If you wish to be two steps ahead with trading then you need to learn tape reading trading method.
Tape reading definition is reading of price action right now (at the moment). You will get more confidence whether trade is or is not working.
Trader who trades by indicators alone, is trading the market like he drives the car but instead of looking
in front of himself, he looks at the mirror all the time.
If you knew how to read price action right now instead of using indicators then you would trade like you are driving a car and looking in front of you while you are driving.
This is only introduction to tape reading.
I know that many of you trade with market maker brokerage firm and because of that you don't understand how market operates! Market maker has a fixed spread and his obligation is to provide you with liquidity! Most of the time you are not trading on the real market!
Because of that you don't know how market really operates!
There is no constant high liquidity on the market and because of that when BIG DOG wishes to buy or sell at certain price he is visible to the crowd!
How, where ??? (you will ask me!)
Small charts like: 5min, 1min, tick chart!
You shall see how price bounces from certain level (exact price)!
Big Dog is entering or exiting the market and there isn't enough liquidity for his order and he must make more than one transaction to accomplish his "BIG" trade execution!
That way you can see what BIG DOGS are doing on the market and you can more easily spot the support and resistance lines which are actual right now!
