“If I were a rich man, yabadebebebedaaaa….”
Haha, yeah, this is what the old milkman Tevye used to sing (“Fiddler on the roof”)
What I am going to sing myself today is:
If I were a BIG BANK or BIG HEDGE FUND with millions of dollars account…
- I would set up my BIG SELL ORDER between 1.34800-1.35000
- see as price breaks through 1.3400, triggering all bearish stop-loss orders one by one
- wait patiently for market to come to me
- watch after all as price falls, laughing about all shocked bleeding bears
OK. Sorry to be a bit sarcastic, but more and more I read about going short @1.34000, more likely I am to go against it and push my Sell Order higher to 1.34800.
Why? Guys, stop-loss hunting technique is nothing new.
The big boys, banks, hedge funds, brokers can kill you all here with their one big purchase. All our 1lot, 5lots orders, let alone mini-lots are meaningless.
What big banks do is only 4, 5 transactions per month, but they are enough significant to affect price in the market.
They just set up their sell-order BEHIND your stop-loss and you are cooked for dinner.
One their big order and price will plough through your stop-loss like a combine through cornfield.
OK. Loads of news ahead today, so anything can happen, though if price bounce up I wouldn’t be looking for any shortage before price reach 1.34800-1.35000 zone. The alternative scenario is ECB or US Unemployment completely surprise the market and price plunges immediately to its previous lows, though it’s less probability scenario..
Mightbe I am wrong, but expect volatile markets anyway.
Here’s my bounce “before-drop-scenario”
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Guys, I want to start new thread about FX-Options Trading. I need to collect vouchers.
If you find my analysis of any value I would appreciate any vouchers from those who are eligible.
Thanks a $MILLION.
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