What is tape reading?

[Anne]

Tape reading is an old technique that day traders used to analyze the price and volume of a given instrument. From around 1860’s through the 1960s, instrument price were transmitted over telegraph lines on the ticker tape that included a ticker symbol, price and volume. These technologies were phased out in the 1960’s with the rise of personal computers and electronics communication networks or ECNs. Though there are still some traders who make use of more modern tape readers to their trading strategies to date.