Disliked{quote} How do you decide where to put your stops? Looking for a hint, not the answer.Ignored
You don't stop out, you trade out. You have a number, but the number is based on trade not arbitrary points in history or on indicators.
For me, if my 'lean' is not there and the other side is taking it, I won't sit around waiting for a stop below/above structure.
The idea is to run from the 'lean' and push into the pockets of liquidity.
Most times they'll go to market with block hits and run limits to liquidate in the stop pocket. They get paid on the stop orders.
Obviously ratios vary, [limits : stops]. This variance creates overshoot or vacuums. If [limits : stops] run 1:1, price holds. An equalization takes place, but you'll need buy interest filling back behind with limits(the 'prop').
If the money driving it up cannot clear/liquidate with their limits into stops, price will come back as they start block hitting the other side to liquidate. As mentioned just prior, this is when buy limits are stripped and no size will prop.
A simple way to get on the right side of trade is to trade the side the stops are getting run on. A market where both buyers and sellers are getting run is a 'stand clear' scenario.
You want it 'patterning' the run on stops. They will pattern to running the buy stops or they will pattern to running the sell stops.
You can also pick up 'right side' of trade by picking up the floors and ceilings on inside day. Price above consecutive floors will have the buyers getting paid and long side is optimal. Visa-versa for ceilings/sell.
I use three techniques to get on 'right side':
1.Stops(Who are they running? Is it patterning?)
2.Floors/ceilings(Who's getting paid?)
3.Fluid price(It cannot be broken down any further. It's the 'prime' chart).
If 'trend' is your friend, then 'current price movement' is your lover. Go with the flow!
Rgds
i see no necks on majors? audusd on 1hr chart?
falling from my chair ATM...
