By Tracking Dark Pools with the Balance of Power Indicator
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.
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.
Worden’s Balance of Power Indicator reveals the Quiet Accumulation mode by Dark Pools early in this bottoming formation. This is a crucial aspect of entering the stock ahead of the inevitable momentum run or one-day High Frequency Trader gain or gap.
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.
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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