How market makers do their bread by hunting your stop loss?
Hey everyone,
welcome to my new chart. Today we gonna see what is the typical comportment from market actors: institutionals and retails.
We will also make an analysis to eurusd providing a high probability trade based on patterns and key levels.
So at first what can be noticed directly by eye is eur/usd came back to the last accumulation level of july and we can see price have been stagnating above this level since few days now, therefore signaling that market is about to take a directionnal decision by forming a curved bottom
Now on the institutional point of view, this area of steady and slow growth would be the battlefield where bulls and bears was fighting to push price to break or bounce on that resistance, so that was the perfect level to hunt stop losses of boss bears/bulls retails and accumulating buy orders at the same time.
Now that price has confirmed this curved bottom and drawn an harmonic pattern . I personally expect a strong and fast movement to the upside (similar to the one we got on July of last year) since market makers successfully and usually after this type of pattern the movement is explosive.
That mean there wont be any consequent pullback until reaching target level, so it would be fine to buy from here
the moving averages confirm this hypothesis.
Based on the elements enonced price should jump straight away to at least 1.19000 lvl (0.618 fibonacci retracement )
welcome to my new chart. Today we gonna see what is the typical comportment from market actors: institutionals and retails.
We will also make an analysis to eurusd providing a high probability trade based on patterns and key levels.
So at first what can be noticed directly by eye is eur/usd came back to the last accumulation level of july and we can see price have been stagnating above this level since few days now, therefore signaling that market is about to take a directionnal decision by forming a curved bottom
Now on the institutional point of view, this area of steady and slow growth would be the battlefield where bulls and bears was fighting to push price to break or bounce on that resistance, so that was the perfect level to hunt stop losses of boss bears/bulls retails and accumulating buy orders at the same time.
Now that price has confirmed this curved bottom and drawn an harmonic pattern . I personally expect a strong and fast movement to the upside (similar to the one we got on July of last year) since market makers successfully and usually after this type of pattern the movement is explosive.
That mean there wont be any consequent pullback until reaching target level, so it would be fine to buy from here
the moving averages confirm this hypothesis.
Based on the elements enonced price should jump straight away to at least 1.19000 lvl (0.618 fibonacci retracement )
Comment:
monthly chart analysis
Comment:
closer look at the market within H4 time frame
Comment:
"to hunt stop losses of *both* bears/bulls retails and accumulating buy orders at the same time."
tell me your opinion in the comment section
tell me your opinion in the comment section
Comment:
dont be fooled thinking its a bear flag, it isnt. they hunted the all the short recently, a strong upside move is imminent
as long we stay above that accumulation lvl (which is also the retest of the bullish channel on monthly TF), we are bullish
as long we stay above that accumulation lvl (which is also the retest of the bullish channel on monthly TF), we are bullish
Trade active
Comment:
+100 pips