Google                              TechniTrader Stock Trading Candlestick Charts and Indicators TechniTrader Stock Trading MetaStock Charts and Indicators banner

Entries in candlestick charts (11)

TechniTrader Stock Trading "New Bottoming Formations in the Stock Market" 

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. They typically 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.

One factor that Technical and Retail Traders need to recognize is the dominant influence of the Dark Pools, which build bottoms with Quiet Accumulation. Often times their patterns are hidden from Retail Traders using older style indicators such as MACD, Stochastic, and Average True Range. Retail Traders are those who have learned how to trade the Stock Market from home.

TechniTrader is "The Gold Standard in Stock Market Education." Go to the Learning Center and watch the How to Trade the Stock Market Webinar, to experience for yourself the excellence of TechniTrader education.

Go to the TechniTrader

"How to Trade the Stock Market Webinar"

By incorporating a few Leading Hybrid Indicators, Retail Traders can see what Professional Traders see in Quantity Analysis. The chart example below is an excellent example of price trending down and then starting a base. 

MetaStock chart showing new bottoming candlestick formation - TechniTrader

The Basing new bottoming formation begins after a big gap down caused by High Frequency Trading. The High Frequency Trading volume is easy to identify on daily view charts so long as the Volume Bars are not truncated. This high volume appears twice as High Frequency Trading gap the stock and run it down, but immediately the stock forms a Hurdle Candlestick Pattern reversal signal.

Unknown to the High Frequency Trading which are computer triggered millisecond orders, this stock dropped into a Dark Pool Buy Zone™ which then triggered giant Institutional Time Weighted Average Price style orders. These types of orders buy into a stock incrementally, maintaining a bracketed price range and minimizing the impact of their buying on Volume and Price.

TechniTrader is "The Gold Standard in Stock Market Education." Go to the Learning Center and watch the Trade Stocks & Options with 5 Simple Steps Webinar, to experience for yourself the excellence of TechniTrader education.

Go to the TechniTrader

"Trade Stocks & Options with 5 Simple Steps Webinar

TechniTrader Quiet Accumulation TTQA is designed to track Dark Pool accumulation, distribution, and rotation patterns as it determines which side of the trade the large lot triggered. 

Although this stock base has a low of 75.0 it drops slightly further, as accumulation eases ahead of the earnings season as is typical for Dark Pool accumulation patterns in a new bottoming formation.

Then a huge white candle forms. Intraday shows End of Day Professional Traders moving in ahead of news, and High Frequency Trading triggering after market opens. This pushed price back up to near the high of the Buy Zone for the Dark Pools. Now the stock is consolidating due to giant Institutions using Dark Pools and controlling price as they accumulate more shares.


It is no longer enough just to see a crossover or candle signal to enter a stock. With 80% of all activity on the professional side, understanding who is controlling price helps Retail Traders prepare for how price will behave in the near term.

In this instance, it was important to recognize the underlying influence on price by the giant Institutions using Dark Pools who controlled price as they accumulated creating a new bottoming formation. By recognizing the Dark Pools footprint Traders can be ready for the sudden Shift of Sentiment™ on the TTQA indicator for the Professional Traders buying, that often precedes a huge run or gap caused by High Frequency Trading trigger orders. This allows for more accurate entries and more consistent trading results.

TechniTrader is "The Gold Standard in Stock Market Education." Go to the Learning Center and watch a wide variety of webinars, to experience for yourself the excellence of TechniTrader education.

Go to the TechniTrader 

learning center webinars - technitrader

Retail Traders need to learn the NEW Bottoming Formations in the Stock Market, how to use Leading Indicators based on quantity and lot size, and the new Shift of Sentiment candlestick patterns that reveal who is controlling price. Price behaves totally different when various Market Participant Groups are in control and dominating price action, for example Dark Pools rarely move price much.

TechniTrader has designed Tools for MetaStock Users including the indicators shown in this chart example for best stock chart analysis. More information is at HERE.

Followers of this blog may request a specific article topic by emailing:

Trade Wisely,

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 and Option Courses

This weekly stock discussion is sponsored by a MetaStock® Partner

©2016-2017 Decisions Unlimited, Inc. dba TechniTrader. All rights reserved. 

TechniTrader is also a registered trademark of Decisions Unlimited, Inc.

Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.

1 | 2 | 3 | 4 | 5 | Next Entry