Dark Pool Trading: See Smart Money Trades Live on Your Charts

A few weeks before UnitedHealth rallied 32%, institutions were quietly accumulating shares. The news hadn't hit yet, but the current news was terribly bearish with more downside to come. Retail traders had no idea of the massive turnaround the stock was about to have, but if you knew where to look, you could see it happening in real time. Did you know that over 40% of all US stock trading happens in places you've probably never seen? They're called dark pools, and institutions use them to hide their trades from you. It's perfectly legal, and these trades don't have to be reported to the public exchanges until they're complete. Today I'm going to show you exactly how to see where institutional money is flowing, and MobyTick has partnered with TrendSpider to put this data directly on your TrendSpider charts in real time. Let me show you how this works. First off, let's take a minute and discuss dark pools. Dark pools are private exchanges where large institutions, hedge funds, pension funds, Hedge funds, banks, all trade massive blocks of shares away from the public stock exchanges, which became legal in 1979. They're called dark because the orders aren't visible until after they execute. The institutions don't want you to see them coming. Think about it. If a hedge fund wants to buy 1 million shares of AMD, they can't just place that order on the public exchange. The price would spike before they finished entering their position. So, they go dark. These massive trades eventually get reported to the public exchanges after the entire order is filled, but most retail traders never see it. When you see a massive block trade at a specific price level, you're seeing where an institution committed real capital. The price level now means something. If a fund bought 1 million shares at $254, they have a vested interest in that level holding. it becomes institutional support. Most retail traders are making decisions based on incomplete information. You're looking at price and volume on public exchanges, but you're missing 40% of the picture. Ever wonder why a stock suddenly respects a price level for no obvious reason? Often it's because there's institutional activity there that you can't see on a normal chart. Until now. Let's check it out. Mobitick has partnered with TrendSpider to bring this dark pool data directly into their charting platform. If you're already a TrendSpider user, you can add this indicator from the TrendSpider store. If you're a Mobitick user, you already have these charting capabilities as part of your package. Links in the description below. For TrendSpider, there are 2 indicators available: Standard and Pro. Standard allows you to look back 1 year for the top 30 largest trades, updated every 5 minutes to capture the newest trades. For full real-time updates and adjustable lookback periods going back 6 years, plus real-time chart updates when new trades come in, you'll want the Pro version. Here's a blank daily chart on TrendSpider of the SPY with just the candles. This is what every trader sees without indicators, moving averages, trend lines, and the lot. Note that institutions are large position traders, and seeing where these large trades are on the chart allows you to see where smart money is holding positions. Let's overlay the 10 largest trades in the last year on the chart. Notice the horizontal lines appear on the chart starting on the day that the largest trades occurred. These lines extend to show the price and value of the trade. There's a table on the top right-hand side of the chart indicating the rank, highest value, price, date, number of shares in the trade, and the value of the trade. What we see here are massive institutional positions of accumulation and distribution. First, we see about $12 billion between $583.80 and $584.91, which is February 28th and March 4th. The price action tested this level over the coming days where there was another $5.2 billion trade at 576.09 on March 10th. The price dropped lower where there was another $13 billion over 3 trades. The price retested and was rejected at 576.09 and moved to close below the prints to make a new low. The prints were tested again and momentum picked up and moved lower. There was an $8.75 billion trade at 537.70 on April 4th. And the price fell down to a low of $484.12. The day before this low was a $5 billion trade at $505.60, and the day after the low was a massive $7.3 billion trade at $496.51. From here, there was a massive rejection of the low, breaking above and retesting trades that now became support. What a nice V-shaped recovery as retail traders panicked and the smart money scooped up the shares. How does this help us now? Well, let's adjust the indicator to show something more recent, such as the largest trades in the last 6 months. There are over $50 billion in trades here overlaid on the chart, and we can see the $14.8 billion in trades September 19th and 20th hold. Notice the $4.9 billion trade at 671.75 switch from support to resistance back to support. Since the middle of December, we can see the price trading in a range between massive trades with a high of $689 and $679. The story here is that if $689 can become support, then SPY is in for a run. If we cannot hold $679, then we have a target of $671.65 and $663.21. For those of you who are new to seeing institutional trades, understand that the big guys are not scalpers and can manipulate the price of the stock just by sheer share size to price levels at which they choose to buy more or sell. I've changed the indicator to the top 10 trades in the last 30 days. Notice the trade at the bottom at 671.27 where the candle did not touch the trade. These are trades that are reported up to 24 hours late and should have been accounted for in the previous day's volume. December 18th was a strong reversal signal candle. But notice December 19th, the day opened, moved lower to tag another print, and moved higher through older trades. This is the institutions moving forward with their positions, pushing the price up. You can clearly see we're in a consolidation period at the moment with a higher high and higher low, but close to a double top. Why is the market overly sideways? Because the big guys aren't done entering their positions. Switching to a 5-minute chart, look at how these huge trades are support and resistance. What if you're in a trade and could see a new line appear on your chart as a new institutional position hits the tape? Well, you can, and it's part of the indicator. With the standard indicator, you have up to 30 trades on your chart with 5-minute updates. With Pro, you can have up to 50 with live trades showing up within 60 seconds. of the order being filled. If you wanna add dark pool levels to your TrendSpider charts, click the link in the description below where you can try it for free for 5 days. If you're not a TrendSpider user but want access to dark pool data, live block trade indicators, and full view of all trades going back 6+ years, check out MobyTick Trading at mobyticktrading.com. All links are below. If you find this information valuable, please consider liking and subscribing to this channel. where we educate and call out trades to take daily before you're even out of bed.