Hi Ghous and all orderflow guys,
I recently took a trade in CHFNOK
1. Fakeybar had formed at key resistance level on the daily chart. Also, triple top with divergence. Deep swing high and plenty of space. Confluence.
2. The fakey bar on the daily did not close below brn 6.6. So the next day, I went short when price closed below brn 6.6 on 4 hour. Stop loss was placed behind the high of the bar.
3. The next day my stop loss was taken out.
Hmmm. Perhaps my stop loss was too tight. But even if I had placed my stop loss behind the hhr or the fakeybar high, I would have been taken out. So what is happening?
Could this be because there is no consensus among pros. i.e. pros A1, A2 ..An, who had a short bias came in with huge sell orders and the fakey bar was formed. But then pros B1, B2...Bn who have a long bias start coming with huge buy orders which completely absorbs the previous huge sell orders. As a result of the tug war between the two set of pros, one set wins. So it is not that just the novice traders are loosing, one set of pros also looses.
Please comment.
Thanks,
Neytiri
I recently took a trade in CHFNOK
1. Fakeybar had formed at key resistance level on the daily chart. Also, triple top with divergence. Deep swing high and plenty of space. Confluence.
2. The fakey bar on the daily did not close below brn 6.6. So the next day, I went short when price closed below brn 6.6 on 4 hour. Stop loss was placed behind the high of the bar.
3. The next day my stop loss was taken out.
Hmmm. Perhaps my stop loss was too tight. But even if I had placed my stop loss behind the hhr or the fakeybar high, I would have been taken out. So what is happening?
Could this be because there is no consensus among pros. i.e. pros A1, A2 ..An, who had a short bias came in with huge sell orders and the fakey bar was formed. But then pros B1, B2...Bn who have a long bias start coming with huge buy orders which completely absorbs the previous huge sell orders. As a result of the tug war between the two set of pros, one set wins. So it is not that just the novice traders are loosing, one set of pros also looses.
Please comment.
Thanks,
Neytiri