In the world of trading, knowledge is power, and being aware of the strategies employed by market manipulators can be the key to safeguarding your capital. One such manipulative practice is stop hunting, which targets stop-loss orders in an attempt to drive prices in a particular direction. In this article, we will delve into the concept of stop hunting, explore...
The feeling of ever admitting that one’s action is wrong is something many people never acknowledges, outside the works of trading, you get to see that even in a bilateral misconduct between two sovereign nations, it’s always difficult or maybe impossible for one of those countries to accept that there were at fault( being wrong), it goes on in every aspect of...
Based on my research into IPDA and algorithms, central banks, trading firms/hedge funds, and smaller banks use execution algos (EAs) for trading with different objectives. Small banks use EAs to split large parent orders into smaller child orders generally in one direction, buy or sell. These orders are executed separately over a period of time to either open or...
Early phase testing for our latest script, known as RS_MVP which highlights the Most Visited Price level in a specified range. Different to a standard support/resistance indicator in that it targets the most visited price where orders have been executed. Doing so allows traders to visually see what price has the most potential orders which can help with entries...
It is crucial to understand the price action prior to a high impact news event. Analysing the range to the left beforehand can help you determine what move is likely to come next. In this example, we saw the price was driven down by the bears to stop out buyers, only to reverse immediately to the upside moments after the news had been released. By studying and...
Another example of how market structure breaks can be viewed from a perspective of broken expectations of either parties (buyers or sellers). If you were a buyer or seller, where would you be getting involved? Had you gotten involved, would your expectations have been met? If not, how violently were they broken?
Break of expectations is a perspective from which I look at market moves a lot of the time. Broken expectations manifest in the form of broken structures. It's the same thing, but just another way of looking at such moves which makes the liquidity story a bit clearer thereby inducing more confidence in taking trades off these zones. Obvious trend continuation...
The concept around equal high liquidity comes from the understanding that stop losses hold above these points. In this example, price broke out of bullish structure and began to form bearish market conditions. This would of course attract sellers, especially at the double top point marked. The idea is simple, tackle the impulsive sellers before the trend...
I'm going to do my best here at explaining the basics around a liquidity grab (some times called a stop hunt), why it happens and how it works (ignore the chart I'm using, I'm not saying this is a manipulated move just showing you an example of how it works) I often refer to this in my playbook as an STL "Sweep The Legs" coupled with a picture of Johnny Lawrence...
Here are some questions I put out to my community group the other day followed by the answers. The reasoning being the move has been annotated on the chart. Why did price slowly decline prior to NFP? - Price had to decline slightly before NFP to mitigate the impulsive move created earlier in the day. - Price had to stop out break and re-test buyers with a tight...
Price has approached the top of a very visible parallel channel as well as a resistance area. It's dangerous to trade short as big banks, hedge fund, institutions will have the opportunity of a big amount of liquidity that they will use to fill their orders. Basically they might drive the price higher with big capitals, and hit all retail trader's stops. Be carefull.
As part of the daily movement in the forex market is the stop hunting done by the market makers. They don't mean to hunt the normal and small trader at all, they are targeting the big investors and hedge funds you just happen to be in the wrong place at the wrong time. As shown in No.1 this huge wick is an obvious stop hunt movement in this case the market makers...
Big Ben Indicator shows the Asian Session Range Big Ben Indicator shows 1H pre-London area Big Ben Indicator shows 1h London Open area Big Ben Indicator shows pre-London Stop Hunt Breakout Big Ben Indicator shows Sell Signal as London Opens Big Ben Indicator shows the Entry Price level Big Ben Indicator shows adjusting Trailing Stop Big Ben Indicator shows Take...
Big Ben Indicator shows the Asian Session Range Big Ben Indicator shows 1H pre-London area Big Ben Indicator shows 1h London Open area Big Ben Indicator shows pre-London Stop Hunt Breakout Big Ben Indicator shows Sell Signal as London Opens Big Ben Indicator shows the Entry Price level Big Ben Indicator shows adjusting Trailing Stop Big Ben Indicator shows Take...
Refer to the previous post below to understand the unique relationship between specific days.
This write up is an extension to this post : The concept is when the price on Tuesday or Wednesday broken and close above the Monday high, generally that potentially could be the "anchor" /high of the week hence the intraday trend of that week will rooted from this. Vice versa. Of course, this doesn't happen 100% of the time but it happens repetitively. Usually,...
STOP LOSING TO THE SHARKS Why do 95% of traders fail? Because you learn from the masses, then you lose with the masses. You are being fooled by the banks & institutions. The very core of technical trading revolves around support & resistance. You are taught to sell if price breaks support and buy if price breaks resistance, but you aren't taught to win - you...
The Judas swing term was named by ICT, he dubbed this swing concept and utilizes it upon the London Open. The idea is, the market makers will rally or sell price, normally just above or below the Asian session high or low (depending on institutional order flow bias) tricking buyers or sellers into the market to follow its direction. As the Judas swing high or low...