What Is Stock Tape Reading, and How Can You Use It in Trading?

What Is Stock Tape Reading, and How Can You Use It in Trading?

Tape reading is a real-time market analysis method used to track buying and selling pressure. Unlike technical indicators, which rely on historical data, tape reading focuses on executed trades, order flow, and liquidity shifts. Traders use it to assess momentum, identify institutional activity, and refine trade timing. This article explores how tape reading works, its role in modern markets, and how traders apply it to short-term decision-makin…