Quote from jfw215:
Mccullek,
I think I see what you mean. I was doing replay on NT and this got stop hunted. I marked it on the chart. Just a hypothesis, do you think its more likely to get stopped hunted if you're trading against the trend?
Thanks
JW
Quote from jfw215:
Great day man. I was curius, the 2nd and 3rd long you took seemed to be not with the trend... what was the thoughts behind that?
Quote from mccullek:
...it looks as if he had a bias by that time and was simply trying to get long on the break outs, rather than waiting on the pull backs to get a better entry and to prove out the trade. It's hard to tell from his charts, so I could be wrong about that.
Quote from mccullek:
I learned that from reading through Anek's posts over and over, so it's not my nugget. I'm just sharing what I learned here myself.
Quote from riaamaan:
I've noticed it too. There's a saying that goes "The second mouse gets the cheese". Anytime I see a place where there's a little bit of consolidation near a previous S/R, I wait. Why, because I see people getting short / long and then figure the MM's are going to tap the opposite side to catch a few weak ones before resuming trend. It is happening frequently of late.
Be the second mouse. The first one has his neck broken in the trap, but the cheese is still there.
Quote from mccullek:
Exactly, that's what I am talking about. Consider we are in an uptrend, and prices start pulling back, and then you get a bullish bar that makes a HH than the previous bar, so a lot of traders start going long again. Suddenly, prices turn back down and you get another bearish bar, but no down trend starts back up. It's just a one bar move back down again in most cases. Prices pull back just enough to take out all the stops on those that just got long, but then take off making another high. You might see this several times before prices actually start a solid up trend again.
If you see the prvious low taken out by a tick or two, but then the uptrend starts, that's definitely stop hunting, but I think the other I described is stop hunting as well. They clean out all the early longs, and then they tempt others that are less seasoned to jump back in short, only to whip saw them all. Look at some charts and see how many times this happens lately.
As most of you know, the best trades don't usually take any heat. You see the pull back ending, you jump on board, and off it goes. That just doesn't seem to happen much lately. It seems that it takes two or three tries to get on board now.