Re: Interesting Upside Flurry Of Activity ! ( codes )
in response to
by
posted on
Jul 23, 2014 03:23PM
Many traders believe that Market-Makers (MMs) will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are from one MM to another.
100 I need shares.
200 I need shares badly, but do not take the stock down.
300 Take (or I am taking) the price down so I can load shares
400 Keep trading it sideways.
500 Gap the stock.
This is a theory put forth by a lot of penny stock traders. This is not a guaranteed trading method but can lend some insight to communications. It can pay to watch a few MMs of your favorite stock over several days or weeks to see if they follow these or other similar signals. That way, you can divine what they are going to do and jump in ahead of any move that may come.