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How to Find the Giant Buy Side Institutions

How to Find the Giant Buy Side Institutions
February 19, 2019 Martha Stokes CMT

How to Find the Giant Buy Side Institutions

Platforms Offer Low Risk and Early Entry

The giant Buy Side Institutions control vast amounts of money on behalf of their fundholders. They are the giant Mutual Funds and Pension Funds in the US and around the world. Most of the time Individual Investors and Retail Traders do not know how to find the giant Buy Side Institutions because they do not recognize the Platform Candlestick Pattern, or bottoming patterns that indicate their Dark Pool Quiet Accumulation of stock.

These are the savvy money managers in the business. They accumulate stock, using a very specific methodology. They buy into a stock incrementally over a time period of often many months, which means they can be buying slowly and consistently as a stock forms a Platform, and then moves up again.

This type of price pattern is excellent for Position Traders, as it provides strong support and low risk entries. It wreaks havoc on Swing and Day Traders who are constantly whipsawed out of their trades, due to the tighter price action and smaller range that is not wide enough for a Stop and Reverse SARs or other Trading Range style strategy.

Instead of buying when the Giant Funds are buying, Retail Traders are often trying to Sell Short and run headlong into the Buy Side Institutions using Dark Pools for Quiet Accumulation in bottoms.

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These institutions always are the ones who create the bottoms. So consequently understanding how, where, and why they buy can help an investor or trader buy in sooner and avoid losses.

How to find the giant Buy Side Institutions requires identifying Dark Pool Quiet Accumulation, which helps traders get into stocks before High Frequency Traders move price suddenly. This is especially beneficial for Swing and Day Traders.

The chart example below shows Dark Pool Quiet Accumulation on 3 levels, as indicated by the 3 lines on the chart. It is a daily chart view.

The chart also shows the consistency of the buying pattern confirmed in the Dark Pool Quiet Accumulation indicators of Volume in the middle chart window and Balance of Power in the bottom chart window.

This confirmation by stock indicators and the consistency of price action is how to find the giant Buy Side Institutions footprint on the stock chart.

When you trade with these funds by buying when they buy and selling when they sell, you increase profit potential and lower risk.

The patterns the Buy Side Institutions create on stock charts are easy to learn.

However the indicators needed to find them are not the everyday MACD, Relative Strength Index RSI, Stochastic, Average Directional Index ADX, or other highly popular indicators.

The reason these popular price indicators do not help identify and reveal how to find the giant Buy Side Institutions Dark Pool Quiet Accumulation, is because price is controlled tightly by the institutions during their accumulation. After they have accumulated what they want, they allow news to leak out that they have been buying. Then the High Frequency Traders rush to buy the same stock, pushing price upward.

Summary

If you want to be consistently successful investing or trading, you must learn to use modern indicators written for our complex Market Structure. The Dark Pool activity of the giant Buy Side Institutions is easy to see on the charts with indicators that expose where they are buying and selling.

Go to the TC2000 Learning Center to watch webinars on Time Segmented Volume TSV, Balance of Power BOP, the Trade Management Planner, and Pro Style TC2000 Scans. Also access info about TechniTrader Trading Tools for TC2000 Users.

TC2000 Tools – TechniTrader custom chart layouts, custom trading style scans. How to interpret and use TC2000 Indicators.

Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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Martha Stokes, CMT is co-founder and CEO of TechniTrader. She is a retired professional Buy-Side Analyst and was awarded the Chartered Market Technician designation for her thesis, "Cycle Evolution Theory." Martha is a passionate teacher of the financial markets and a prolific writer, having created over 40 stock, option, and financial market courses.

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