Sideways Candlesticks of Dark Pool Buying
The “Platform Candlestick Formation” is a relatively new Sideways Pattern that is becoming more and more prevalent as the Dark Pools activity increases. Dark Pools are Alternative Trading System venues that transact giant lot orders off of the Exchanges. This is legal and actually benefits Mutual Fund Investors and Pension Fund owners. The Platform is always a range but unlike a true Trading Range, the Platform tends to have much more consistency to its highs and lows. See the chart example below.
This high and low price range is seldom disrupted but can be, mostly by High Frequency Traders who do not recognize the footprint of their most sought after Market Participant Group. In not recognizing the footprint of the giant lot institutions who are mostly Buy Side Institutions, the High Frequency Traders trigger a brief sell-off.
Martha Stokes CMT
TechniTrader technical analysis using TC2000 charts, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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