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
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.
$0.0007 42 OTO 04/06 $0.0007 23,100 OTO 04/06 $0.0007 292,500 OTO 04/06 $0.0007 10,000 OTO 04/06 $0.0007 10,000 OTO 04/06 $0.0007 50,000 OTO 04/06 $0.0007 100,000 OTO 04/06 $0.0007 10,000 OTO 04/06 $0.0007 200,000 OTO 04/06 $0.0007 94,700 OTO 04/06 $0.0007 204,000 OTO 04/06 $0.0007 10,000 OTO 04/06 $0.0007 438,571 OTO 04/06 $0.0007 313,642 OTO 04/06
$0.0006 1,000,000 OTO 04/06 $0.0006 10,000 OTO 04/06