Tape Reading

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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.

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Related Definitions

  1. Day Trader

    A investor who ...

  2. Ask

    The price a ...

  3. Bid

    1. An offer made ...

  4. Ticker Tape

    A computerized ...

  5. Painting The Tape

    A form of market ...

  6. Consolidated Tape

    An electronic ...

  7. Order

    An investor's ...

  8. Volume

    The number of ...

  9. Insider

    A director or ...

  10. Smart Money

    Cash invested or ...

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