Jesse Livermore once stated, “There is only one side of the market and it is not the bull side or the bear side, but the right side.” Reading the tape can be broken down into specific pieces that if followed can increase the chances and probabilities of success. The decisions that are made trading are the same type of decisions that are made in business and in everyday life. The act of looking at the market can be overwhelming if not taken in chunks. Drawing upon the work done in Business Intelligence, the steps for breaking down the market are as follows. Look at the data, determine what the data is showing provides information, draw insights from that information; make informed decisions, and then put those decisions into action. Sounds simple. Let’s look at each one more closely.
Data
Where does market data come from?
The tape, the data feed, the real time data that comes from exchange floors and electronic transactions, through data providers. This data is the most fundamental to trading; the experts can look at the data and do all sorts of things with it. The pros use the data to feed tools to give them information. It is important to have real time information; moves can happen in seconds.
Information
The most fundamental piece of information that comes from the data is the chart. The Chart is a list of prices over a period of time. The chart can be compressed and fractured to many time frames and tick references, but the fundamentals are the same, price at a specific time. There are many types of charts that can be displayed. An open, high, low, and close chart is widely used. A market profile chart shows how often a specific price has traded, and a line chart just shows where a price has been over time. Each chart has specific pros and cons. It is important to find the chart that works and stick with it. The less complicated the better.
Insights
Insights are gathered from seeing repeated patterns from the data represented in the charts. Chart patterns and setups are great sources of insight. Some are better than others, but there are some general ones that have stood the test of time. Remember that insights are discovered while observing many, many iterations of the market day. There are no short cuts here.
Patterns and setups aside, framing the market is the most important formula for success that has been discovered. In order to frame the market, one must look at the prices at specific times in the past, and the current price to see if the market is bullish or bearish.
Decisions
Once you pull out the insights from the information, decisions must be made. The main decision that a trader must make is to be long, short, or out of the market. Yes being out is a viable outcome of the decision making process. Sometimes it is the hardest one to make.
After framing the market, a decision will come naturally. If you are above the frame, then you have a better chance of going long. If the price is below the frame, the odds favor going short. If you are within the frame, just sit back and relax and wait until the prices gets outside the frame.
Actions
Your actions are as simple as clicking the mouse. You must know your trading software and how to enter a trade and exit a trade. Working with strategies is a good way to keep emotions in check so money is not given back. A stop strategy allows you to automatically move stops to capture profit when the market moves in your direction.
The Business Intelligence guide to the market can help even the most novice trader stay on the right side of the market as well as remind the professional trader that all price movements can be seen in the data first; by reading the tape.
gvobilling
exljbris
kross
cien
positivediscipline
stadsmissionen
creepy
sqworl
lhjylgcyiliang
hubescort37
weltderphysik
royalmarsden
861384
zbyitai
noone
buildersupdate
giuffre
malba
delphiautoparts
installmentcashloans
ijunkie
tecan
education
parcelpanel
media-imdb
orartswatch
hubescort36
qmw
apothekerkammer
larecherche
somerandomdude
cookex
8
knsa
tempocasa
worldchanging
gastrosuisse
coca-cola-france
clickandgrow
mybusiness
lotc
emule-project
youthmusic
ccen
rinkworks
salesbenchmarkindex
114my
jfap
beihua
huawei
inasti
yinyinxianfeng
niebieskalinia
webviki
carbase
nzhistory
communicat
pps
francis
ral
as
cdcgroup
southsummit
mum
aarpmedicareplans
codimd
rsu
timesdaily
idinfo
jamroom
wibbitz
cieem
koss
schluesseldienst-sarfeld
voxy
bitcoinup
jsi
boliden
chat2desk
safeagents
masternodes
dltech
louisck
hnchuci
dgak
mypanhandle
plyo
zeptolab
nic
bbr
x6g
kesslercollection
everplans
a-commerce
bitworking
kiwaregister
hostedfiles
tsbvi
gqrdixwmeqcqmrxn
ladieslearningcode
redcross
hernewlife
polarcamels
ticyt
webfactory
sontiq
casinotest
eyecity
chat-host
centrumveiligesport
jp
tips-usa
ehbonline
predictiveanalyticstoday
hivestack
bogleheads
maharam
courtswv
spaceshipsandlaserbeams
catholic-link
globaldizajn
po
lovieawards
uebermedien
worldvision
demlution
europetnet
spinshop
line-apps
dataczar
siping
daihatsu
virtualtech
trygfonden
jewelosco
eatturkey
schmidtfutures
arizonatile
scu
mod
bresciaoggi
yaxin557
cushycms
littlespicejar
filext
adcf
arkeero
hindiveda
dramaticpublishing
invast
immobilienpfand
newindia
celaj
chicagoparent
mxrb
window-swap
sqlblog
queenslandcountrylife
salon-auto
vis4
hovding
cityairporttrain
1234
urait
stgpresents
pscu
karriere-suedwestfalen
cnv
musicandmemory
hwk-dresden
kotsu
epages
v8103
sugar-daddy-meet
idbinvest
carproof
payku
qfoo1
qconlondon
francedigitale
readable
iea
tablebooker
hrbnu
pulmonaryfibrosis
off3riz
visa
7po
holkham
futemarketing
kenyawebexperts
proshares
cwsurf
lspace
fuucomi
wallbuilders
m8int
haotui
medicaldetectiondogs
leapfile
weismarkets
blakors
sees
ev-volumes
chinabrideonline
dood
goodthingsfoundation
coches
petvalu
ezidebit
gnustep
stileo
smartworks
koryu
secpre
jobpromo
jxqbff
anugafoodtec
xust
operadds
abchk
nmgcb
tonl
onilacare
sphericalangle
refresh-sf
verybeatifulpear
homify
tscalliance
repetier
comslider
creditas
mogu20
csiporn
pedidosya
roken
zomasleep
blueandgreentomorrow
fadel
intouchhealth
enterticket
5873
zbnews
onedrop
bandainamcoid
domainname
olehelp
kireimo
chroniclevitae
onlinechatcenters
itechways
fuckingyoung
cmmid
wanhai
neustadt
wnl
fabrica704
huggies
refonavi
arbeitenviernull
nesc
permatabank
corendon
stuart
121down
jrs
theralupa
ntv
hostinger
tuesday
throtle
coolsis
hirecentric
thefirstmess
catom
d319yleido6tgg
rutoken
phpbb3bbcodes
cbre
onezh
gskill
gebaerdentelefon
stlukeshealth
yasbc
mexicandelish
cosmicclothes
clubefiel
goalline
asbmr
tapchikientruc
tianxin
podcast
taojindi
