STOP HUNT MASTERY (PDF)
DEFINITION of 'Stop Hunting' by Investopia.com
‘Stop hunting is a strategy that attempts to force some market participants out of their positions by driving the price of an asset to a level where many individuals have chosen to set their stop-loss orders. The triggering of many stop losses generally leads to high volatility and can present a unique opportunity for investors who seek to trade in this environment.’
‘Slippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed. Slippage often occurs during periods of higher volatility when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade.’
Banks or the elite traders popularly known as the “Market Makers” manipulate price and trap traders because it is the only way to make massive transactions at a current price level that is desired. “Stop Hunting” a long holder triggers a Sell order because you have to sell in order for you to get out of that trade. While “Stop Hunting” a short holder triggers a buy order because you have to buy in order for you to get out of that trade to protect your account
Institutions understand the trading strategies that all retail traders use and they use these tools to their advantage to stop hunt. Just as they use support and resistance levels; they also trap traders at trendlines and the famous 61.8 fib retracement (the Golden Ratio”) can be used as another trap. Below are examples....
For the examples and clarification click the link below to download the pdf...
CLICK HERE TO DOWNLOAD
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practice this in a demo account and be consistent in the
demo using the strategy, don't just go on the rampage saying I now know
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