Of course this is where most traders fail. Prior research generates wishful or fearful thinking and results in highly flawed decision making. Instead of waiting for legitimate signals, they focus on meaningless price movements that support the bias of the trader. More than any other market skill, tape reading requires detachment that must overcome common emotional obstacles and barriers to clear vision. But for intense study of very short-term price volatility, this flow of buying and selling pressure offers important information.
Bar charts contain little data on a market's changing spread.
He publishes The Hard Right Edge premier web site for trader education, technical analysis and trader resources featuring both Morning Trader and Traders Workshop. Alan also authors on-line training technical analysis in association with independent sites. In addition to writing, he is an outstanding speaker and lecturer on short term trading strategies. All Rights Reserved. Republication of this material, including posting to message boards or news groups, without the prior written consent of Tulips and Bears LLC is strictly prohibited.