Tape Reading

Filed Under » ,
Dictionary Says

Definition of 'Tape Reading'

An old investing technique used by day traders to analyze the price and volume of a particular stock in order to execute profitable trades. Tape reading involves evaluating the size of stock orders, order speed, order price, and order condition (at ask, at bid, between ask and bid) to identify trends in trading behavior by insiders, professionals and the general public. These trends help a trader recognize good times to buy or sell.  
Investopedia Says

Investopedia explains 'Tape Reading'

The term gets its name from the old method of displaying trade, bid and ask information on paper printed by ticker tape machines (today, it is displayed electronically). Investors read the tape numbers to create an unemotional analysis and capitalize on the behavior of the market. This technique can be profitable whether the market is bullish or bearish.

Related Definitions

Search results for

'Tape Reading'

  • Understanding The Ticker Tape

    http://www.investopedia.com/articles/01/070401.asp
    ... Reading the Ticker Tape Here's an example of a quote shown on a typical ticker tape:
    Ticker Symbol, The Unique Characters used to identify the company. ...

  • Scalping: Small Quick Profits Can Add Up

    http://www.investopedia.com/articles/trading/05/scalping.asp
    ... Vadym Graifer. Vadym Graifer, author of "Techniques of Tape Reading" (2003), "How
    to Scalp Any Market" (2004) and "The Master Profit Plan - Your 5 Step Trading ...

  • How long does a stock that has done a reverse split keep the ...

    http://www.investopedia.com/ask/answers/06/reversesplitD.asp
    ... For further reading, see Understanding The Ticker Tape, What Are Corporate
    Actions? and Understanding Stock Splits. by Casey Murphy. ...

  • Mastering Short-Term Trading

    http://www.investopedia.com/articles/trading/09/short-term-trading.asp
    ... (For background reading, see The Stop-Loss Order - Make Sure You Use It.) A ... Technical
    Analysis There is an old saying on Wall Street: "never fight the tape". ...

  • Ensuring That Your Trust Is Trustworthy

    http://www.investopedia.com/articles/retirement/11/ensuring-your-trust-trustworthy.asp
    ... Trust deeds and the associated laws mean that the money is tied up in two layers
    of bureaucracy and red tape. ... (For related reading, see Three Documents You ...

  • July 8, 2011 Market Summary

    http://stocks.investopedia.com/stock-analysis/cotd/SPY20110708.aspx
    ... On Thursday, the stock market gapped up as positive economic news hit the tape,
    increasing investorÂ’s expectations for the ... (For related reading, also see ...

  • Top 5 Reasons For A Stock Slide

    http://www.investopedia.com/articles/stocks/07/stock_drops.asp
    ... (For further reading, check out Earnings ... Call Basics.) Investors should try to take
    part in the conference call or at least listen to the replay tape, which is ...

  • A Beginner's Guide To Penny-Pinching - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/A-Beginners-Guide-To-Penny-Pinching.aspx
    ... iron the sheet of paper, you will find that any remaining tape will peel clean off
    and you have a fresh sheet, as good as new. (For related reading, see Be A ...

  • Can Good News Be A Signal To Sell?

    http://www.investopedia.com/articles/stocks/07/sell-on-news.asp
    ... However, there are also times when an investor should bail the second good news
    hits the tape. ... (For related reading, see The Flow Of Company Information.) A ...

  • Series 66 Study Guide - Exam Preparation - Introduction ...

    http://www.investopedia.com/exam-guide/series-66/exam-preparation/default.asp
    ... Tricks The USA is roughly 180 pages, and it is really not complicated reading. ... Painting
    the tape An illegal action by a group of market manipulators buying and ...

Related Articles

Trading Center
Partner Links