Day Traders believe that Market Makers (MM) will "signal" moves in advance buy using small amounts of buys or sells as "signals".
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Day Traders believe that Market Makers (MM) will "signal" moves in advance buy using small amounts of buys or sells as "signals".

 

The "signals" are such a small amount of shares (worth no more than 5 or 10 dollars) that no trader would have paid a commission that costs more than the amount of shares bought.

 

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 the price down so I can load shares
  • 400   Keep trading it sideways.
  • 500   Gap the stock. This gap can be either up or down,      depending on the direction of the 500 signal.

 This is a theory put forth by stock traders.

 

However, when I use this method with the Historical T&S transactions of all the transactions you can clearly see the Market are communicate using ‘size of shares’

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Posted by mrscashflow on Aug 11, 2008 12:56 PM CDT

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