Identify Candlestick Patterns for Early Entry
An area of Technical Analysis that has not made its way
into most stock market books, articles, and information available on the
internet is to use Dark Pools Stock Chart Patterns for higher profits. The
reason why Dark Pool technical patterns aka footprints are not yet part of the
Technical Analysis standard of teaching is that these are NEW chart patterns.
Dark Pools did not exist in the 1980’s, 1990’s, or
early 2000’s. These are relatively new trading venues for the giant Buy Side
Institutions who demanded obscurity, due to the rise of the High Frequency
Trading Firms in the mid 2000 decade after the switch from fractions to
decimals. Basically High Frequency Trading Firms morphed out of the Small Order
Execution System Bandits, during the rouge Floor Traders era.
A Retail Day Trader can
no longer see the large lot activity on their level 2 screens, as nearly all
large lots are transacted nowadays on the hidden venues called Dark Pools which
are used by giant Buy Side Institutions. However what can not be hidden, is the
easy to identify Dark Pool footprints on the stock charts. Watch a webinar on
the leading indicator Time Segmented Volume indicator for early entry and
higher profits, which is shown in the middle chart window in the chart example.
Go watch the Time Segmented Volume Indicator training
webinar, for Swing and Position Trading. Learn why it is so powerful as a
volume oscillator, and how it tracks Dark Pool action that triggers huge High
Frequency Traders explosive runs.
Identify Candlestick Patterns for Early Entry
An area of Technical Analysis that has not made its way
into most stock market books, articles, and information available on the
internet is to use Dark Pools Stock Chart Patterns for higher profits. The
reason why Dark Pool technical patterns aka footprints are not yet part of the
Technical Analysis standard of teaching is that these are NEW chart patterns.
Dark Pools did not exist in the 1980’s, 1990’s, or
early 2000’s. These are relatively new trading venues for the giant Buy Side
Institutions who demanded obscurity, due to the rise of the High Frequency
Trading Firms in the mid 2000 decade after the switch from fractions to
decimals. Basically High Frequency Trading Firms morphed out of the Small Order
Execution System Bandits, during the rouge Floor Traders era.
A Retail Day Trader can no longer see the large lot activity on their level 2 screens, as nearly all large lots are transacted nowadays on the hidden venues called Dark Pools which are used by giant Buy Side Institutions. However what can not be hidden, is the easy to identify Dark Pool footprints on the stock charts. Watch a webinar on the leading indicator Time Segmented Volume indicator for early entry and higher profits, which is shown in the middle chart window in the chart example.
Go watch the Time Segmented Volume Indicator training
webinar, for Swing and Position Trading. Learn why it is so powerful as a
volume oscillator, and how it tracks Dark Pool action that triggers huge High
Frequency Traders explosive runs.
There
are many different types of Dark Pool footprints the giant Buy Side
Institutions leave on charts, due to their preferred professional bracketed
Order Types.
One
of the more common patterns happening is the “Basing Bottom Formation,” which
is a brand new type of bottoming formation. In order to use Dark Pool Chart
Patterns for higher profits, the key element to identify the Dark Pool Quiet
Accumulation before the stock runs up. The box drawn on the chart below shows
the candlestick pattern of the Dark Pool Buy Zone.
However early entry can be problematic if a trader
is using Price and Time Indicators, as well as both Momentum and Price
Oscillators. They may get an early crossover, but then the stock moves sideways
up and down in a choppy pattern that causes whipsaw exits and losses.
Another problem getting in early is that many Retail
Traders wait for signals from Momentum Indicators, which gets them into the
stock very late in the run. This means instead of a high profit trade, the
Retail Trader takes a meager profit.
Summary
Recognizing Dark Pool Chart Patterns and using
leading indicators to enter a stock trade earlier, is crucial for higher
profits.
Watch a training webinar about using Stock Leading
Indicators for early entry and higher profits, and avoid getting into a stock
late.
Go watch the Stock Leading Indicators training webinar,
to learn the 5 Essential Stock Indicators, Price vs Quantity, and indicators
for finding Dark Pools & the High Frequency Traders that search for them.
Go to the TechniTrader
Go to the Learning Center and watch a wide variety of training webinars.
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Trade Wisely,
Martha
Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDs with every course.
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