Hi everyone,
I only started to trade forex couple a months ago but already experienced many times that when I set a stop loss, price goes directly to it, very precisely stops within 1-2 pips from my stoploss, hits it and then goes back in the direction I predicted. So I guess for most of us stop hunting is a real fact and is very annoying. I even stopped using tight stops now and prefer to do everything manually.
Since this practice is a fact, there must be a way to use it in our favour, right?
If we have a knowledge where the most of stops are we can be almost sure that MMs will move price there to get these stops hit and therefore we can use this small moves. Question is how can we calculate the position of these stops.
For example, as we know, one of the first methods most of newcomers start to use is MAs cross, so if cross of most commonly used MAs occurs we can be sure that a big number of people will set orders based on that and set orders 10, 15, 20, 25, 30 and so on pips, depending on their system. Does it mean that we can be almost sure that price will move back to collect at least 10 pips SLs??
It is very interesting to hear your thoughts on that matter.
I am sorry if this was discussed here before.
Happy trading everyone!
I only started to trade forex couple a months ago but already experienced many times that when I set a stop loss, price goes directly to it, very precisely stops within 1-2 pips from my stoploss, hits it and then goes back in the direction I predicted. So I guess for most of us stop hunting is a real fact and is very annoying. I even stopped using tight stops now and prefer to do everything manually.
Since this practice is a fact, there must be a way to use it in our favour, right?
If we have a knowledge where the most of stops are we can be almost sure that MMs will move price there to get these stops hit and therefore we can use this small moves. Question is how can we calculate the position of these stops.For example, as we know, one of the first methods most of newcomers start to use is MAs cross, so if cross of most commonly used MAs occurs we can be sure that a big number of people will set orders based on that and set orders 10, 15, 20, 25, 30 and so on pips, depending on their system. Does it mean that we can be almost sure that price will move back to collect at least 10 pips SLs??
It is very interesting to hear your thoughts on that matter.
I am sorry if this was discussed here before.
Happy trading everyone!
but you are missing integral pieces of information here 