3 learners taking this course
General principles involved in trading to take advantage of the minor fluctuations. Basing judgment on impartial analysis of available facts instead of ill advised impulses. How to interpret tape action and learn to make your own independent decisions with a high degree of acccuracy
All movements in the market are made of alternating buying and selling waves. We judge the strength or weakness of the market by the distance in points and fractions recorded by these waves.
The Wave Chart being based on the action of the five leading active stocks is complete in itself if you wish to trade in all five at once and whenever a turn is indicated.
From observation you know how often stocks get into periods of narrow ranges of 3 to 5 points. These are the times of discouragement for most people who are on the wrong side, or who are looking for big profits when the market affords only small profits.
This Chart combines the three vital factors: Price Movement, Volume and Time in such a way that a trader can see at a glance just what a certain stock is doing; how it acts on the rallies and reactions: the volume of each trade…
We must learn to anticipate the high and low spots in the day’s moves by assembling in our minds, and from the chart, all the factors that point to a certain conclusion, and if this conclusion is justified…
There is advantage to be gained by watching the half-way points on rallies and reactions as a basis for judging strength and weakness. When a stock advances two points and reacts one point, it may be called a normal reaction….
This is accomplished chiefly through the limitation, reduction and elimination of risk. That means: 1) you must immediately place a stop order as soon as each new trade is executed. 2) you must move this stop to reduce your risk as soon as the market will permit without endangering the life of your trade.
You watch the tape. You have no commitments. Your Wave chart of the five leaders if before you. You make mental note of the prices that are flowing by. You wait for impressions.
Manipulators are constantly testing the market to see whether it is most responsive on the bull or the bear side. The want to know whether then can get a following in the …
Wide daily swings are vital, for without them there is little chance to buy and sell, pay overhead and realize a profit. A stock with a daily average swing of only a point would be of no use for our purpose…
Stop orders should be regarded as insurance against large losses. They should be placed immediately after a trade is made.
Classic chart studies by Mr. Wyckoff
Basically Tape Reading is designed for a specialized type of individual in the stock market. This individual is an active trader, one who trades for the intraday moves of securities through the use of technical analysis.
Richard D. Wyckoff spent many years in the stock market, and beginning in 1910 he wrote “Studies in Tape Reading” under the pseudonym name of Rollo Tape.
Each trader must utilize specific charts in order to determine when to establish his positions in the market, and which direction to establish his positions, and what securities to establish those positions in.
This lecture will completely concern itself with one chart, the intraday Wave chart on a continuous basis, which will take in the…
In order to accomplish this task we are going to use two charts; which is the intraday wave chart, and the tape reading chart of the individual security.
Discussion of placing of stop orders on our positions.
This discussion will concern itself with the establishment of a position during the markup phase on a Tape Reading and Active Trading basis.
This tape will concern itself with establishing a short position in a down market on an intraday basis.
This lecture will concern itself with establishing positions and active trading when the market is in a period of a trading range.
The main concern with this topic, is setting up shop. What should the Tape Reader and Active Trader do to prepare…