Quick Facts
- Fact 1: The thinkorswim dark pool indicator setup is a proprietary feature that was first introduced by TD Ameritrade in 2011.
- Fact 2: The indicator helps traders identify and analyze hidden order flow, which can be used to gain an edge in the market.
- Fact 3: Dark pools are alternative venues for trading, where orders can be placed away from public exchanges, reducing market impact and improving execution.
- Fact 4: The thinkorswim dark pool indicator setup allows traders to filter and analyze dark pool data, including order flow, size, and direction.
- Fact 5: The indicator is available on the thinkorswim platform, which is known for its advanced trading tools and capabilities.
- Fact 6: Dark pool data is collected from various sources, including NYSE Arca, NASDAQ, and other alternative trading venues.
- Fact 7: The indicator provides real-time data and updates, allowing traders to react quickly to changes in market conditions.
- Fact 8: The thinkorswim dark pool indicator setup is customizable, allowing traders to tailor the display to their specific needs and preferences.
- Fact 9: The indicator is designed to work in conjunction with other thinkorswim tools, such as Market Scanner and Volatility Index (VIX) – to provide a more comprehensive trading environment.
- Fact 10: Access to the dark pool indicator setup is exclusively available to thinkorswim clients, and requires a valid account and sufficient trading experience.
Thinkorswim Dark Pool Indicator Setup: A Comprehensive Guide
Introduction to Dark Pools
Dark pools are private exchanges or forums for trading securities, and they are not accessible to the general public. They allow large institutional investors to buy or sell large quantities of securities without revealing their identities or intentions. The thinkorswim platform provides a dark pool indicator that can help traders identify potential large trades.
The thinkorswim dark pool indicator setup is a valuable tool for traders who want to stay ahead of the market. It can help identify potential buying or selling opportunities by detecting large trades that may not be visible on the public exchanges. In this article, we will explore the setup and configuration of the thinkorswim dark pool indicator.
Understanding the Thinkorswim Dark Pool Indicator
The thinkorswim dark pool indicator is based on the concept of order flow. It analyzes the trade data from various sources, including dark pools, to identify potential large trades. The indicator provides a graphical representation of the dark pool activity, allowing traders to visualize the potential buying or selling pressure.
To set up the thinkorswim dark pool indicator, traders need to follow these steps:
- Log in to the thinkorswim platform
- Click on the “Studies” button
- Search for “Dark Pool” in the studies library
- Add the “Dark Pool” study to the chart
Example of Dark Pool Indicator Setup
| Setting | Description |
| Study Name | Dark Pool |
| Input Parameters | Aggregate, Threshold |
| Aggregate | 1000 (default) |
| Threshold | 50 (default) |
Configuring the Dark Pool Indicator
The thinkorswim dark pool indicator has several input parameters that can be configured to suit the trader’s needs. The “Aggregate” parameter determines the minimum trade size that is required to trigger the indicator. The “Threshold” parameter determines the minimum number of trades required to trigger the indicator.
Here are some key considerations when configuring the dark pool indicator:
- Trade size: The trade size parameter determines the minimum size of the trades that are displayed on the chart.
- Trade frequency: The trade frequency parameter determines how often the trades are updated on the chart.
List of Configuration Options
- Aggregate: 1000, 5000, 10000
- Threshold: 50, 100, 200
- Trade size: 100 shares, 1000 shares, 10000 shares
- Trade frequency: 1 minute, 5 minutes, 15 minutes
Interpreting the Dark Pool Indicator
The thinkorswim dark pool indicator provides a graphical representation of the dark pool activity. The indicator plots the aggregate trade size and the threshold value on the chart. Traders can use this information to identify potential buying or selling opportunities.
Here are some key considerations when interpreting the dark pool indicator:
- Bullish signals: A bullish signal is generated when the dark pool indicator plots a large trade size above the threshold value.
- Bearish signals: A bearish signal is generated when the dark pool indicator plots a large trade size below the threshold value.
Table of Dark Pool Indicator Signals
| Signal | Description |
| Bullish | Large trade size above threshold |
| Bearish | Large trade size below threshold |
| Neutral | Trade size below threshold |
Frequently Asked Questions:
Thinkorswim Dark Pool Indicator Setup FAQ
Q: What is a dark pool indicator?
A dark pool is a type of dark pool order that allows traders to submit orders at a price lower than the current market price, increasing their potential profit potential.
Q: What are the basic steps to setup a dark pool indicator?
To setup a dark pool indicator, follow these steps:
- Access Thinkorswim and log in to your account.
- Navigate to Order Management > Dark Pool.
- Enter a Dark Pool Order (this can be a limit order or a market order).
- Configure your Dark Pool by selecting the Dark Pool Type (e.g., “Zero Reward”).
Q: What is the required information for a dark pool indicator?
To submit a dark pool order, you’ll need to provide the following information:
- dark pool id: A unique identifier for the dark pool, which can be obtained from the platform or a trader’s broker.
- dark pool type: The type of dark pool order you wish to submit (e.g., limit order or market order).
- order time: The current time at which the order will be executed at (e.g., for market orders, which will be executed at the current market price).
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