CatsnamDok
09-09-2016,
Here's an insightful post (http://www.smbtraining.com/blog/reading-the-tape-is-all-you-need) from Mike Bellafiore of SMB, summarizing a savvy trader's perspective on what you need to know to be a successful trader. The key point is that the actions of market participants speak loudest. When you can read the flows of buying and selling, what people say about their positions or views becomes irrelevant.
This was especially relevant to Friday's trade in stocks, which gave us a multi standard deviation move on much higher than usual volume. Selling pressure, as measured by upticks/downticks (http://traderfeed.blogspot.com/2016/09/tracking-buying-and-selling-flows-in.html) was continuous through the day, suggesting that those additional market participants were executing one way dominantly.
If you came into the day lulled by recent (low) volatility or locked into pre-existing views about the market, you were unlikely to have been able to pounce on the unique flows going through Friday's trade. As the savvy trader in Mike's post pointed out, you didn't need to know anything else.
This was especially relevant to Friday's trade in stocks, which gave us a multi standard deviation move on much higher than usual volume. Selling pressure, as measured by upticks/downticks (http://traderfeed.blogspot.com/2016/09/tracking-buying-and-selling-flows-in.html) was continuous through the day, suggesting that those additional market participants were executing one way dominantly.
If you came into the day lulled by recent (low) volatility or locked into pre-existing views about the market, you were unlikely to have been able to pounce on the unique flows going through Friday's trade. As the savvy trader in Mike's post pointed out, you didn't need to know anything else.