InvestorsHub Logo

jasontrader

12/10/09 5:46 PM

#106744 RE: TigerTrader83 #106743

We're talking about 2 different things. I'm referring to moving averages on the chart, you are talking about size of trades.

mimurray

12/10/09 10:28 PM

#106750 RE: TigerTrader83 #106743

To be completely honest with you, the stories about those being signals that MM's use is more urban myth than anything else. It's right up there with the Firebird 1965 "Please forgive me" letter from a supposed paid basher. That story has morphed into many things over the years with each new publisher adding a new, different spin on the story and adding some new names and leaving some old ones out.

Think about it logically for a moment...even if the MM's wanted to "signal" each other, we live in a day of outstanding technology that goes FAR beyond typed code numbers on the daily tape of any given stock. Not to mention the fact that the vast majority of trades that go off on the OTCBB market are executed electronically.

More often than not, there is a prankster behind those alleged MM signals that show up. I personally know people that have done it just to fool around and get conversation moving a different direction on a board. The rest of the time it's just partial tid bits showing due to an incomplete fill.

Don't read much in to those signals.