RAC - Charts & Price Action, page-12586

@PlayMoney76

We can only speculate - we will have to see if any new recognizable patterns appear in the next few weeks.

If I were RAC's broker I would look into 2 types algo trading:

First, an algo designed to strategically boost the SP. This would show as tiny buys (e.g. less than 50 units) parcels that would be purchased at critical times where they can cross one or more price steps. This could happen anytime of the open, intra-day and close. But for opens and closes, those buys would likely appear at the last second to try and beat other orders (similar to the trade in my above post but to support a higher price instead of a lower price). Another way to notice would be the jump in price, i.e. the price moving 2 or more steps higher in a single trade (never lower). The goal of this algo would be to try boost the SP to create positive momentum. i.e. higher closes, higher opens, while trying to use as little purchases as possible.

Second, an algo designed for accumulation. The algo would likely use VWAP to decide when to accumulate large parcels. buying would more likely happen when SP falls under a particular threshold and slow down or stop as the SP climbs above VWAP. The amount accumulated would be defined by how much discount to the VWAP RAC can get (buy more as the price gets lower than WVAP), and reduce or stop buying as the price approaches or gets above VWAP). They could also consider some budgets (e.g. If RAC decides to accumulate a certain amount of shares over a certain period). Parcel sizes would be bigger than with the previous algo, e.g. in the 1000's units at a time. If the broker are clever they will use random parcel sizes to conceal their accumulation.

For better effect they would probably alternate between algos, as they wouldn't want to boost the SP if they are going to accumulate larger parcels. If the SP tends to go way below VWAP, then accumulate, and once accumulation is completed then trigger the SP booster algo. Wash and repeat. Accumulation would continue until the VWAP goes up, or the accumulation budget is reached. If after that price is still going down then RAC could switch to the SP booster algo to try to support it.

The easier to spot trades would be those small SP booster parcels. Larger accumulation parcels would ideally be randomised to make it harder to spot. Since RAC apparently will use a new broker, People who have access to broker data should be able to see RAC's accumulation with a few days lag.

Just a guess!