. This video has helped me open my eyes on how much it really takes to become a consistently profitable trader. I was treating this as some sort of hobby that I could master by dedicating an hour or two a day. From what ive seen in this video thats NOT the case. I will start dedicating more time to this, I hope I can one day become profitable. Have an amazing day.

[@transcendenttrader2078]

I just wrote a review of another SMB video, complaining that they don't do enough meaningful instruction on real-time tape reading. I feel kind of bad about that now, as this was a great video on the subject. Thanks! SMB is the real deal. Thanks Bella and Steve Spencer and all the gang, I am becoming a better trader through the SMB Trader DNA program.

[@lightkirsche]

SMB capital is truly in tune with what I need in trading education. I look forward to taking the course in the very near future.

[@austin6174]

This was amazing. Thank you!

[@calico9901]

No one does it better than SMB. Thanks a million for providing quality content for the trading community!

[@smbcapital]

thanks! we will keep the content coming

[@mbellafiore19]

thxs for appreciating our contribution to the trading community!

[@ntbarone]

This is Huge! Will implement in my trading to help me better gauge direction as it sometimes becomes unclear in lower time frames. Thanks Mike!

[@jasonm8755]

Love the videos guys! Cant wait to get into the course next month.

[@monicasmith936]

Mike is so awesome! I absolutely love him. He turned me profitable, just through these videos.

[@Nyufly]

The tape shows you how the evil market makers are trying to steal your money lol. Powerful.

[@joefeinstein6804]

"the tape is the best indicator of what's going to happen" - great, great, great. More videos on tape reading if you can!

[@Posterharpua]

Mike seems like a really great teacher and I wish I had access to SMB capital so i could improve myself as a trader. These videos are an amazing resource though.

[@rosarioporalmasdelpurgatorio]

SMB excellent as always. Thank you for all you do.

[@MrBardm]

Love that you can actually ask questions during the video premiere. Thanks!

[@smbcapital]

Thanks for chatting in there!

[@mbellafiore19]

yeah that was pretty cool. we will try and do some more of that on special videos.

[@vincewilkes]

I'm 3/4 through One Good Trade and I'm like...I've got to learn to incorporate this if Bella is this adamant about how powerful it is. This is the first video on reading the tape that it's starting to make sense to me. I can feel it clicking! I also noticed that his T&S doesn't print anything less than a 1k. I made this adjustment on my own platform so I could follow along and wow...it makes everything so much clearer. It slows it down and helps me feel buying/selling pressure.

[@eddyvideostar]

Dear Vince Wilkes: On many occasions, even the "tape" is not genuine, let alone Level Two. Dark pools abound, HFT machine works their machinations, transparency is muddied, glittering coruscant flashing of transient data unusable for the next two minutes: Market makers buying and selling the same stock at the same time will stultify the suckered.

[@vincewilkes]

@@eddyvideostar I don't trade like this anymore and I'm not trading equities, either. :)

[@eddyvideostar]

@@vincewilkes: I agree with not trading "flashing lights" of the tape and Level Two, as the whole modern concept of this is self-defeating, *knowing* what insidious things are going on. What do you trade and how?

[@vincewilkes]

@@eddyvideostar I'm trading EURUSD and GBPUSD. Price action trading/Inner Circle Trader on youtube, for a bit over a year.

[@eddyvideostar]

@@vincewilkes Basic price action is good (although I'm not a big fan of Forex). When the vehicle rises, you're on board. When this heads down, you disembark. Excellent.

[@denvercolorado811]

I learned from this video to watch for the big orders and areas where buyers are getting absorbed and sellers are getting absorbed. I want to get better at reading the tape to make better entry and exit decisions because all I use right now is the 10 sma to tell me when to enter and exit but I dont really use the sales tape as much as I think I should

[@mbellafiore19]

well then good to start working on this skill of Reading the Tape to add to your trading.

[@eddyvideostar]

@@mbellafiore19 Mike, if you must, use the "tape" in *conjunction* with your TA, news, market motions, etc. Do not depend on just the tape and Level Two. At best, the Level Two and tape are transitory. This serves to provide a few seconds of scintillating seductive action, then reverses itself. It is a manipulatory tool used by the super-savvy market makers and HFT machinators to entice the gullible. An oasis often turns into a mirage. The succor this seemingly serves is for suckers.

[@qu1sk]

mus be cool sitting in a room with other traders and being a part of a team ... i am sitting alone and have nobody to talk to :(

[@907Blademan]

Work on some VR trading stuff Mike. For traders it be like you putting us on the moon!

[@pipibrasci823]

how i crave to be around traders with on the same level as I am where we discuss and share setups and make money and have fun. Its fun to be with people who love what you love too.

[@d.c.484]

It's good to chat with other traders who have the same trading style as you.

[@pipibrasci823]

@@NM-ex4jk sorry bro what would it offer?

[@faudel5772]

I lost 30 000 dollars I lost 30 000 dollars with many teachers and signal sellers. All of them needed me only for money and nobody cared about my education and view of the market. NOBODY! I saw Yuril Zubong's screenshots and couldn't believe that for that money that man can teach you except common things I have discovered for the past 2 years. But when I lost everything I mean ALL money I decided to try SQB AMAC course". Every day I am deeping into education for 4-6 hours a day, even weekends and I see the progress. Even for I week, I push $6 to $160. Today I finished the practicing on the tester starting from $100 and end my day with $500 Yuril Zubong wherever you may be, Thanks for priceless knowledge, courses which I read, watch, and listen EVERY DAY!!! God bless you for your huge efforts you giving to people in your community

[@gavirialive]

Awesome video, the tips here are great! Thank you.

[@PauloSousa-wf6mg]

That's the missing part of puzzle! Thank you so much for the great video and stay safe!

[@danielwestereng155]

Thank you guys dearly! I made a cash account. so i can begin my intraday trading officially. I have been working on learning more about my scanner. Im looking for stock between 1 and 15 bucks. looking for a 1% volume increase min. since the past ten days i also set up a longer term volume scan for 90 days volume increase also. So far im finding i lke stocks under 15 with a min ATR of .60 and a min 60 day Rvol of 2 I set up a three different time and sales chart. (size changes with stock price) I use one for above 1k one for above 2k and one for above 5k orders. It really helps differentiate when the big orders start flowing. I started setting up alerts to notify me of critical points where a stock might have follow thru. I hope one day i can be as good as you all! LETS GOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[@timvu2567]

thank you smb for the valuable playbook trade details and tape reading skills!

[@mbellafiore19]

you are welcome Tim

[@smbcapital]

thank you tim!

[@willbobig]

This video has easily changed my thought process & morning prep. I absolutely love the 'playbook'.

[@smbcapital]

Perfect!

[@user-fu2bt7yq7q]

I'm from Russia too. Женя, поздравляю! From Russia with love!

[@eugenesmb5741]

Спасибо, Дим )

[@traderjones5954]

I just signed up for your webinar. Can’t wait to see what you have in store 🙂

[@jameyrichardson8757]

Great Video - Thank you for sharing your knowledge. Reminds me of reminisce of a stock operator. Reading the tape has been around forever and still is effective in trading. Love your Videos

[@brianshepard5737]

Awesome video Mike. I like the continuation trade approach with confirmation from the tape along with the checklist.

[@mbellafiore19]

thxs Brian. look forward to getting you in the hot seat to do a review soon.

[@danielkomar6095]

Amazing LIVE review!! hope you guys continue these live streams as they are very interesting and insightful!

[@smbcapital]

Thanks Daniel, will do!

[@mbellafiore19]

thxs Daniel. yeah that turned out to be a good idea. (thxs Kurt! whose idea it actually was at SMB)

[@jetal0]

Another great video, thanks SMB!

[@mbellafiore19]

Thxs Jason.

[@frankd1156]

This is pure gold...I was missing something .......

[@paulgovor]

This was very helpful, more videos like this

[@mbellafiore19]

noted

[@eze6246]

Hi how long after the order shows up on the tape does the candle change on the chart? It seems to me that it's instantaneous but I've heard that the chart is delayed by several seconds? Is there any consensus on this?

[@Bantaah]

This is an amazing video, thank you

[@stevesyoutubechannel1433]

Greta video with several key lessons - highlights the value of reading the tape.

[@RawNoLimits]

Very thorough analysis Eugene did here.

[@patrickmercader238]

Based on Mikes closing remarks, this guy puts some hard work in. I am a Workaholic sometimes as well and I cant wait to make more in trading than my day job and do it consistently so I can just trade and study the whole day. lol. Started 2018 blew first account and now with a few losses around my belt I have learned quite a lot. Just made 4.2k today from NVDA. I just need to know how to find opportunities like this even if its not earnings season.

[@michellejohn695]

I am confused at times reading or trying to read the tape.I need to learn this well.At 10:16 level II shows bats with brackets around the number 38.What do the brackets mean? At around 10:20,he says the stock is struggling and all prints are absorbed.How is that confirmed?By looking at price on the chart ?

[@donniereidjr]

I love this video. Its powerful. I love the way you implied that you should have a short and a long thesis. I have been wrong because I have always been biased and tried to predict the direction of the market and have lost each time trying to do it. I think the tape tells the story. I never looked at the tape like that. My due diligence needs help. Prayerfully I can get that through your teachings.

[@naseebrai5409]

Just amazed to see you in real, just had a imagination of you reading the book "One good Trade"

[@ehudkrispil]

Great content as always - Honing in my reading the tape skill is at the first degree level - Thank you Eugene

[@smbcapital]

Thanks Ehud!

[@mbellafiore19]

Thxs Ehud!

[@eugenesmb5741]

My pleasure, Ehud. Thank to smb )

[@chihaij]

@@eugenesmb5741 check FB please

[@t_tymetrader4129]

Great content. Thank you.

[@menglin4544]

thanks for the video. I have a question on dma. I think having direct market accesing route is very important for trading. My broker has Arca and nsdq for direct maket accessing but I dont know which one is better. I want to have a fast speed execution.

[@elitradesmomentum]

This is awesome content! I've been looking for methods I can understand... I am now a life long subscriber! Also, I am listening to One Good Trade on audible 👍🏼 Thank You! From Gallup, NM☀️

[@mbellafiore19]

Welcome EK!

[@gennytrickett1580]

Best trade video to date; guy really had his chops down

[@sandstorm973]

Another amazing vid!

[@utuber13x]

its so nice that I didn't learn to read the tape here, thanks for wasting my time totally appreciate it

[@julienriegel8246]

What a great video. Thanks

[@mbossom22]

Yes im working on my reading the tape skills, thanks Mike

[@RogueMoney]

Another vids of tape reading with multiple examples will be beneficial. Thanks

[@LogLab]

This was amazing!

[@alexrebano7189]

The red prints represent Bids or Asks? Upticks or downticks? I have Sterling pro and its default is that Ask is Green and Bids are Red.(It gets me confused)

[@savalisadkins4709]

I would like to join this class. I like the idea of a team effort. Everyone push eachother to be their very best.

[@warrennorton5974]

Excellent video.

[@chr971]

Hi Bella, 10:59 apart from 39k big selling print, we can also see green prints like 10k, 7k, 5k on levels like 30.49,30.50,39.60. Why does it not look like bullish/reversal sign coupled with green candle on chart?

[@vicentez9171]

Where can I find these tapes since im trading through a NDD broker or is there another type of software just to track the tapes?

[@pepebarett]

Im watching almost your video smb thank you

[@smbcapital]

thx pedro

[@surfthemarket7545]

My trading platform doesn't distinguish inside orders as hitting the inside bid or inside ask, they can only be colored one color. I am using DAS. It's kind of annoying because I notice a lot of big orders that come in on the inside. How do you guys view inside prints?

[@ken34258]

Great video once again.

[@mbellafiore19]

Thxs Kenneth. Love your consistency to training.

[@emredincer7750]

Excellent content.

[@calabaza1702]

Thanks for the video, is it true that you also have to have a reliable level2? I have TorS and hear that I can only see 60% of orders going thru

[@smbcapital]

We use Great Trade for our trading platform which is an in-house platform with market data from multiple sources. It may depend on where you are getting your data feeds from so potentially you might not be seeing everything

[@aarlowhammerbackk9595]

I ran TOS and DAS at the same time. They are basically the same, just a difference in how the orders are broken up.

[@mo938]

at 13:15 what is the far right window of? says FINRA at the top?

[@adriansainz8254]

I’ve been trying to find a place to be able to read the tape, to add another tool in my tool belt when trading. However I haven’t been able to find any software or site that let me see the tape. Any suggestions on where I can possibly get my hands on it?

[@jahmirpeavy2976]

learned a bunch thankyou

[@georgevukelich607]

Awesome content.

[@vladislavkravchenko2687]

That was amazing! I am also from Russia, but I am trading CME futures, not stocks. And I use tape as well. So it helps me to understand whether the price is ready to go up or down and more than that - reading the tape is like a meditation; as for me - it helps to avoid emotional trades. But some times I feel, that there could be some set ups of tape, that could be helpful to implement if you know about them. What do you think of SMB Capital making some detailed lessons about the tape or some general rules of the tape. E.g. : when I am planing to open long position I am observing the tape nearby support level; 1. Looking at Bid. If there are bid trades with no result (down step of the price) I am switching to attention to ask trades; 2. Looking at Ask. If there are ask trades with blocks and price steps up, I am switching my attention to place limit order to buy; 3. The problem is. Some times even if the price is going up there is still Strong Seller on the market and I see him on the tape. He, maybe, gave the price a bit of time to grow, but in the end he would hit bids a lot and move the price down. Maybe at SMB Capital's lessons or info there would be possible to get some rules that could help traders to avoid such situations - when you are right with the position, but not till the aim you planned. Or I have just missed this info ? Correct me please if I did so. Thanks a lot for your video and for your sharing info with all of us!

[@renjia3504]

Hope everything is going alright for you guys over there

[@imesei80]

Thanks for sharing this genuine trade review with Eugene. I will definitely continue to improve my tape reading skills. One question : do you follow the tape all the day or do you focus on tape for example after 11:00 am only at around key levels. What i noticed is that tape may not be very meaningful when the volume dries during midday.

[@mbellafiore19]

we watch the tape very closely on the open and closely on the close. we trade less midday and employ different strategies so we would still use the tape. but we would focus on it less Ismail.

[@imesei80]

@@mbellafiore19 Thank you for taking the time to answer developing traders questions

[@jambear7862]

In regards to the tape being implemented onto the candlestick chart in terms of bid ask footprint chart. What is SMB view on this, as it seems it would be much more useful? Thanks in advance

[@danchashepherd4415]

I've been studying Al Brooks course, it seems more complicated to mix tape, fundamentals and chart. But if you can made money doing it, power to ya.

[@poppapips7493]

Glad someone was there to explain what they think the trader was trying to say because the trader sounded very confused himself

[@keen2461]

Have a bit of common sense! He wasn't confused. He's trying to explain something on another language that is not his native. Can you explain quickly what's through your mind right now in Russian?

[@kmeyer7777]

I sent my request for the free 2 hour training today and did not receive any link in my email? Please advise. Thank you.

[@gennytrickett1580]

Best trade video to date

[@LegionofMenTV]

Is there a way to get access to the SMB trader videos like this?

[@sukrajrai1265]

Thank you

[@dinosaurperson2349]

So if there are big green prints at a key price but it doesnt move higher, then this is bearish? Seems a bit counter intuitive because the prints are green, not red. (This is for when the stock was going up before continuing lower)

[@tonydavar7303]

great videos

[@jhefryzelaya1167]

Level 2 is on the left side but what is on the right side of the screen?

[@ruizhiliao2410]

Great video. Quick question: what is Tier1 Tier2 order? Is it part of the entry strategy entry the 2nd part when we are more confident?

[@thelongislandguy]

I have the same question.

[@lorraineming4590]

It looks like it is size management

[@Monkey.Trades.Futures]

i wish there was a company like this in my neightberhood ;)

[@dooleyh158]

I used to get cross-eyed trying to read the tape but now it's instinctive and I use it to tell whether resistance/support is going to hold or break.

[@smbcapital]

practice practice is key

[@JohnnyMachete]

thank you very much

[@user-kf3zb9tp2p]

thxs

[@himanshushah9965]

Hi !!!Love from India. Great learnings from your videos. Is there any fundamental difference between a screen reading and tape reading or they both are same? Looking forward for your reply. Thanks

[@vicemanon]

Hi my issue is that I dont like to be around other traders when trading. Any way I can remotely learn with smb?

[@superinvandrare9326]

Hi i have a question! i thought that Big sellers on level 2 or on the tape means that the price is going to get higher. and big buyers means that the price is going to get lower

[@popkahchin]

Super Invandrare only if it stays there for a long time and does not change then it is valid for your theory, otherwise, it will not work that way.

[@superinvandrare9326]

@@popkahchin i need a replay from SMB capital for Confirmation

[@TheBeastHaerup]

You might be thinking of "spoofing"

[@niklaswagner2511]

Big sellers on level 2 (order book -> limit orders) is something diffrent than big sellers on the tape ( market orders) . Sellers in the order book are limitorders on the offer and they are hitten by buyers with market orders that you see on the tape. buyers in the order book are on the bid and are hitten by sellers ( market orders on the tape). when big sellers (tape) hit the bid and buy everything on a price lvl the price gets lower. But when you see big sellers in the book the price could go higher cuz there is the liquidity. if there are not enough market buyers and the offer holds the price might get lower again :D etc. too many scenarios. but make the diffrence between limit sellers (order book) and market seller (tape) . PLEASE someone correct me if I am wrong .

[@keen2461]

@@niklaswagner2511 Very well explained....at least that's how I understand it too.

[@jaimechavez4438]

Is >1000 share tape print filter a common theme on the trading desk? One of my favorites from you. Thank you to the SMB team and Eugene for sharing.

[@smbcapital]

Jaime, it all depends on the type of trader. Some find it helpful. It's something you can try and see if it works for you. If you like it and find it helps go for it!

[@ganeshsai2112]

@@smbcapital If I sign up for Trader DNA, would I receive great trade platform along with stock screener every day?

[@jamesmcgall70]

Hey Bella, my question is more about how I can measure or quantify my progress in Reading the Tape and, when I find that I’m doing poorly, what I need to change to make myself better. Any insight would be greatly appreciated.

[@smbcapital]

We suggest uploading all your trades to tradevue and tag them and you can see your performance based on tags - should give you an idea on how you are doing.

[@Santa-9988]

what trading platform is that?

[@vincentjean6756]

Excellent.

[@mbellafiore19]

thxs Vincent

[@javiazar]

Which platform do I need to sign up for to see the tapes live?

[@achillesmcc5349]

Same question here. What platform is that? @smb capital

[@willeypickett9749]

@@achillesmcc5349 in another comment they said they use "great trade" but its an in house platform

[@allenc2289]

Please help me to understand time and sales better,I have heard two different answers .I have heard the Green means buyers and Red means Sellers.