Dark Pool Quiet Rotation™ Candlestick Patterns Precede Tops
One of the challenges of a Market Correction is identifying stock tops early, as they often creep up on traders unexpectedly. They are surprised too often by a sudden sell-off, blaming news or an event for the selling rather than recognizing that the stock charts were showing signs of weakness long before the big decline.
The chart example below formed a “Rounding Top Formation” which is one of many new topping patterns traders do not recognize early.
This is because they are not tracking the giant Buy Side Institutions using Dark Pools whose rotation patterns precede most tops, which is most important in identifying stock tops early.
Dark Pool Quiet Rotation by giant Buy Side Institutions is not visible in price patterns, but is evident in large lot versus small lot indicators.
All throughout the first few months of this top, Dark Pool Quiet Rotation was going on consistently. This was an early warning that this stock was at risk of a serious Market Correction. The stock broke to the downside after the Dark Pool Quiet Rotation pattern ended.
Martha Stokes CMT
TechniTrader technical analysis using a FreeStockCharts chart, courtesy of Worden Bros. and FreeStockCharts.com
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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