OK..Back to the content:
FF - please check my understanding of the following..
STS Principle - STS's are the closest stop clouds to the current price. The oscillations we see on the shorter time frames are the MM moving price to exploit the STSs
STS Tolerance Principle - Some allowance is made by the MM for some STSs to go unattended in the short run so that they can: 1. Pursue higher value stops (i.e. MT or LT if the greater profit is there) and 2. Disguise/Cover their actions with the appearance of "randomness"
Counter STS Principle - When the STSs that are in the Target area are moved away from their original positions the MM moves price in the opposite direction to take out closer counter stops and entice the traders who moved their stops back to within easy targeting range.
STS Killing Principle - when the MM uses "events - (i.e. news, session transitions, specific hours, etc.) to surge and retract price in both directions quickly to take out STSs
Now for the question:
Let's assume that we (who are at an informational disadvantage compared to MM and you) can use our chart pattern analysis and correctly identify STS clouds and MTS clouds. So we know that the MM is going to move price to those levels at some point. Our informational disadvantage now is that we don't know which one they will pursue first since we don't have the accumulation Position Bars that you have. The density of the stops in that particular cloud are what determine the priority because they are the most profitable areas for the MM. This being the case, what can we do to better determine the first direction the MM will move?
FF - please check my understanding of the following..
STS Principle - STS's are the closest stop clouds to the current price. The oscillations we see on the shorter time frames are the MM moving price to exploit the STSs
STS Tolerance Principle - Some allowance is made by the MM for some STSs to go unattended in the short run so that they can: 1. Pursue higher value stops (i.e. MT or LT if the greater profit is there) and 2. Disguise/Cover their actions with the appearance of "randomness"
Counter STS Principle - When the STSs that are in the Target area are moved away from their original positions the MM moves price in the opposite direction to take out closer counter stops and entice the traders who moved their stops back to within easy targeting range.
STS Killing Principle - when the MM uses "events - (i.e. news, session transitions, specific hours, etc.) to surge and retract price in both directions quickly to take out STSs
Now for the question:
Let's assume that we (who are at an informational disadvantage compared to MM and you) can use our chart pattern analysis and correctly identify STS clouds and MTS clouds. So we know that the MM is going to move price to those levels at some point. Our informational disadvantage now is that we don't know which one they will pursue first since we don't have the accumulation Position Bars that you have. The density of the stops in that particular cloud are what determine the priority because they are the most profitable areas for the MM. This being the case, what can we do to better determine the first direction the MM will move?
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