Tape Reading Thin Markets

We've received some questions about how to use AlphaReveal to tape read thin markets. We've found that focusing on the volume histograms to be most valuable for reading the tape in thin markets. Studying these histograms and the price action around high and low areas of volume provides the trader a framework for producing valuable trading hypothesis. The ability to see the price action in relation to the volume histograms and how they build in real-time is a really strong combination and unique to the AlphaReveal platform.

If you use AlphaReveal to trade thin markets, and would like to share how you read thin markets then please drop us a line at support@orderflowdashpro.com, and we'll share your tips in a future blog post!

AlphaReveal makes it really easy to track how PRICE moves in RELATION to the volume histogram. Focusing on the developing histogram shape and price action can provide insight into the market. Note, in the example above we've turned off AlphaReveal's advanced depth tracking capabilities to focus on the larger context.

Thursday, June 27, 2013 2:26:00 AM

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Risk Disclosure:

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure:

Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

 

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