Dark Pool Trades
Institutional block trades and off-exchange activity
Dark pool trades are large block trades executed off-exchange, typically by institutional investors seeking to minimize market impact. These trades often signal significant institutional positioning.
Availability: Gamma plan and higher ($59/month+)
What Are Dark Pool Trades?
Dark pools are private exchanges where large institutional orders are executed away from public markets to avoid moving prices.
Key Characteristics
| Feature | Description |
|---|---|
| Minimum Size | Typically $1M+ in value |
| Off-Exchange | Executed away from public exchanges |
| Block Trades | Large negotiated orders |
| Price Discovery | Often at or near market price |
| Institutional | Primarily hedge funds, mutual funds, pensions |
Why Dark Pools Matter
Price Impact Avoidance:
- Large orders in public markets move prices
- Dark pools allow institutions to trade without telegraphing intent
- Reduces slippage on large positions
Institutional Intelligence:
- Shows where smart money is positioning
- Often precedes significant price moves
- Can identify accumulation/distribution
Support/Resistance Levels:
- Large dark pool prints create price memory
- Institutions defend their entry prices
- Repeated prints at same level = strong level
Dashboard Metrics
Real-time statistics for the trading day:
| Metric | Description | Use Case |
|---|---|---|
| Total Trades | Number of dark pool prints | Activity level |
| Total Volume | Aggregate share volume | Institutional interest |
| Total Value | Dollar value traded | Capital commitment |
| Avg Trade Size | Mean shares per trade | Typical institutional size |
| Block Trades | Trades marked as blocks | Negotiated orders |
| ISO Trades | Intermarket sweep orders | Urgent execution |
Trade Table Columns
| Column | What It Shows |
|---|---|
| Time | Execution timestamp |
| Symbol | Stock ticker |
| Spot Price | Current market price at time of trade |
| Price | Dark pool execution price |
| Size | Number of shares |
| Value | Total dollar amount (Price × Size) |
| Type | Trade classification badges |
| Attributes | Trade condition codes |
Trade Type Badges
| Badge | Meaning | Significance |
|---|---|---|
| BLOCK | Block trade (negotiated) | Large institutional order |
| ISO | Intermarket sweep order | Urgent, time-sensitive |
| AFTER HRS | Extended hours trade | Outside regular session |
| ODD LOT | Non-standard lot size | Unusual execution |
Filtering Options
Size Filters
- Minimum Size: Filter by share count
- Common thresholds: 10K, 50K, 100K+ shares
Value Filters
- Minimum Premium: Filter by dollar value
- Common thresholds: $1M, $5M, $10M+
Trade Type Filters
- Block Only: Show only block trades
- ISO Only: Show only sweep orders
- Extended Hours: After-hours activity
- Odd Lots: Non-standard sizes
Dark Pool Support/Resistance
Dark pool levels act as support and resistance:
How It Works
- Large Print Creates Level: $10M+ trade at $150.00
- Institution Defends Price: Likely to add at that level
- Price Memory: Market remembers the level
- Support/Resistance: Level acts as magnet or barrier
Level Strength Indicators
| Factor | Weak Level | Strong Level |
|---|---|---|
| Trade Size | <$2M | >$10M |
| Repetition | Single print | 3+ prints at same price |
| Recency | >5 days old | Within 2 days |
| Deviation | >5% from spot | <2% from spot |
Using Dark Pool Levels
For Day Trading:
- Watch for price approaching dark pool levels
- Expect reactions at major prints
- Use as entry/exit targets
For Swing Trading:
- Identify accumulation zones (repeated prints)
- Track institutional entry prices
- Use as stop-loss placement
For Options Trading:
- Dark pool levels often align with option strikes
- Institutions hedge at these levels
- Combine with option walls for confluence
Reading Dark Pool Activity
Accumulation Pattern
Multiple dark pool prints at similar prices over days
+ Increasing size over time
+ Price consolidating or slowly rising
= Institutional accumulation
Trading Implication: Bullish - institutions building positions
Distribution Pattern
Multiple dark pool prints near highs
+ Decreasing price action
+ Increasing volume
= Institutional distribution
Trading Implication: Bearish - institutions exiting positions
Unusual Deviation
Dark pool print significantly away from spot price
+ Large size ($5M+)
+ Unusual conditions
= Special situation (block trade, merger, etc.)
Trading Implication: Investigate - may signal corporate action
Best Practices
Do’s ✅
- Focus on size: $5M+ trades are most significant
- Watch for clusters: Multiple prints at same level
- Check recency: Recent prints (0-2 days) matter most
- Combine with options flow: Look for confirmation
- Note the symbol: Some stocks have more dark pool activity
- Track institutions: Repeated activity in same stock
- Use for levels: Mark dark pool prints on your charts
Don’ts ❌
- Don’t chase immediately: Dark pools don’t predict direction
- Don’t ignore spot price: Large deviation may be stale
- Don’t trade on single print: Look for confirmation
- Don’t assume direction: Could be buying or selling
- Don’t ignore context: Check news, earnings, events
- Don’t forget hedging: May be hedging other positions
- Don’t overtrade: Dark pool levels take time to develop
Integration with Other Features
With Options Flow
- Dark pool stock trade + Large options flow = Strong conviction
- Use both for confluence at key levels
With Pro Terminal
- Dark pool S/R levels overlay on charts
- Real-time dark pool alerts
- Combined with options positioning
With Unusual Activity
- Dark pool activity often accompanies unusual options
- Both signal institutional positioning
With Daily Analytics
- Dark pool levels + Option walls = Strongest support/resistance
- Combine with gamma exposure for complete picture
Example Analysis
Scenario: AAPL Dark Pool Activity
10:30 AM - $15M dark pool print at $180.00 (spot: $180.05)
11:45 AM - $8M dark pool print at $180.00
02:15 PM - $12M dark pool print at $179.95
Analysis:
- Total: $35M accumulated near $180
- Repeated prints at same level
- Tight to spot price (high conviction)
- Increasing size over session
Conclusion:
- Strong institutional accumulation
- $180 likely to act as support
- Consider bullish positioning above $180
Related Features:
- Options Flow - See options activity
- Pro Terminal - Dark pool S/R overlays
- Unusual Activity - Institutional signals
Remember: Dark pool trades show institutional activity, not direction. Large trades can be accumulation or distribution. Always combine with price action and other indicators.
