Disliked{quote} Can you please elaborate more in detail about the underlying mechanics you describe in this sentence?Thank you in advance.Ignored
You'll often get clusters of buy/sell stop near ( above/below ) your highs and lows of the day....or, in other words, at the top and bottom of the daily range. Particularly above bull bars and below bear bars...we know this. So, in a stop 'driven market' ( stop loss and buy/sell stops ) you're usually going to have the market take out those highs and lows to trigger those clusters of orders...then pulling back, placing those traders into losing positions.
Then...it either reverses or continues and price was just bumping off SR at the same time the many buy/sell stops were filled. These are the two things that can happen, that's the bet.
In the case of your Eur/Chf long...there was no follow through on this bear bar. So there was no break of the daily low by the subsequent bar filling sell stops. Something stopped it.
http://screencast.com/t/kzkFN029Z
In my view it was the close of the bear bar so close to demand. It chose to keep sell stops and buy limits out at the same time...both winners and losers. It was satisfied pulling back into the range, and reversing quite nicely, with the good many shorts that entered ' at market ' on the close of the bear bar...placing them in losing positions.
Do you know what I mean ? I think the market can keep you out if you are trading from a location that can upset the balance between the majority losing/minority winning. So in other words...you were in the right place, or, on the right side of the market, you just missed the fill.
Just my reading on that condition...you might see that already or have your own view. Traders can agree and disagree...doesn't matter, what's important is that you form your own rational market perception. It's good how you posed the question...mentioning the underlying mechanics...This is the 'order flow' that you need to get a sense of...it's the dimension beneath the charts that we cannot see but the brokers can.
Cheers,
Bryn