Enter Stocks Prior to Velocity Candlestick Patterns
Dark Pools use precise controlled orders that trigger automatically over extended periods of time. Since the Buy Side Institutions using the Dark Pools are primarily buying for the long term, price can sometimes drop down before moving up. This tendency often leaves Retail Traders on the wrong side of the trade.
Using an indicator that exposes the Dark Pool incremental buying, gives Retail Traders an edge even High Frequency Traders do not have. During this period the stock slipped down slightly, but remained well within the Dark Pool Buy Zone™ that had been created. Below is a chart example which was under Quiet Accumulation by Dark Pools for several months.
The enormous volume that occurred on the day of the High Frequency Traders gigantic gap up, distorts the volume indicator history. Below is the chart, showing how the volume indicator appeared prior to that big gap.
Martha Stokes CMT
TechniTrader technical analysis using MetaStock charts, courtesy of Innovative Market Analysis, LLC dba MetaStock
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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