Tracking Dark Pools with Balance of Power
You can learn to identify setups for swing trade momentum runs by focusing on price trends and indicators that reveal Dark Pool Quiet Accumulation. TC2000 Users have a huge advantage over other Retail Traders.
They have access to custom indicators designed specifically to track and reveal Dark Pool Quiet Accumulation and Professional Trader activity which results in sudden momentum runs created by High Frequency Trading.
Momentum Trading can be more fun and less work when you employ the Balance of Power indicator written by Don Worden.
This indicator has become better at revealing Dark Pool Quiet Accumulation as the popularity of Alternative Trading Systems continues to increase. More and more Buy Side Institutions, including some Smaller Funds, are using Dark Pool venues more than ever before.
Also, the 5-cent spread for Small Caps is creating plenty of momentum activity for Small Cap stock trading.
The Securities and Exchange Commission conducted a Test Pilot Program for a minimum 5-cent spread on a group of Small Cap stocks to see if that would create higher liquidity for Small Cap Traders. The Pilot Program proved that wider spreads for Small Cap stocks worked.
Now, Retail Traders can enjoy the higher profitability of the wider spread on Small Cap stocks, providing them with far more opportunities to trade momentum runs using Swing Trading techniques. The key is identifying the Dark Pool Quiet Accumulation patterns before the breakout occurs.
How to Find Swing Trade Momentum Runs Caused by Dark Pool Quiet Accumulation
Below is a chart example of a Small Cap stock with 37 million outstanding shares. The smaller number of the outstanding shares, the more likely a liquidity draw by Dark Pools will trigger huge runs and gaps. Therefore, identifying the Dark Pool Quiet Accumulation is a key element to getting into the stock ahead of the High Frequency Trader runs.
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
Copyright ©2017-2019 Decisions Unlimited, Inc. dba TechniTrader. All rights reserved.
TechniTrader is also a registered trademark of Decisions Unlimited, Inc.