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All the dollar shorts sound like an opportunity.
Has anyone read some of the research on stops clustering near round numbers and the self reinforceing behavior of cascading stops?
The big banks are privy to were all the stop orders of their customers are and could place orders ahead of them in this kind of scenario.
Does anyone know of any ideas, web sites, or other resources on how this market structure could be inferred by us little guys and exploited?
I'm thinking of longer historical time frame support or resistance areas near round numbers. How can we know the most likely place the sheep are clustering their stops (typical/common strategies)?
From what I've read the BoJ triggers these kind of cascades in it's effort to keep the Yen weak - of course they probably lose a lot of money doing it.
Researching this is low on my to-do list right now but it would be nice to know where to go looking when I have time.
Thanks,
Ted
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