One of the easiest ways is to obtain profits in forex using conditions 'stop-hunting party' which is usually done by large institutions such as banks to liquidate a position trader, small retail traders in the area of resistance or support. Fou can download any Indicators. Search in, and founding for Forex Indicator.
Usually resistant function to mark the level where price movements is difficult to penetrate to the top. Consequently, many traders that utilize resistant levels down to take a position as an entry with a stop-loss selling some point and the resistant. This condition is often exploited by the big players to take buying position in such a way that precisely prices continue upward move in a short time and make a lot of stop-loss affected liquidation before the price goes back down under resuistant. This is known as 'stop-hunting', a condition that often becomes a source of loss for beginner traders.
Well, you continue to complain of the stop-loss why you get 'stop-hunting' many times, so much better if you could be friends with the 'stop-hunter' this and use it to take advantage.
You can take advantage of the price level of '00 'as a' stop-hunting zone. Stop-hunting this zone could occur at the level of the price of EUR / USD 1.3900, 1.4000, or even 1500. For USD / JPY 110.00 price level can be either, 108.00, 105.00 or 100.00. In essence, 'stop-hunting zone' usually occurs in areas round figures favorite currency pairs (major and cross) with a gap of about 15 pips below and above the level of '00 '.
Usually when the price levels close to this zone, trading conditions begin to warm and dynamic. Condition 'stop-hunting' could happen at any time. Let's say the price of EUR / USD moves up close to current levels of 1.4500 and was still at the level of 1.4470. You could use the possibility of 'stop-hunting party' by placing an order 'stop-buy' at the level of 1.4815 or 1.4790 with a target of about 25 pips, and stop-loss is placed at the level of 1.4775 or 15 pips.
In the event of circumstances' stop-hunting party 'is usually the price will bounce up and continue through the level of '00' up to 15-20 pips so your profit target 30 pips can be achieved. Meanwhile, if the 'stop-hunting' is off your order may not have had executed, or if you just executed risk 15 pips only.
Of course this strategy can be used when prices move down to take a position of 'stop-sell' in the 'stop-hunting zone.
Usually resistant function to mark the level where price movements is difficult to penetrate to the top. Consequently, many traders that utilize resistant levels down to take a position as an entry with a stop-loss selling some point and the resistant. This condition is often exploited by the big players to take buying position in such a way that precisely prices continue upward move in a short time and make a lot of stop-loss affected liquidation before the price goes back down under resuistant. This is known as 'stop-hunting', a condition that often becomes a source of loss for beginner traders.
Well, you continue to complain of the stop-loss why you get 'stop-hunting' many times, so much better if you could be friends with the 'stop-hunter' this and use it to take advantage.
You can take advantage of the price level of '00 'as a' stop-hunting zone. Stop-hunting this zone could occur at the level of the price of EUR / USD 1.3900, 1.4000, or even 1500. For USD / JPY 110.00 price level can be either, 108.00, 105.00 or 100.00. In essence, 'stop-hunting zone' usually occurs in areas round figures favorite currency pairs (major and cross) with a gap of about 15 pips below and above the level of '00 '.
Usually when the price levels close to this zone, trading conditions begin to warm and dynamic. Condition 'stop-hunting' could happen at any time. Let's say the price of EUR / USD moves up close to current levels of 1.4500 and was still at the level of 1.4470. You could use the possibility of 'stop-hunting party' by placing an order 'stop-buy' at the level of 1.4815 or 1.4790 with a target of about 25 pips, and stop-loss is placed at the level of 1.4775 or 15 pips.
In the event of circumstances' stop-hunting party 'is usually the price will bounce up and continue through the level of '00' up to 15-20 pips so your profit target 30 pips can be achieved. Meanwhile, if the 'stop-hunting' is off your order may not have had executed, or if you just executed risk 15 pips only.
Of course this strategy can be used when prices move down to take a position of 'stop-sell' in the 'stop-hunting zone.
Comments
6 comments to "Stop Hunting - Make to Easy for Your Profit"
May 28, 2010 at 10:46 AM
Great Post. Very informative for me. I bookmarked your site.
June 5, 2010 at 1:24 AM
A key to becoming a successful forex trader is learning how to apply the various forex trading indicators available.
June 8, 2010 at 12:17 AM
Many thanks for sharing this useful article with us. Definitely if you want to do well in forex trading ,you should know about stop-hunting zone.
July 18, 2011 at 11:32 PM
Thank you. This is very useful. Stop hunting is a less commonly occurred in stocks, but I will be paying attention to this in forex!
July 28, 2011 at 1:54 PM
This is very true. You need to make your stops wide enough so that they don't get picked off. If you can't afford the stop, trade smaller lots.
December 6, 2011 at 10:22 PM
It is a great with with nice information. Thanks for sharing great information. keep it up
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