Stop loss hunting in forex, does it really exist?

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Able Trading stop loss hunting

The Hunted

 

How many times have you been trading forex or any other asset only to be stopped out by a pip or two?

Price heads to your stop loss & takes you out of the trade.

Then reverses almost, what seems immediately onto your original direction of analysis.

Sounds all to familiar and frustrating, am I right?

Able Trading stop loss hunting

This is a shake out.

Stop loss hunting exists.

Traders with experience know where traders with less experience place there stop loss orders.

And so, this can then be exploited.

AUDUSD Daily price chart

Above is the daily chart of the AUD/USD which demonstrates this.

I know this is after the fact. Hindsight analysis if you were.

But, go and have a look at your charts.

You will see this happen much more often than you think.

You will recognise this on most time frames too.

So, why does this happen?

This is due to professional traders knowing where retail traders (amateurs) are told by their brokers and other educators to place their stop.

Naturally, they will exploit this

They know below significant support and above resistance there will be lots of stop orders.

Traders who trade in large size (I’m talking millions of £/$) require liquidity to get their order filled and they want the best price.

Therefore they want to force some market participants out of the market.

Thus, triggering their stop-loss orders pushing price lower/higher they can take advantage of the liquidity and get a better price.

How to become the hunter and not the hunted?

I have extensive knowledge in this area and trade with the smart money.

If you would like to learn;

  • How I trade with the hunters and not the hunted
  • How I identifying the very same areas where you can exploit the same traders
  • A stop loss placement technique that keeps me in more trades and at no greater real risk
  • How I apply a simple set of conditions which defines entry, exit and risk before I take the trade

Then sign up for No subscription cost on the home page to be kept informed on my forthcoming course The Able Method.

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