Any use for stop hunting?
Results 1 to 7 of 7

Thread: Any use for stop hunting?

  1. #1
    Hello everybody,

    I only begun to trade forex couple a months ago but already experienced several times that when I set a stop loss, price goes straight to it, really just stops over 1-2 pips in my stoploss, hits it then goes back into the path I called. I guess for most of us stop searching is a fact that is real and is very annoying. I even stopped using stops and prefer to do everything manually.

    Since this practice is a simple fact, there must be a way to use it in our favor, right? If we have a knowledge where the most of stops are we can be sure that MMs will move price there to find these stops struck and therefore we can use this small moves. Question is how do we compute the position of these stops.

    By way of instance, as we know, among the initial methods most of newcomers begin to use is MAs cross, therefore if cross of all commonly used MAs occurs we can make sure that a big number of individuals may put orders based on this and put orders 10, 15, 20, 25, 30 etc pips, depending on their system. Does it mean that we can be sure that price will return to accumulate 10 or more pips SLs??

    It is very interesting to hear your ideas on this matter.
    I am sorry if this was mentioned here earlier.

    Happy trading everyone!

  2. #2
    Quote Originally Posted by ;
    DB,,

    I see that most of the posts have missed your real point.

    Dark says that he goes after stops, but I wonder? I mean He cant move the market, so he (if he is telling the truth concerning it) should have an idea what the marketmakers are thinking/doing. If that's true. How does he know?

    So far as this investopedia connection goes by Boris S. I have to have read it 4 or more times in the past. I just think his explanation is not actually describing targeting stops well sufficient for (us) me to use it.

    It doesnt utilize the typical example that you describe and the chart posted above so graphically depicts.

    I want to see more on cease searching as a trading tactic.

    Lou
    even you can move the market my buddy. This market is all about herding... u just need to be the first cow that runs and Probably, if the environments shows reason to, then more cows will probably accompany. Then the herd is shing.

    My concept is that this
    imagine this....imagine alot of market stops are pilled up At 1.324. .say 1Billion...U see this with Technical analysis. . .then using an ECN u also see alot of orders there too. . .What if u bought near that price a few 1.5 billion....that can get the price to move up to match your order and those stops would be liquidated? The market will MOVE when they liquidate. . .and if motion from response is. . .then herding takes folks and place starts buying.

    All darkstar is doing (well, basically) is combining Technical analysis and order flow. Using this knowledge he can exploit demand and supply and induce price movment

  3. #3
    Quite intriguing, then what ECN's are good to find these kind or orders? only currenex ?

    Quote Originally Posted by ;
    even you can move the market my own buddy. This market is all about herding... u just need to be the first cow which runs and Probably, if the environments shows motive to, then more cows will probably follow. Then soon the whole herd is currently shing.

    My concept is that this
    picture this....imagine alot of sell stops are pilled up At 1.324. .say 1Billion...U see this with Technical analysis. . .then using an ECN u also watch alot of orders there too. . .What if u purchased 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? That the market will MOVE when they liquidate. . .and if motion from reaction is. . .then herding takes place and folks begins buying.

    All darkstar is doing (well, basically) is blending Technical analysis and order flow. Utilizing this knowledge he can exploit demand and supply and induce price movment

  4. #4
    Quote Originally Posted by ;
    As darsktar said, if u are a technician. Trader they know where the stops are. The halt was placed by you at the sweetest position. I recommend placing it 15 pips above Service or Resistance or u will get stopped out. The market is eaisier to move than u think. Much more easy. If u cant manage the risk of the extra 15 pips then dont exchange it.
    I generally set it as you indie, 10 or 15 on the opposite side of S/R, and agree that's the means to do it.

    But, that's precisely where they generally get hit. After all, that's where technician traders place them, and also the stop hunters know precisely where they are, that's.

    In this case, I had my reasons for doing what I did.

  5. #5
    Quote Originally Posted by ;
    even it's possible to move the market my own buddy.

    What if u purchased near that price a few 1.5 billion....
    If it requires 1.5 billion quantity, then I can't move the market. I doubt that there are too many readers around here that transaction 15,000 full standard lots.

  6. #6
    Okay. I should've used a example. Such as 20 mio. But consider me if a market order cannot be matched then it will go to the upcoming availiable price which is usually worst. That is the forex market moves.

  7. #7
    Quote Originally Posted by ;
    you guys will need to think more about the micro-structure of the FX market.

    Oh yeah I utilize an ECN.
    Mike,

    Why is it necessary to use an ECN? Is it due to the valuable spread that you get, which you need for this type of egy, or is it that you can see the amount of orders coming into the system, which is unavailable via a retail broker?

    Steve

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.