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<u>Market Maker Signals</u> - Explained

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trader53 Member Level  Wednesday, 11/24/21 01:16:46 AM
Re: trader53 post# 232688
Post # of 234776 
Market Maker Signals - Explained


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.

505 - I am short on shares
600 - Means provide resistance
900 - Means let the stock float
911 - Pending News/Press Release On The Way
1000 - Don't let it run
2100 - Let it run



Understanding the Form T-Trade:

If a Market Maker wants to accumulate

a large amount of a stock in one trading day,

that market maker may actually not report
any of the trades that occurred
until the trading day has ended
so as not to alert the market to the collection.


Form T - Definition

Form T trades
occur during extended hours,
before the market opens and after it closes.

Form T
is also used to submit last sale reports
of OTC transactions in equity securities,
for which electronic submission is not possible.

The objective of the Form T report
is to maintain market transparency and integrity.


What is a Form T-Trade ?


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