A New Method

I'm experimenting with a new method.  As I have told you before, market makers fill orders for large institutional clients and their performance is graded according to the Volume average Weighted Price or VWAP. If the market maker is accumulating a position, then they want to come in under the VWAP, if they fill the order above the average price paid, then it's unlikely they'll get that institutional business again, so I used a 1 min 3C chart which is where I can best see market maker activity and I compared it to a 1 hour VWAP. What the market maker is graded upon as far as VWAP time frame, I don't know, but using a daily VWAP, anybody could fill the order below, so I chose a 1 hour. As you can see by this chart (red arrows indicate distribution and white arrows indicate accumulation-the white boxes indicate areas of accumulation below the VWAP in light blue (yellow is 3C).

As you will see, there's accumulation nearly every time below the VWAP at 3C accumulation signals. When price rises above, they use a little or their market maker magic and it appears they knock prices back down below the VWAP where the order can be filled. Since UPRO has good volume and it is a leveraged ETF with broad market exposure, I chose that as my ticker.

The results, if I'm on track here, would seem to indicate accumulation and below the VWAP as the market maker would want. Take a close look.