Dark Pool Quiet Accumulation Builds Stock Bottoms
During Trading Range Market Conditions when several industries are in their own Bear Market while other industries are continuing a Bull Market, determining when a stock has reached a final low or near the final low is critical for Swing Traders.
Typically, they will be Selling Short into a bottom and then switching to Buying Long with Momentum Trading as a stock hits the final low and moves with momentum or velocity action out of the extreme low in one of the new Bottoming Formations in the Stock Market.
The new candlestick “Basing Bottoming Formation” begins after the big gap down seen on the far left side of the chart. High Frequency Traders (HFTs) caused the gap. They are computer algorithms that triggered millisecond orders. See the chart example below.
High Frequency Traders gapped the stock and ran it down twice, but immediately after the second time, a Hurdle Candlestick reversal signal formed.
Then, price dropped into a Dark Pool Buy Zone™, which triggered the giant Buy Side Institutions’ Time Weighted Average Price (TWAP) orders. In the Basing Bottoming Formation, the giant Buy Side Institution orders buy large-lot shares of stock incrementally over time while maintaining a bracketed price range. This minimizes the impact of their buying on stock Volume and Price, barely moving price as shown in the TechniTrader Quiet Accumulation (TTQA) indicator.
The TechniTrader Quiet Accumulation indicator is designed to track Dark Pool Quiet Accumulation, Dark Pool Quiet Distribution, and Dark Pool Quiet Rotation™ patterns because it determines which side of the trade the large lot triggered.
Martha Stokes CMT
TechniTrader technical analysis using a MetaStock chart, courtesy of Innovative Market Analysis, LLC dba MetaStock
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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