How to Use Tape Reading to Enter a Trade with Large Size

[@t.j.mueller--artfromabove1837]

Great example of using both tape reading and technical levels. Thank you, Bella!

[@smbcapital]

you got it!

[@mikeanis8554]

I really like what Sam said about the size coming in on the bid and it being taken out instantly. Great insight to tape reading here. The technical analysis also made the trade pretty straight forward which is also an important point. Great work guys

[@mbellafiore19]

appreciate it Mike! Happy Holidays to your family and you!

[@mikeanis8554]

@@mbellafiore19 right back at you Mike! I really appreciate it

[@jtyourinson8369]

One of your best videos... Learning the time to go bigger bc risk is reduced and defined clearly based on both tech and tape indicators is 💡 worthy... Thank you

[@osuweller]

For the life of me I don't know how this only has 300 some likes. This is GOLD

[@dique2374]

OMG, this is golden! I’ve been thinking about how to formulate my fade setup for days! This just answered all my questions! God sent!

[@mbellafiore19]

👊

[@theresonly1robin]

Great video (again), and for me personally, tape reading was clearly presented which often can be overwhelming & complicated. Thanks!

[@mbellafiore19]

You are welcome and Gr8 to hear

[@porscheonly9705]

The opening drive candle low $30.50 retest you should expect to reject for all the trapped longs at the open. This would be a supply/demand setup. If you look at most setups and market movements they bounce from liquidity to liquidity. Then it gets tighter and tighter as the corners or reversals gets smaller, this is why you see triangles a lot, and then when the volume dries up, you get your breakout.

[@porscheonly9705]

Also if you go back and look at this day it rejected perfectly off a $31.17 fresh supply zone created from a few weeks ago back on 11/27/20.

[@jimmycampbell5558]

This is got to be the best training I am getting .

[@arthurapoli]

This awesome thanks SMB for sharing this in the community

[@razzyp3999]

Thanks Matty ..Sam ... And Mike! Great explanation of a short trade..I can't believe it I actually understood everything you guys were explaining..from the shorts covering at the open to the tape reading. Once again Mike SMB over delivered. Absolutely Loved it! 😊👍

[@mbellafiore19]

Whose better than you Razzy?

[@razzyp3999]

No one!! 😂😂

[@smbcapital]

@@razzyp3999 haha :)

[@paymonkayhani4676]

As always another superb educational video to learn from and expand my grasp of the trade! Really appreciate what all of you do! Thank you!

[@smbcapital]

glad it was helpful Paymon

[@aaronnicholson8154]

PHENOMENAL! Thanks for the thorough lesson, guys!

[@smbcapital]

You bet!

[@martinpretto6365]

Great video guys! Any intensive courses you offer?

[@G_Mac_Trading]

Great Tape reading video, my tape reading skills need improvement. i use Esignal charts on a very short timeframe to help me see the tape in a more visual representation.

[@marhawk6468]

Appreciate all these videos Mike!

[@mbellafiore19]

👊

[@serg9830]

By that pattern that I see on the tape I was hitting .32 cents when stock deep below .35 cents-this is the place when the push down of .50 was different, but in my mind I know that .50 is a level so I need to offer .47-48 cents, working on it, probably I can also hit that .32 for half size for example and in case stock back up to .50 add near .50 cent and again, appreciate your lessons, one day you changed my trading entirely😎 thank you)

[@justicewatch4602]

Wow. Top notch trading video. I understood in. ⭐⭐⭐⭐⭐

[@smbcapital]

Glad it was helpful!

[@allenc2289]

I sure do appreciate your helpful videos

[@smbcapital]

thank you Allen

[@StreamwaveProduction]

Thank you so much guys.

[@deem5857]

Thanks! Excellent information.

[@dannyleblanc4141]

Thank you so much for these they are really helpful!

[@smbcapital]

of course!

[@adamb8265]

Great information as always! Thanks a lot guys!

[@smbcapital]

thank you Adam!

[@PlaisierJasper]

Great Bella! Thesis in trading, nice, very well put. Intraday forecasting, like one of your colleagues mentioned is subject of great interference at SMB, am I right? In other words to have that 7-figure amount in your trading, what are the odds?

[@tsalt]

5:00 what is the reason for "no news", just curious, some traders trade off of news but i just want to know from this side

[@markmcgwiresbackne5705]

. Mike says this is a trade to get big on and I'm going please don't! Looks like a gap fade with a trap of the high bull and a 3 bar retracement... I'm older now and a 2nd day gap fade off that first day push isn't in my battle plan, turns my stomach. Why it's so darn impressive and fun to watch these young guys get aggressive at the levels they do with confidence kneaded in them over time by a mentor who cares and who took the time in an otherwise lonely sport. Keep getting it right, bests.

[@KT-zx9jr]

Great clip and thanks. What was the risk on the trade? Was it $0.30 or less? Thanks.

[@mbellafiore19]

above the 50c level so depending on entry as little as 6c and as much as 11c Kirby

[@KT-zx9jr]

@@mbellafiore19 That's great n thanks Mike. I trade some spx call sprds and find that tight stops pop me out fast. Tight meaning $1.5 or less. My alternative is to stare at the position close and react very fast. Merry Christmas n all the best for 2021. Appreciate your book 'One Good Trade' and am gettg The Playbook for Xmas. I am on my 2nd full read of OGT after reading once and lots of spot reading. Love the material and thankful for it.

[@KnowledgeIsThe-Power]

Thank you very much for this excellent video.

[@smbcapital]

Glad it was helpful!

[@jasoncarrasquillo3599]

Great video! Well explained logical trade. Very useful.

[@agedvagabond]

I have a really small 15sec chart just near my order flow to be aggressive at those moments and it most likely would have showed a double or triple top around 30.5

[@yasirali709]

Great work!

[@smbcapital]

Thx Yasir

[@Thomas_Rosco]

Mike question and clarification about that large seller on the ask at $30.50...I just finished watching your masterpiece of a video about reading the tape from several years prior to this one that compares and contrasts reading the tape with bids and asks, and in it you mention that sellers usually place their transactions on the bid not the ask. In this instance is it because the spread is so narrow that sellers can get away with selling the ask instead of the bid?

[@williamamodeo1197]

SMB, I’ve been trading for about 1.5 years mostly learning without wasting money. No one talks about tape reading and prints and I want a class geared towards learning this but an in depth class. Is that something you offer? Thank you for your time please include link. :) appreciate videos it’s amazing more people aren’t teaching this.

[@thezquad]

Many times traders hide their size though, it was obvious here but often its not that obvious.

[@johnk1639]

Great video

[@smbcapital]

thx john

[@W8aMinuteG]

Super great video! I'm trying to improve my tape reading skills and these type of videos really help, I am wondering on those type of plays how do guys like Swang handle scalping/scaling out, Let's say like you said he (or any other trader) sees the trade, risk of that level on the tape and it starts working, does he add or rather his full size is very close to that level and he scales out soon after the turn? Thanks.

[@smbcapital]

Often they will trade around a core position. If they are looking for an up move they will likely try to keep a set amount of shares through the move and will add to or lighting up if things start to get extended.

[@W8aMinuteG]

@@smbcapital Thank you for your answer! It is definitely very tricky how to manage those exits for me. Would. love to see another video like Ryan did about trading around a core and scalping from the level 2, exits are a lot more harder than entries for me right now. Thanks again.

[@peringvarrognes9087]

Those big sell orders at 30.50. Are they flashed by the purpose to make other traders to sell? Often those big orders are hidden. How do you deal with that, how often are they hidden ? Maybe its nothing to think about beacause you dont see them anyway before they appears in the times and sales if they are filled. I use the Thinkorswim platform and sometimes its difficult to figure out when to focus on the order flow or the times and sales or both of them in connection.

[@mbellafiore19]

They looked real and gave us a R to trade off of

[@joefeinstein6804]

that was a tough one to hold because it came all the way back up to 29.80 before the big drop.

[@noahjackson7626]

Very nice!

[@mbellafiore19]

thxs

[@ПингЦелерон]

Спасибо, классный видос, пойду смотреть следующий))

[@jamespollard8090]

It was helpful.

[@dan6831]

DNA trainee here, what is the platform in this video, has ATR & RVOL? As always, well done Mike Thanks

[@mbellafiore19]

our inhouse proprietary platform Sherman

[@luislin2225]

whats your source to find out whats the short%?

[@smbcapital]

usually you can go to reputable sites like finviz or can check the nasdaq website. A lot of trading platforms may actually provide the info for you

[@nanoamine5540]

I am sorry to ask but can someone explain where Tap that they taking about. Because I didn't see it at the video

[@savalisadkins4709]

level 2, or in their case the level 3.

[@jamesrice8170]

Exactly!

[@nanoamine5540]

@@savalisadkins4709 Explain more please

[@savalisadkins4709]

@@nanoamine5540 the tape is the order flow or time and sales. How many shares are being purchased by other buyers and how many or the amount of shares are being sold. Every broker platform has one. On some there is time and sales and then level 2. Level 3 most traders pay for that. In this clip, there was a little box on the screen, it had the price of the stock and the number of shares or lots off to the side of it. Lots of numbers with different colors. If you have level 2. The greens are buyers, the reds are sellers.

[@savalisadkins4709]

@@nanoamine5540 at 6:08 the tap will pop up.

[@bobhope707]

Why would you be looking for the short on this stock? Seems a bit too strong to be trying on the short side? Is it just the fact that its an “in-play” name?

[@bobhope707]

*Strong on htf

[@davlei4290]

very clearly short but no share in TD

[@nanoamine5540]

when you talking about building buying pattern , what do you mean

[@mbellafiore19]

How are they buying all the way up?

[@nanoamine5540]

@@mbellafiore19 I got what you mean. Thank you for the information.

[@TheSjh196]

Where did you guys exit ?

[@mbellafiore19]

Some 80c and some into wash below 50c. It was a pretty good quick trade. They can add up.

[@jamesrice8170]

Not sure why my comments were deleted but I’ll re-post for you guys. Tape refers to time and sales not an antiquated depth of market. No idea what you keep referring to as tape. Cheers, James

[@mbellafiore19]

Thxs James. The Time and Sales got cut off unfortunately. There is a note from me at the start of this video explaining this. We still thought this would be am important lesson even though the Time and Sales got cut off.

[@smbcapital]

See mike's comment James. We uploaded the video again with a note at beginning to let people know that tape wasn't included based on your comment from the previous upload :)

[@savalisadkins4709]

yeah1 My main man Matt (AKA Killer).

[@mbellafiore19]

i like the nickname

[@savalisadkins4709]

@@mbellafiore19 YO!!!!!! Bella?! This is a trip for me! Dude? I am trying me damnedest to find The Playbook. I have checked EVERYWHERE. And all the places I checked say "Its out of print". I have One Good Trade, and I just bought The Daily Trading Coach by Dr. S. I really need The Playbook, though. Any suggestions on where I can buy the book?

[@Donks-R-us]

They probably need to start reprinting them, unless Bella has a secret stash, lol

[@nonamenonamenonamenonamenoname]

Where is Time&Sales, lol,?????

[@moutaineeredstereotype5636]

technical tape reading is BS