I'll post my understanding so far...
That might be true during the London session...but also might not during some other times.
Point being, there are circumstances when you could (theoretically) move the market using $1 to run it into the stops that will buy millions (and provide you the chance for selling millions, of course).
$1 : $1,000,000 is a nice ratio
QuoteDislikedSo in order to run a bunch of stops, you need to be a fairly big player in the market, because you might need to push through several hundred million of orders in order to get to these stops.
So you've taken on a large position in the worst possible place, you are long at resistance or short at support (why?), but luckily you run into these delicious stops to close out your order.
That might be true during the London session...but also might not during some other times.
Point being, there are circumstances when you could (theoretically) move the market using $1 to run it into the stops that will buy millions (and provide you the chance for selling millions, of course).
$1 : $1,000,000 is a nice ratio
big numbers are our friends...