Why Analyze Sideways Bottoming Trends?

To Identify Dark Pool Buy Zones™

The Shift of Sentiment™ pattern in the chart example below, clearly and easily shows that Buy Side Institutions using Dark Pools entered this stock and would quickly take control of price. Sideways bottoming trend analysis of the chart shows a sudden reversal occurred when they moved in quietly, even while the price continued downward for a brief period after the Shift of Sentiment.

Buy Side Institutions using Dark Pools prefer to buy into a bottoming weakness when sellers are running out of capital to trade.

High Frequency Traders were also present in this stock prior to and during the entire bottoming phase. Sideways bottoming trend analysis easily shows their entry, with the gap down and a huge volume spike indicated by the first red arrow on price to the left.

Their presence is also shown by the huge volume spikes as indicated also by red arrows on price. These High Frequency Traders were using 3 different kinds of their most popular strategies.

Sideways bottoming trend analysis reveals that although the Platform Candlestick Pattern developed after the stock price moved beyond the Dark Pool Buy Zone it only slipped to fill the prior gap, before halting firmly within the lows of the Buy Zone established at that higher level.

The Accumulation/Distribution Indicator shows the steady Dark Pool Quiet Accumulation by the Buy Side Institutions. The higher V Formation on this indicator provided early indication for the potential of a High Frequency Trader gap up, allowing Swing Traders an earlier entry.

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Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using a StockCharts chart, courtesy of StockCharts.com

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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