I can’t thank you all enough at SMB! Merry Christmas and I hope you guys know how appreciated you truly are in so many’s life! You guys are helping me take care of my family! And for that I know you all truly blessed! Thank you for being bright lights in a world that truly needs it!
Great video to help understanding Level 2. This video and the book "Day trading: Momentum, Level 2 and Reading the tape" sharpened my edge to make better trades.
I wish you guys had commented @09:37 when 2.85 got thick with persistent offers on what the tape showed was gonna be a failed breakout. Market did not hit those on multiple attempts and ran for the hills instead. Everything else was a consequence of that, from my humble standpoint.
Gold.jeff's a good educator ,good points,good questions to the trader .cant thank you guys enough for putting this stuff out for the public even though you dont have to.🙏
Just wanna say thank you SMB .I found so much value in this video and more so reassurance with my personal trading experience with PEGY . It was like watching hundreds of my notes and screenshots all in one video . Thanks 👍👍👍
Like the commentary on that sideways consolidation situation. I use bollingers and in that area you would see the bollingers pulling in like a pincers with the volatility. You can feel a breakout coming. I use Time and Sales set for large block buys and sells on ES futures. Sometimes you will get a huge block in these situations and the opposing fight is enormous, but usually the block will out.
Absolute gold...or usd...or bitcoin...or short duration bonds...so many details and nuances it makes one eager to test his ability to listen to stocks.
I trade on Lightspeed. On that platform, and presumably any other one that's geared to daytrading, you can choose to hide your orders from showing on Level 2 to anyone else. So then why would someone trading size want to show their order sitting there? They wouldn't (unless they are trying some form of spoofing). So if anyone can hide their orders (or at least anyone trading consequential size), then how much value can you really get from "reading level 2?" If you see a huge order sitting on the bid and say "wowie look at that!!!" just know that whoever is putting that order there wants to generate that reaction.
those may be hidden on level 2 but they will show up in the time and sales window. that's why we pay attention to both. If you see larger size going off in the time and sales but don't see it on the level 2 that means there is a hidden buyer or seller
During the beginning the buyers are battling hard but again asks fill in a bit more heavy.and they can’t move the level above the smal consolidation point there.
I don't know if you guys put any emphasis on patterns (it wasn't mentioned) but the first thing I noticed when I saw this chart (which would add to short conviction) was it looked bear-flaggish (I've found, in 2022, bear-flags and kindergartener's h patterns to be great R/R areas for entry; makes sense, bear patterns in a bear market are working). You had the high made in the first 50 minutes or so, then after the drop it makes short-term higher-highs/higher-lows but only retracing maybe 60ish% of the drop. After the 2nd drop it looks like it's trying to do the same thing, but weaker (less longs coming in to push it up, confirmed on tape), only retracing 50ish% of the 2nd drop. For me, the 2nd flag's lower angle would add to what you're showing with the tape reading. I haven't looked at the chart yet, but since it was a gap-up I'd make targets at open print and previous day's close (I'm gonna go see if that played out). Question: You brought up the "bobber/fishing" analogy; Are you opposed to putting on half the position when the bobber starts bobbing? In this scenario selling near resistance with a stop just over it, then adding the other half on either a break of the pattern (2.60) or the break of the lower-low/VWAP (2.54) area utilizing a sell-stop?
After checking out the chart: Price dropped to within one penny of the opening print...I also like using the First5MinuteCandle's high as a short-term target/key area (2.24 in this case). With it gapping up as much as it did, I'll note (to myself) pre-market high turned out to be a pretty good target as well (2.25, also a psych level).
Great video about reading orderflow. I like the step by step breakdown and analysis in real time. Please do more videos like this in the future. Thank you
Love these guys, I know we all get an abundance of knowledge from SMB. I just wish someone would take these boys to Neiman Mancus, Nordstrom, or heck even Macy's lol
Have a great Christmas and thanks for the video. It does not fit my trading style but still very interesting to learn about. Is this something we can do with Trading View? I have no clue where to find "the tape" like this one.
DAS trader or lightspeed might be good ones to take a look at. We just filmed a full video course with Lance being released soon. He talks about some trading platforms in there but those two are ones he mentioned
Hi, thanks for these really informative analysis sessions. At 7:38 @$2.74 we see a huge bid but price doesn't really react. In my mind that should have ripped up, but it didn't. In this case it actually seemed to be a per-cursor to a flush. I've seen that on the Ask sometimes too, big size gets eaten up and leads to a break out. Are there metrics that SMB uses to define when oversized orders come through whether they are going to act "normal" or act as "reversals"?
If a large order on the ASK (offer) side gets taken out, then supply was breached by demand. The price should go up. If the bid side gets taken out, and there are still more sell orders stacking up on L2…..the price should go down due to large supply. Not enough buyers at a level to hold the price there
Question if you guys don’t mind answering is it necessary to watch the level 2 if you primarily trade options and have the options level 2 or should you still use the traditional level 2 as reference
I don't think many options traders use the level 2 unless they are trading on a very short time frame, we have some traders here who read the L2 and then place trades on options though. They might be using the options to get long the TSLA bounce but aren't confident it has bottomed yet so options give them a little more breathing room to be wrong initially
@@smbcapital Thank you guys 👍🏼 yes I’m a short term trader (intraday scalper) I forgot got to mention that. I’ve always used the the Lvl 2 to help me enter and exit my option trades. I just didn’t know if I was wasting screen real estate by having the level 2 up as crazy as that sounds or overwhelming myself with things to look at.
Another fantastic breakdown , thank you for this ! The tape speeding up before the volume coming in, is that a common thing that happens ? I have heard volume precedes price but tape speed preceding volume is new to me ! Also the comment about one of main the reasons for using EMA to trail the move down was a good nugget of insight. I knew that EMAs gave weight to newer to price points more vs SMAs but the practical explanation of why they would useful in a scenario like was just fantastic ! Just out of curiosity , what was the EMA being used ?
At SMB, is it believed that tape reading can be effective on ETFs such as SPY, QQQ, and other sector ETFs that are liquid? I primarily trade SPX and so I've been watching the tape for SPY to work on my tape reading. I rarely see examples as clear as the ones you guys present in your videos. Is this due to it not being an individual equity and the "in play" aspect is lacking?
are darkpool orders capable of having an affect on stock price. for instance the large bid that had little to no effect on pegys price for the breakout move. could it be dark pool orders counteracting the the level 2 bid
this video was so usless, just bunch of talking and not explaiing why he entered and what he is looking , explaining what is Tap reading ? does the Black mean it is Support now and price should stay about 2.78 price?
This is not a crash course on level II and how to read a tape. It's a video on how to use level II and price action to make real time decisions in making a profit. They went into a deep dive on expectations vs actual market movements. Yes. The $2.78 become a support but it doesn't rip higher. That's when you need to adjust expectation and react accordingly.
I noticed in the last year the market has changed a lot and there seems to be a lot more market manipulation going on. RNA ticker is a great example, at market close, two 100,000 orders came in side by side on a $20 stock. When the stock is barley moving all day. No news no catalysts. Should of been a no brainer short after hitting it's day high.
@@UltraEliteTrader I understand the balances getting paired off, but it's the timing I question, balances getting paired off bring the stock price back up over the close price, seems a little fishy to me.
I can’t thank you all enough at SMB! Merry Christmas and I hope you guys know how appreciated you truly are in so many’s life! You guys are helping me take care of my family! And for that I know you all truly blessed! Thank you for being bright lights in a world that truly needs it!
agreed !
Great video to help understanding Level 2. This video and the book "Day trading: Momentum, Level 2 and Reading the tape" sharpened my edge to make better trades.
This is THE place to learn what it takes to be a trader. Thank you for such quality content. Merry Christmas to all at SMB!
thank you, enjoy the holidays
I wish you guys had commented @09:37 when 2.85 got thick with persistent offers on what the tape showed was gonna be a failed breakout. Market did not hit those on multiple attempts and ran for the hills instead. Everything else was a consequence of that, from my humble standpoint.
Gold.jeff's a good educator ,good points,good questions to the trader .cant thank you guys enough for putting this stuff out for the public even though you dont have to.🙏
Our pleasure!
Just wanna say thank you SMB .I found so much value in this video and more so reassurance with my personal trading experience with PEGY . It was like watching hundreds of my notes and screenshots all in one video .
Thanks 👍👍👍
Glad it was helpful!
This is really good and exactly what I need. Would love to have more Tape reading regardless whether the trade works in favor of the traders or not.
we will try to share more of these
Like the commentary on that sideways consolidation situation. I use bollingers and in that area you would see the bollingers pulling in like a pincers with the volatility. You can feel a breakout coming. I use Time and Sales set for large block buys and sells on ES futures. Sometimes you will get a huge block in these situations and the opposing fight is enormous, but usually the block will out.
I have just read “one good trade”. What a brilliant book!!! Thank you so much for this invaluable information. All the best 📈📈🙌🏻🙌🏻👍👍
What was your main takeaway?
Absolute gold...or usd...or bitcoin...or short duration bonds...so many details and nuances it makes one eager to test his ability to listen to stocks.
I can see the stacking orders w filling in on the asks during the beginning.
Enticing Longs yeah I understood that!!! Great video Love it!
Merry Christmas to everyone at SMB and Happy New Year!
Catch you next year Guys!
😊💪
Happy holidays!
Great information always so professional, God Bless you all
Yet another great SMB video that is gold.
I trade on Lightspeed. On that platform, and presumably any other one that's geared to daytrading, you can choose to hide your orders from showing on Level 2 to anyone else. So then why would someone trading size want to show their order sitting there? They wouldn't (unless they are trying some form of spoofing). So if anyone can hide their orders (or at least anyone trading consequential size), then how much value can you really get from "reading level 2?" If you see a huge order sitting on the bid and say "wowie look at that!!!" just know that whoever is putting that order there wants to generate that reaction.
those may be hidden on level 2 but they will show up in the time and sales window. that's why we pay attention to both. If you see larger size going off in the time and sales but don't see it on the level 2 that means there is a hidden buyer or seller
It’s called an iceberg order
Nice this one was tough and took patience. The battle is real out here.
During the beginning the buyers are battling hard but again asks fill in a bit more heavy.and they can’t move the level above the smal consolidation point there.
Any chance we could get some tape reading on futures?
Thanks for all of your work!
I don't know if you guys put any emphasis on patterns (it wasn't mentioned) but the first thing I noticed when I saw this chart (which would add to short conviction) was it looked bear-flaggish (I've found, in 2022, bear-flags and kindergartener's h patterns to be great R/R areas for entry; makes sense, bear patterns in a bear market are working). You had the high made in the first 50 minutes or so, then after the drop it makes short-term higher-highs/higher-lows but only retracing maybe 60ish% of the drop. After the 2nd drop it looks like it's trying to do the same thing, but weaker (less longs coming in to push it up, confirmed on tape), only retracing 50ish% of the 2nd drop. For me, the 2nd flag's lower angle would add to what you're showing with the tape reading. I haven't looked at the chart yet, but since it was a gap-up I'd make targets at open print and previous day's close (I'm gonna go see if that played out). Question: You brought up the "bobber/fishing" analogy; Are you opposed to putting on half the position when the bobber starts bobbing? In this scenario selling near resistance with a stop just over it, then adding the other half on either a break of the pattern (2.60) or the break of the lower-low/VWAP (2.54) area utilizing a sell-stop?
After checking out the chart: Price dropped to within one penny of the opening print...I also like using the First5MinuteCandle's high as a short-term target/key area (2.24 in this case). With it gapping up as much as it did, I'll note (to myself) pre-market high turned out to be a pretty good target as well (2.25, also a psych level).
Great video about reading orderflow. I like the step by step breakdown and analysis in real time. Please do more videos like this in the future.
Thank you
I prefer to use some heat map to help me read order flow.
Love these guys, I know we all get an abundance of knowledge from SMB. I just wish someone would take these boys to Neiman Mancus, Nordstrom, or heck even Macy's lol
haha, I don't think you could get many of the traders here into those stores if you paid them
@@smbcapital 😅 as long as they keep those profits coming consistently, they can wear boxers and old concert t-shirts
Very valuable content gentlemen.
Thank you for sharing.
Our pleasure!
content that matters... thank you guys😃
you are welcome
Man I love you guys. Dropping the flight for me as usual! Thank you SMB!!!!
Brilliant as usual!
Good job, especially when he was on the back side of the trade.
Could that big bid have been a spoof I think they call it or a fake bid?
Have a great Christmas and thanks for the video. It does not fit my trading style but still very interesting to learn about. Is this something we can do with Trading View? I have no clue where to find "the tape" like this one.
you'll have to use a broker that offers level 2 data
I think anchored VWAP can help clarify a situation like this..
What’s your best rule of thumb about AVWAP ?
Thank you for your videos. What trading platform do you recommend? Not happy with streetsmart edge. I am a day trading and I scalp.
DAS trader or lightspeed might be good ones to take a look at. We just filmed a full video course with Lance being released soon. He talks about some trading platforms in there but those two are ones he mentioned
@@smbcapital God bless. Isaiah 3:10
This was soo great. Thank you
Would you put a buying order above that stop loss in case the buyers push the market higher?
Woww guys really love the content i would really LIKE to see more about Level two and Tape reading video thank you so much for the info
So when long are we to watch the bid or the offer for cues to get out?
what are the settings for you inrta day trading
Hi, thanks for these really informative analysis sessions. At 7:38 @$2.74 we see a huge bid but price doesn't really react. In my mind that should have ripped up, but it didn't. In this case it actually seemed to be a per-cursor to a flush. I've seen that on the Ask sometimes too, big size gets eaten up and leads to a break out. Are there metrics that SMB uses to define when oversized orders come through whether they are going to act "normal" or act as "reversals"?
If a large order on the ASK (offer) side gets taken out, then supply was breached by demand. The price should go up. If the bid side gets taken out, and there are still more sell orders stacking up on L2…..the price should go down due to large supply. Not enough buyers at a level to hold the price there
Did anyone mention that they could be offering or warrants @ 2.74?
Question if you guys don’t mind answering is it necessary to watch the level 2 if you primarily trade options and have the options level 2 or should you still use the traditional level 2 as reference
I don't think many options traders use the level 2 unless they are trading on a very short time frame, we have some traders here who read the L2 and then place trades on options though. They might be using the options to get long the TSLA bounce but aren't confident it has bottomed yet so options give them a little more breathing room to be wrong initially
@@smbcapital Thank you guys 👍🏼 yes I’m a short term trader (intraday scalper) I forgot got to mention that. I’ve always used the the Lvl 2 to help me enter and exit my option trades. I just didn’t know if I was wasting screen real estate by having the level 2 up as crazy as that sounds or overwhelming myself with things to look at.
you tell me which broker do you use to see the level 2 and time and sale?
great info! a huge help thnaks roger
thx Roger
Hi, I get the middle window is Times and Sales, but can you please tell me what is in the third window? Is it like aggregated size at some level?
the third window is larger orders on the prints getting filter by size. It shows orders over 5000
@@smbcapital thanks, got it!
Another fantastic breakdown , thank you for this ! The tape speeding up before the volume coming in, is that a common thing that happens ? I have heard volume precedes price but tape speed preceding volume is new to me ! Also the comment about one of main the reasons for using EMA to trail the move down was a good nugget of insight. I knew that EMAs gave weight to newer to price points more vs SMAs but the practical explanation of why they would useful in a scenario like was just fantastic ! Just out of curiosity , what was the EMA being used ?
it was probably a 20 and 9 ema
@@smbcapital thanks ! very helpful
9
So good. Thank you.
Is that a disclaimer revealing that this was a demo account?
Love these guys
At SMB, is it believed that tape reading can be effective on ETFs such as SPY, QQQ, and other sector ETFs that are liquid? I primarily trade SPX and so I've been watching the tape for SPY to work on my tape reading. I rarely see examples as clear as the ones you guys present in your videos. Is this due to it not being an individual equity and the "in play" aspect is lacking?
are darkpool orders capable of having an affect on stock price. for instance the large bid that had little to no effect on pegys price for the breakout move. could it be dark pool orders counteracting the the level 2 bid
Is "reading the tape" just mean interpreting the current price action with the catalyst (fundamentals) in mind?
Nevermind, I spoke too soon.
Awesome as always!
Is SMB Capital hiring prop traders? If so, how would one apply?
What is platform are you using for level 2 n T&S?
Great example
Very helpful, thanks!
I don't know much is it look how many sell buy then trade based on that
why does everyone from SMB trade sub $10 stocks all the time?
Great video ❤
Lance B in the house lol
And Happy Honikahh to my Jewish friends! 👍
PEGY :) Great video! Thank you!
🙏🏽
orders get absorbed sometimes
Thanks
It didn't run because they're not real buys - fake buys and later cancel them
😍
"... speed on the tape." thx
Nothing is free bro. It's $4k for the training.
the free webinar is free, but they do also have paid training..
gee, I couldnt tell he was reading from a teleprompter 🙄
this video was so usless, just bunch of talking and not explaiing why he entered and what he is looking , explaining what is Tap reading ? does the Black mean it is Support now and price should stay about 2.78 price?
This is not a crash course on level II and how to read a tape. It's a video on how to use level II and price action to make real time decisions in making a profit.
They went into a deep dive on expectations vs actual market movements. Yes. The $2.78 become a support but it doesn't rip higher. That's when you need to adjust expectation and react accordingly.
Watched first 10 min. They discuss everything except tape reading.
I noticed in the last year the market has changed a lot and there seems to be a lot more market manipulation going on. RNA ticker is a great example, at market close, two 100,000 orders came in side by side on a $20 stock. When the stock is barley moving all day. No news no catalysts. Should of been a no brainer short after hitting it's day high.
That's the imbalances getting paired off.
@@UltraEliteTrader I understand the balances getting paired off, but it's the timing I question, balances getting paired off bring the stock price back up over the close price, seems a little fishy to me.
Reading the tape is WAY easier on stocks in play, when $MRNA took off on the cancer vaccine the tape was screaming: "buy here, add more here!"
@@charizard609 Then you don't know how to read the tape. Your UA-cam name is literally Charizard, I can't take you seriously 😂