Disliked{quote} Smart Money Concept: Manipulation 2 In the case of Wyckoff, you try to spot this low reversal pattern in the way the methodology proposes You will spend most of your time trying to find this pattern while you miss the great trade opportunities happening in front of you. With that in mind, we try to find the more simplfied method using based on Wyckoff. It is simple and the best thing about it it's that it's very easy to see and usually yields a very powerful trade opportunity. Wyckoff used to talk a lot about how to spot the manipulative...Ignored
The pattern goes like this: whenever you see a high or low in the chart you can be certain that there are a lot of retail traders that place orders in those levels
In the case of a high for example, there are many retail traders that will place buy stop orders at the high or stop-loss orders at the high.
In the case of a low there will be a lot of sells stop or stop-loss orders in there.
A buy stop order in a high is simply a buy order
A stop loss just above a high is the stop loss of a short trade
The stop loss of a short trade is a buy order as well
A sales stop order in a low is simply a sell order or Supply
A stop loss order just below a low is the stop loss order of a long trade
The stop loss order of a long trade is a sell order
In summary there is a lot of buyer orders or a lot of demand at highs and a lot of sell orders or Supply at lows.
One of the important points here is that since everybody can see highs and lows in the chart, the place where these orders are sitting is obvious.
The smart money, meaning the large Traders and institutions know this of course and they will use these levels to their advantage.
Whenever there is a cluster of buy or sell orders the smart money sees an opportunity to enter the market.
That's the case because in these clusters of orders, there is the opportunity to enter massive orders in a short price range.
These clusters of orders are often called liquidity pools.
The smart money intentionally triggers the orders in these liquidity pools by making price reach these levels.
They can do that since they have the power to move the market in certain situations.
When price hits those levels, the retail trader’s orders are triggered.
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I come from the future.
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