Editing Technical analysis (section)

==Ticker-tape reading==

{{Main|Ticker tape}}

Until the mid-1960s, '''tape reading''' was a popular form of technical analysis. It consisted of reading market information such as price, volume, order size, and so on from a paper strip which ran through a machine called a [[stock ticker]]. Market data was sent to brokerage houses and to the homes and offices of the most active speculators. This system fell into disuse with the advent of electronic information panels in the late 60's, and later computers, which allow for the easy preparation of charts.

[[Jesse Livermore]], one of the most successful stock market operators of all time, was primarily concerned with ticker tape reading since a young age. He followed his own (mechanical) trading system (he called it the 'market key'), which did not need charts, but was relying solely on price data. He described his market key in detail in his 1940s book 'How to Trade in Stocks'.<ref>{{harvp|Livermore|1940}}</ref> Livermore's system was determining market phases (trend, correction etc.) via past price data. He also made use of volume data (which he estimated from how stocks behaved and via 'market testing', a process of testing market liquidity via sending in small market orders), as described in his 1940s book.