from a instituitional POV. i can tell you it is not sustainable.
if you track sentiments you'll see that changes occur mostly at S&R levels in general. Hence equating trading against sentiment is pointless.
do institutions purposefully hunt stops? - no. its just that retail traders always end up congregating around the same level and gets stop-ed out when we clear our order book.
if u can identify S&R, dont you think the millions of traders out there can too? S&R is not an edge.
These are not RS levels, but the sentiment and behavior of bad traders. It is traded the other way around.
Ignored
What im telling you is that if you were to go analyze sentiment. You will realize all these "bad traders" congregate around the same levels which are S&R.
Go to myfxbook's sentiment.
Find a pair that is skewed badly. (10:90).
Look at the point when sentiment was 50:50 to 40:60 to 30:70..... Draw your S&Rs and look. Areas where sentiments change drastically are often points on your S&R.
{quote} What im telling you is that if you were to go analyze sentiment. You will realize all these "bad traders" congregate around the same levels which are S&R. Go to myfxbook's sentiment. Find a pair that is skewed badly. (10:90). Look at the point when sentiment was 50:50 to 40:60 to 30:70..... Draw your S&Rs and look. Areas where sentiments change drastically are often points on your S&R.
Ignored
Interesting. Can you indicate how to use it successfully? Best with pictures.
Please excuse the bad English via Google Translate.
{quote} What im telling you is that if you were to go analyze sentiment. You will realize all these "bad traders" congregate around the same levels which are S&R. Go to myfxbook's sentiment. Find a pair that is skewed badly. (10:90). Look at the point when sentiment was 50:50 to 40:60 to 30:70..... Draw your S&Rs and look. Areas where sentiments change drastically are often points on your S&R.
Ignored
That doesn't mean it does not work. Just use what you just said and.. voila? I do it most of the time.
