Dark Pool Buy Zones™

Some traders try to watch Level 2 data to discern when the large-lot orders come through to get an idea of when the big institutions are accumulating in the Dark Pools, but you really don’t need that. Plus, whether that’s accurate is questionable since Dark Pool transactions are reported way after they were transacted.

“Dark Pool buy zones” is a term I coined because Dark Pools use precise controlled orders that trigger automatically over extended periods of time. Since the Buy Side Institutions using the Dark Pools are primarily buying for the long term, price can sometimes drop down before moving up, creating a range in the price action, what I call “the buy zone.”

When you learn to recognize the Dark Pool Candlestick and Indicator Patterns, you can be ready for the bottom to develop and look for Dark Pool accumulation patterns to plan your trading.

Below is an example. Ford is still falling, but the Dark Pool buy zone support is close. I’ll be waiting to see how the bottom develops around that level before making my decision to trade.


Happy TechniTrading!

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