Hi Goldenchook,Thanks.Most short term traders open positions on...

Hi Goldenchook,

Thanks.

Most short term traders open positions on the basis of (a) technical trading systems (b)breakouts of price, volume or momentum (c) start of cycles (d) hive technology, artificial intelligence or swarm technology , amongst others.

I notice in the Charts forum, there is a large group of traders who are inclined towards VSA which is predominantly volume and price analysis. This works wonderfully well when there is momentum and sufficient liquidity in the markets and less so when the stock is fairly illiquid. However, my personal belief is that it is the large day traders who run technical trading systems ie programmed trading that will add to the volatility. Their presence can be sighted by the observation of what you had so brillantly noticed in your post - that of large parcel sizes. As a private student of programmed buying, this is the tell tale signal of programmed trading activity. The presence of large parcels of stock being purchased at slightly increased prices will 70% of the time lead to strong outbreaks in price and also overall volume within a short period of time.

The astute day trader and short term swing trader will probably be able to pick out easily by looking at the time of sales and depth ( level 2 activity) such large parcels activity. In fact, I know of two fellow members of this forum who have devised a computer program to identify large parcel trades intraday, and I have personally studied the price movements of ASX listed stocks with respect to the sighting of large parcel transactions generated by their programs, and can say that I will be very excited whenever there are large parcel activity sighted in POH, because this has invariably led to strong outbreaks in price. It is to the detriment of the forum that these two posters have since resigned from the forum due to obvious reasons and do not make available publicly their work anymore.

I therefore strongly commend your fine observation of large parcel activity in POH, and I suggest you please post the presence of large parcel sighting -- perhaps under a separate thread for those interested - whenever you sight them so that those who are interested in short term and even contra trading will find some technical guidance that is simple to understand, doesn't require a software, and which really works in practical terms

There, you have "let the cat out of the bag" - your observation is literally the golden egg for those who track large parcel activities!

Cheers

dascore