TAPE READING X GRÁFICOS: DESCUBRA A VERDADE DO DAY TRADE !

Hey, troop! Have you ever stopped to think what the
market was like, what the stock market was like 20 years ago? Especially for those who used to day trade? Not everyone had a computer, there were no
graphical platforms and almost no one had access to the internet. But I have to say: 20 years ago there were,
yes, already successful operators who made money in the day trade. And I want to ask you, how could they operate
without access to the tools that exist today ? If we go back further in time, Jesse
Livermore who is considered one of the fathers of tape reading was already a very
successful speculator. How did this famous trader manage to operate
with access to few information? Interesting these questions, right? With the advent of affordable computers and
especially with the advancement of the Internet numerous trading platforms have
emerged, enabling access to the market at any person anywhere in the world.

With this technological advance, consequently
several tools were created for facilitate market analysis. And the one that grew the most was graphical
analysis, was the development of various tools graphic-based . But so far there's nothing wrong with it. Several traders who entered the market after
2003, after the technological advance of platforms in Brazil, began to fix their eyes
only on the graphs. Only the technical indicators and not in
reading the prices, and not in reading the pricing process. And it is curious that all charts and all
technical indicators are derived from prices. So traders who are focused only on charts,
only on those indicators are late! They are looking at the market in a delayed
manner. But for you to better understand all that I
told you, let's do a quick exercise! Take a good look at that image and think
about what it represents to you. You can write it down on paper, on your cell
phone, on your computer, or just memorize what this picture represents to you.

But don't worry about right or wrong, just
write what you think is relevant looking at that picture. Think about what it means to you, what it
describes to you about the market. What kind of opportunity can this image
generate? Now I ask you to reflect on how you came to
these conclusions, that is: how, when and with whom and, mainly, why you learned to
look at the market this way (if you know the graphs)? If you do not know, rest assured
that you will be surprised. When I ask my students this kind of question,
the answer is always unanimous: "Ah, Andre, those images represent the movement in
price." "That image represents how price has moved through the chart." "That image
represents the candle." "That image represents what's happening in the market at
that moment." Those who are more advanced and know graphics say like this: "André, that
image is an opportunity of purchase.

Look here, there's a hammer, it's a bullish
candle .", among other explanations. Already the answers to the second question I
asked you: why, how, where did you learn this? Students always tell me: "But Antunes, all the books, courses and
websites I know about stock market describe charts and candles as faithful
representatives of the market. They say the market is the charts and the way
to look at the market is through the charts." Another thing they report is: "But Andre, all
traders, all analysts that I know use the candles, use the charts to follow the market
and, mainly, to define criteria for entering and exiting operations. In addition, all analytics platforms show the
market this way, through the graphics and some other considerations." But now, I'm going to describe something that will help you really understand why candles, why charts
don't reflect the truth of the market, because charts are not a representation of
the market financial. That picture I showed you that's on the
screen now only shows you two things: first, the price range that were traded over the
period of each candle.

And the second, that she shows you a little
bit about the evolution of prices from the opening and closing of each candle. But now pay attention! Look what this graph doesn't show you! It doesn't show you how much was traded at
each price level. It doesn't show you exactly at what point
business was being conducted. That is, the true price development . And it doesn't stop there! The graphs do not show whether most
participants were buying or were selling. It does not show you who originated the deal,
whether it was the buyer or the seller. He doesn't show you the urgency of the
participants.

And precisely, it is these variables that are
the most important for you analyze. It does not show you the level of
aggressiveness of the participants in closing the business. It does not show the attendee type or the
operating term of this participant. It does not show the activity level of the
trades, i.e., if 100 shares were traded, 10 thousand shares or 50,000 shares. It doesn't show you the previous position the
participants were carrying on the buy or sell. And furthermore, it doesn't show you
the current level of intent of supply and demand. There are also psychological and
potential factors which are not perceived through the graphics. That is, it does not show the level of
conviction of those bought and sold, nor at what price is possible these guys zero the
positions or stop. It does not show what type of participant has
entered the market . It doesn't show you how those participants
are reacting to the other variables.

It does not show you how many participants
are performing and mainly, what profile of performance is happening at that moment. Calm down! I know it was a long list! But what I want to show you is that there are
several and several information that are not present in the graph and you have to reflect
on it. But you may be wondering now: "Indeed Andre,
I don't see any of those factors through the charts. However, not all of them are possible
to be seen." That statement is half true! In fact, most of the variables we can't see. However, there is a lot of information that
is available there on your platform, but you you have a blind spot and you're not seeing
it! But rest assured, don't worry about knowing
exactly which variables are relevant at that moment. Just worry about believing that the fact that
you do not know any of these variables does not means that they don't exist! Continuing this theme of market insight, I
want to introduce you to another very common way through which beginner traders are
instructed to trade.

They learn to operate through technical
indicators or technical analysis indicators. The most common technical indicators used by
most traders are: moving averages, MACD, TRIX, ADX, IFR, Bollinger Band, HILO,
you can see in this chart here that has several technical indicators. Regardless of what the indicator is, most of
them are based on the closing price. That is, at the close of a 5-minute,
10-minute, 15-minute, 30-minute base, 60 minutes or even at the daily close.

Each indicator has a specific form and
generates derived information, precisely if calls it an indicator. What I mean here is: just like charts,
candles, technical indicators are far from representing the reality of the market. They are merely price manipulations or
mathematical formulas that generate indications for you, however late referrals! That is, the technical indicators do not show
any of those variables that we talked about at the beginning of that video. Therefore, although they are useful as buy or
sell signals, they have little say about what is actually happening in the market. The big lesson I want you to take away from
all of this is that there are other ways to follow the market and that are not simply
through the charts.

Not every trader looks at the market the way
most are used to. If, until now, you thought that looking at
charts or indicators represented the market, I ask that you reassess, that you reconsider
. Charts and technical indicators are not the
financial market! Charts and technical indicators do not
represent the stock market, they are only a complementary reading tool. But I am not suggesting that you should not
use charts or indicators, but rather that you believe that they are not reflective of the
reality of what is happening. Again, they are only a complementary tool for
reading or analyzing market. I hope that this understanding will
allow you to open your mind so that you develop other ways of interacting with the
market.

There is a big shift in perspective here ! People have confused the charts or technical
indicators with the market, but there is a very subtle difference (but one that almost
nobody notices). They look like they are the same thing,
however they are not! The best definition of the market that I have
been able to describe to date is: the dynamic equilibrium influenced by buy and sell offers
. And these offers, in turn, come to market
from different participants, with sizes different goals, different objectives,
visions (i.e., styles or concept of acting different) and mainly based on different
expectations. That is the market and not simply the price
movement through the charts! Therefore, your way of tracking the market
should take these issues into account, even if you don't have access to that kind of
information yet. You can, yes, use the chart. However, you have to be clear that it only
synthesizes prices, that it serves only as a complementary tool. But you can't believe or allow yourself to be
led into the mainstream decision making by the graphics.

That's it! The graphs serve as a complementary tool and
the decision making will come of the variables that really make the market move,
of present variables, of variables …that aren't retarded. But if you insist on looking at, actually
perceiving the market, through your strategy, your chart or your technical indicator, I
have to say: you will not be able to see what is really happening in the market! You will end up wanting the market to fit
what you want to happen. You'll plot an indicator, you'll plot a
pattern and you'll want to, you'll twist so that the market reflects what you are seeing. This way, you miss the greatest essence of
the market, which is you accept the order flow market. Which is you stop guessing what's going to
happen in the market and start reacting to the that's happening right now! Thus, Tape Reading or order flow analysis has
a basic premise that is identify the size and direction of the flow of aggression in the
market. What's that, Andre? Aggression, for those who do not know, is the
act of sending an order to the market, that is, it is a order that is guaranteed to be
immediately enforceable.

The aggressor is the guy who originates the
deal. The aggressor is the guy who actually
displaces price. Obviously, it is not only that, but
identifying the size of the aggression is one of the main pillars of this approach. The reading of aggression is a timeless
analysis, that is, it does not depend on time graphic you choose! The size of the aggression that happened in
those trades is independent of the chart time, the assaults are always the same
because it was the business done. In this way, Tape Reading or order flow
analysis becomes an important extremely objective approach. And objectivity means that it is easier for
you to read what is happening in the market at that moment, that it is easier for you to
remain neutral, you stop guessing the market and start reacting to what is happening at
that moment.

It is much easier for you to keep your head
100% open, 100% flexible to any move the market makes. That is why I believe you need to go beyond. You need to go beyond the graphics! That is why learning about Tape Reading,
about order flow analysis is extremely important, regardless of your school of
analysis . You need to take into consideration, in your
decision to buy or sell, the order flow variables. If you want to be a day trader with
consistency of gains focus on reading objective of the market. Then put it away! Learn the fundamentals of the market, learn
how the market really is, learn about the Participants' performance is the only way to
have consistent gains in the day trade.

So that's it! I hope you enjoyed this exercise and
especially that your mind has exploded ! You have understood that it is possible, yes,
go far beyond the conventional method, go far beyond graphs or technical indicators. So there you go, leave your "like", your
interaction is very important to us propagate this video, for this information to reach
more people! And do not forget to leave your comment, what
you thought of this exercise, if you really I blew your head off! Also, subscribe to the channel and enable
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So that's it! Big hug. Winning Attitude Always and see you in the next
video!.

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