[quote=Scotty B;3012567]
My limited understand of the Osler papers was the take profit was pretty insignificant compared to stop losses.
Someone posted about what the broker has to do to offset their books when they have to take on a lot orders, like the H&S pattern where they know they will have to buy into a market drop. So that kind of brings it back to how the banks are transacting with each other.
EDIT: TP orders generate negative feedback and do not contribute to price cascades and wouldn't be triggered in waves. While SL's generate positive feedback and run in waves and contribute to price cascades.
QuoteDislikedKeeping this in mind, take profits should be almost as powerful as stop orders. Stop orders in my mind would naturally always be more powerful in terms of creating volatility, especially in obvious places like the OP showed us because people are only willing to loose so much and will start exiting in unison. In terms of profit taking though, some traders exit sooner than others.
Someone posted about what the broker has to do to offset their books when they have to take on a lot orders, like the H&S pattern where they know they will have to buy into a market drop. So that kind of brings it back to how the banks are transacting with each other.
EDIT: TP orders generate negative feedback and do not contribute to price cascades and wouldn't be triggered in waves. While SL's generate positive feedback and run in waves and contribute to price cascades.
Don't wish it were easier, wish you were better. ~ Jim Rohn