Andre

I use tape reading in combination with technical analysis.  My morning is focused on price / volume action and tape reading.   The time and sales window allows me to try and identify buyers and sellers.  My goal is to attempt to identify the footprints of large traders, institutional traders and high frequency traders.   I'm looking for stocks that are exhibiting very unusual behavior in pre-market and after the market opens.   Unusual behavior refers to unusually strong price and volume action. (price and volume spikes)   Stocks that are strong and exhibiting relative strength despite the market going down are also ones that I consider.   I use tape reading for short-term scalps as well as for day trades.   I'm using a much shorter-term time frame (1 and 2 minute charts) for scalping.  I move between 3, 5, 10, 13 and 15 minute charts for day trades.  This all depends on how the stock is acting and what's driving the action.  (compelling news, short ratio, float size, is the stock thinly traded?)  All of these metrics play a role in tape reading and how I decide whether to enter a trade.  I will take a small position to minimize my risk to determine if my hypothesis was correct to enter.   If the decision to enter wasn't correct, I exit quickly with small losses.  In other situations, I may scale into a position as the stock moves higher away from my entry price.   If I see high velocity in the order speed with trades being executed on the 'Ask' price, I might enter with a full position immediately.