Market Intelligence Delivered
At Trader Oracle, we provide strategy-based investment advice on a predictive modelling platform across sectors and multiple time frames to proprietary trading desks of brokerages, hedge funds, managed funds, corporate treasuries and high net-worth individuals.
We strongly opine that judicious application of evidence based technical analysis provides the “tools” to successfully navigate the “gap” between “intrinsic value” and “market price” across all asset classes through a disciplined, systemic approach to market behavior and the law of supply and demand.
Bridging the Gaps
Dark Pools Activity Identified
Trader Oracle has pioneered the art of identifying “Dark Pool Activity” . An area of Technical Analysis that has not made its way into stock market books, articles and information available on the internet is to use “Dark Pool Chart Patterns” for higher profits. The reason why “Dark Pool Technical Patterns” aka footprints are not yet part of the conventional technical analysis teaching standards arises from the fact that these are relatively “New Chart Patterns”.
A “Dark Pool” is a venue or mechanism containing anonymous, non-displayed trading liquidity that is available for execution. Trading in dark pools is all about visibility and, like the name implies, dark pools don’t have a lot of visibility. A dark pool doesn’t show how much of a stock you want to buy or at what price, which is what makes dark pools “dark”. To differentiate, traditional stock exchanges are sometimes referred to as “Lit” or “Displayed Markets”.
Dark Pools have grown to be a major part of the global equity markets, and they’ve become a real competitor and alternative to traditional stock exchanges. Many investors are confused about dark pools because of rampant rumours, which isn’t surprising. Just the name is enough to put fear into anyone who takes an interest in them. When you take a dip in a “dark pool”, you’re swimming in murky waters. Whether you like it or not, if you’re buying or selling equities, the chances are you’ll be operating in a dark pool at some point. They’re as much a part of the global financial markets as the iconic New York Stock Exchange, the City of London or Wall Street itself.
“Dark Pools of Liquidity” are intended to provide a solution to facilitate the trading of large orders by institutional investors “without moving the market”, as the price and size of orders are unknown until the order has been filled. Growth in “High Frequency Trading” has consequently perpetuated the growth of dark pools. Some estimates suggest dark pool venues account for more than 80% of global equities trading volumes. As orders are matched internally, some operators offer clients improved pricing and reduced costs, negating the need to trade through a public exchange. The reduced transparency of dark pools, by design, has led some to question whether users may be open to manipulation. In the US, multiple dark pool operators are being investigated for potentially violating the rules with which “Dark Pools” and “Alternative Trading Systems” are expected to comply. Regulators in the UK and Asia are also increasing their scrutiny of dark pools operated by global financial firms in their local jurisdictions. Operators of dark pools have begun to investigate internal systems and organizational behavior, and related control practices. Legislation will change and alter the way dark pools do business and how they operate, but “dark pools are here to stay”.
Trader Oracle team has designed trading platforms encompassing predatory algorithms sniffing out big orders by dark pools!