Good posts on Tape reading and order flow caught my attention.
1. www.tradeorderflow.blogspot.com
2.http://traderfeed.blogspot.com/2009/07/trading-order-flow-lost-skill-important.html
3.http://www.smbtraining.com/blog/?p=1547
A topic which I am thinking of for a longtime. Being a trader in Indian markets, Brokerage trading rooms do not have access to charting and indicators for retail traders. I have observed that some experienced traders watch order book and other info like VWAP, Open. Being forced to form opinion from order book in the initial phases helped me in the market rather than going for Charts from the start. This gives the trader a feel for the market color. Combining this with some microstructure aspects ( Trading & Exchanges by Larry Harris ) will give the Short term trader an advantage. I have seen some scalpers purely depending on Order book to hypothesize on significant levels.The intutive understanding of markets in the absence of technical tools made many old Indian traders that much formidable.
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