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Old 23-02-2005, 13:36   #20
KPcurrency
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Re: Let's give "stop hunting" a rest

Maybe you should shift your focus. Do brokers hunt for stops? Could be yes, could be no. However, what we know for sure is , there are certain situations we as traders can avoid to cut down on the possibility of our stops being hunted.

1. You have all heard this before : Stay away from round numbers. Stops tend to be placed around round numbers and therefore easily hunted.

2. Try to avoid Fibonacci retracement areas. Again another oft used area for stops.

3. Look for markets that are moving on heavy volume. Look for markets where the market is facilitating price through time well. These are the times with the most movement and the times when it is least likely that a broker can hunt for stops. To much outside paper entering the market.
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