Tape Reading

Tape reading is the analysis of Time & Sales data (the tape), where every individual executed transaction is observed in real time to draw conclusions about institutional market participant behavior.

By Marco Bösing1 min read

What Is Tape Reading?

Tape reading is the art of reading and interpreting Time & Sales data — every individual executed transaction — in real time. The name originates from the era of ticker tapes on which exchange transactions were printed.

In modern trading, the tape shows the price, size, and whether each trade executed at the bid or the ask. Experienced tape readers recognize patterns from the flow of transactions, such as aggressive accumulation by large market participants, iceberg orders, or declining trading activity before a reversal.

Tape reading requires practice and screen time, but it is one of the most direct tools for identifying institutional activity in the market.

Read the full article: Tape Reading — Time & Sales and Level 2

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