Big Prints

After a dark pool print is alerted, the trick is to figure out if it’s buying or selling. The dark pool print is only an alert that a cause is most likely being built. It may take some time after to determine what the affect will be. Be patient and don’t trade just because there is a print.

Even if it closes in the bullish above or bearish below zones, and the EMA’s have crossed in the direction of the move, don’t make the trade if the volume doesn’t confirm it. The smart money loves head fakes. They can move the price to look like a great setup, but if the volume doesn’t agree, there is a good chance its a suckers bet. Be suspicious and let volume be your guide, more than price.

Start looking for a pivot once there are at least two white prints within the same time frame and price range, or one cyan print. The more prints the better.

Watch the price as it passes through print areas. Does it return to the print area, then another print is made? If it keeps returning to the print area after it goes above or below, the accumulation or distribution may not be finished.

There is almost always a splash after a print. It initially moves in the opposite direction of the ultimate move, which is why you don’t buy right away. They may move it up to trap buyers who will ultimately give it energy when the price moves back down and they sell. They may move it down after to shake out ownership and lessen supply so it’s easier to move up. This can happen several times before the end result.

These setups seem to take much longer to make their move. As mentioned earlier, it’s common to have several head fakes before it makes a sustained move. I typically like to buy in 25% increments, but I should use smaller increments with this strategy since the trade develops more slowly.

I’m starting to see a pattern where several prints will cluster right on, or close to, a resistance or support area. When that starts to happen, it looks like the eventual move will be a break of that area.