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Re: hampstead post# 3750

Tuesday, 07/11/2017 1:56:59 PM

Tuesday, July 11, 2017 1:56:59 PM

Post# of 5555
Over the years, I have wondered about these small amounts of shares traded in the low 100's.
Just wondering if you think the following table is still used by market makers. It certainly is exactly what happened today but this information is from years ago and I do not know if it was ever 100% true.

MARKET MAKER SIGNALS

Penny 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.
911 - Pending News