DislikedYou never know for sure. You just try to put your stop in place, where it is just beyond the reach of the market. You try to put it in a place where by the time the market reaches there, it has gone through 2-3 different layers/phases of mispricings. If certain market participants think of it as a mispricing they may come and generate order flow, whether market orders or standing limit orders. You just place it at a place where certain market participants would be just salivated at the chance to get in through either market or limit orders.
Big banks, hedge funds, etc, are always in the market with positions going both ways. If the euro falls 100 pips, they have positions that are in the money by 100 pips, and positions that are down 100 pips. So when the market stalls, they create the stalling process by dumping some of the positive positions and adding positions going the other way. Eventually, the market reverses and their new positions help them "rescue" the negative positions that were left when the market made the initial move.
For these big guys, do they view the market as mispriced, or is their view more related to portfolio positions and balance? I am not sure where we could find information on their thinking about this. But, the concept of mispriced may be all we can use and develop (as retail traders) to approximate what is really going on in the market.