Dark Pool Indicator On Chart

Dark Pool Indicator And How To Use It

In This Article We Review The Dark Pool Indicator

If you’re like most traders on social media right now, you’re probably hearing a lot about dark pools. Whether you are someone who bought GameStop or AMC while the stocks were pumping or dumping, or you’re someone just getting into trading and following my charts on Twitter. The goal we all have is the same. Become a better trader than we were yesterday. The dark pool indicator I will review will be instrumental in helping you achieve that goal.

What is a Dark Pool Indicator

Simply put, it tracks dark pool trading activity. It’s not something you name make on your own, unless you have an exchange data feed, several developers, years of expertise, and a couple 100k in development costs, and a monthly expense to the exchanges (20-30K a month).

You can see the dark pool indicator that FlowTrade has developed, currently it’s only $200 a month to access. Lets check out the charts and explain how to view and use them for different time frames.

FlowTrade provides you with a “Dark Pool” indicator for viewing (purple) along with dark pool prints (blue horizontal line) Both help create a clear picture to see if dark pools are buying, or selling. Sometimes they buy when price is dropping. We call that “divergence” Other times, they sell when price is dropping, or buy while price is rising. We call that “confluence”

HFT Activity Should be Monitored on Both Time Frames.

The above chart is a 15 minute chart. This shows a trend of the dark pools selling, creating lower lows, despite price occasionally breaking above previous lows and highs on a 15 minute chart. How you use this is simple. You don’t go long when a stock or ETF’s dark pool indicator is consistently making lower lows. Follow the trend. The DPI (dark pool indicator) will eventually break previous highs and stop making lower lows. This is typically a good signal to go long, or close your short position.

One thing to note. It’s always better if new dark pool prints come in while the indicator is also reversing its trend. This shows strength in conviction. Dark pool levels can be used on our charts as support and resistance. You should also note that denser levels on the chart (more dark blue lines) create thicker or stronger levels of support and resistance.

Checkout a Free Trial of Flow Trade and see how the market moves in ways you are not seeing.

Dark Pool Indicator On Chart courtesy of Dark Pool Algo and Flowtrade not the Bullish Bears
Dense zones should be respected and add greater weight to the trade thesis. Note the trend and the stronger/thicker areas and plan your trades around these zones.
Dark pools…we see you….

Dark Pool Time Frames

Check both time frames for your entries! I always check the 1 minute chart before I enter a swing or day trade. I will never ignore the “dark pool” setting. Keep in mind that dark pools are the most powerful and sneaky forces in the market. Meaning, they work in the shadows to build positions without impacting price. However, we know they impact price, as anyone who has used FlowTrade and seen a fresh dark pool print well knows.

A fresh print till often cause a large move in either direction, depending on what the dark pool indicator is reading.

How Trading The DPI Can Save You Time and Money

Following your rules when trading is critical, as we all know too well what happens when you let a trade get away from you. Losses, larger than intended, often on a stock that continued to move in a direction we did not expect. As a general rule, I will stay out of a trade if a dark pool indicator is going in the opposite direction of my trade thesis. This keeps me out of good trades sometimes, but I’d rather miss a few good trades, and stay away from bad trades then get into any terrible trades.

Rules to Follow

  • Never trade in the opposite direction of the dark pool indicator
  • Check both time frames, 1 and 15 minute and make sure they both agree before you go long
  • The best trades have strong, dense dark pool zones to trade off of.
  • Always confirm your trade thesis on multiple time frames on your 4HR, Daily, and Weekly charts.

Dark Pool Indicator Conclusion

The dark pool indicator is a great tool which is proprietary, but gives you an edge in trading. The best thing you can do if you’re a serious trader is study the way the indicator works for months so you can understand how to best use it. I date and save my charts and go back later to review. I take notes and blog about the levels in our newsletter.


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