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Dark Pools are one of the most widely used venues for trading stocks for large institutions

It’s claimed that almost 40% of the entire trading volume is done in the shadows in these unknown markets!

You see, there’s one key to being successful when trading the momentum in Dark Pools…

Having the ability to identify reliable trades and chart patterns.

By analyzing Dark Pool trading activity and the chart patterns the stock is making, we can use this information to determine the best time to enter and exit a position.

But before I show how these chart patterns work, let’s take a look at how I found this trade in the first place

 

How I Use This Tool To Find My Dark Pool Trades

While it’s really hard to determine whether or not a trade is placed based on insider information, the only thing I know is that the trade happened.

But I also know more than just that…

I built a scanner that monitors the average dark pool volume and alerts me to when something out of the ordinary stands out!

And that’s exactly what happened in GRNQ today

Now let’s take a look at what I saw

 

 

So what does this show me

Well… it was one of the first couple trades on the day, and right at 9:40am, it was already trading at significant multiples of its average volume!

And why is that important?

You see, traders just don’t go out there and trade millions of dollars in the Dark Pools without having a good reason!

Which is what happened in this stock

GRNQ showed up right at 9:40am on my proprietary Dark Pool scanning system.

What’s happening when I see this alert go off?

  1. Nobody would ever allocate MILLIONS of capital into a trade without having a good reason to do so
  2. Institutions must be behind this move if it’s push that type of volume into a single stock
  3. Dark Pools are alerting trades, meaning that someone doesn’t want to impact the public markets

And I ask myself, WHY is a stock trading at 200% it’s average volume at 9:40 am without a significant catalyst, such as earning?

After quick investigation, some firm must have done serious research into this stock based on this news headline

 

Source: Thinkorswim

Remember, this trading system is designed to alert me to the smart money trades and give me the alerts that these professional traders are interested in a stock

And for these big firms to place money into a trade, it MUST mean something big is happening!

These traders just don’t allocate funds to a stock they don’t have an edge in after all!

Now… How do the charts look?

 

Source: Thinkorswim

The daily chart painted a really interesting picture… now let’s take a look at the intraday chart right when the trade went off

 

Source: Thinkorswim

And by using simple technical analysis, you could have easily picked up over 100% gains on this trade just by following the signal the dark pool scanner alerted!*

Without a way to sniff out the trading activity in the Dark Pools, this is a trade you may not have ever been able to find!

The thing is this activity happens fairly regularly over the markets, especially in the small and micro cap names.

These big hedge funds know that they can get in and push a stock around if they have insider information, and stand to make millions off of this trading activity.

Which is exactly why I want to find these trades and get into the action myself to ride on the backs of the mega firms who do the hard research every day.

Now if you want to learn more about the techniques I use to analyze the Dark Pool markets to uncover momentum stocks before they move…

Then make sure you sign up for Dark Pool Profits now!

What you’ll learn will shock you and could become a game changer if you want to seek out and trade Unusual Dark Pool activity with the pro’s!

Join today here!

*Results presented are not typical and may vary from person to person. Please see our full disclaimer below.

Author:
Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com podcast where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share some of the wisdom needed to live a successful life.

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