Trading volume is not confined to public exchanges. A significant share of institutional activity happens in hidden venues called dark pools, while lit pools remain the visible, traditional exchanges. The Algo platform provides tools to interpret both types of flow, helping traders gain insights into market behavior.
What Is a Dark Pool Order?
Dark pool orders occur on private exchanges accessible only to institutions. Roughly 40% of institutional trading takes place here. These orders let institutions buy or sell large blocks of shares without disrupting public markets.
No public order book exists; buyer and seller intentions remain hidden.
Details of trades are published later on public exchanges.
Benefits: lower transaction costs, faster liquidity, and reduced price impact.
Darkpool Flow Overview
Darkpool flow represents activity from these private markets. Because it involves large block trades, it can signal institutional positioning ahead of public moves.
Volume spikes in dark pools can indicate accumulation or distribution.
Delayed reporting means context matters: trades reflect past intentions, not necessarily live activity.
Monitoring flow helps identify levels of interest where institutions may defend or unwind positions.
Dark Pool Levels
The Algo calculates levels where dark pool transactions cluster.
These levels often serve as hidden support and resistance zones.
Traders can use them as reference points for risk management and trade planning.
Large repeated prints around the same price can confirm stronger levels.
Dark Pool Flow Filters
Filters let traders refine dark pool data. On The Algo platform you can:
Filter by ticker or sector.
Focus on block size (e.g., unusually large trades).
Highlight price proximity to current market levels.
Spot institutional footprints without being overloaded by noise.
Lit Pool Flow
Lit pools are the visible exchanges such as NYSE or NASDAQ. Unlike dark pools, they:
Show full order books.
Allow traders to see real-time bids, offers, and depth.
Provide transparency but are also prone to market manipulation (spoofing, order stacking).
The Algo allows users to track lit pool prints alongside dark pool prints, offering a complete view of institutional behavior across both transparent and hidden venues.
How to Use This Knowledge
Identify institutional zones: Dark pool levels act as hidden supports/resistances.
Track flow confirmation: When lit pool action aligns with dark pool levels, conviction strengthens.
Manage risk: Understanding where big money positions itself helps set more logical stops and targets.
Filter noise: Use Algo filters to highlight only the most impactful prints.
Summary
Dark pools hide institutional intent but leave footprints traders can study. Lit pools reveal surface-level market mechanics. Together, they form a complete picture of supply, demand, and sentiment. The Algo’s tools help traders bridge both worlds, identifying opportunities while managing risk.