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!