Long

Sideways trend reveals Dark Pool Buy Zone and Pro Trader Nudges

Sideways trends are more common in the past several years than they were in the past. This is due to the dominance of Dark Pools and how they use TWAPs to ping a penny spread while in accumulation mode. Once Dark Pools have all the shares of stock they have determined to buy based on Quantitative Analysis using some AI, then the Professional Independent Traders who were once floor traders take over, using a technique I call "the nudge" the nudge is always a very small penny spread candle that triggers the HFTs to gap or run a stock. As the stock starts moving up VWAP orders of Smaller Funds with less than 3 billion in assets under management start buying the stock. VWAP drives volume and price upward. HFTs triggers usually, not always cause a big gap up that is not necessarily a breakaway gap. In this instance, it is a running gap. If the earnings report new triggers HFTs to gap this stock again, then an island gap will form. This is a high probability for this stock as it has many previous island gaps. Trends tend to repeat.

MarthaStokesCMT-TechniTrader

Martha Stokes, CMT
ttrader.im/learn-tv

Learn how to use the technical patterns of each market participant for better trade planning.

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MarthaStokesCMT-TechniTrader

Martha Stokes, CMT
ttrader.im/learn-tv

Learn how to use the technical patterns of each market participant for better trade planning.

Also on: