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Dealer Trading ahead of support

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  • First Post: Nov 18, 2010 10:17am Nov 18, 2010 10:17am
  •  aeb
  • | Joined Feb 2010 | Status: Member | 75 Posts
When price hits support or resistance right in front of a significant figure and the trend is clear for a break, is this because there are dealers buying or selling (trading countertrend) right before in order to trade with the orders at or just behind (with trend) the figure? ex. say EUR/USD is headed south. It is approaching 1.3600. It bounces directly in front of the figure, even though it is clear that it will be continuing through. Does anyone know why?
  • Post #2
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  • Last Post: Nov 18, 2010 5:50pm Nov 18, 2010 5:50pm
  •  eurotrash
  • Joined Sep 2009 | 392 Posts
Profit taking, "counter trend" traders, sometimes option-related defense, etc.
 
 
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