DislikedDB,,
I see that most of the posts have missed your actual point.
Dark says he goes after stops, but I wonder? I mean He cant move the market, so he (if he is telling the truth about it) must have an idea what the marketmakers are thinking/doing. If that is true. How does he know?
As far as that investopedia link goes by Boris S. I must have read it 4 or more times in the past. I simply think his explanation is not actually describing targeting stops well enough for (us) me to make use of it.
It doesnt use the typical example that you describe and that the chart posted above so graphically depicts.
I would like to see more on stop hunting as a trading tactic.
LouIgnored
my theory is this
imagine this....imagine alot of sell stops are pilled up At 1.324..say 1Billion...U see this using Technical analysis...then using an ECN u also see alot of orders there too...What if u bought near that price a volume of 1.5 billion....that will cause the price to move up to match your order and those stops would be liquidated? the market will MOVE when they liquidate...and if movement from reaction is fast enough...then herding takes place and people starts buying.
all darkstar is doing (well, basically) is combining Technical analysis and order flow. using this knowledge he can exploit supply and demand and force price movment
100% of traders are losers. Just that some win more than they lose!