TechniTrader® has developed a group of proprietary indicators that provide a complete analysis of a stock chart for short term trading and long term investing.
Today we are going to discuss: TTQA which stands for TechniTrader® Quiet Accumulation indicator.
Quiet Accumulation refers to the Market Participant Group:
The Institutional Investors.
Institutional Investors are giant Pension Funds, giant Mutual Funds, International Funds, and other huge companies that are the “buy side” investors on a long term scale. These institutional investors dominate the marketplace with huge order flow buying millions of shares of stock with billions of dollars at their disposal.
Why is it important to track the institutional investors? Because all strong trends upward begin with their incremental buying in on lower prices. These market participants are harder to recognize than their counter-part: the Institutional Traders, because institutional investors DO NOT MOVE PRICE.
This is a hard concept to understand for most retail traders. How can a fund that is buying millions of shares not move price.
The answer is they buy within a specific predefined price range, with a controlled bracketed order in incremental lots. They also use Dark Pools for their activity which hides their big lot buying from Day Traders, Floor Traders, and High Frequency Traders. Their activity is only recorded end of day and doesn’t show up on intraday charts at all.
MetaStock Charting Software is the ideal platform for tracking the institutional investor activity.
When these giant funds start buying a stock , the tendency is for that stock to slowly move up building platforms or consolidations. The volume will seldom appear out of the ordinary due to the incremental buying order setup and the range established.
TTQA is designed to reveal their buying patterns so that traders can enter early before the big moves that come when these funds reveal their accumulation to the institutional traders, floor traders, and retail traders who do move price often in dramatic, huge runs.
Below is TTQA with TT Volume Bars: These two indicators are used on the first template with price for quick analysis of whether price is moving due to institutional investor or institutional trader activity.
Quiet Accumulation started on this chart in September of 2010 and continued through April when institutional traders moved in.
Quiet Accumulation will be green bars of varying length followed by intermittent gray to very small red bards which are then followed by green and so on. The incremental buying patterns of the institutional investors are exposed even while volume is low and price is not moving much.
Chart 1
The green to red bar pattern is where institutional traders begin trading the stock on a short term basis moving in and out of the stock with buying long and selling short patterns.
TTQA is used in conjunction with TT Volume Bars but functions independently to reveal institutional quiet accumulation in stocks before the big momentum moves that develop as institutional short term traders find out about the quiet accumulation and move in with momentum action.
TTQA is an essential indicator for:
1. Swing Traders and Momentum Traders to find stocks before the big runs.
2. Position Traders to move into stocks a lower price levels with confidence the trend will continue upward.
3. During Trading Range markets to expose the upside or downside bias and eventual direction the stock will take.
4. For long term investors who want to buy in as the giant funds accumulate.
Trade wisely,
Martha Stokes, C.M.T.
Member of Market Technicians Association
Master Rated Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
http://technitrader.com
MetaStock Partner
©2011 Decisions Unlimited, Inc.
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