So what do you think True or false???
I always wondered why the smaller trades?
Reading Market-Maker Signals
The signs they send each other to move stock prices.
Many traders believe that market makers will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are from one market maker to another.
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100 I need shares.
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200 I need shares badly, but do not take the stock down.
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300 Take (or I am taking) the price down so I can load shares
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400 Keep trading it sideways.
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500 Gap the stock.
This is a theory put forth by a lot of penny stock and non-penny stock traders. This is not a guaranteed trading method but can lend some insight to market maker communications. It can pay to watch a few market makers of your favorite stock over several days or weeks to see if they follow these or other similar signals. That way, you can divine what they are going to do and jump in ahead of any move that may come.
